The connected devices revolution has already begun, and research firms are portraying a rosy picture of IoT industry. By 2025, global IoT market is estimated worth $300 billion, a 150% increase from $120 billion in 2015.

The growth of IoT sector can be evaluated with the fact that that total global IT spending is estimated to grow from $3.3 trillion in 2015 to $4.8 trillion by 2025, and IoT market is estimated to account 7% of it.

The growth will primarily be driven by the use of sensors, cameras, and platforms that are designed to collect data and send alerts for all manner and management of devices and machinery. It’s estimated that global IoT sensor market will reach $27.38 billion by 2022, with a CAGR of 24% between 2017 and 2022.

Retail, Aviation and Automobile are the top 3 industries where the impact and adoption of IoT would be significant. It’s expected that companies and startups will have maximum opportunities in these sectors due to the willingness of welcoming innovation as a result of increasing competition. By 2022, global IoT in the automobile is poised to reach $83 billion, growing at a CAGR of 27%.

The Retail sector which is going through a paradigm shift, will have over 12 billion business assets connected to IoT platform by 2021, a rise of 350% from 2016.

So, what are key factors that would be driving this unprecedented growth of IoT sector?

Industry analysts believe while it’s too early to say anything conclusive, some factors are going to have a significant impact on the overall IoT market:

Advancement in hardware with lowering cost

Ubiquitous adoption of gateway devices

Improved broadband connectivity and implementation of IPv6

Exploded adoption of Cloud computing

But, not everything falls in favour of IoT currently. The industry is staring to the some of the big challenges as well. The absence of a common set of standards, technologies for compatibility is the biggest hurdle that industry will have to overcome. Though some of the leading tech giants, including IBM, Intel and Google, are already in this direction, the growth of IoT industry will only accurate once startups and companies would abide by these standards.