Firms have 'no choice' but to pursue IoT - Gartner

Almost five billion connected 'things' will be in use next year

The Internet of Things (IoT) trend is accelerating at such a pace that businesses now have "no choice" but to pursue it, according to Gartner.

Next year alone, 4.9 billion connected "things" will be up and running, up 30 per cent on this year, the analyst said, adding that by 2020 the number of connected devices will rocket to 25 billion.

Gartner said IoT is now too big to ignore.

"The digital shift instigated by... cloud, mobile, social and information – and boosted by IoT – threatens many existing businesses," said Gartner analyst Jim Tully. "They have no choice but to pursue IoT, like they've done with the consumerisation of IT."

The booming IoT trend will prompt total services spending of $69.5bn (£43.9bn) next year and a whopping $263bn five years later, mainly driven by adoption among enterprises, Gartner said.

Gartner fellow Steve Prentice warned that businesses need to fully commit to the technology before they can reap the rewards.

"...The most disruptive impact and competitive threats – and, equally, the greatest competitive opportunities – arise not from simply digitalising a product or service, but from creating a new business model and value proposition," he said.