Intelligent Systems Transforming the Embedded Industry and Driving the Value Among M2M and the Internet of Everything

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Intelligent Systems Transforming the Embedded Industry and Driving the Value Among M2M and the Internet of Everything

IDC study finds that billions of new users and billions more machines will drive the intelligent systems market to over 5 billion units and nearly $2.4 trillion in revenue by 2017.

Among the billions of user-driven and machine-driven systems that will connect to the Internet and conduct transactions in the Internet of Everything market over the next five years, the real value will be captured primarily by intelligent systems, according to a new International Data Corporation (IDC) study, The Rise of Intelligent Systems: 2013–2017 Market Forecast and Analysis.

IDC launched the new report at the third annual SMART TECHnology World conference taking place in Menlo Park, California today and tomorrow. SMART TECH is the only executive-level conference focused on intelligent systems and so it provides a unique venue for decision makers from various industries to network, collaborate, and share their perspectives on the opportunity for technology suppliers and vendors in the intelligent ecosystem.

The market for intelligent systems – those enabled with high-performance microprocessors, IP connectivity, and high level operating systems – will grow from 3.5 billion units and $1.7 trillion in revenue this year to more than 5 billion units and nearly $2.4 trillion in revenue by 2017, according to IDC’s report.

“Among the systems in the Internet of Everything and between the systems communicating in M2M communications, intelligent systems are the main drivers of value across the Internet and the dominant electronic systems on the IoE roadmap and in machine-to-machine (M2M) interactions,” said IDC Research Vice President Shane Rau. “They drive a richer user experience and provide the user with relevant data to optimize the value of a transaction or workload.”

In 2013, of 9.1 billion total Intelligent System and Traditional Embedded systems, intelligent systems will represent nearly 39% of units but nearly 73% of $2.3 trillion in revenue. In 2017, intelligent systems will represent 46% of nearly 11 billion total units and over 87% of $2.7 trillion in revenue.

“Our findings clearly show that intelligent systems bring back more ROI for OEMs and supply chain vendors who invest in them,” said Mario Morales, vice president of IDC’s Semiconductors and Enabling Technologies research group.

“The evolution of intelligent systems embodies a vision of computing that surrounds us and is adaptable and autonomous. Vendors in the intelligent ecosystem see that an inflection point is coming for this market.”

IDC’s report, The Rise of Intelligent Systems: 2013–2017 Market Forecast and Analysis (IDC #241359) centers on the transformation of major segments of the traditional embedded systems market into major segments of the Intelligent Systems market. This study sizes and forecasts the traditional embedded systems and intelligent systems markets segmented across eight major industries. It also identifies key steps that companies must take to capture the growth of the intelligent systems market.

The study also puts the Intelligent Systems market in context with machine-to-machine (M2M) communications and the broader vision of the Internet of Everything (IoE), which includes the Internet of People (IoP) and the Internet of Things (IoT).

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