Internet of Things (IoT) in Banking Market Expected to Reach $237.4 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Internet of Things (IoT) in Banking Market," The internet of things (iot) in banking market size was valued at $12.7 billion in 2021, and is estimated to reach $237.4 billion by 2031, growing at a CAGR of 33.9% from 2022 to 2031.

The Internet and associated IoT devices are making the average banking experience more convenient, driving the banking industry's future to become increasingly digital. The Internet of Things (IoT) is a key component of rapid digital transition modern banks. Banks are implementing IoT technologies to deliver seamless customer experiences and convenience for their clients.

Furthermore, key factors that drive the Internet of Things (IoT) in Banking market trends include, rise in demand for IoT applications. Furthermore, increasing penetration of IoT-powered smartphones and smart wearables are also expected to aid the Internet of Things (IoT) in Banking market growth. However, higher installation costs and complex infrastructural requirements can hamper the market growth. Conversely, advancements in the field of IoT and cloud technology are expected to offer remunerative opportunities for the expansion of the IoT in Retail Banking during the forecast period.

On the basis of deployment model, the on-premise segment dominated the overall Internet of Things (IoT) in Banking market share in 2021, and is expected to continue this trend during the forecast period. This is attributed to more secure and custom applications of on-premise solutions. However, the cloud segment is expected to witness the highest growth, owing to the easier deployment and maintenance of cloud IoT solutions, which is expected to fuel the growth of the global IoT in banking market.

Region-wise, the IoT in banking market was dominated by North America in 2021, and is expected to retain its position during the forecast period, owing to their high expenditure on technological solutions, which is expected to drive the market for IoT in banking during the forecast period. However, Asia-Pacific is expected to witness significant growth during the forecast period, owing to its growing banking and financial sector, which is expected to fuel the growth of IoT in banking solutions in the region in the coming few years.

The COVID-19 pandemic has impacted not only individual behaviors but also forced governments and business organizations to change their policies and priorities. This is fueling the adoption of IoT and other technologies in many business sectors, especially in the banking and financial sectors. Banks had to remain operational even during the period of strict lockdowns, this made banks to invest in IoT technologies that can help facilitate their regular banking operations during the pandemic. For instance, in December 2020, a major retail and commercial bank in the UK, partnered with IBM corporation to deploy their IoT-enabled and AI-powered voice banking systems at NatWest branches. This voice banking system enabled NatWest customers to avail of contactless banking services during the period of the pandemic. Such trends aided in the growth of IoT solutions in the banking and finance sectors during the period, promising great opportunities for the Internet of Things (IoT) in banking market forecast.

KEY FINDINGS OF THE STUDY

• By enterprise size, the large enterprise segment accounted for the largest Internet of Things (IoT) in banking market share in 2021.
• By region, North America generated highest revenue in 2021.
• By offering, the solution segment generated the highest revenue in 2021.

The key players profiled in the Internet of Things (IoT) in Banking Market Analysis are Accenture, Capgemini, Cisco Systems, Inc, Dynamics, Inc, GE Digital, IBM, Infosys Limited, Mastercard, Microsoft Corporation, Oracle Corporation, PTC, SAP SE, Software AG, Stripe, Temenos, Tibbo Systems, and Vodafone Group Plc. These players have adopted various strategies to increase their market penetration and strengthen their position in the Internet of Things (IoT) in Banking Industry.