The IoT analytics market has been valued at USD 17.14 billion in 2020 and is expected to grow at a CAGR of 29.8% during the forecast period (2021 - 2026), to reach USD 81.67 billion by 2026.
- The increasing number of connected devices is one of the prominent factors driving the growth of the IoT Analytics market. For instance, according to the Ericcson's mobility report, there would be 1.5 billion IoT devices with cellular connections in 2022.
- The industrial sector has started adopting IoT analytics to streamline their factories, which are increasingly automated by robots. These robots that are often networked together enable manufacturers to use the data to make better decisions.
- For instance, in February 2019, according to the figures compiled by the International Federation of Robotics Robots active in the UK numbered around 2,300 units - an increase of more than 30%. This is indicative of the fact that the IOT Analytics market is expected to receive a significant boost throughout the forecast period.
- Some of the prominent players in the market through strategic partnerships have been able to further develop the technology, which has allowed them to gain a stronger foothold in the market. This is expected to fuel market growth over the forecast period.
- In May 2019, SAS, the global leader in analytics, announced that it had entered into a partnership with Octo Telematics, to enhance analytical capabilities across its insurance IoT platform.
- Also, the players in the market have been increasingly adopting technologies such as AI that allows them to increase the functional capabilities of their offerings. For instance, in April 2019, Siemens Digital Industries Software and SAS Institute partnered to deliver AI-embedded IoT analytics for edge and cloud. Such initiatives are poised to boost market growth over the forecast period.
Key Market Trends
Healthcare is Expected to Witness Significant Growth
- IoT-based healthcare solutions have the potential to improve the quality and efficiency of treatments. With connected healthcare solutions, leveraging IoT and analytics, it would lead the way for a model that is proactive, digitally-enabled, and patient-centric in turn boosting the market growth over the forecast period.
- For instance, in December 2017 Apollo Hospitals started focusing on connected health to provide improved service in which they aimed at IoT both within the hospital and outside.
- The emergence of Wearable Devices that allows the user to track heart rates, blood pressure and many more coupled with its increased adoption has resulted in the generation of voluminous data that has to be structured and analyzed. This is expected to boost the adoption of the IoT Analytics over the forecast period.
North America is Expected to Hold the Largest Share
- North America held the largest market share, due to the presence of several established vendors of iris recognition in the region, and also due to the earliest adoption of IoT technology in various industries. most of the companies in this region are increasingly adopting IoT to keep a track of the performance of their offerings.
- Regulatory compliance is a huge driver behind the high adoption of IoT technology, in the United States. The introduction of the Energy Act in the United States has accelerated the efforts to monitor sustainable energy consumption. This is expected to fuel the IoT analytics market growth over the forecast period.
- Companies, such as Airwire Technologies are working with IBM to implement its connected car and IoT services platform, to collect insights and act upon vehicle sensor data and the environment around it to establish a relationship with the driver, not just the vehicle. These factors are further expected to drive the adoption of IoT Analytics in the region.
- The region is home to some of the most prominent players in the information technology market. They are investing heavily to create an IoT ecosystem by enabling continued research and development. This is expected to fuel the growth of the IoT Analytics over the forecast period.
- For instance, in April 2018, Microsoft announced its plans to invest USD 5 billion in IoT over the next 4 years globally to support continued research and innovation in IoT.
The competitive rivalry amongst the players in the IoT analytics market is high owing to the presence of some key players such as Microsoft, AWS, CISCO, and many more. Their ability to continually innovate their offerings by conducting extensive research and development activities has enabled them to gain a competitive advantage over other players. Through strategic partnerships, and mergers & acquisitions have allowed these players to acquire a greater footprint in the market.
- March 2018: IBM launched private IoT analytics cloud platform which encompasses the same features of a public cloud for the data center. This is likely to foster the number of consumers for the company and bring a high influx of revenue.
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