Gartner Says It’s The Beginning Of A New Era: The Digital Industrial Economy

Worldwide IT spending is forecast to reach $3.8 trillion in 2014, a 3.6 percent increase from 2013, but it’s the opportunities of a digital world that have IT leaders excited, according to Gartner, Inc.

Peter Sondergaard, senior vice president at Gartner and global head of Research, explained today to an audience of more than 8,000 CIOs and IT leaders at Gartner Symposium/ITxpo, that the digital world is here.

This results in every budget being an IT budget; every company being a technology company; every business is becoming a digital leader; and every person is becoming a technology company. This is resulting in the beginning of an era: the Digital Industrial Economy.

“The Digital Industrial Economy will be built on the foundations of the Nexus of Forces (which includes a confluence and integration of cloud, social collaboration, mobile and information) and the Internet of Everything by combining the physical world and the virtual,” said Peter Sondergaard, senior vice president at Gartner and global head of Research.

“Digitalization exposes every part of your business and its operations to these forces. It is how you reach customers and constituents; how you run your physical plant; and how you generate revenue or deliver services. Enterprises doing this today are setting themselves apart and will collectively lead the new Digital Industrial Economy,” Mr. Sondergaard said.

Economic Impact of the Internet of Things

In 2009, there were 2.5 billion connected devices with unique IP addresses to the Internet, most of these were devices people carry such as cell phones and PCs. In 2020, there will be up to 30 billion devices connected with unique IP addresses, most of which will be products.

This creates a new economy. In fact, Gartner predicts that the total economic value add for the Internet of Things will be $1.9 trillion dollars in 2020, benefiting a wide range of industries, such as , healthcare, retail, and transportation.

If you liked this article you might like

Analysts' Actions -- Boeing, Blueprint Medicines, Rockwell Collins, Johnson Controls and More

What You Need to Know About Gartner's $2.6 Billion Purchase of CEB

Gartner to Scoop Up CEB for $3.3 Billion

'Mad Money' Lightning Round: Why Isn't Taser's Stock Higher?

Jim Cramer's 'Mad Money' Recap: Verizon Is Building a Digital Empire