There is huge revenue potential for Internet of Things service providers willing to leverage wearables and machine-to-machine (M2M) opportunities, according to SNS Research. In a new report, the organization predicts that by 2021 such companies could be making $231 billion from services alone.
One major avenue for service revenue lies in network connectivity for IoT-enabled M2M devices —an area that companies like Ericsson and Orange are already starting to explore intensively. Another major opportunity lies in monetizing wearables—already a growing market—by routing vast amounts of traffic through such devices and enabling M2M services therein. All told, these areas could help to drive annual growth of 40 percent (CAGR) between 2015 and 2020, according to the report.
It’s another very enthusiastic take on the many opportunities unfolding as the IoT begins to take shape. While challenges lie ahead in ensuring compatibility and interoperability between devices, there’s no denying that IoT-ready products like wearables are already flooding into the market, and enhancing connectivity between IoT devices—say, between a wristband and sensors built into a smart building, for example—could yield great results in the near future.