Key Market Overview:
Internet of Things market size is expected to reach USD 2,266.9 Billion by 2030 from the value of USD 346.7 Billion in 2022, register a CAGR of 23.2% during the forecast period (2023-2030)
Internet of Things refers to the network of physical objects or “things” embedded with sensors, software, and other technologies that enable them to connect and exchange data with other devices or systems over the internet. The objective of IoT is to make devices “smart” by enabling them to collect and analyze data, communicate with other devices, and perform automated actions based on collected data. IoT technology is widely used across industries including automotive manufacturing, smart buildings, BFSI, and defense among others. IoT stands for the Internet of Things. IoT devices typically collect data from their environment through sensors and send it to a cloud-based platform for processing and analysis. The data is further used to trigger actions, automate processes, and provide valuable insights for businesses and individuals. For instance, Bayer Crop Science, a division of Bayer, provides a range of IoT based agricultural products and services. The company in association with AWS (amazon web service) offers pest monitoring IoT devices. The company claims reduction of 94% in cost of operation due to early detection of pests.
Market Dynamics:
Drivers:-
Presently IoT technology has crucial applications in smart buildings and homes. Internet of things technology is used in smart buildings and homes for various purposes, including smart thermostats, lighting control, security systems, energy management, occupancy monitoring, appliance control, and health & wellness monitoring. IoT devices are controlled remotely through a smartphone app and are also programmed to automatically respond to specific events, such as occupancy or daylight levels. Integrating IoT devices and systems, building and homeowners reduce energy consumption, improve safety and security, optimize cleaning schedules, and enhance overall quality of life. For instance, SimpliSafe (home security company) offers multiple IoT based monitoring and surveillance intelligent devices for smart homes.
Restraints:-
High Cybersecurity risks associated with internet of things is a major restraining factor hindering the market growth. Rising adoption of IoT technologies has also resulted into higher risk of cyberattacks. For instance, in March 2021 hackers attacked the severs of Verkada (cloud-based video surveillance service provider) hackers gained access to over 150,000 cameras mounted in factories, hospitals, schools, prisons, and other sites. IoT infrastructure is at constant risk of cyberattack from hackers. Cyber incursions cause severe equipment damage, result in the loss of critical data and damage corporate reputation, and even lead to injury or loss of life as IoT is actively used with automotive cars. IoT infrastructure is generally based on cloud technologies therefore, risk of cyberattacks is much higher.
Opportunities:-
The rise of industry 4.0 is projected to be one of the most lucrative opportunities for IoT technology in forthcoming years. Industry 4.0 refers to integration of modern technologies including artificial intelligence, machine learning, digital twin and most important IoT into industrial settings to automate and enhance the manufacturing process. In industry 4.0 IoT technology will be used for collection of data, automation, optimization, energy management, supply chain management and predictive maintenance. For instance, according a 2019 McKinsey & Company report the Industry 4.0 could have an estimated value-creation potential for manufacturers and suppliers of USD 3.7 trillion in 2025. Moreover, application of IoT devices to operate autonomous vehicle is another major opportunity of IoT technology market. IoT devices are mounted on driverless cars to gather data and assist central systems to take real-time decisions.
Internet of Things Report Coverage:
| Report Attributes | Report Details |
| Study Timeline | 2017-2030 |
| Market Size in 2030 (USD Billion) | 2,266.9 Billion |
| CAGR (2023-2030) | 23.2% |
| By Component | Solution and Service |
| By Deployment | On-Premises and Cloud |
| By Organization Size | Large Scale Enterprise and SMEs |
| By Technology | Data Processing, Near-Field Communication, Network Communications, Pressure Sensors, and Radio Frequency Identification |
| By Platform | Application Management, Device Management, Network Management |
| By End User Industry
|
BFSI, Residential (Smart Buildings), Energy & Utility, Healthcare, IT & Telecom, Manufacturing, Retail, E-Commerce, & Consumer Electronics, Transportation & Logistics, and Others |
| By Geography | North America, Europe, Asia Pacific,
Latin America, Middle East and Africa |
| Key Players | Microsoft crop., ABB, IBM (International Business Machine), Intel Corporation, Ericsson (Telefonaktiebolaget LM Ericsson), AWS (Amazon), Cisco Systems, Inc., Dassault Systems, Honeywell International, Inc., Huawei Technology Co. |
Market Segmentation:
By Component: –
On the basis of component, the IoT market is divided into solution and service. The solution segment accounted for largest market share in 2022. IoT solutions ae extensively integrated in residential and commercial settings for monitoring and surveillance functions. Moreover, rising number of end use industries including oil & gas, transportation & logistics and most notable industrial manufacturing are extensively integrating IoT technologies in their operations. Implementation of IoT technologies for industrial automation and production optimization is propelling the demand for IoT solutions.
Furthermore, the service segment is expected to showcase substantial market growth over the forecasted period. Positive growth trends in adoption of XaaS (everything as a service) will likely propel the demand for IoT technology as a service in near future. For instance, Qualcomm Technologies, Inc offers various end to end IOT based services for multiple applications including fleet management, traffic management and retail management among others.
