Internet of Things (IoT) Market Statistics: 2030
The global IoT market size was valued at $ 740.47 billion in 2020, and is projected to reach $ 4,421.62 billion by 2030, growing at a CAGR of 19.67% from 2021 to 2030. The IoT technology consists of web-connected smart devices that obtain, analyze, and process the 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 technology to enhance organizational performance and better understand consumers to provide better customer services, enhance decision-making, and boost the value of their businesses.
Advancements in industrial-grade digital technology, increase in inclination toward cloud-based IoT software, and rise in need for improved supply chain & customer relation management majorly contribute toward growth of the global IoT market. IoT helps people live and work smarter, as well as gain complete control over their lives in addition to offering smart devices to automate homes, which has become primary need of customers. Furthermore, IoT provides businesses with a real-time look into how their systems really work, delivering insights into everything from the performance of machines to supply chain and logistics operations. Moreover, IoT enables companies to automate processes and reduce labor costs. Furthermore, it cuts down on waste and improves service delivery, making it less expensive to manufacture and deliver goods, and offering transparency into customer transactions, which is expected to create lucrative opportunities for the IoT market growth at a global level.
On the basis of organizational size, the large-scale enterprise segment dominated the overall IoT industry in 2020, and is expected to continue this trend throughout the forecast period. This is attributed to increase in adoption of IoT technology by business to gain strategic and a competitive advantage over their competitors. Customers use IoT to discover new insights on large-scale diverse data, including historical and recent data. This technology is suitable for collection of data and running algorithms and analysis across a large set of data to find relevant relationships, entities, and insights. Furthermore, IoT continues to become mainstream, as more large enterprises are considering the extraction capabilities for getting valuable insights from big data, which is opportunistic for the internet of things market. However, the small- & medium size enterprise (SMEs) segment is expected to exhibit the highest growth during the forecast period. This is attributed to the fact that SMEs are shifting their businesses to a digital platform, and are using IoT solutions, which is helping them to become more productive, smarter, and efficient.
Depending on the deployment model, the on-premise segment captured the largest share in 2020, and is expected to continue this trend during the forecast period. This is attributed to numerous advantages offered by on-premise deployment such as a high level of data security and safety. However, the cloud segment is expected to witness the highest growth in the upcoming years, owing to the fact that cloud deployment does not require investment in IT infrastructure, as all data is stored on cloud server, which increases the demand for IoT software across SMEs.
The report focuses on the growth prospects, restraints, and IoT market analysis. The study uses Porter’s five forces analysis of the IoT industry to understand the impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, the threat of new entrants, the threat of substitutes, and bargaining power of buyers on the IoT market trends.
The global IoT market is segmented into component, deployment, organization size, platform, technology, industry vertical, and region. By component, the market is divided into solution and service. 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, & consumer electronics; energy & utility; healthcare; transportation & logistics; IT & telecom; manufacturing; and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Service segment is projected as one of the most lucrative segments.
Impact of COVID-19
The IoT market witnessed significant growth in past few years; however, owing to the outbreak of the COVID-19 pandemic, organizations are rapidly shifting their business toward digital platform. This is attributed to lifting of lockdown and restriction for movement in public place by governments in majority of countries, and resuming travel & tourism along with required caution across the world to boost the local economy, which will help to drive the market growth. COVID-19 has disrupted normal life and has enforced a substantial change in the policies, priorities, and activities of individuals, organizations, and governments. These changes are proving to be a catalyst for technology and innovation. IoT platforms revenue will reach $66 billion in 2020, a 20% increase over last year’s figure. Increase in revenue will indicate that use of IoT has overcome the negative impact on supply chain due to COVID-19 lockdown. Remote working has been the standard for many companies for the last few months and will continue to be so wherever possible. It offers more flexibility, companies to save on physical spaces, and to have teams working in different locations, and less time is wasted on homework trips.
By Deployment Mode
Cloud segment is projected as one of the most lucrative segments.
