In some ways, trying to estimate connectivity provider revenue from internet of things devices is difficult. Some consider PCs and smartphones part of IoT, or tablets and other internet media devices. Some consider smart watches IoT devices. I personally do not use that definition, which seems to me to be legitimate as a way of describing “devices connected to the internet,” but not IoT.
My own definition is narrower, essentially representing machines that talk to other machines, without direct human input. Sensors are the best example, whether industrial, automotive, for parking, traffic control, temperature monitoring, vibration monitoring, battery status or machine functioning.
Devices supporting “smart home” or anything else “smart” (parking meters, traffic cameras or home security) would be IoT. There are other issues.
Many IoT sensors will not require their own internet access connections, which drive incremental revenue for connectivity providers. They can use Wi-Fi, short range connectivity such as near field communications or Bluetooth, for example.
In some cases they might use Ethernet connections. In other cases specialized low power wide area networks will supply the connectivity, not a fixed telecom network or a mobile network.
The point is that an IoT device connected to the internet does not automatically represent an incremental revenue opportunity for a service provider (telco, cable, satellite or LPWA provider). This breakout by IoT Analytics is similar to my own approach, and does not count smartphones, tablet connections, PC connections or fixed network voice connections.
In fact, most IoT connections will not use a telco, cable, satellite or LPWA connection, but only a local wireless connection. Those devices will, in an indirect way, make use of whatever internet connectivity circuit happens to be purchased by the person, household or organization or business. The key point is that an IoT connected device does not automatically create an additional service provider access circuit.
The IoT Analytics forecast suggests somewhere between 25 percent to 30 percent of IoT devices will require a dedicated access connection.
The point is that definitions matter where it comes to estimating the number of connected IoT devices in use. Connection choices likely are even more important. Not every IoT device--perhaps most--will need its own dedicated connection, which has implications for connection revenue upside.
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