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The number of worldwide IoT connections will be reaching more than 25 billion by 2025 from 6.3 billion in 2016, driven by the industrial IoT market – generating $1.1 trillion in revenue.

GSMA Intelligence said the Asia Pacific region is forecast to become the largest global IoT region in terms of both connections and revenue. GSMA report did not mention about the IoT revenue at present.

IoT revenue will boom as the Internet of Things (IoT) market globally will be shifting from connectivity to platforms, applications and services in phases.

“The IoT revenue opportunity is shifting away from simply connecting devices to addressing specific sectors with tailored solutions, and successful ecosystem players will need to adapt their business models in line with these market trends,” Sylwia Kechiche, principal analyst, IoT, GSMA Intelligence, said.

Connectivity revenue will only account for 5 percent of the total IoT revenue opportunity by 2025, underscoring the need for operators to expand their capabilities beyond connectivity in order to capture a greater share of market value.

The platforms, applications and services segment will capture 68 percent of the total IoT revenue by 2025. This category spans multiple IoT layers such as platforms; application services; cloud; data analytics; and security.

IoT professional services – which include system integration, managed services and consulting – will account for 27 percent share of total IoT revenue by 2025.

The industrial IoT will have 13.8 billion connections, while the number of IoT connections in the consumer segment will be 11.4 billion, driven by the smart home market.

The GSMA report is silent about the role of 5G networks that are expected to boost the growth of IoT deployments among enterprises.