By Deployment:-
By deployment the internet of things technology market is segmented into on premise and cloud. Presently the on-premises deployment held dominating market share as it is less expensive and reliable in comparison to cloud based deployment. Additionally, IoT devices in residential and retail applications are generally on-premises deployment type as the complexity of functions is relatively lower.
Furthermore, the cloud deployment segment is expected to showcase significant market growth over the forecasted period. Rising number of industries are expected to integrate IoT technologies in manufacturing. The level of task complexity in industrial settings is higher therefore, cloud based IoT deployment is crucial in industrial applications.
By Organization Size
By organization size the IoT market is divided into large scale enterprise and SMEs. Presently the large-scale enterprise held dominating market share multiple large scale automotive companies have integrated IOT technology to enhance productivity and quality. For instance, in 2021 Toyota builds company wide, standardized IoT platform to promote data utilization in association with Microsoft Inc.
Furthermore, the SMEs segment is expected to showcase considerable market growth rate over the forecasted period. Rising number of small scale organizations are integrating IoT technologies into their operations. Moreover, overall positive growth in the number of startups and small scale organizations is expected to positively impact the demand for IoT technologies.
By Technology:-
By technology the internet of things market is divided into data processing, near-field communication, network communications, pressure sensors, and radio frequency identification. Presently the data processing segment held dominating market share. Data processing refers to the process of collecting, organizing, analyzing, and transforming large volumes of data generated by IoT devices and sensors into meaningful insights. Data processing involves several steps such as data acquisition, data cleaning, data aggregation, data analysis, and data visualization. IoT data processing involves the use of various technologies such as cloud computing, big data analytics, machine learning, and artificial intelligence (AI) to manage and analyze large volumes of data generated by IoT devices.
Furthermore, the Data processing segment is expected to showcase substantial market growth CAGR over the forecasted period. IoT devices are being deployed for various complex functions across industries including healthcare, automotive and industrial manufacturing.
By Platform:-
According to Platform the IoT technology market is divided into application management, device management, network management. Presently the device management platform held dominating market share in the year 2022. IoT Device Management Platforms offer remote monitoring, troubleshooting, and updating tools for large organizations to manage their connected devices effectively. IOT technology provides the ability to securely provision, configure, and monitor thousands of devices in real-time.
Furthermore, the application management platform is expected to showcase substantial market growth over the forecasted period. IoT application platforms enable the development and deployment of applications that leverage data from IoT devices, including both smart home devices and industrial control systems. These platforms assist in rapid development of scalable, secure, and high-end applications. Iot application management platforms allow integration of applications with IOT devices.
By End-User:-
By end user the internet of things market is divided into BFSI, residential (smart buildings), energy & utility, healthcare, IT & telecom, manufacturing, retail, e-commerce, & consumer electronics, transportation & logistics, and others. The BFSI industry held dominating market share in the year 2022. Various banking and non-banking financial institution deploy IOT technologies in monitoring and surveillance applications. Moreover, IOT technology is also used to enhance and streamline the transection processes.
Furthermore, the residential (smart buildings) segment is expected to showcase substantial market growth over the forecasted period. For instance, according to international data corporation the smart home market is growing at a CAGR of 8.3% annually. Therefore, the demand for IOT technology in smart homes is set to rise in forthcoming years.
By Region
The regional segment is divided into Asia-pacific, Europe, North America, South America, and Middle East & Africa. The North America region accounted for largest market share in the year 2022. Presence of key automotive players including Tesla, Ford, GM, and Chevrolet among various others is the one of the major reasons for high demand for IoT technology in this North America region. Moreover, presence of smart homes and buildings in U.S. is another driving factor propelling the demand for IOT technology.
Furthermore, the Asia Pacific region is estimated to showcase substantial market growth over the forecasted period. Developing manufacturing sector in Asia Pacific region is likely to propel the demand for IoT technologies in forth coming years. Moreover, advancements in automotive industry in countries including Japan, South Korea and India is projected to positively impact the demand for IoT technologies in Asia Pacific region in forth coming years.
Internet of Things Market Competitive Landscape:
The competitive landscape of the Internet of Things industry comprises detailed profiling of key market players operating in this market. Major companies been analyzed. It was found that Key players are leading the market through their investments in R&D with product innovation. Furthermore, this report contains company overviews, production capacity, SWOT analysis, financial data, revenues, market potential, global presence, production sites, with product application.
Following are some of the major players in this market: –
IBM (International Business Machine)
Intel Corporation
CyberX (Microsoft)
Ericsson (Telefonaktiebolaget LM Ericsson)
AWS (Amazon)
Cisco Systems, Inc.
Dassault Systems
Honeywell International, Inc.
Huawei Technology Co
Recent development
- January 2023 Semtech Corporation announced completion of acquisition of Sierra Wireless.
June 2020 Microsoft Corporation announced acquisition of cyberX (IOT security startup).
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