Huge growth expected in IoT space
Intel (INTC) expects more than 800 million households to be connected by broadband worldwide by 2018. According to the IDC (International Data Corporation), the IoT (Internet of Things) market is expected to reach $7.1 trillion in sales by 2020—up from $1.9 trillion in 2014.
According to BI Intelligence, connected-home device shipments are expected to grow at a compound annual growth rate, or CAGR, of 67% over the next five years. This is much faster than smartphone or tablet device growth. It’s expected to hit 1.8 billion unit shipments in 2019.
As a result, each organization is giving a different estimate. However, all of them are pointing towards higher growth in this space.
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Intel is heavily involved in the IoT space
Apart from developing its own platform of intelligent gateway solutions, that provide integrated and pre-validated hardware and software, Intel is also part of an IoT group—the Industrial Internet Consortium. The group is focused on the connectivity of industrial machinery. The other founding members include Cisco (CSCO), GE (GE), and IBM (IBM).
As we saw earlier in this series, Intel is going deeper into the IoT space. It’s developing its own platform. It also completed the strategic acquisition of Lantiq. It invested $740 million in Cloudera—a hadoop vendor—to strengthen its presence in the IoT space.
To enable organizations to implement IoT systems and to strengthen its presence in this space, Intel is working with leading players like SAP AG, Dell, Accenture (ACN), Capgemini, and NTT Data.