Europe IoT Market Statistics: 2031
The Europe IoT market size was valued at $2.19 billion in 2021, and is projected to reach $12.30 billion by 2031, growing at a CAGR of 19.0% from 2022 to 2031.
The IoT platform consists of web-connected smart devices that obtain, analyze, and process data collected from their surroundings using embedded systems includes sensors, processors, and communication hardware. Organizations across a wide range of businesses are gradually shifting to IoT to enhance organizational performance and better understand consumers to provide better customer services, enhance decision-making, and boost the value of their businesses.
The growth of the IoT market is majorly driven by development of wireless networking technologies, increase in cloud platform adoption, and advent of advanced data analytics & data processing drives. However, data security & privacy concerns and high implementation & maintenance cost of IoT devices restrain growth of the market. On the contrary, reduction in cost of connected devices and IoT traction among SMEs is expected to create lucrative opportunities for expansion of the Europe IoT market.
By organization size, the large enterprises segment dominated the market in 2021, and is expected to continue this trend during the forecast period, owing to increase in adoption of IoT software to integrate this software into their existing inventories.
Conversely, the small- & medium-sized enterprises segment is expected to grow at the highest CAGR during the forecast period, owing to surge in adoption of cloud-based IoT software, as it provides cost-effective and efficient solution for SMEs.
The report focuses on growth prospects, restraints, and trends of the Europe IoT market analysis. The study provides Porter’s five forces analysis to understand the impact of various factors, such as the bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers, on the Europe IoT market share.
Segment review
The Europe IoT market is segmented on the basis of component, deployment, organization size, platform, technology, industry vertical, and country. By component, the market is divided into solution and services. Depending on deployment, it is segregated in to on-premise and cloud. On the basis of organization size, it is bifurcated into large enterprises and small & medium size enterprises. As per platform, it is fragmented into device management, application management, and network management.
According to technology, it is differentiated radiofrequency identification, pressure sensors, network communications, data processing, and near-field communications. By industry vertical, it is categorized into retail & e-commerce, energy & utility, healthcare, transportation & logistics, IT & telecom, manufacturing, and others. Country wise, the market is analyzed across the UK, Italy, Germany, Spain, Greece, Czech Republic, Portugal, Romania, Hungary, and Ireland.
Market players operating in the IoT market include Amazon Web Services, Inc., Bosch.IO GmbH, Google Corporation, Hewlett Packard Enterprise Development LP, IBM Corporation, Microsoft, NortonLifeLock Inc., SAP SE, Sophos Ltd., and Thales. These major players have adopted various key development strategies such as business expansion and new product launches, which help to strengthen their foothold in the Europe IoT market.
COVID-19 impact analysis
IoT has the potential to enhance competitiveness in Europe, and is an important driver for development of an information-based economy and society. In addition, IoT helps to collect more data needed through technology, such as AI and machine learning. Further, the COVID-19 crisis in Europe made it mandatory for companies to comply with legal requirements, such as copyright law and the General Data Protection Regulation (GDPR) set by European Union. These regulations facilitated increase in growth outlook of the Europe IoT market during the pandemic and post-pandemic scenario. Further, European Internet of Things trends service addresses a wide range of technology components, including sensors, gateways, connectivity, purpose-built platforms, analytics, security, application software, and professional services that are required to deliver IoT solutions to many different use cases and verticals. These factors collectively drive adoption and growth of the IoT market in Europe.
Furthermore, IoT became mainstream during the pandemic, and the IoT-related technology in Europe became cheaper. Therefore, IoT services and solutions are more accessible to individuals and companies with considerable rise in adoption of IoT-enabled connected devices. As a result, the Europe Internet of Things market continued to grow.
Top impacting factors
Development of wireless networking technology
IoT has the potential to enhance competitiveness in Europe, and is an important driver for development of an information-based economy and society. In addition, IoT helps to collect more data needed through technology, such as AI and machine learning. Further, the COVID-19 crisis in Europe made it mandatory for companies to comply with legal requirements, such as copyright law and the General Data Protection Regulation (GDPR) set by European Union. These regulations facilitated increase in growth outlook of the Europe IoT market during the pandemic and post-pandemic scenario. Further, European Internet of Things trends service addresses a wide range of technology components, including sensors, gateways, connectivity, purpose-built platforms, analytics, security, application software, and professional services that are required to deliver IoT solutions to many different use cases and verticals. These factors collectively drive adoption and growth of the IoT market in Europe.
