In many ways, smart objects have been employed for decades, such as electronic wristwatches, car alarms and coordinated traffic lights. What the IoT brings is a greater prevalence of smart objects and a higher connectivity between them. The installed base of Internet of Things connected devices and things stands at around 26 billion as of 2019 with forecasts suggesting that this number will nearly double by 2023. As of the end of 2018, the Communications segment accounts for the bulk of IoT devices followed by the Consumer and Commercial & industrial electronics segments, which account for 5.9 billion and 5.4 billion units respectively. There are many verticals of adoption for the IoT, from wearable devices, to smart cars, smart homes, cities and even industrial equipment.
The smart home / automated home market, another IoT vertical, is forecast to grow significantly over the next few years, with its video entertainment segment alone expected to grow from 157 billion U.S. dollars in revenue as of 2018 to over 190 billion by 2022. Additionally, the smart home automation market is projected to reach more than 28 billion U.S. dollars in revenue by that time. The use of IoT extends to all types of buildings, as well as to the automotive industry, creating not only smart homes, but also smart cars and offices, and eventually smart cities.