Top Impacting Factors
Factors such as development of wireless networking technologies, increase in cloud platform adoption, and advent of advanced data analytics & data processing impact the IoT market growth globally. In addition, the IoT industry growth is affected by data security & privacy concerns and high implementation & maintenance cost of IoT devices. Furthermore, reduction in cost of connected devices and IoT traction among SMEs influences the market growth. However, each of these factors is anticipated to have a definite impact on the growth of the global IoT industry during the forecast period.
Advent of Advanced Data Analytics and Data Processing
Emergence of various data analytics and data processing tools such as big data analytics, data science, Hadoop is driving the implementation of IoT. Big data consists of massive volume of heterogeneous data in structured, semi-structured, and unstructured forms. In case of IoT, connected devices are important components in IoT platform, which generate a massive amount of data that requires tracking in real-time. To achieve this goal, the use of data analytics and data processing has increased considerably. Moreover, big data analytics tools leverage IoT for easy functioning. When the complete IoT system acts as a data generated source, the role of big data in IoT becomes essential. Big data analytics is an emerging tool for analyzing data created by connected devices in IoT that assists to take the lead to improve decision-making. Furthermore, rise in awareness about real-time data and product lifecycle data in businesses is increasing, which is anticipated to boost the growth of the IoT market.
Asia-Pacific is projected as one of the most significant region.
Technological Advancement and Innovation
Over time, there has been an increase in demand for better connectivity because of technical development and expanding innovation. This is anticipated to accelerate IoT adoption in the telecom industry and foster internet of things market expansion. The need for technology that is anticipated to enhance data management has increased along with the amount of data related to telecommunications.
In addition, manufacturers stress the significance of IoT and wireless connectivity. An increase in telco adoption, the penetration of smart connected devices, the necessity for network bandwidth control, and the automation of communication processes are expected to boost the market for IoT services. In addition, throughout the course of the projection period, the growth of next-generation wireless networks, the adoption of smart technologies, and distributed applications are expected to offer growth potential to the IoT market.
Key Benefits for Stakeholders
- The study provides an in-depth analysis of the IoT market share along with the current trends and future estimations to elucidate the imminent investment pockets.
- Information about key drivers, restraints, and opportunities and their impact analysis on the IoT market size is provided.
- Porter’s five forces analysis illustrates the potency of buyers and suppliers operating in the Internet of Things Industry.
- The quantitative analysis of the IoT market share from 2020 to 2030 is provided to determine the Internet of Things Industry potential.
IoT Market Report Highlights
By ORGANIZATION SIZE
By INDUSTRY VERTICAL
Key Market Players
SAP SE, HEWLETT PACKARD ENTERPRISE, INTERNATIONAL BUSINESS MACHINE CORPORATION (IBM), AMAZON WEB SERVICE., .ORACLE CORPORATION, MICROSOFT CORPORATION, INTEL CORPORATION, GOOGLE LLC, BOSCH SOFTWARE INNOVATION GMBH, CISCO SYSTEMS, INC.
According to the insights of the CXOs of top tech organizations across the globe, 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. The CXOs further added that IoT is expected to witness more adoption and usage in future, as it allows organizations to improve its performance and productivity. Moreover, introduction of advanced principal technologies and proliferation of devices have helped fuel the 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, the demand for mobile applications that provide IoT platform rises, as the mobile market expands. Prominent market players are exploring new technologies and platforms to meet the increase in customer demands. Product launches, collaborations, and acquisitions are expected to enable them to expand their product portfolios and penetrate different regions. For instance, in February 2021, NXP Semiconductors N.V. launched its new flexible IoT cloud platform, which is Edge Lock™ 2GO IoT service platform to securely manage and connect edge devices.
The new IoT security platform is integrated with NXP’s Common Criteria (CC) EAL 6+ certified EdgeLock SE050 secure element to protect IoT devices at the edge and securely connect them to one or multiple clouds and service providers. Furthermore, in February 2020, Panasonic launched its new IoT and AI-enabled platform, called Miraie. With this new technology, the company aims to empower everyday lives of its consumers with comfort, convenience, and seamless connectivity across all Panasonic devices.