Gartner Research

Market Trends: Differentiate Within Vertical Industries by Leveraging on Internet of Things

Published: 17 December 2014

ID: G00264429

Analyst(s): Jeffrey Roster, Katell Thielemann , Kenneth Brant , Venecia Liu , Derry Finkeldey , Vittorio D'Orazio , Jennifer Mazzucca, Anurag Gupta , Rajesh Kandaswamy


The Internet of Things ecosystem will transform vertical industries, and market strategists within technology and service providers need to be aware of the new opportunities and challenges that need to be overcome in order to succeed in this evolving market.

Table Of Contents


  • Why Now?

Market Trend

  • IoT Adoption Is Growing, With Manufacturing and Utilities Estimated to Have the Largest Installed Base of Things by 2020
  • Industry Executives Are Struggling to Identify the Viable Business Models Created by Availability of a "Connected Asset"
  • IoT Is Facilitating the Industries' Transition From a Technology Focus to a "Business Outcome" Focus
  • Industries Are Witnessing the Rise of "Nontraditional Sellers" and Are Propelling the Blurring of Traditional Industry Boundaries
  • The Future Is Promising, but Challenges Remain
  • Buyers' Trend
    • Think Like Your Customer; Different Industries Have Different Drivers
  • Technology Trend
    • Hardware — Mainly the Chip Industry — Will Be in the Limelight Initially, but the Real Financial Opportunity Will Be in the Services and Analytics Domain

Contrarian View

  • If Your Washing Machine Is Connected to Your House and in Turn Is Connected to Your Bank Accounts, What Happens If One of Them Is Breached by a Hacker, and Whose Responsibility Will That Be?

Vendors to Watch

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