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The global internet of things (IoT) market size was USD 308.97 billion in 2020. The global impact of COVID-19 has been unprecedented and staggering, with IoT solutions witnessing a negative impact on demand across all regions amid the pandemic. Based on our analysis, this market exhibited a significant growth of 23.1% in 2020 compared to the average year-on-year growth during 2017-2019. The market is projected to grow from USD 381.30 billion in 2021 to USD 1,854.76 billion in 2028 at a CAGR of 25.4% in the 2021-2028 period. The steady rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.
The internet of things functions as a global infrastructure for the information society, enabling advanced services to interconnect things based on existing and evolving communication technologies (ICT) and interoperable information. IoT devices' ability to communicate with each other independently without human intervention will open up new revenue streams, drive business efficiencies, facilitate new business models, and improve the way existing services are delivered across many different sectors. For instance,
Internet of Things Technology is Being Used to Fight against Coronavirus
The healthcare officials are working relentlessly to provide the right services to protect citizens from coronavirus. Hospitals have started using connected thermometers to monitor patients and staff. The Shanghai Public Health Clinical Center (SPHCC) and seven other hospitals across China are presently utilizing temperature sensors to monitor COVID-19 patients to reduce staff risks at the hospital.
The front-line emergency departments are utilizing drones, telemedicine, and other tools to combat the pandemic better. For instance, China and Spain deployed drones to track citizens during the lockdown, whereas South Korea has installed drones to help clean parts of Daegu, an outbreak hotspot. Asimov Robotics Pvt Ltd, an AI start-up in Kerala, India, deployed robots at the entrance of office buildings and public places to dispense hand sanitizer and deliver health messages.
On the other side, as coronavirus outbreaks started in China, several semiconductor manufacturers witnessed supply chain disruptions due to workforce and transport issues' unavailability. There was a rapid decrease in demand in the initial period. However, it is anticipated to get back to normal as companies are reevaluating their supply chain model and adopting several distribution strategies.
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Blockchain to Help Alleviate the Scalability and Security Concerns Associated with Internet of Things
One of the critical features of this technology is data management. Internet-connected devices collect massive data and information to process. However, there are a lot of security and privacy concerns linked with the internet of things standard security gateway. The Blockchain-based architecture delivers lightweight and decentralized security solutions to connected devices. For instance,
Thus, blockchain can help alleviate the scalability and security concerns associated with the internet of things.
Rising Smart City Initiatives to Bolster the Growth of Market
As the world moves towards urbanization, the rising number of smart city projects and growing government investment towards the digital ecosystem will increase IoT devices' demand. The internet of things platforms and devices are used for monitoring mobility, infrastructures, and air and water quality to improve infrastructure, public services, and utilities. For instance,
Europe is leading in smart city development across the globe. The EU has been proactive in inspiring its member nations to invest and improve smart cities. As per Business Insiders, the European Commission has owed around USD 439.6 million in 2019 smart initiatives.
Furthermore, smart cities' potential in coming years is expected to be nearly limitless, thereby accelerating the internet of things market growth.
Connected Solutions to Offer Competitive Edge and Ability to Sustain in the Market
The data produced from connected devices tend to be of interest only if subjected to review, which brings data analytics into the frame. Data Analytics is a method used to analyze large and small data sets with different data properties to draw valuable results and actionable insights. These results typically take the form of developments, patterns, and figures that enable market enterprises to interact proactively with data to execute successful decision-making processes.
Improved use of connected technologies contributes to increased data storage and transmission of all forms of data. Data analysis, deep learning, and artificial intelligence play an extremely significant and deciding role of connected devices in the organization. It helps to evaluate and interpret data for effective network management, mainly if it is widely implemented.
Limitations Associated with Security, Integrity, and Privacy of Data in IoT Ecosystem to Inhibit Market
Internet of things technology has a wide range of applications, from collecting biometric data through wearable-equipped devices to controlling connected devices through communication networks and cloud technologies. These devices consist of unique IP addresses through which they can communicate and exchange data within and with other machines. However, with increasing IoT deployment, data security and privacy are also growing for connected devices, smart devices, mobile devices, and platforms. All these devices and networks might contain sensitive and personal information which the attackers can use. With the increasing dependency on connected devices, data exploitation might increase, reflecting design flows and vulnerability of connected devices. Various data protection providers and enterprises are coming up with multiple solutions. However, 100% data security is currently not feasible due to complexities associated with IoT architecture and ecosystem.
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Increasing Demand for Efficient Platform Will Drive the Growth of Platform Solutions
On the basis of component, the market has been segmented into platforms, and solutions & services. The platform segment is further sub-segmented into device management, cloud platform, and network management. The solution segment is sub-segmented into real-time streaming analytics, security, data management, remote monitoring, and network band management.
The network management solution holds a significant market share due to the rising need for remote monitoring systems and internet-enabled devices in organizations. The platform segment is anticipated to show the highest growth rate during the forecast period owing to the increased need for an efficient platform for downstream data servers and enterprise applications connectivity.
