The Internet of Things (IoT) payments market will grow at an average of 75 per cent per annum over the next five years – rising from $24.5 billion in 2018 to $410 billion by 2023.

The figures are from market analysis by Juniper Research, which explained that the biggest growth will come from in-vehicle payments – mostly be payments for fuel and tolls.

The automotive sector will become the most lucrative IoT platform by 2021, accounting for $63 billion in transactions that year. That accounts for 55 per cent of the overall market, compared to just over $50 billion for connected home devices, including smart speakers and TVs.

Smart speaker voice-enabled commerce transactions are forecast to reach $51 billion annually by 2023, with goods purchased through these devices accounting for just under 12 per cent of connected home transactions by volume over the next five years. The majority of purchases will be for digital content, typically made through connected TVs.

“Full financial service products will be slow to come to voice commerce, as the automated processes need to satisfy compliance requirements”, remarked research author James Moar. “However, with voice assistants already supplying advisory and finance updates, there will be much data to draw on once the regulatory requirements are met.”

The research found a significant opportunity for players in the IoT-enabled insurance market, which will exceed $334 billion by 2023, primarily through telematics-based motor policies. However, this will reduce premiums, impacting insurers’ gross revenues.

Juniper stated that this decline in premiums will be offset by improved overall profitability due to reduced costs per claim. This will become more immediately evident in home insurance, with automated accident prevention through the IoT.

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