IoT Applications Expected to Swarm Networks

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Global annual IP traffic to exceed three zettabytes.

According to today’s release of the Cisco Visual Networking Index VNI Complete Forecast, the demands and requirements of IP networks will be significantly impacted by global digital transformation over the next five years (2016-2021), and the IoT is right at the top. 

Greater adoption of machine-to-machine connections, from 17.1 billion in 2016 to a projected 27.1 billion in 2021, is one of several top-level indicators, along with an estimated increase in Internet users from 3.3 to 4.6 billion or 58 percent of the global population, increased video viewing, and broadband speed advances. Over the forecast period, global IP traffic is expected to increase three-fold reaching an annual run rate of 3.3 zettabytes by 2021, up from an annual run rate of 1.2 zettabytes in 2016.

M2M connections that support Internet of Things (IoT) applications are projected to be more than half the total 27.1 billion devices for the first time and those connections and will make up 5% of global IP traffic by 2021. What’s behind this growth? Smart homes, cars, buildings, manufacturing and other M2M services including connected healthcare combining for a 2.4 increase from 5.8 billion last year to 13.7 billion by 2021.

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The health vertical will be fastest-growing industry segment (30 percent CAGR). The connected car and connected cities applications will have the second-fastest growth (29 percent CAGRs respectively), said the report.

“As global digital transformation continues to impact billions of consumers and businesses, the network and security will be essential to support the future of the Internet,” said Yvette Kanouff, SVP and GM of Service Provider Business, Cisco. “Driving network innovation with service providers will be key for Cisco to support the needs of their customers who want reliable, secure, and high quality connected experiences.”

Related:

IoT devices expected to swamp mobile lines

IoT connectivity: what’s the frequency?

Sue Walsh

About Sue Walsh

Sue Walsh is News Writer for RTInsights, and a freelance writer and social media manager living in New York City. Her specialties include tech, security and e-commerce. You can follow her on Twitter at @girlfridaygeek.

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