According to Gartner, digitilisation will significantly change the landscape of the IT industry through emerging concepts such as the Internet of Things.
While IT spending in Europe, the Middle East and Africa (EMEA) will witness an average annual growth rate of 2.2 per cent through 2017, the Internet of Things (things, people, places and systems) will create new markets and a new economy. Peter Sondergaard, senior vice-president and global head, research, Gartner, says, ?The growth in the IT industry is not going to come from traditional IT technologies but from the non-traditional IT market. While in 2015 the combined IT and telecom market will hit nearly $4 trillion, the incremental revenue generated by the Internet of Things? vendors is expected to reach $309 billion per year by 2020.?
Sondergaard, adds, ?Out of the total spends half of the revenue will be contributed by new start-ups. Services will account for 80 per cent of the revenue as against 20 per cent by the products.?
Gartner states that in 2009, there were 2.5 billion connected devices with majority of these being mobile phones, PCs and tablets. In 2020, the number of connected devices is expected to reach over 30 billion devices. The research firm expects the Internet of Things to add total economic value of $1.9 trillion in 2020. Industries including manufacturing (15 per cent), healthcare (15 per cent) and insurance (11 per cent) are leading the adoption of the Internet of Things.
