Internet of Things (IoT) Market Size
|Study Period||2018 - 2028|
|Base Year For Estimation||2022|
|Fastest Growing Market||Asia Pacific|
|Largest Market||North America|
*Disclaimer: Major Players sorted in no particular order
Need a report that reflects how COVID-19 has impacted this market and its growth?
Internet of Things (IoT) Market Analysis
The IoT Market size is expected to grow from USD 1.02 trillion in 2023 to USD 2.06 trillion by 2028, at a CAGR of 15.12% during the forecast period (2023-2028).
During the Covid-19 pandemic, the vendors in the market are collaborating with several organizations to offer emerging technology-enabled solutions to the healthcare organizations to help them overcome the crisis effectively. For instance, at the end of January, the Shanghai Public Health Clinical Center (SPHCC) used the California-based connected health startup VivaLNK's continuous temperature measuring device to monitor COVID-19 patients, which therefore reduces the risks of caregivers being exposed to the virus.
- IoT technology is the keystone for various organizations to digitally transform, thus, empowering them to upgrade the existing processes by creating and tracking new business models. Enterprises and service providers have been looking at IoT as the key enabler to augment digital transformation and unlock operational efficiencies. The growing adoption of IoT technology across end-user industries, such as manufacturing, automotive, and healthcare, is driving the market's growth positively. With the traditional manufacturing sector amid a digital transformation, IoT is fueling the next industrial revolution of intelligent connectivity. This is changing the way industries approach increasingly complex processes of systems and machines to improve efficiency and reduce downtime.
- Industry 4.0 and IoT are at the center of new technological approaches for the development, production, and management of the entire logistics chain, otherwise known as smart factory automation. Massive shifts in manufacturing due to Industry 4.0 and acceptance of IoT require enterprises to adopt agile, smarter, and innovative ways to advance production with technologies that complement and augment human labor with robotics and reduce industrial accidents caused by a process failure. With the high rate of adoption of connected devices and sensors and the enabling of M2M communication, there has been a surge in data points that are generated in the manufacturing industry. These data points can be of various kinds, ranging from a metric describing the time taken for the material to pass through one process cycle or a more advanced one, such as the calculation of the material stress capability in the automotive industry.
- According to Zebra's Manufacturing Vision Study, smart asset tracking solutions based on IoT and RFID are expected to overtake traditional, spreadsheet-based methods by 2022. A study by the Industrial IoT (IIoT) company, Microsoft Corporation, found that 85% of companies have at least one IIoT use case project. This number may increase, as 94% of respondents claimed that they would implement IIoT strategies in 2021.
- The advancements in field devices, sensors, and robots are expected to further expand the scope of the market. IoT technologies are overcoming the labor shortage in the manufacturing sector. For more and more organizations, using Industry 4.0 technologies, like robotization, is part of day-to-day operations. According to the International Federation of Robotics, the market for collaborative robots is expected to reach a value of USD 12.3 billion by 2025. Intelligent robots work alongside workers and can be programmed by most factory workers to take on the most routine, tedious tasks and deliver with accuracy.
- They are increasingly being used in the manufacturing industry as they are easy to train and are making workplace environments safer for humans by taking their place in potentially dangerous situations. Highly trainable and collaborative, robots are also delivering safer working environments for humans by switching places with them in dangerous or unsuitable situations. For instance, autonomous dump trucks used at mining sites can be remotely controlled by operators, eliminating the need for human drivers.
Internet of Things (IoT) Market Trends
The Retail Segment to Witness a Significant Growth
- Both merchants and the end consumers it serves have boosted their use of connected devices in the retail industry. The use of e-commerce and the rise in disposable income support the growth of supermarkets and hypermarkets. The usage of software and digitalization, along with the required internet access, presents a market potential for IoT devices in the market category.
- IoT is also anticipated to transition significantly in several domains, including replenishing inventory in storage facilities. Major electronics producers are releasing products like connected refrigerators that can automatically reorder cheese, milk, or any other item that is running low, including Samsung and LG.
- Moreover, there is an increase in the use of e-commerce platforms owing to the growing smartphone penetration and the ease of online shopping. Due to the increasing need for data analysis and the integration of analytics, the market is expected to grow.
- The critical applications of IoT for retailers include the supply chain, connected consumers, and smart-store applications. Retailers are turning to IoT-enabled solutions, as they help them improve customer engagement while increasing revenues and reducing costs.
To understand key trends, Download Sample Report
North America to Witness a Significant Growth
- The deployment of connected vehicles, projects utilising smart energy, home automation, and a focus on smart manufacturing are driving the expanding role of IoT among the region's crucial revenue-generating end-user industries. North America is likely a significant market in this regard. The expansion of IoT in this area has also been aided by fast digitalization across industry sectors and technological breakthroughs.
- The convergence of AI and IoT, promoted by firms like SAS Software as the next wave of IoT-based AI, is among the future technologies that are anticipated to arise out of the present technologies that are altering manufacturing in the United States. The utility sector is currently under intense pressure in the US. The US Energy Information Administration predicted worldwide energy demand will increase by 48% by 2040, even though domestic energy production from renewable resources has expanded dramatically.
- The area is a pioneer in adopting container-based cloud applications that give deployments more flexibility and performance. Any centralized or edge IoT deployment is becoming accustomed to container-based cloud deployments. For instance, VMware introduced VMware Tanzu, a cloud platform that controls Kubernetes' container distribution.
