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The global internet of things (IoT) market size was valued at USD 384.70 billion in 2021. The market is projected to grow from USD 478.36 billion in 2022 to USD 2,465.26 billion by 2029, exhibiting a CAGR of 26.4% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with the internet of things solutions and services experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market had exhibited a decline of 23.4% in 2020 compared to 2019.
Internet of things platforms and solutions & services provided by the key players, such as - AT&T, Inc. have been offering solutions such as deployment services, vehicle solutions, integrated solutions, smart cities, and others. Cisco Systems, Inc. provides solutions, such as network connectivity, data control and exchange, connectivity management, edge computing. Siemens AG provides industrial edge, digital twin, and others solutions.
The internet of things technology functions as a global infrastructure for the information society, enabling advanced services to interconnect things based on existing and evolving communication technologies. Also, it offers interoperable information and the ability to communicate independently without human intervention.
As a result, the technology is expected to 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,
Increased Utilization of Internet of Things to Combat Coronavirus Creates New Opportunities for Market
The pandemic had forced governments, businesses, and people to reconsider their objectives, perspectives on socioeconomic problems, and methods of operation. While the world was battling with the novel coronavirus outbreak in 2020, healthcare officials were working diligently. The aim was to deliver proper services to keep citizens from being exposed and cure those infected.
Under such a situation, technical advances continually brought a difference among healthcare systems. Countries were accumulating the resources at their fingertips and implementing state-of-the-art procedures to minimize the impact of COVID-19 and monitor citizens at risk. Internet of things and other advanced technologies, such as cloud computing and artificial intelligence (AI), were of great use during the crisis. For instance,
Similar to the healthcare area, the internet of things presents a significant opportunity to improve quality of life, with the possibility of having a far-reaching impact across society, particularly during the COVID-19’s new normal. The pandemic has prompted organizations and governments to rethink their objectives and actions. On the other hand, these adjustments are proving to be a driver for innovation and technology. For instance,
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Blockchain Technologies to Shape the Future of Internet of Things
Data management is one of the most important aspects of internet technology. Internet-connected devices accumulate immense amount of data and information for processing. However, the internet of things standard security gateway raises numerous security and privacy difficulties. The blockchain-based architecture provides linked devices with minimal and decentralized security solutions. For instance,
Thus, blockchain could help improve the scalability and security concerns associated with connected technology.
Rising Smart City Initiatives to Bolster Growth of Market
With increasing population and urbanization, many countries across the world are initiating smart city projects and adopting smart city solutions to manage the resources. Connected devices, including sensors, smart light, smart meter, among others, help in improving the functions and efficiency of infrastructure and related services.
The rising number of smart homes and buildings, smart infrastructures, smart manufacturing and Industry 4.0 projects are expected to create a huge transformation in business areas, thereby accelerating the market growth. For instance,
Additionally, smart city solutions, such as smart utility meters, smart grids, smart air quality controllers, smart waste management, and smart transportation are being increasingly adopted by consumers, thereby increasing the market potential of connected devices worldwide.
Limitations Associated with Security, Integrity, and Privacy of Data in Connected Devices to Inhibit Growth
Internet of things technology has numerous applications, ranging from gathering biometric data via wearable devices to controlling connected equipment via communication networks and cloud platforms. These devices have unique IP addresses that allow them to communicate and exchange information with other devices.
However, as the number of connected devices, smart devices, mobile devices, and platforms grow, so does the need for data protection and privacy. These devices and networks could include sensitive and personal data that attackers could use. Data exploitation may emerge as a result of the rising reliance on connected devices, reflecting design flows and the vulnerabilities of connected devices.
Various data protection enterprises are developing a range of solutions. However, due to the market’s framework and ecosystems complications, 100% data security is presently not achievable. For Instance,
Rising Demand for Efficient Connected Devices Platform to Drive Market Growth
On the basis of components, the market is bifurcated into platforms, and solutions & services.
The platform is sub-segmented into device management, cloud platform, and network management. The solution is categorized into real-time streaming analytics, security, data management, remote monitoring, and network band management.
Platform is expected to grow at the highest CAGR owing to the rising demand for effective platforms for downstream data servers and enterprise application connectivity. The worldwide business enterprise rapidly adopted new internet of things technologies and platforms during the COVID-19 pandemic.
However, solutions and services are expected to dominate the market with the highest internet of things market share. Several industries are implementing intelligent solutions to improve their present systems. For instance, healthcare facilities deploy connected devices to improve medical outcomes.
Further, network management is expected to hold a significant market share during the forecast period due to the growing demand for remote monitoring systems and internet-ready devices in businesses. The network management solution is device-independent and provides an easy approach to integrate cross-vendor hardware models and data structures into the workflow.
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Manufacturing Industry to Lead Backed by Huge Spending on Advanced Technologies
Based on the end-use industry, the market has been segmented into BFSI, retail, government, healthcare, manufacturing, agriculture, sustainable energy, transportation, IT & telecom, and others.
Agriculture is predicted to grow at the fastest CAGR owing to the rising demand for field-based sensors and equipment. Some of the major applications of the technology in the agricultural sector are smart farming, smart greenhouse, smart agriculture, precision farming and smart drones, among others. The benefits of implementing the internet of things for farmers are two-fold. It has assisted them in lowering expenses while increasing yields by boosting farmer decision-making with precise data. For example, smart farming enhances the entire agricultural system by monitoring the farm in real-time and allowing farmers to produce food efficiently.
