The IoT Value Chain and What It Means for Telecom Service Providers
When we think of the Internet of Things (IoT), we tend to think of its potential to affect consumers. Your fitness tracker talks to your healthcare providers. You hop in your car and it drives you to work.
But businesses are equally benefiting from the IoT. In fact, most IoT market potential will be found in enterprises as companies use it to drive operational efficiency and introduce new connected products and services while enhancing customer experience.
Ericsson’s recent research on the IoT forecasts that by 2026, there will be 20 billion IoT connections worldwide, up from 7 billion in 2017. This 20 percent compound annual growth rate (CAGR) means that connecting these devices and helping them communicate is going to be big business. The research also predicts that telecom service providers will be looking at a $619 billion industry digitalization market by 2026, a 35 percent bump compared to the revenue from their services today.