The IoT Testing market was valued at USD 1107.2 billion in 2020 and expected to reach USD 6042.45 billion by 2026 and grow at a CAGR of 32.34% over the forecast period (2021 - 2026). The use of IoT testing using innovative technologies has led to the increasing use of different types of testing tools for various purposes, and the market is estimated to grow at a faster rate during the forecast period.
- Due to the increasing adoption of smartphones and mobile devices, coupled with the growing internet penetration, the evolution of IoT has witnessed immense growth in recent years. The same factor is expected to continue driving the demand for IoT solutions in the future as well. This is because the rise in the number of these devices is leading to an increase in data being generated.
- IoT testing tools are widely being used for open-source applications and to help monitor the traffic between the sender and the receiver. Hence, IoT testing tools, along with IoT solutions, are likely to become a significant factor in driving the market demand.
- Moreover, IoT testing services play a vital role in testing smart components and IoT applications to offer superior quality experience and services to end users. IoT testing involves real-time intelligence and communication to ensure perfect harmony between hardware and software throughout the connected network.
- As the IoT ecosystem expands, it is likely to face problems in scaling the testing process. With microservices test automation in IoT, the complexity of testing a massive architecture is expected to reduce, as each microservice can be tested as a separate process. Utilizing microservices for IoT testing also offers benefits of testing the extensibility, scalability, and integrations of the IoT system.
- The growing demand for IoT during the pandemic is increasing the opportunities for the growth of the IoT testing market. Owing to the recent outbreak of COVID-19, the global supply chain and demand for multiple products have experienced disruption, owing to which the IoT adoption is expected to be influenced until the end of 2020. Moreover, due to the production shutdown in countries such as China, multiple industries have observed a shortage of supply of various products during February and March.
Key Market Trends
Managed Services is Expected to Witness a Significant Growth Rate
- Managed IoT testing service providers see emerging technology as a significant source of business opportunity for the next couple of years. Among managed IoT testing services, the security testing will have a more significant market share than other testing services.
- Increase adoption of smart cities concepts has evolved the great potential of IoT in the energy and utilities, waste management, and infrastructure. The investment in IoT enabled infrastructure is expected to accentuate the demand for security testing services for those assets, which may further foster the demand for managed services in these sectors.
- Moreover, smart devices and IoT in the retail sector help the companies to enhance the customer experience, in order to drive more conversions, altering the day-to-day store operations and may increase the managed services in this sector.
- This encourages many companies operating in the manufacturing, healthcare, or government sectors to subscribe to security services, instead of additionally investing in acquiring the hardware and software required to establish a security system.
North America Occupies the Largest Market Share
- North America is expected to hold a potentially significant share, thereby, dominating the IoT testing market. The region has substantial dominance over sustainable and well-established economies, empowering them to invest in R & D activities actively. Thus, it contributes to the development of new technologies, such as IoT, Big Data, DevOps, and mobility.
- With the rising number of consumers embracing the smart home environment in the United States, IoT is further expanding across the North American region. According to the study, Stanford University researchers, around 66% of households in North America, possess at least one IoT device, more than a quarter of the global average of 40%. Although these technologies are increasingly on the radar of hackers, the level of security of these smart homes has been amplified as well. The increased adoption of IoT impacted the growth of the testing services market extensively.
- Moreover, organizations are also keen to incorporate IoT technologies into their processes, which is expected to boost the growth of the IoT testing market significantly. For instance, in May 2019, Telecom giant AT&T launched its Narrowband IoT (NB-IoT) network across the United States, further highlighting the momentum behind cellular IoT.
- Further, a number of IoT testing service providers across the region have emerged in the market, providing various managed or professional services, such as compatibility testing, pilot testing, regulatory testing, and upgrade testing.
The IoT testing market is moderately competitive and consists of a few major players. In terms of market share, some of the players currently dominate the market. However, the IoT testing solution providers are focusing on creating a point of difference among their competitors to sustain in the competitive landscape of the global market. Several players are expanding their offerings through investments in new product development backed by research and development spending.
- May 2019 - Ixia, a Keysight Business, and Symantec extended their collaboration to better secure hybrid networks. The integration of Ixia's CloudLens with Symantec Security Analytics, industry-leading threat detection and forensics solution, allows Symantec customers to gain real-time visibility into their hybrid cloud environments.
- April 2019 - Beyond Security and Ubiquitous AI Corporation, U.S. based Security testing company, collaboratively developed and launched BeStorm X, which is a vulnerability verification tool designed primarily to test IoT devices. The tool is an amalgamation of Beyond Security's BeStorm version 7.6.8 and UAC's IoT technologies.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support