The Internet of Things (IoT) continues to gain momentum as organizations and IT vendors begin to embrace the opportunities the market presents, according to new research from International Data Corp. Indeed, the worldwide IoT market will grow from $655.8 billion in 2014 to $1.7 trillion in 2020. That amounts to a compound annual growth rate (CAGR) of 16.9%, IDC found.

Devices, connectivity and IT services will make up the majority of the IoT market in 2020, the study says. Together, they are estimated to account for more than two-thirds of the worldwide IoT market in 2020, with devices (modules/sensors) alone representing 31.8% of the total. By 2020, IDC expects IoT platforms, application software and "as-a-service" offerings will capture a larger percentage of revenue.

"While wearable devices are the consumer face of the Internet of Things, and where recognition of IoT appears to begin, the real opportunity remains in the enterprise and public sector markets," Vernon Turner, senior vice president and research fellow (IoT), Enterprise Systems at IDC, said in a statement.

"The ripple effect of IoT is driving traditional business models from IT-enabled business processes to IT-enabled services and finally to IT-enabled products, which is beginning to disrupt the IT status quo," Turner said.

IDC has identified the IoT ecosystem as containing a complex mix of technologies including modules/devices, connectivity, IoT purpose-built platforms, storage, servers, security, analytics software, IT services and security.

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