Investment in smart systems and the Internet of Things is expected to greatly outpace traditional information and communications technology investment over the coming years. Smart systems involve connecting various inputs like machines, sensors, and devices to networks to enable collective awareness. By 2015, it is estimated that over 20 billion intelligent devices like smartphones, tablets, sensors and more will be shipped annually. This growth of smart devices will drive investment in smart systems to be at least twice the rate of traditional ICT spending between 2009-2014. Areas like value added services, system applications, and device enablement are expected to see especially strong growth within the smart systems market.

1. Scaling The Smart Systems Opportunity
Investment In Smart Systems & The Internet of Things Will Outpace Traditional ICT
Scope of Smart Devices Driving Smart Systems Investment Profile For Smart Systems
These forces are informing a new trend we call “Smart Business.” In its simplest Harbor believes Smart Systems will drive a multi-year wave of growth based
form, Smart Business is a concept in which inputs—from machines, people, on the convergence of innovations in software architectures; back-room in-
video streams, maps, newsfeeds, sensors, and more—is digitized and placed frastructure; wireless and broadband communications; and, smaller, and nu-
onto networks. These inputs are integrated into systems that connect people, merous client devices connected to personal, local and wide area networks
devices, business processes, and content to enable collective awareness.
Intelligent Smart Device Hierarchy Global ICT & Smart Systems Spending
Global ICT and Smart Systems Spending
(Potential Unit Shipments 2015) (US$, Billions, 2009-2014) 2009-2014)
(US$, billions,
Intelligent Device Hierarchy 2015 Potential * 3100
Mobile Phones,
Smart Phones,
Notebooks
Mobile Terminals
Tablets, Mobile
Smart Systems Will Grow At A Rate At
Media Players Info
Devices Least Twice That of Traditional ICT
6 – 7 Billion * 2450
Desktop PCs
Servers/Storage
Comm Equip
Routers/Switches/Gateways $330
Printers/Imaging Static Info $350
Game/Media Equipment & Players Appliances Computing Equip
$340 Value Added Services $205
Consumer/Commercial Vehicles
Off-Highway Vehicles
Air/Rail/Transit/Marine Software
Technology System Applications $48
Navigation Systems $380
Mobile Healthcare Devices Mobile Devices Spending for Network Services $70
2 - 3 Billion * Smart Device Enablement $28B
Building Equipment IT Services
Retail/Vending/POS/ATMs Systems
Industrial Machinery $420 Today
Healthcare Equipment
Power Distribution Equip Static Devices Comprises Core Technology For Intelligent
Infrastructure Equipment As Much As Device Integration & Services
5% or Total
Controllers Carrier &
Sensors, 20 billion ICT Spend
Network Services
Instruments
$940
Meters To Avoid Double Counting,
Microprocessors Embedded Devices
Embedded Components Are A
Microcontrollers Sub-Set Of The Overall
Opportunity 2009 2014
* Annual unit Shipments in 2010
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