Central regions | Finance, business | Technology & innovation
Estimates for IoT market in Russia: growth proven, but not as fast as expected
24 Aug '17
Experts at iKS-Consulting and Orange Business Services have unveiled estimates for the 2017 Internet of Things market in Russia’s large-scale business segment. They expect it to reach just under $350m, Firrma reported.
Transport is predicted to gain most from IoT solutions this year: $218+m, followed by industry ($60m), “smart” real estate ($35m), finance ($19+m), and retail ($11.7m). Agribusiness is expected to lag behind with just $1.7m. The expert estimates do not take into account government-initiated projects and SMEs.
The forecasters believe Russia’s corporate IoT market will be growing at a CAGR of 12% and could reach $500m by 2020. Earlier expectations by market player were no less than 15-20% annual growth. Orange Business Services reckons the obvious overestimation stems from the “possible underestimation of constraints.” For example, in industry it’s “archaic standardization requirements and obsolescence/dilapidation of production assets” that rein in the introduction of IoT solutions; in agriculture, it’s a “low level of sectoral computerization.”
That said, constraints are not expected to derail plans in the transport sector to boost yearly IoT connections from this year’s 2.3 million to 3.2 million in 2020, and in retail from 1.4 million to 4 million, respectively.
According to a PricewaterhouseCoopers estimate, the cumulative effect of IoT introduction in Russia’s economy will be worth around $47bn by 2025. For the electrical energy sector, it is expected to reach $8.9bn, for health care about the same amount, for agriculture $7.8bn, and for transport $9bn.
The Internet of Things (IoT) is a system that brings together computer networks and web-connected physical objects with an array of built-in sensors and special software. The standard helps gather and process data without human involvement. According to various estimates, by 2020 there will be anything between 20 and 50 billion connected devices.