The Number of Deployed IoT Devices to Drop Significantly in 2020

The number of new IoT devices to be deployed in 2020 is likely to drop considerably and there’s a single culprit — the COVID-19 pandemic affecting all aspects of the global economy.

In the past few years, we’ve heard the same thing over and over again. The number of IoT devices is skyrocketing, and will explode in the next decade. The numbers were crunched in an era when COVID-19 didn’t exist, but the world is now different, so those numbers have to be adjusted.

The latest estimate comes from ABI Research, which says an 18% drop in the net addition of IoT devices in 2020 is likely to occur. IoT devices cover a large assortment of hardware but include both consumer and industrial applications. Both of these markets have contracted sharply, and will take a while to return to normal.

The effect on the IoT market is a conjunction of factors, including supply-chain interruptions, manufacturing shutdowns, and a shift in global availability and demand.

“Proportionally, the most heavily impacted markets will be fleet and other heavy vehicles/equipment,” states the research. “These are expensive assets that enterprises are buying less of in the interests of cost control. Fixed assets, digital signage, and kiosks also face huge impacts, as they are driven by an entertainment and retail sector that has been effectively put on hold by the massive reduction in personal mobility and footfall, and increased emphasis on online shopping.”

The auto industry is also affected because demand for cars, including connected vehicles, dropped significantly. On the other hand, people spend a lot more time at home, and they want to improve the houses with IoT devices, leading to an increase in demand in the consumer market.