LONDON—What’s the market value for the Internet of things?
It’s $3 trillion by 2025, reports Machina Research, which has actually lowered its revenue forecast for connected devices and the services that come bundled with them.
Fortune reported that last year Machina Research predicted this devices-and-services segment would be worth $1.6 trillion in 2024, but recently said it would only be worth $1.3 trillion in 2025. The other $1.7 trillion of the $3 trillion total will come from associated services such as hosting, application development, and consultancy.
“One reason our forecasts are coming down a little is because the smartphone is taking on a bigger role than we foresaw,” Margaret Ranken, an analyst with Machina Research, told Fortune.
“For example, in a connected car, we now see fewer connected devices for things like navigation, because people are using smartphones instead. In connected health, we had imagined some dedicated devices that have been knocked out of our forecast, such as connected medicine dispensers—there’s a potential market for reminding people to take their medicine on time, but also now a lot of apps will do that more cheaply,” she told the publication.