By Component
Solution segment is projected as one of the most lucrative segments.
Furthermore, IoT became mainstream during the pandemic, and the IoT-related technology in Europe became cheaper. Therefore, IoT services and solutions are more accessible to individuals and companies with considerable rise in adoption of IoT-enabled connected devices. As a result, the Europe Internet of Things market continued to grow.
Increase in cloud platform adoption for the deployment of IoT
With constant increase in use of the internet, businesses have constant, flexible, on-demand access to a variety of adjustable computing resources, such as servers, databases, software programs, storage space, and processing power. Europeans have adopted cloud platforms for enabling its numerous advantages such as storing and accessing a large amount of data from the cloud through internet services, getting secured access, and so on. Furthermore, in 2021, almost 40% of EU businesses used cloud, primarily to host their email servers and store digital copies of their documents. For instance, in July 2022, adoption of public cloud across European enterprises reached a massive scale in cloud for its support of new apps as well as for its economical computing and storage for ones that are already in use. Moreover, businesses are changing their approaches and utilizing cloud-native technology by default rather than separately from other aspects of their cloud plans which further helps drive the growth of the IoT market in Europe.
By Deployment Mode
On premise segment is projected as one of the most lucrative segments.
Key Benefits For Stakeholders
- The study provides an in-depth analysis of the Europe IoT market forecast along with current & future trends to explain the imminent investment pockets.
- Information about key drivers, restraints, & opportunities and their impact analysis on Europe IoT market trends is provided in the report.
- Porter’s five forces analysis illustrates the potency of the buyers and suppliers operating in the industry.
- The quantitative analysis of the market from 2022 to 2031 is provided to determine the Europe IoT market potential.
Europe IoT Market Report Highlights
| Aspects | Details |
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 By Deployment Model |
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 By Organization Size |
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 By Platform |
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 By Technology |
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 By Industry Verticals |
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 By KEY MARKET PLAYERS |
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Analyst Review
According to insights of CXOs of top tech organizations across Europe, to boost efficiency and productivity, enterprises must integrate their business functions, resources, and important business processes together. IoT is being implemented by businesses to boost their profitability and working capital. Use of IoT enables businesses to integrate their all-machining operations and administration process with a single device via high-speed internet. However, selection of an ideal IoT platform varies depending on company outfit and procedure. Furthermore, cloud-based IoT (SaaS model) is gaining popularity over traditional on-premise IoT, which can provide lucrative opportunities in the future.
CXOs further added that IoT is expected to witness more adoption and usage in the future as it allows organizations to improve performance and productivity. Moreover, introduction of advanced principal technologies and proliferation of devices fuel penetration of IoT technologies. In addition, smartphones and other mobile devices have further altered consumer technology environment. Mobile usage has exceeded desktop usage, and this trend is expected to continue in the future. Thus, demand for mobile applications that provide IoT platform rises as the mobile market expands.
Key providers of the Europe IoT market such as Amazon Web Services, Inc., Google Corporation, and Hewlett Packard Enterprise Development LP account for a significant share in the market. With larger requirement from the corporate culture, various brands are adopting strategic acquisitions and partnerships to automate and simplify IoT solutions. For instance, in May 2022, Google Cloud partnered with SAP SE. This partnership is to integrate Google Workspace and SAP's cloud ERP, SAP S/4HANA Cloud. This integration enables customers to connect core SAP software used to run all mission-critical processes in the cloud, with collaborative capabilities of Google Docs and Google Sheets to innovate work that gets done across enterprises.
Furthermore, in June 2022, Bosch acquired MoTec Group. MoTec group is headquartered in Melbourne, Australia. It serves the racing market by developing a range of motorsports technology. MoTec develops, manufactures as well as distributes motorsports technology for teams. This is a strategic acquisition for Bosch as acquiring MoTec will extend its Bosch Motorsport unit, which is a part of its Bosch Engineering GmbH. This unit provides consulting services and development services in the automotive and motorsport sector.
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