Internet of Things (IoT), which enables any physical electronic device with a valid IP address to transfer data seamlessly over a wireless network, is the latest in the league of service and business models that is rapidly gaining market traction. According to a recent report by research firm International Data Corporation (IDC), worldwide spending on IoT is slated to grow at a 17% compound annual growth rate (CAGR) to nearly $1.3 trillion in 2019 from $698.6 billion in 2015.
Next-generation superfast wireless networks (4G LTE, LTE-A, upcoming 5G) will provide the primary impetus to the telecom industry. In this context, Internet of Things (IoT) holds potential to be the numero uno factor driving future growth in the space. The IoT is a network of physical objects embedded with electronics, software, sensors and connectivity that enables it to achieve greater value and service by exchanging data with other connected devices.
As per the IDC report, currently, the Asia-Pacific region is the key growth area for IoT with an investment of approximately $280 billion, followed by North America and Western Europe, which are jointly spending in excess of $250 billion. Industry vertical wise, the manufacturing sector has seen the highest in IoT spending with around $165.6 billion, followed by the transportation sector which has recorded an investment of $78.7 billion.
At present, deploying innovative connectivity platforms to deliver seamless, fully integrated mobile communication with global networking has become crucial to the success of wireless service providers. Massive growth of 4G LTE (Long-Term Evolution) and LTE-A (Advanced) networks across the globe will lead the smooth transition from 4G to the upcoming 5G network standard. Superfast 5G mobile networks will be of utmost necessity in managing the exponential growth of IoT.
U.S. telecom behemoths like Verizon Communications Inc. VZ and AT&T Inc. T, network infrastructure giant Cisco Systems Inc. CSCO and UK-based global telecom operator Vodafone Group plc. VOD are poised well to benefit from the IoT boom.
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