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IoT market to grow at 25.2% CAGR till 2028
- October 26, 2022
- Steve Rogerson
The global IoT market is forecast to grow at a CAGR of 25.2% from 2022 to 2028, according to Research & Markets.
The increasing development of wireless networking technologies, a rise in cloud platform adoption, miniaturisation, and the emergence of advanced data analytics are factors driving the market.
Other factors propelling growth include advancement in data analytics, computing economies, and demand from domains including manufacturing, automotive and energy.
IoT technology lets different physical objects be linked by a common network. The IoT market is split into various major segments such as analytics, security, cloud, mobile technologies and platforms. Integration, automation and cloud computing are major driving forces behind the IoT market. Issues such as security and privacy are restraining market growth.
IoT technology also assists in connecting various devices to provide ease in the operation and sharing of data among themselves. The IoT market caters to every sector from retail, energy, healthcare, infrastructure and so on. Smart homes, wearables and smart cities are the most effective and high-growth applications.
The recent outbreak of Covid-19 saw IoT investments and deployments slow down. To the major disruption in the global healthcare and supply chains, hospitals, insurers, governments and logistics providers are reacting quickly for a more connected world that could better address the crisis and mitigate future ones.
The market is segmented based on infrastructure and end user. Based on the infrastructure, the market is segmented into the platform, mobile networks and access technologies, cloud storage and processing, analytics, and security. Based on the end user, the market is segmented into financial, manufacturing, transportation, retail, healthcare, energy and utilities, government and defence, residential, and others.
The healthcare segment held the significant market share in 2019. IoT healthcare allows augmented asset monitoring and tracking. Several enterprise grade technologies including distributed computing and big data analytics, asset management beside M2M communications and cloud platforms possess capabilities to provide drastically efficient and cost-effective results by IoT applications.
The banking, financial services and insurance (BFSI) industry is showing fast digital transformation and mobilisation. For reducing the security risk and leveraging the high amount of generated data, the banking and services businesses are exploring opportunities in the financial sector.
Key factors growing the market include an increase in the benefit of the technology in BFSI such as easy access of debit and credit cardholders. For instance, banks can track the ATMs in specific areas and accordingly install the machines based on the usage volume provided.
North America is the largest IoT market followed by Europe and Asia-Pacific. The growth of the market can be mainly attributed to the increasing role of IoT among the significant revenue-generating companies of the region, additionally driven by the deployment of connected cars, home automation, smart energy projects and a focus on smart manufacturing.
Further, increasing digitalisation and technology development across industry verticals is also propelling the growth of the market in the region. The region also has strong IoT vendors such as IBM, Microsoft and Cisco.
Asia-Pacific is projected to grow significantly during the forecast period. The key factors propelling the growth include rapid urbanisation, increasing smartphone use, increasing crime rates and illegal immigration. Other factors boosting market growth include increasing internet penetration, government support and significant private investments.
For instance, the Indian government’s Make in India programme has established a centre of excellence of technology for industries and start-ups. Additionally, the government’s plan to make 100 smart cities in the country will also expand the market.
Key players in the global IoT market include Amazon Web Services, Cisco, Arm, Honeywell, Bosch, Microsoft and Google. They are contributing considerably to market growth by adopting strategies such as mergers, acquisitions, collaborations and product launches. For instance, in January 2020, Cisco launched a security architecture for the IoT that will improve visibility around IT and operational technology.