The Internet of Things (IoT) Market was valued at USD 193.60 billion in 2019 and is expected to reach USD 657.31 billion by 2025, at a CAGR of 21% over the forecast period 2020 - 2025.. With the development of wireless networking technologies, the emergence of advanced data analytics, a reduction in the cost of connected devices, an increase in cloud platform adoption, the market is expected to grow at a positive rate.
- The internet of things technology helps in connecting various smart devices together to ease the operation and sharing of data amongst themselves. There are various smart devices, such as sensors, smartphones, and wearables, which collect necessary data from the devices which are further utilized to enhance customer's experience. The increasing need for data analysis and integration of analytics is expected to propel the utilization of the Internet of Things market over the forecast period.
- One of the most distinctive aspects of IoT is the increasingly personal nature of the information collected by these devices. Connecting automobiles to the network means that others can track the real-time vehicle movements and the manner in which they are being operated. The use of smart devices in homes can also reveal huge information about residents habits and the ways they live their lives. Attaching medical devices to the network can also yield an immense amount of sensitive information about people's health care, which increases the demand for better network security solutions along with the device's security, which is expected to drive the market forward.
Scope of the Report
Unlike traditional internet systems, which connects general-purpose computers, IoT systems connect together specialized devices designed for specific purposes with a limited degree of programmability and customizability. Moreover, IoT systems also store and process data in a distributed manner.
Key Market Trends
Retail Segment to Witness High Growth
- IoT technology has been enabling retailers across the globe to connect with both businesses and people. This enables retailers to gain insights about product performance and find new ways of customer engagement with both new and existing customers.
- IoT is also expected to make a huge transformation to various areas, like replenishment of goods. Devices, like connected fridge, that can automatically re-order milk, cheese, or any other product that is running low, are being introduced by major electronics manufacturers, like Samsung and LG.
- Additionally, the use of e-commerce platforms is rapidly increasing owing to the ease of shopping and increasing smartphone penetration in the market, which is likely to boost the market. The increasing need for data analysis and integration of analytics is expected to propel the utilization of the Internet of Things market over the forecast period.
Asia-Pacific to Witness the Highest Growth
- The Asia-Pacific region is expected to grow at the highest rate over the forecast period owing to the rising influx of technology companies in the region coupled with the increasing investment in IoT technology, the region is expected to boost the market growth rate.
- Moreover, the government of various countries in this region are primarily focusing on the Internet of Things (IoT) technology in order to enhance the operations and to develop their nation. These factors are projected to fuel the market over the next few years. Moreover, the increasing disposable income of the consumers in this region is likely to boost the Internet of Things market.
- Furthermore, Asia Pacific region consists of emerging economies such as India and China, and with the increasing application of IoT in various sectors like smart energy and utilities, smart manufacturing, building, and home automation and smart retail, is expected to drive the growth of IoT market.
The internet of things (IoT) market is highly competitive owing to the presence of many large and small players in the market operating in the domestic as well as in the international market. The market appears to be fragmented due to the presence of many technological giants in the market. Key strategies adopted by the major players in the market are product innovation and mergers and acquisitions. Some of the major players in the market are Cisco Systems, Inc., Google, Inc., IBM Corporation, Microsoft Corporation among others.
- June 2019 - Cisco extended its intent-based networking to some of the most challenging work environments on Earth. Cisco is introducing new networking technology purpose-built to withstand the rigors of the harshest of environments while providing IT and OT teams with intent-based networking capabilities to scale and accelerate IoT projects.
- April 2019 - IBM Corporation announced a collaboration with Sund & Bælt, which owns and operates some of the largest infrastructures in the world, to assist in IBM's development of an AI-powered IoT solution designed to help prolong the lifespan of aging bridges, tunnels, highways, and railways.
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