There was a time when connectivity was oriented to location, with stationary computers communicating with one another across the Internet. With the advent of smart phones, the Internet tied people, not places, together as users accessed the Internet on the move. Now, the next great shift is underway to the Internet of Things (IoT), in which not just people but machines and devices will communicate over the net.

"IoT is not a specific component or technology; it's a conceptual framework," says Bill Morelli, associate director of information technology and telecommunications at IHS in Austin, Texas. "It's about enabling connectivity and embedded intelligence in devices." Much of the buzz about IoT focuses on the consumer space, but the industrial IoT promises to dwarf the consumer market share within a decade. IHS predicts that by the year 2025, the number of industrial IoT devices shipped annually will reach 5.4 billion, for a total installed base of 48.2 billion.

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