Manufacturing Industry to Lead the Market Backed by Huge Spending by Manufacturers on Advanced Technologies
Based on end-use industry, this market has been segmented into BFSI, retail, government, healthcare, manufacturing, agriculture, sustainable energy, transportation, IT & telecom, and others.
The manufacturing industry captures the maximum market share as internet of things spending among manufacturers is primarily focused on solutions that support manufacturing operations and production asset management. However, BFSI is estimated to be the fastest-growing segment in the coming years owing to the growing demand for connected solutions to monitor the supply of liquid cash in various branches, ATMs, bank partners, and others in the financial institutions.
In agriculture, field-based IoT sensors and devices are used for measuring soil moisture and communicating with weather stations for the latest forecasts. In retail, it helps track missed in-store sales, monitor sales opportunities in real-time, and take supply and demand planning to the next level.
In the government sector, the IoT is reshaping government entities to provide more excellent safety, better services, smarter public infrastructures, efficient transit, and strategic traffic management. Similarly, in healthcare, IT enables healthcare professionals to connect with patients proactively through connected devices.
In transportation, connected technology offers connected public transport systems along with benefits such as real-time vehicle tracking, which enables public transport agencies to better communicate with customers. This technology helps in providing accurate arrival and departure times through both passenger information displays and mobile devices.
Asia Pacific Internet of Things (IoT) Market Size, 2020 (USD Billion)
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The market has been analyzed across five major regions: North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.
Asia Pacific accounted for the maximum share owing to increasing smart city initiatives by the government and cloud spending in the region. Communication service providers and manufacturers in the Asia Pacific industry are expanding their portfolios to monetize IoT possibilities by creating data collection systems and incorporating advanced analytics capabilities in the existing systems. According to the GSMA Intelligence report, China is the largest IoT industry, accounting for 64% of the 1.5 billion global IoT connections, and will show tremendous growth during the forecast period.
North America has made considerable progress in the adoption of IoT, especially in the industrial and automotive sectors. However, the rise in the number of data breaches has contributed to a need for protection solutions. Cloud platforms are experiencing strong adoption due to the demand. According to smartamerica.org, the US government will spend nearly USD 41 trillion in the next 20 years to update their facilities and benefit from IoT.
The European internet of things market is predicted to show the highest CAGR during the forecast period. Germany, the UK, France, Italy, Spain, and the Netherlands are driving European IoT adoptions, but Eastern Europe and the Nordic countries are trailing closely. To completely endorse an ambitious initiative for collaborative work and technological advancements in microelectronics related to connected vehicle solutions, the European Commission announced in January 2019 that it had authorized the usage of USD 2 billion dollars in public funds from the UK, France, Germany, and Italy.
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Latin American is on the brink of major breakthroughs in the adoption of IoT products by industries. The Middle East and African market is expected to grow and witness a high growth during the forecast period. Telecom operators in the area strive to expand their participation within the connected environment and catch a greater proportion of the revenue opportunities associated with IoT implementations to extend across the communication and network management layers of the IoT value chain.
Established Players are Investing In New Technologies and Startups to Stay Competitive in the Market
Companies are making substantial investments in advanced technologies such as AI, cloud computing, and others. Investments in advanced technology have enabled key players to expand their business into various end-user industries and gain a competitive edge. Established market players are making substantial investments in startups and midscale companies to offer efficient solutions to the end use verticals such as healthcare, manufacturing, retail, and others.
March 2020 – Modular capital, a private financial firm made USD 200 K in Industrial IoT (IIOT) firm based in India, DesignX. The company plans to invest these funds to build comprehensive IoT solutions focusing on asset performance management with the help of edge solutions.
April 2020 – Haltian, an IoT solution provider based in Finland, received USD 9.8 million funding from Finnish venture capital (FVC), Ilmarinen, an employment pension company, and Nordic Option Haltian to use this funding to extend its portfolio and provide efficient solutions smart washrooms, smart factories, and smart facilities.
An Infographic Representation of Internet of Things (IoT) Market
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The market research report highlights leading regions across the world to offer a better understanding to the user. Furthermore, the report provides insights into the latest internet of things market trends and analyzes technologies that are being deployed at a rapid pace at the global level. It further offers some drivers and restraints helping the reader gain in-depth knowledge about the market.
Value (USD billion)
Component; End Use Industry; and Region
By End Use Industry
According to Fortune Business Insights, the global size market is expected to reach USD 1,854.76 billion by 2028.
In 2020, the market value stood at USD 308.97 billion.
The market is projected to grow at a CAGR of 25.4% during the forecast period.
The solution and services segment is expected to be the leading segment in the market.
Smart city initiatives are expected to drive the market growth.
Amazon Web Services, Inc., AT&T, Inc., Robert Bosch LLC, Cisco Systems, Inc., Huawei Technologies Co. Ltd., IBM Corporation, Intel Corporation, Microsoft Corporation, Oracle Corporation, SAP SE, Siemens AG, among others are the top players in the market.
Asia Pacific region is expected to hold the highest market share.
Europe is expected to grow at the highest CAGR during the forecast period
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