ID: MRFR/ICT/0670-CR | December 2021 | Region: Global | 172 pages
The Internet of things (IoT) is a global infrastructure for the information society, enabling advanced services by interconnecting things based on existing and evolving interoperable information and communication technologies. It can connect anything with the Internet based on stipulated protocols through information sensing equipment to conduct information exchange to achieve smart recognitions, positioning, tracking, monitoring, and administration. The growing need for IoT security, Low operational costs, and increased use of IoT technology in the healthcare sector are driving the demand for Internet of things (IoT) solutions. However, the presence of a limited number of IoT experts and an uncertain regulatory and compliance environment hampers the market growth. Moreover, the increasing adoption of blockchain-based IoT solutions for smart contracts and edge computing creates an opportunity for IoT vendors.
As per MRFR, the global Internet of things (IoT) market has been growing rapidly from the past few decades and is expected to reach USD 741.35 billion by 2030, at a CAGR of 25.7% during the forecast period 2020–2030.
The outbreak of novel coronavirus initially in China’s Wuhan, which later spread across the globe, affecting the normal business operations across industry verticals. Due to the unprecedented situation raised globally, the governments across the globe-imposed lockdowns and other movement restrictions to prevent the spread of the deadly virus. This, in turn, expanded the need for online presence and other technological aspects owing to the sudden shift/adoption of digital technologies for business continuity and client interaction through video conferencing, instant messaging, emails, among other media.
The unprecedented turmoil of the coronavirus pandemic has forced the manufacturing sector to think of new ways of rebounding the entire manufacturing process. Countries across the globe have witnessed negative growth in the manufacturing sector largely due to the Government's strict measures to restrict the spread of COVID, which in turn affected the movement of workers to their workplaces and produced a large gap between the demand and supply sides. Being one of the hardest-hit countries by COVID-19 in the European continent, Italy witnessed a sharp decline in industrial output. Italy reported a considerable position in the value of industrial production in the EU member states during pre-COVID times. However, due to the worsening conditions owing to the pandemic, industrial production had fallen sharply. The outbreak of the COVID-19 pandemic has had a negative impact on the global economy as it has impacted various sectors, such as BFSI and IT & telecom, significantly. The pandemic has resulted in the implementation of lockdown restrictions and travel limitations in many countries worldwide, resulting in the disruption of the supply chain of goods and materials and the Internet of things (IoT) market demand. Additionally, the l Internet of things (IoT) market imitations on trades, shutting down manufacturing sites, the decline in the production rate, cash flow constraints, and unavailability of workers has led to the fall in the cash flow margins of the stakeholders in the global market. Due to lockdown restrictions imposed and workforce benched to their home and local regions, the growth and availability of experts to deploy the combined system remotely were not possible in some countries, making it difficult to adapt the technologies.
The growth of the Internet of things (IoT) market is expected to be driven by factors such as growing need for IoT security, low operational costs, increased use of Internet of things (IoT) market technology in the healthcare sector. In comparison, limited number of IoT experts and uncertain regulatory and compliance environment, restraining the growth of the global market. However, the market is expected to present lucrative investment opportunities due to the increasing adoption of blockchain-based IoT solutions for smart contracts and edge computing.
Growing Need For IoT Security
The rise in Internet of things (IoT) market penetration worldwide and advancement in the speed of the Internet has made technologies such as IoT develop at a very rapid pace. With the fulfillment of basic criteria for IoT, i.e., advancement in speed, it is being used in many engineering applications and solving problems without the intervention of humans. IoT is used in engineering applications and the day-to-day daily activities of modern-day living, making them automated. In the process, it saves lots of time and is accurate make it a convenient option. Everyday tasks as simple as automating home lighting can be automated and controlled via Internet of things (IoT) market, but since IoT devices are controlled via the network, and it is vulnerable to security attacks since it is a combination of various technologies such as communication technology, information technology, electronic sensors, and actuator technology. Hence, any type of security attack is possible, and the appliances relying on the Internet of things (IoT) market can also be controlled, creating a need for IoT security. One of the major solutions for IoT security concerns is blockchain technology. Blockchain is used to track sensor data and prevent duplication with other malicious data. So, instead of going through a third party for establishing trust, sensors can exchange data through a blockchain. Thus, the growing need for IoT security is expected to drive the growth of the global Internet of things (IoT) market during the forecast period.
