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economic growth
Modelling the impact on business productivity
Authors www.gsmaintelligence.com
Summary
1 The world economy benefited by $175 billion in 2018 from the productivity
benefits to businesses from the use of IoT. This is equivalent to 0.2% of GDP.
Governments can encourage further economic growth: the right policies can
4 stimulate IoT adoption by businesses – this can sharpen their countries’ business
sector competitiveness and result in higher tax revenues.
Contents 1 IoT and economic growth
4 Our Methodology
5
4%
• There is a broader slowdown in
economic productivity occurring in 3%
22
• Industrial IoT connections will lead overall 20
growth, on average 21% per year between 17 14
2017 and 2025. 15 12
10
• As a result of this significant growth, IoT
11
13
8
connections for industry will account for over 9 6
7
4 Our Methodology
10
0.4% 0.5%
0.4%
0.4%
80
economic output.
0.4%
0.3%
70
•
0.3%
92 0.2%
0.1%
0.1%
adoption rate than other sectors.
40
0.2%
0.1%
30
38
0.1%
7
further productivity gains if adoption 15
0.1%
10 10
10
increases significantly.
0 0.0%
•
0.27%
While growth will be strong in some Asia Pacific 0.20% 0.20%
MENA 0.18%
developing regions, it is from a low Latin America 0.17%
base. Europe 0.16%
CIS 0.12% 0.11%
• These regions need more
Sub-Saharan 0.06%
widespread adoption across different Africa
industries to benefit. 2018 2019 2020 2021 2022 2023 2024 2025
4 Our Methodology
16
Even basic adoption can Relationship between mean cost saving and
reap great benefits deployment levels
• 6.5%
4 Our Methodology
20
Operating cost Businesses cost reductions from using IoT devices using outputs from
savings the GSMA intelligence IoT Enterprise Survey Q4 2018
X
IoT business The share of businesses in the economy that are using IoT: this is based
adoption rate on assumptions from existing research
X
The size of the sector’s contribution to the economy based on
Sector value add calculations from OECD Input-Output table
21