Internet of Things (IoT) and Industrial Internet of Things (IoT) forecasts reflect a growing focus on driving results using sensor-based data and creating analytically rich data sets.
With more IoT devices and connected M2M technologies coming into service, a large scale security breaches are expected to come into existence in near future due to the sensitivity of the data being prone to the hackers which has further led many companies to launch advanced security software. For instance, Industrial Internet Consortium, an open membership organization regarding interconnected devices and intelligent analytics along with other industries is releasing its security framework.
In today’s era of booming technology, we carry so much of information in our hands via our cell phones which is not just limited to calls, texts, playing games, Google search, or booking a cab among others but has now expanded to control numerous devices from a distance over the internet connectivity. This technological advancement is often termed as ‘Internet of Things (IoT)’ and has numerous applications in consumer smart home applications, building and home automation, infrastructure, agriculture, environmental monitoring, medical & healthcare, manufacturing, energy management, old-age care and others. It works on a simple concept, connecting all the devices, things or products with RFID (Radio Frequency Identification) along with routers, actuators and sensors like temperature sensors, moisture sensors, light sensors, a motion sensor etc. and saves that data for future predicaments of their functionality over the internet.
With the rapid pace of urbanization in developed regions and rising demand for connected smart devices, the IoT market is estimated to expand with significant growth rate in upcoming years. Many nations around the world have taken initiatives to build smart cities that are equipped with high end connectivity for various services. Smart cities require sensors, routers and smart devices among others to provide better services to the population. These factors are expected to propel the growth of the internet of things (IoT) market with valuation of USD 2,108.2 Billion by 2023 from USD 679.4 Billion during 2016. Further, the global IoT market is predicted to witness CAGR of 17.56% between the years 2016 and 2023.
Growth Highlights based upon Regional Platform during 2016-2023
The global internet of things (IoT) market is segmented by regions into North America, Latin America, Europe, Asia-Pacific and Middle East and Africa, out of which, Asia-Pacific accounted for the highest share of 34% in Global Internet of Things (IoT) Market in 2016 and is expected to continue its dominant stance over the forecast period. China is predicted to have largest market size in overall Asia-Pacific IoT Market, whereas India is expected to grow with highest CAGR of 24.24% during 2016-2023.
Further, U.S. is one of the largest importer of electronic goods including smart devices such as wearable watches. The rising import activities in the country further increased the supply of connected devices mounting the pressure on the players to decrease the price of internet of things (IoT) devices which propelled the demand for internet of things (IoT) devices in North America Region. Additionally, the rising adoption of connected devices along with rising personal disposable income of the population is anticipated to boost the market of Europe IoT market with second largest market share over the forecast period.
Market Segmentation Synopsis
By Product Type
The global internet of things (IoT) market is divided into components and software, out of which, the component segment garnered the highest market revenue of USD 512.3 Billion as compared to USD 167.1 Billion by software segment during 2016. The software segment is predicted to grow with highest CAGR of 20.24% over the forecast period. The software segment is further divided into real-time streaming analytics, security software, data management, remote monitoring software and network band management. The data management segment drove the market with highest market size in 2016 and is predicted to behold this positive growth over the forecast period, whereas the real-time streaming segment is predicted to witness the highest CAGR during 2016-2023 and is expected to observe Y-o-Y growth of 27.41% in 2023.
Further, the components segment is segmented into devices, sensors, actuators and platforms. Among these segments, the devices segment is the largest revenue generating segment and is expected to observe Y-o-Y growth of 18.6% in 2023.
The global internet of things (IoT) market is segmented by applications into consumer electronics, manufacturing, transportation & logistics, healthcare, retail and others. Among these segments, the transportation & logistics segment garnered the highest market share of 29.6% in 2016, closely trailed by the consumer electronics segment. The consumer electronics segment is expected to account for the largest share of 28.4% in overall internet of things (IoT) market by the end of 2023 from 26.3% in 2016 owing to the demand for high end connectivity appliances in developed regions. In addition to that, the rapid adoption of internet of things (IoT) devices by the tech savvy population is expected to foster the growth of internet of things in consumer electronics segment. Further, the healthcare sector is also growing positively on the back of rising demand for remote monitoring of patients and growing penetration of tele-medicine services in developed and developing regions globally.
The study further analysis the Y-O-Y Growth, demand & supply and forecast future opportunity in North America (United States, Canada), Latin America (Brazil, Mexico, Argentina, Rest of LATAM), Europe (U.K., Germany, France, Italy, Spain, Hungary, BENELUX (Belgium, Netherlands, Luxembourg), NORDIC (Norway, Denmark, Sweden, Finland), Poland, Russia, Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Malaysia, Indonesia, Taiwan, Hong Kong, Australia, New Zealand, Rest of Asia-Pacific), Middle East and Africa (Israel, GCC (Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman), North Africa, South Africa, Rest of Middle East and Africa).
Market Drivers & Challenges
The global internet of things (IoT) market is thriving on the back of rising development of smart and enhanced connectivity infrastructure in developing and developed nations such as U.S., China, Japan, India and others. Further, the swelled disposable income of the population supported by the positive GDP figures in growing nations is resulting in the increased penetration of smart consumer electronics across the globe. Along with that, the rising trend of smart electronics, growing digitalization in various end-use industries, shifting of public and private sectors towards the adoption of IT-based facilities are boosting the worldwide demand for internet of things (IoT) services.
The hackers are looking for more ways to strike critical infrastructure, such as power grids, hydroelectric dams, chemical plants and more. This has led to the rising concerns regarding privacy and safety of data. Further, the lack of skilled expertise and high cost of IoT solutions and services are some of the reasons that are hampering the growth of the market.
Some of the affluent industry leaders in the global internet of things (IoT) market are IBM Corporation, Amazon.com Inc., Microsoft, Cisco Systems Inc., PTC Inc., HP Company and Accenture PLC.
IBM, an American multinational technology company acquired various technologies and software solution companies and also teamed up with Slack Technologies for data crunching Chatbot. The acquisition strategy of IBM Corporation is predicted to spur the growth across the globe in near future. Further, the IBM introduced an innovative hybrid cloud for enterprises, thus increasing the limits of technology.
Moreover, other key and niche players are working towards the expansion of product portfolio along with investing in high quality, highly engineered and innovative technologies in order to gain competitive edge in the global internet of things (IoT) market.
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