Internet of Things Market By Software Solution (Real- Time Streaming Analytics, Security Solution, Data Management, Remote Monitoring System, Network Bandwidth Management); By Service (Professional Service, Deployment And Integration, Support And Maintenance, Consulting Service, Managed Service); By Platform (Device Management, Application Management, Network Management); By Application Area (Building And Home Automation, Smart Energy And Utilities, Smart Manufacturing, Connected Logistics, Smart Retail, Smart Mobility And Transportation, Others); By Region (North America, Europe, Asia Pacific, Latin America, Middle East & Africa) - Global Market Analysis, Trends, Opportunity and Forecast, 2022-2032
Internet of Things Market Overview
The Internet of things (IoT) involves the perpetually evolving broad network of connected physical objects—“things”—that are embedded with sensors, software, and technologies such as AI, cloud computing, next-gen cybersecurity, advanced analytics, big data, and others for the purpose of connecting, communicating and transferring data with other devices and systems over the Internet without human interference. It facilitates intelligent connectivity and is thereby changing the way industries approach complex processes of systems and machines.
IoT enables people and businesses to execute higher-level tasks, achieve meaningful insights, and control environments while bridging the digital and physical realities by powering information-driven automation and improvements.
Key benefits of IoT include productivity improvements, cost savings, predictive analysis, and human error reduction and improved monitoring etc.
Internet of things market revenue will reach approximately USD 665.4 billion in 2022. Further, our Internet of things market insights show that the market is expected to grow at a CAGR of approximately 17.6% during the forecast period and reach a value of approximately USD 3370.5 billion by 2032.
Internet of Things Market Drivers
The growth of this market is attributed towards major pertaining factors including; the growing adoption of IoT technology across various end-user industries worldwide, the growing need and development of wireless networking technologies globally, the emergence of advanced data analytics across regions, the increasing adoption of cloud platforms, the increasing need for data analysis and integration of data analytics and the growing penetration of internet, broadband services and affordable devices etc.
Additionally, massive fund allocation by big corporate investors and technological colossuses are seen to be increasing in the recent years in the IoT industry. As a result, new and innovative technological startups have garnered huge investments lately owing to their increasing product applications across various industry verticals. Also, one recent trend in the industry includes the opening of new Internet of Things divisions and innovation labs by big companies namely Dell and Intel in the last years.
Moreover, the proliferation of technological advancements and innovations across different industry verticals play a major role in the enhanced use of the available products and services. Due to these advancements, the sensor technologies embedded in IoT devices are being witnessed to become cheaper, advanced, and more widely available which make new sensor applications possible, including large-scale monitoring and detection. With that, the improving mobile connectivity along with the introduction of 5G and the ever increasing computing power allows new applications for experiences such as augmented and virtual reality, which in turn, attracts considerable demand and growth in the overall IoT market.
Furthermore, other factors such as the growing amount of investments, rising advancements in telecommunication, the increasing usage of smart sensors owing to their ability to digitally analyze processes and the adoption of cloud data management in large scale IoT applications further contribute to the fueling of growth of this market.
However, factors such as issues pertaining to privacy and security such as unauthorized access to connected devices or breaking into the connectivity system, concerns relating to data migration from legacy systems, the lack of unanimously accepted operational standards and the presence of multiple strategic alliances in the industry hamper the growth of this market.
Internet of Things Market Segmentation
By Software Solution
- Real- Time Streaming Analytics
- Security Solution
- Data Management
- Remote Monitoring System
- Network Bandwidth Management
- Professional Service
- Deployment And Integration
- Support And Maintenance
- Consulting Service
- Managed Service
- Device Management
- Application Management
- Network Management
By Application Area
- Building And Home Automation
- Smart Energy And Utilities
- Smart Manufacturing
- Connected Logistics
- Smart Retail
- Smart Mobility And Transportation
- North America
- Asia Pacific
- Latin America
- Middle East & Africa
Internet of Things Market Regional Insights
The Asia Pacific region holds the largest share and is the fastest growing regional market in the Internet of Things market. It is also expected to continue its dominance in the near future on account of the massive growth projected in the region. The growth in the region can be attributed to factors such as the massive adoption of IoT in developing countries, such as India and China, the growing implementation of the ‘Make in India’ policy which promotes investment in manufacturing, the rising number of smart city initiatives by governments in the region, the increasing penetration of high-speed internet services and the falling average selling price for sensors and modules in the region etc. The major contributors in the region include India, China and Japan among others.
The North American region followed by the European region holds the second largest share in the IoT market. Being one of the most prominent regional markets in the IoT industry, the region is anticipated to account for tremendous growth in the upcoming years. The growth in the region could be attributed to factors such as the existence of majority companies and major technology providers in the region, the increasing investments for the development of IoT in the region and the high presence and adoption of superior technological advancements in the region. Furthermore, the rapid digitalization across industry verticals, the increasing adoption of smart connected devices and the low cost of business operations coupled with the presence of highly skilled workforce also contribute significantly to the growth of this market. The U.S and Canada are the major contributors to the market in this region.
Internet of Things Market Key Players
- Hewlett-Packard Enterprise
- Accenture PLC
- Atmel Corporation
- SAP SE
- Cisco Systems Inc.
- Microsoft Corporation
- PTC Inc.
- Google Inc.
- Huawei Technologies
- AT&T Inc.
- Intel Corporation
- Amazon Web Services Inc.
- Bosch Software Innovation GmbH
- General Electric
- Oracle Corporation
- International Business Machine Corporation
- Siemens AG
- Other Players
- In January 2021, The Cloud Security Alliance (CSA), the world’s leading organization dedicated to defining standards, certifications and best practices to help ensure a secure cloud computing environment announced Internet of Things (IoT) Security Controls Framework Version 2 and the accompanying Guide to the Internet of Things (IoT) Security Controls Framework.
- In February 2021, Indian telecommunications company Tata Communications which purchased a 58.1% stake in eSIM provider Oasis Smart SIM Europe towards the end of December last year, took advice from Herbert Smith Freehills on the same deal. By acquiring Oasis, Tata Communications is said to integrate Oasis’ technology and personalized service offering for the deployment of eSIMs and SIM technologies into its own company. The acquisition will also strengthen Tata Communications’ MOVE platform, a mobility solutions platform for enterprises. Tata hopes to drive research and development (R&D) initiatives following the acquisition, to leverage growth in the Internet of Things and mobility sectors.