In many ways, smart objects have been employed for decades, such as electronic wristwatches, car alarms and coordinated traffic lights. What the IoT brings is a greater prevalence of smart objects and a higher connectivity between them. The installed base of active Internet of Things connected devices is forecast to reach 21.5 billion units by 2025. As of the beginning of 2018, the Communications segment accounts for the bulk of IoT devices followed by the Consumer and Commercial & industrial electronics segments, which account for 5.9 billion and 5.4 billion units respectively. There are many verticals of adoption for the IoT, from wearable devices, to smart cars, smart homes, cities and even industrial equipment.
The smart home/home automation market, another IoT vertical, is forecast to grow significantly over the next few years, reaching an expected overall market revenue of 157 billion U.S. dollars by 2023. Additionally, the smart home control and connectivity segment is projected to reach more than 30 billion U.S. dollars in revenue by that time. The use of IoT extends to all types of buildings, as well as to the automotive industry, creating not only smart homes, but also smart cars and offices, and eventually smart cities.