The market, estimated to be $1.3 trillion (roughly Rs. 79,91,100 crores) in 2013, is expected to grow at a compound annual growth rate (CAGR) of 13 percent to reach $3.04 trillion in 2020.
The installed and connected base of IoT units will reach approximately 30 billion by the same time.
IoT is a network of devices/networks that communicate without human interaction using IP connectivity.
The IoT ecosystem includes intelligent systems, network equipment, connectivity services, data integration, and often other types of software, applications, services and security.
"The opportunities presented by IoT are driving widespread attention among both traditional and non-traditional Information and Communication Technology (ITC) vendors looking to take advantage of the emerging revenue opportunities," said IDC's Vernon Turner, Senior Vice President, Enterprise Infrastructure, Consumer, Network, Telecom and IoT Research.
As IoT moves beyond the hype and promise, a variety of vendor strategies and key players will emerge to find success in meeting customers' needs as well as growing new revenue streams from this net new market opportunity, he said.
"We're still in the early stages of maturation and IoT represents unparalleled opportunity in government, consumer, and enterprise environments," he added.
The homogeneity of connectivity needs has allowed the North American market to sidestep border-driven IoT adoption challenges and set the groundwork for IoT market growth.
On the other hand, government mandates and more openly eco-conscious cultures will drive Western Europe and Asia Pacific to outpace North America in terms of IoT revenues and installed base through 2020, IDC said.
"There will be no one leader in this market. The market will rely on partnerships, federation, and innovative services to create truly valuable IoT solutions," IDC Vice President, IoT and Mobile Service and Infrastructure, Carrie MacGillivray said.
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