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Data for today’s episode is provided by Mercator Advisory Group’s report –IoT Payments: Taxonomy Driven Market Size and Company Rankings
How Many Billions in IoT Payments Will There by 2024?
- Currently, internet of things payments constitute just $5.76 billion in payments in 2019.
- But with a compound annual growth rate of 5.8%, the segment is growing fast.
- By 2024, IoT payments are forecasted to grow into a $7.56 billion market segment.
- Automotive electrical equipment, specifically telematics devices purchasing casualty insurance, compose the majority of the $5.76 billion (~7% YoY) 2019 U.S. IoT payments market.
- Of companies that are engaged in IoT payments, IoT payments are estimated to make up 4.5% of company revenue.
- The relatively simplistic closed loop model of IoT payments is the primary implementation method today.
- The more complex models of IoT payments are typically predicated on blockchain and smart contracts, which have a delayed market entrance.
IoT payments continue to drive increased revenue. Mercator research indicates IoT payments are growing up to 15% YoY and are part of strategic plans for Fortune 500 companies, some of whom indicate in annual reports that they expect IoT to disrupt existing markets.
Mercator Advisory Group’s latest research report, IoT Payments: Taxonomy Driven Market Size and Company Rankings, delivers taxonomy driven market research that provides IoT payment market size by year, company, origination product, NAICS code, and as a percent of company revenue. The taxonomy utilized will enable Mercator to conduct industry specific competitive research projects and will dovetail that research with all other research performed using the NAICS database.
“Fortune 500 company innovation and growth strategy plans involve IoT payments. Companies see initiatives involving IoT payments as a way to differentiate and grow new business. Of the companies and IoT payments examined, IoT payments grew at an estimated 7% (2018-2019),” comments David Nelyubin, Research Analyst at Mercator Advisory Group and one of the authors of the report.