Increasing Adoption of Blockchain-Based Internet of things (IoT) market Solutions for Smart Contracts And Edge Computing
Internet of things (IoT) market with Edge Computing is an extensive virtual system that empowers processing and capacity between clients and the server farm of the conventional cloud computing system. With no need for external interruption, Edge Computing devices may communicate with one another. The blockchain can be utilized for interchanges between edge computing hubs and blockchain IoT devices. A smart contract is a self-executing contract with the terms of the agreement between buyer and seller being directly written into lines of code. The code and the agreements exist across a distributed, decentralized blockchain network. The code controls the execution, and the transactions are trackable and irreversible. Some industries have come up with solutions that offer blockchain IoT solutions for smart contracts and edge computing, with a rise in the demand for blockchain IoT technologies in the last few years. Thus, the increasing adoption of blockchain-based IoT solutions for smart contracts and edge computing is expected to present lucrative growth opportunities for the players operating in the global Internet of things (IoT) market.
Limited Number of IoT Experts
Although the adoption of IoT technologies has gained pace in various industries, one of the major reasons for the slow adoption rates is the lack of skilled labor and limited Internet of things (IoT) market knowledge. IoT is somewhat new to the industrial sector. Hence, the number of skilled experts on both technologies is very limited due to the complexion of the technologies. IoT refers to the alignments of various sensors and synchronization of every entity involved in the system, making it very hard to understand both technologies. Thus, there are a limited number of IoT experts available who are proficient in both technologies simultaneously, restricting the growth of the global IoT market during the forecast period.
The internet of things (IoT) market value chain has evolved from a conventional approach to highly efficient supply chain processes. The value chain comprises hardware, software, and connectivity in its basic requirements, system integration in the second stage, and end-user.
Internet of things (IoT) Market Segmentation
The Internet of things (IoT) market has been segmented based on component, organization size, end user and region.
Based on Component, the global Internet of things (IoT) market has been segmented into hardware, software, services. Further, Hardware has been segmented into Network Devices, Sensor, Others, Camera. Further, Software has been segmented into Network Management, Remote Monitoring, Data Management, Security Solution, Others. Also, Services has been segmented into Managed Services and Professional Services.
Based on organization size, the Internet of things (IoT) market has been segmented into SMEs and large enterprises.
Based on vertical, the Internet of things (IoT) market has been segmented into Industry and Consumer. Further Industry is segmented into Manufacturing, Logistics, Automotive, Healthcare, Retail, IT & Telecom, Others.
Globally, the Internet of things (IoT) market has been categorized into five different regions—North America, Europe, Asia-Pacific, Middle East & Africa, and South America. North America was leading the Internet of things (IoT) market in 2020. Asia-Pacific is expected to be the fastest-growing market from 2020 to 2030. On the other hand, Europe is expected to be at the second spot in the Internet of things (IoT) market in terms of market share during the assessment period. The Asia-Pacific segment accounted for the largest market share of 37.2% in 2020, with a market value of USD 106.1 million; it is expected to register the highest CAGR of 17.4% during the forecast period. The Europe segment was the second-largest market in 2020, valued at USD 91.3 million; it is projected to exhibit a CAGR of 14.2%. North America is the second-largest market and is expected to witness significant growth for the Internet of things (IoT) market as the demand for agile, scalable, and cost-effective computing is high in the region. The US is the dominating country for the Internet of things (IoT) market in this region. The US is a developed country in terms of economy and high demand for various industries such as IT & telecommunication, retail, and healthcare. The region constitutes countries such as the US, Canada, and Mexico. The US has a higher concentration of companies than Canada and Mexico, due to which the cloud platform adoption is higher.
Asia Pacific Region to Bolster the internet of things (IoT) market
Asia-Pacific is the largest hub for various manufacturing companies worldwide, which offers an immense growth opportunity on the Internet of things (IoT) market. The region holds significant potential for adopting Internet of things (IoT) market solutions due to developments in IT infrastructure. The region has been segmented, by country, into China, Japan, India, and the rest of Asia-Pacific. China is expected to dominate as well as grow with the highest CAGR during the forecast period.
Internet of things (IoT) market Competitive Landscape
The global market for Internet of things (IoT) market has witnessed significant growth over the forecast period. There are several domestic, regional, and global players operating in the IoT market who continuously strive to gain a significant share of the overall market. During the study, MRFR has analyzed some of the major players in the global IoT market who have contributed to the market growth. These include Amazon Web Services (US), AT & T Inc. (US), Cisco System Inc. (US), Google Inc. (US), Oracle Corporation (US), Dell Inc. (US), Microsoft Corporation (US), Hitachi Data Systems (U.S.), Huawei Technologies Co. Ltd. (China), International Business Machines Corporation (IBM) (US), Netobjex Inc. (US), Arctouch (US).