Healthcare and manufacturing are projected to have the highest market share during the forecast period. Industry 4.0 technologies, including the industrial internet of things (IIoT), machine learning, and big data, are enabling the manufacturing industry to shift its focus to digital transformation to increase productivity and quality, reduce downtime, and assist in supply chain management. For example, by providing a digital footprint of products, digital twin, in collaboration with other industry 4.0 technologies, might keep production facilities at the cutting edge of productivity. Since it could help manufacturing plants discover physical imperfections sooner, forecast outcomes more precisely, and design better products.
Retail is expected to show second-highest CAGR during the projection period due to growing demand for tracking lost in-store sales, real-time monitoring of sales prospects, and supply and demand forecasting advancement. The technology can assist retailers in predictive equipment maintenance, smart transportation, warehouse automation, and smart store development. For instance,
BFSI is predicted to grow steadily owing to enhanced demand for IoT solutions to manage the supply of liquid cash in multiple branches, ATMs, bank partner organizations, and others. Additionally, the rising adoption of blockchain technology in the BFSI industry is expected to drive market growth. As blockchain provides a scalable and decentralized ecosystem for connected devices, platforms, and applications, several banks and financial institutions, such as ING Group, HSBC, and Deutsche Bank are conducting proof-of-concept (PoC) tests to validate blockchain technology.
North America Internet of Things Market Size, 2021 (USD Billion)
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The market has been analyzed across five major regions: North America, Europe, Asia Pacific, South America, and the Middle East & Africa.
North America is expected to hold a significant market share, especially in the region’s healthcare, industrial, and automotive sectors are the potential customers of the cloud platforms. Additionally, cloud platforms are witnessing wide adoption in the region due to the expansion of IoT-enabled devices, rising R&D investments in the internet of things, and the presence of key market players, such as Google, Amazon Web Services (AWS), Microsoft, Cisco, and IBM.
Europe is expected to dominate the market in the near future by overtaking North America with maximum market shares. Since healthcare is predicted to hold a substantial market share in Europe, the industry is becoming increasingly linked to big databases. IoT technology in conjunction with big data analytics, can provide various insights, such as diagnostic analytics, descriptive analytics, predictive analytics, and prescriptive analytics. Connected devices combined with big data are expected to gain traction in Europe.
Further, Germany, the U.K., France, Italy, Spain, and the Netherlands are driving the adoption of this technology in the region due to the growing demand for IIoT technology by enterprises in the region. Similarly, Eastern Europe and Nordic countries are showing a significant adoption rate of advanced technology. According to a March 2021 report by the CBI Ministry of Foreign Affairs, several organizations in Europe are beginning to see the value of industry 4.0 and its advantages.
Asia Pacific is likely to show the highest CAGR during the projection period due to increasing smart city projects and rising initiatives, such as Smart Wellington (New Zealand), Intelligent Disease Prediction Project (China), and cloud spending in the region.
Also, the region’s communication service providers and manufacturers, such as Taiwan Mobile and Samsung Electronics Co., Ltd., are expanding their portfolios to capitalize on smart device opportunities by developing information collection systems and combining advanced analytics capabilities into current systems. According to GSMA Intelligence report 2020, China is the largest IoT industry, accounting for 64% of the 1.5 billion global internet of things connections and is likely to show tremendous growth.
The Middle East and Africa are expected to witness significant growth during the forecast period. Middle Eastern countries, such as Saudi Arabia and UAE, have been actively engaged in building smart cities, preferring to build and create them from scratch rather than integrating technology into existing ecosystems. Additionally, government-funded public administration efforts, such as Smart Dubai Office’s Dubai Blockchain Strategy are preparing the ground for deploying connected networks and related edge network technologies, 5G, and analytics applications.
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Similarly, South America is also expected to show steady growth during the projection period due to rising internet access services and users in the region. According to March 2021 Internet World Stats, the South America region has 78.8% internet penetration, whereas the world’s penetration was estimated at around 65.6%. Also, the increasing government focus on enhancing the countries’ healthcare system is expected to propel market growth in the near future. For instance,
Established Players Invest in Core Technologies and Startups to Stay Competitive in Market
Major market players such as Intel Corporation, Microsoft Corporation, Cisco Systems, Inc., Amazon Web Services, Inc., Siemens AG, and PTC Inc., among others, are making substantial investments in advanced technologies such as AI, cloud computing, and others. Investments in advanced technology have enabled these 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. For instance -
An Infographic Representation of Internet of Things (IoT) Market
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The market research study highlights leading regions around the world to provide the consumer with a better insight about the internet of things market trends. Additionally, the research focuses on the most recent market growth patterns and examines technologies that are being deployed at a quick speed on a global scale. It also provides some drivers and restraints, allowing the reader to obtain a thorough understanding of 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 2,465.26 billion by 2029.
In 2021, the market value stood at USD 384.70 billion.
The market is projected to grow at a CAGR of 26.4% during the forecast period.
The solution and services segment is expected to lead the market.
Smart city initiatives are expected to drive market growth.
North America is expected to hold the highest market share.
Asia Pacific is expected to grow at the highest CAGR.
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