Int'l : +1-503-894-6022 | Toll Free : +1-800-792-5285 | help@alliedmarketresearch.com
A03954 | Pages: 405 | Charts: 90 | Tables: 151 |
The global iot monetization market was valued at $396.6 billion in 2022, and is projected to reach $25.1 trillion by 2032, growing at a CAGR of 51.7% from 2023 to 2032.
Rise in adoption of cloud platforms and increase in internet connectivity are the major factors that drive the growth of the global IoT monetization market. In addition, surge in use of consumer electronics devices is expected to fuel the growth of the global IoT monetization market trends. However, lack of IoT standards across platforms and rise in privacy as well as security concerns are the major factors that impede the growth of the global market. Also, according to a Capgemini research report, 70% of enterprises do not get service revenues from their IoT products.
Companies that want to generate revenue from IoT need to convert the information from smart and connected products into services by using the product's data stream to involve customers with additional services, or by offering the entire product as a service, which is expected to provide lucrative opportunities for the growth of the global market. Furthermore, an increase in number of smart lighting and smart city projects is anticipated to provide lucrative growth opportunities for the global IoT monetization market in the upcoming years.
Internet of Things (IoT) monetization is a process that generates revenue from IoT-enabled products and services. Owing to the growth in dependence of the users on the IoT-based products and solutions, the companies charge the users for some extra features or for the entire product as a service. With the beginning of the Internet era along with increase in advancements in technology, almost every device is now interconnected to each other. In addition, due to the emergence of the IoT, numerous offices as well as homes have become smart and are operating through these connected devices. Also, rise in usage of smart devices such as tablets and smartphones are expected to fuel the global IoT monetization market growth.
The IoT monetization market is segmented into component, organization size, industry vertical, business functions, and region. In terms of component, the market is bifurcated into solutions and service. Based on organization size, it is classified into large enterprises and small & medium sized enterprises. According to business function, the market is classified into marketing & sales, IT, finance, supply chain, and operations. As per industry vertical, it is divided into retail, IT & telecom, manufacturing, transportation & logistics, healthcare, BFSI, energy & utilities, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
[COMPONENTGRAPH]
On the basis of component, the global IoT monetization market share was dominated by the solution segment in 2022 and is expected to maintain its dominance in the upcoming years. Owing to advances in technologies enabling IoT monetization to transform industries globally, from BFSI, to manufacturing, healthcare, and others, are anticipated to propel the growth of the market in the coming years. However, the service segment is expected to witness the highest growth, as IoT monetization service reduce the time and costs associated with optimizing systems in the initial phase of deployment.
[REGIONGRAPH]
By region, North America dominated the market share in 2022 for the IoT monetization market. The increasing investments in advanced technologies such as cloud-based services, artificial intelligence (AI), machine learning (ML), business analytics solution, and IoT to improve businesses and customer experience are anticipated to propel the growth of the IoT monetization market. However, Asia-Pacific is expected to exhibit the highest growth during the forecast period. This is attributed to the increase in penetration of digitalization and higher adoption of advanced technology which are expected to provide lucrative growth opportunities for the market in this region.
Organizations are becoming aware of the opportunities embedded in their enterprise data due to a continuous rise in the volume of unstructured data. Enterprises can convert raw or aggregated data based on multiple data sources into something insightful and valuable through IoT monetization, which in turn helps make right business decisions. Companies have experienced exponential rise in volume, variety, and speed of data after the adoption of data monetization. This also makes way for different opportunities that help mark the growth of the business. A lot of industry verticals use analytics and business intelligence tools to create IoT monetization opportunities by leveraging all their data assets along with structured and unstructured data within enterprise systems. For instance, retailers are using IoT monetization primarily to automate the process of analyzing billions of transactions. Moreover, financial service companies adopt IoT monetization to analyze thousands of trades to be able to capture profit from minor market inefficiencies.
The benefits of Internet of Things (IoT) are majorly being experienced among consumer domains, such as transport and connected homes, which in turn drive the growth of the IoT monetization market forecast in smart cities and smart cars. Moreover, integrating IoT devices into cars’ systems enables additional functionality. Smart cars allow individuals to cool down or heat up cars before going for a drive, which is also one of the major factors expected to drive the growth of the IoT monetization market in smart cars. Furthermore, energy consumption and smart home technologies are also the biggest adopters of Internet of Things (IoT) and continue to drive the growth of the market owing to the significant rise in smart cities’ initiatives. By using internet connectivity, smart homes allow homeowners to control various devices and appliances in the home from remote locations. In addition, the manufacturers plan to connect maximum number of home devices to the internet in the upcoming years, which provides numerous opportunities for the growth of the IoT monetization market.
IoT has already started to transform and disrupt entire industries, such as home devices and other appliances. Followed by the smart home, connected cars are also dominating the Internet of Things, which are the major factors driving the growth of the market. Moreover, number of businesses are increasingly adopting IoT monetization solutions, which fuel the growth of the market. For instance, 35% of manufacturing organizations are already taking advantage of smart sensors, and other 18% are expected to use them in coming years. Furthermore, according to a survey by Capgemini, 65% of the companies are allocating budget to IoT over the next 12 months, which is anticipated to drive the growth of the IoT monetization market. Thus, the rise in penetration of IoT devices in numerous industry verticals is expected to generate massive amount of data. This is anticipated to generate the need for IoT monetization solution, which fuels the growth of the market.
The COVID-19 pandemic has had a significant impact on the IoT monetization industry. While some sectors experienced challenges, others witnessed opportunities for growth and innovation. One of the positive impacts of the pandemic on the IoT monetization market was the increased demand for remote monitoring and automation solutions. With restrictions on physical access and the need for social distancing, industries such as healthcare, manufacturing, and logistics sought IoT technologies to enable remote monitoring of equipment, processes, and assets. This drives the adoption of IoT solutions that facilitates real-time data collection, analytics, and control, allowing businesses to ensure operational continuity and optimize efficiency even with limited on-site personnel.
Additionally, the pandemic accelerated digital transformation initiatives across industries, further fueling the adoption of IoT solutions. As businesses looked to adapt to the changing landscape, they increasingly turned to IoT-enabled applications and services to optimize operations, improve supply chain resilience, and enhance customer experiences. This surge in IoT implementation created monetization opportunities for IoT platform providers, solution developers, and service providers. However, the COVID-19 pandemic also posed challenges to the IoT monetization industry. Disruptions in supply chains and manufacturing processes impacted the production and deployment of IoT devices and solutions. Economic uncertainties and budget constraints led to delays in investment decisions and reduced spending on IoT projects.
Furthermore, certain sectors heavily dependent on IoT, such as retail and hospitality, faced significant setbacks due to lockdowns and reduced consumer demand. This led to a temporary slowdown in IoT monetization within those sectors. Overall, while the COVID-19 pandemic presented challenges, it also acted as a catalyst for digital transformation and the adoption of IoT solutions across industries. The long-term impact on the IoT monetization industry will depend on how businesses navigate the changing landscape, adapt to evolving customer needs, and continue to innovate in the post-pandemic era.
Key Market Segments
Key Market Players