According to new research from IDC a transformation is underway that will see the worldwide market for the ‘internet of things’ (or IoT) solutions grow from $1.9 trillion in 2013 to $7.1 trillion in 2020. The buzz is becoming a reality. Consumers are already experiencing IoT in the home, car and even as wearables and IDC says that individuals around the world are developing a high affinity for full-time connectivity, which makes the IoT an attractive proposition.

IDC defines the ‘internet of things’ as a network of networks of uniquely identifiable endpoints (or “things”) that communicate without human interaction using IP connectivity – be it locally or globally. Its research examines the full gamut of the IoT ecosystem, including intelligent and embedded systems shipments, connectivity services, infrastructure, purpose-built IoT platforms, applications, security, analytics, and professional services.

IDC says businesses are intrigued by the efficiencies, business process implications, and revenue opportunities that IoT solutions can generate.

“Businesses are taking the necessary steps to gain a deeper understanding of IoT and the overall value,” said Vernon Turner, senior vice president of IDC’s enterprise infrastructure, consumer, network, telecom & sustainability research. “Technology vendors are evolving their solutions in a supply-driven market that’s edging toward becoming a more demand-driven market.”

The research also shows that the worldwide IoT installed base will experience a compound annual growth rate (CAGR) of 17.5 percent from 2013 to 2020 and developed regions currently represent approximate 90 percent of all units.

It says that between 2013 and 2020 it expects product offerings will increasingly be differentiated and competition will generally intensify, particularly around holistic solution offerings that incorporate smart analytics and applications.