The phrase “Internet of Things” has arisen to reflect the growing number of smart, connected products and highlight the new opportunities they can represent.
It is the expanded capabilities of smart, connected products and the data they generate that are ushering in a new era of competition.
The Internet of Things envisions a world where both ordinary and exotic devices are connected wirelessly to the Internet and to each other. This means devices that do not already have a network connection may have one added in the future, when it is logical and appropriate to do so.
For example, an IoT device could be a temperature gauge, a location sensor, a device measuring humidity, or an integrated circuit that checks vibration.
One or all of these sensors could then be attached to manufacturing machinery, and the data transmitted would help a business track the machine’s operations. This data could track required maintenance, improve production efficiencies, reduce downtime, increase safety, and more. Plus, IoT devices may provide information on the ambient environment of the manufacturing space, such as the temperature, pollution, and other conditions near the machinery, which may be particularly relevant for remote installations. 
During the first wave of IT Driven competition in 1960s and 1970s , automated individual activities in the value chain, from order processing and bill paying to computer-aided design and manufacturing resource planning led to dramatically increased productivity of activities.
The second wave came as a result of the rise of the internet during the 1980s and 1990s, enabling coordination and integration across individual activities, with out side suppliers, channels, and customers; and across geography. It allowed firms, for example, to closely integrate globally distributed supply chains.
Now, the third wave, has seen IT becoming an integral part of the product itself. Embedded sensors, processors, software and connectivity in products, coupled with a product cloud in which product data is stored and analysed and some applications are run, are driving dramatic improvements in product functionality and performance. Massive amounts of new product usage data enable many of those improvements. Another leap in productivity in the economy will be unleashed by these new and better products. In addition, producing them will reshape the value chain yet again, by changing the product design, marketing, manufacturing, and after sales service and by creating the need for new activities such as product data analytics and security.
The third wave of IT-driven transformation thus has the potential to be the biggest yet, triggering even more innovation, productivity gains, and economic growth than the previous two.
Increased from 6 billion device connections in 2015 to 27 billion device connections in 2025, a CAGR of 16%. 
Increased from USD 750 billion to USD 3 trillion in 2025. USD1.3 trillion will be directly derived from end users in the form of devices, connectivity and application revenue. 
Increased to 2 zettabytes (200,000 petabytes) by 2025, mostly generated by consumer electronics devices. 
ThingWorx® IoT platform, has amassed 27% market share through 2015, more than double the share of the next largest provider. 
 “ Machina Research Expands the Scope of Its IoT Forecasts and Highlights a USD 4 Trillion Revenue Opportunity in 2025,”
Machina Research, May 3, 2016. View the press release here.
 The market share figures were reported in BCC Research’s Technology Platforms for the Internet of Things report published in June 2016.
 Hosain, S. (2016). The Definitive Guide to the Internet of Things for Business. 2nd ed. Santa Clara: Aeris, p.9.