Among these, Microsoft Corporation (US), International Business Machines Corporation (IBM) (US), AT&T Inc. (US), Cisco System Inc. (US), Google Inc. (US) are among the top 5 players in the global IoT market. These players focus on expanding and enhancing their product portfolio and services to remain competitive and increase their customer base. Additionally, these players are focusing on partnerships & collaborations to expand their business and customer base to enhance their market position.
There are several domestic, regional, and global players in the Internet of things (IoT) market who continuously strive to gain a significant share of the overall market. During the study, MRFR has analyzed some of the major players in the global Internet of things (IoT) market who have contributed to the global market growth.
Internet of things (IoT) market Key Players
Microsoft Microsoft’s business strategy focuses on technology innovation that helps it maintain its position in a competitive environment. The company is focused on developing its complete intelligent solutions portfolio by investing heavily in its Azure platform and building AI-integrated cloud-based services. The Azure platform enables its users to develop, deploy, and manage applications without altering the underlying platform, thereby offering an enhanced user experience. The company aims to make its suite of cloud-based services platform-agnostic, making them widely available while maintaining its security to expand its consumer base.
The key players of the Internet of things (IoT) market include Amazon Web Services (US), AT & T Inc. (US), Cisco System Inc. (US), Google Inc. (US), Oracle Corporation (US), Dell Inc. (US), Microsoft Corporation (US), Hitachi Data Systems (U.S.), Huawei Technologies Co. Ltd. (China), International Business Machines Corporation (IBM) (US), Netobjex Inc. (US), Arctouch (US).
In August 2021, AT&T and Cisco partnered and introduced 5G network capabilities to boost performance for Internet of Things (IoT) applications across the US. The AT&T 5G network is now ready to deliver lower latency and faster speeds for enterprise customer IoT deployments using 5G certified devices.
In February 2021, Google Cloud and Sigfox partnered with Google Cloud to scale its cloud infrastructure and extend its IoT services portfolio. This partnership will enable Sigfox to rapidly accelerate its “Massive IoT” agenda – processing billions of messages each month from objects connected to the internet using data stored in the cloud.
In June 2021, Dell Technologies and Microsoft have collaborated to create an integrated Internet of Things (IoT) offering to help vertical customers simplify IoT management and enhance security between the Edge and the cloud.
In February 2021, Intel and Microsoft partnered to offer IoT products and services that reduce the complexity of solution development. The combined capabilities of the two companies in terms of hardware, software, processing edge, and cloud capabilities offer many opportunities to build an IoT solution quickly, without compromising performance or security.
This study estimates revenue growth at global, regional, and country levels and offers an overview of the latest developments in each of the sub-sectors from 2018 to 2027. For this analysis, MRFR segmented the global Internet of things (IoT) market report based on Component, Organization Size, end use and region.
By Organization Size
By End Use
|Market Size||2020: USD 258.4 Billion 2030: USD 741.35 billion|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||• by Component (Hardware, Software, Services) • by Organization Size (SMEs and Large Enterprises) • by End Use (Industry, Consumer)|
|Geographies Covered||• North America (US, Canada, and Mexico) • Europe (UK, Germany, France and Rest of Europe) • Asia-Pacific (China, Japan, India and Rest of Asia-Pacific) • Middle East & Africa • South America|
|Key Vendors||• Amazon Web Services (US) • AT & T Inc. (US) • Cisco System Inc. (US) • Google Inc. (US), • Oracle Corporation (US) • Dell Inc. (US) • Microsoft Corporation (US) • Hitachi Data Systems (U.S.) • Huawei Technologies Co. Ltd. (China) • International Business Machines Corporation (IBM) (US) • Netobjex Inc. (US) • Arctouch (US)|
|Key Market Opportunities||
|Key Market Drivers||• Drivers • Growing need for IoT security • Low operational costs • Increased use of IoT technology in the healthcare sector • Restraint • Limited number of IoT experts • Uncertain regulatory and compliance environment • Opportunity • Increasing adoption of blockchain-based IoT solutions for smart contracts and edge computing • Impact of COVID-19 • Impact on demand for emerging economies • Decrease in availability of raw materials|
Frequently Asked Questions (FAQ) :
A 25.70% CAGR is expected to transform the market.
The Asia Pacific regional market is projected to be the major driver of the market.
The segments in the market are offering Component, Organization Size, End Use.
The key contenders in the market are Microsoft Corporation (US), International Business Machines Corporation (IBM) (US), AT&T Inc. (US), Cisco System Inc. (US), Google Inc. (US)