The Internet of Things (IoT) is more than just a network of connected devices and computers; it is collections of connected  technologies that are truly transforming the business and public sector, and changing how people live, shop, and see the world. The IoT is helping to address some of our economy’s biggest challenges.

A new study released by Verizon, in conjunction with Oxford Economics, called the “State of the Market: Internet of Things 2016,” illustrates that this past year was a watershed moment for this emerging technology.

Over the last few years, these devices — such as wearables and iBeacons — create a physical network of objects that enable an exchange and collection of data through software. These devices have seen higher adoption rates, and there have been more opportunities for these devices to be used by other businesses and customers. “In our view, 2015 was the year IoT gained legitimacy,” says the study. “Businesses moved beyond a “start small think big” mindset. Today, they’re building IoT into future strategies and business models. Companies across all industries now have IoT squarely on their radar.”

The study predicted that the money businesses spend on devices related to the IoT will grow substantially. The money spent on IoT related devices will go from $591.7 billion in 2014 to $1.3 trillion in 2019, compounded by 17%. The total number of installed IoT units will go from 9.7 billion in 2014 to 25.6 billion in 2019.

After the report came out, Mary Beth Hall, Verizon’s director of product development for IoTs, said the growth can be attributed to several things. “First, what we saw was, there was a difference in the manufacturing and industrial use cases, which have always been a bigger part of the pie,” says Hall. “Now we are starting to see all the verticals get more savvy in the [IoT] space. The industrial vertical has been using IoT for so long — it’s already a part of its DNA — and now it’s starting to even out across all verticals.”

The report even illustrated the growth rate of network connections by each industry. Healthcare and pharma grew by 26%, home monitoring 50%, energies and utilities grew by 58%,  smart cities grew by 43%, agriculture grew by a 33%, and transportation and distribution grew by 49%.

Why are we seeing this rapid growth rate of IoTs? The study attributed the proliferation of these technologies to the growth of revenue businesses see after installing these devices. “Throughout 2016 and beyond, we’ll continue to see IoT deployed as a mainstream path to generating higher revenue, thanks largely to the rise of four key trends which have come to an inflection point in the past year.” This includes seeing a direct return on the information the IoT allows a business to see, creating an inexpensive network of devices, making it easier to build and deploy a network of devices, and living in a business-environment where innovation within the IoT sector can thrive.

If you are interested in learning more about the state of the internet of things, check out Verizon’s full report.

This article was originally posted by Seamgen, a proud financial sponsor of the ITRC. Seamgen is an industry-leading mobile and digital agency on the forefront of technology—specializing in full-stack development, user experience design, web apps, and mobile apps. For more information on Seamgen or to read more of their content visit their website.