ABI Research predicts that global revenues from the integration, storage, analysis and presentation of Internet of Things (IoT) data will grow at a compound annual growth rate (CAGR) of 29% through 2021, exceeding $30 billion by that time.
“Descriptive analytics currently generate more than 75% of IoT analytics revenue,” said Ryan Martin, senior analyst at ABI Research. “But over the next five years, rapid uptake of advanced analytics will overtake descriptive analytics’ share of revenue to the extent that predictive and prescriptive analytics will account for more than 60% of IoT analytics revenue by 2021.”
The general shift from batch to event-based processing signals a growing interest in real-time/streaming analytics as a means to IoT value creation, the report says. ABI Research data analysis suggests that early adoption of predictive and prescriptive analytics is occurring in industries where IoT efforts are more mature.
Growth is specifically targeting asset-intensive industries in which machinery cost is high, such as within the industrial, manufacturing, field, oil, and gas sectors, ABI says.
“The need to harmonize IoT ecosystem components without creating or simply shifting the bottlenecks that come with the management of high-velocity variable data puts pressure on connectivity providers, edge analytics platform players, and system integrators to stand up new and distributed frameworks,” Martin said. “The purpose of these frameworks is to not only support and add value to data, but to also be able to do so at any level.”
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