- Additionally, the region is home to many startups developing ground-breaking IoT chip solutions. For example, a US startup, Wiliot is creating IoT chips based on Bluetooth technology without needing batteries for manufacturing, material recycling, retail, and asset distribution. These Bluetooth tags incorporate sensors, a low-power processor, and radio wave-based energy harvesting circuitry. The battery-free technology used by the startup offers much lower prices.
To understand geography trends, Download Sample Report
Internet of Things (IoT) Industry Overview
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 and international markets. Due to the high presence of technology, the market seems to be fragmented. Product innovation and mergers and acquisitions are two important methods used by the leading market participants. Oracle Corporation, Cisco Systems Inc., Google Inc., IBM Corporation, and Microsoft Corporation are a few of the market's main participants.
In April 2023, Qualcomm introduced cutting-edge IoT solutions to enable new industrial applications and help scale the IoT ecosystem. The latest IoT solutions deliver superior performance, advanced connectivity, and next-gen processing for a wide range of IoT use cases for smart buildings, enterprises, retail, and industrial automation.
In November 2022, Texas Instruments (TI) introduced new Matter-enabled software development kits for Wi-Fi and Thread SimpleLink wireless microcontrollers (MCUs) that will streamline the adoption of the Matter protocol in the Internet of Things (IoT) applications. The software builds on TI's close involvement with the Connectivity Standards Alliance and innovation in the 2.4-GHz connectivity space, where engineers can use the new software and wireless MCUs to create ultra-low-power and secure, battery-powered smart home and industrial automation IoT applications that seamlessly connect with devices across proprietary ecosystems.
Internet of Things (IoT) Market Leaders
Cisco Systems, Inc.
Huawei Technologies Co. Ltd
*Disclaimer: Major Players sorted in no particular order
Internet of Things (IoT) Market News
- Apr 2023: Texas Instruments developed the SimpleLink series of Wi-Fi 6 companion integrated circuits (ICs) to assist designers in implementing highly reliable, secure, and effective Wi-Fi connections at a reasonable cost for applications to operate with high-density or high-temperature settings up to 105oC. Devices for Wi-Fi 6 only or Wi-Fi 6 plus Bluetooth Low Energy 5.3 connectivity in a single IC are among the first items in TI's new CC33xx family. The CC33xx devices allow a secure Internet of Things (IoT) connection with dependable radio frequency (RF) performance in wide-ranging industrial industries like grid infrastructure, medical, and building automation when coupled with a microcontroller (MCU) or CPU.
- Feb 2023: Qualcomm expanded its offering to simplify and accelerate IoT across multiple industries. Qualcomm Aware will provide a collection of outstanding services for managing assets that demand crucial, accurate, and time-sensitive decision-making by fusing industry-leading silicon, a sizable developer-friendly cloud framework and an ecosystem of hardware and software partners. Qualcomm Aware will establish a new standard for IoT and assist businesses in increasing operational efficiency by delivering ubiquitous global connection, intelligently optimizing, and combining location technologies with sensor alerts and essential device management and control functions.
Internet of Things (IoT) Market Report - Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers/Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitutes
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Value Chain Analysis
4.4 Regulatory Framework
4.5 Assessment of the Impact of COVID-19 on the Industry
4.6 Market Drivers
4.6.1 Increasing Adoption of Connected Devices and Technology Proliferation
4.6.2 Rapid Growth and Technological Advancements in Data Analytics
4.7 Market Challenges
4.7.1 Issues Related to Security and Privacy of Data and Connectivity of Devices and Interoperability
4.8 USE CASES OF IoT
5. MARKET SEGMENTATION
5.1 By Component
5.2 By End-user Industry
5.2.5 Energy and Utilities
5.2.7 Other End-user Industries
5.3 By Geography
5.3.1 North America
220.127.116.11 United States
18.104.22.168 United Kingdom
22.214.171.124 Rest of Europe
5.3.3 Asia Pacific
126.96.36.199 Rest of Asia Pacific
5.3.4 Rest of the World
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Huawei Technologies Co. Ltd
6.1.2 Robert Bosch GmbH
6.1.3 Google Inc.
6.1.4 Cisco Systems Inc.
6.1.5 PTC Inc.
6.1.6 Siemens AG
6.1.7 Honeywell International Inc.
6.1.8 Koninklijke Philips NV
6.1.9 Aeris Communications Inc.
6.1.10 Amazon Web Services Inc.
6.1.11 IBM Corporation
6.1.12 Microsoft Corporation
6.1.13 General Electric Company
6.1.14 Fujitsu Ltd
6.1.15 Oracle Corporation
6.1.16 SAP SE
6.1.17 AT&T Inc.
6.1.18 Wipro Ltd
- *List Not Exhaustive
7. INVESTMENT ANALYSIS
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
Internet of Things (IoT) Market Research FAQs
What is the study period of this market?
The Internet Of Things (IoT) Market is studied from 2018 - 2028.
What is the growth rate of Internet Of Things (IoT) Market?
The Internet Of Things (IoT) Market is growing at a CAGR of 15.12% over the next 5 years.
What is Internet Of Things (IoT) Market size in 2028?
The Internet Of Things (IoT) Market is valued at 2 Trillion USD in 2028.
Which region has highest growth rate in Internet Of Things (IoT) Market?
Asia Pacific is growing at the highest CAGR over 2018 - 2028.
Which region has largest share in Internet Of Things (IoT) Market?
North America holds highest share in 2022.
Who are the key players in Internet Of Things (IoT) Market?
Cisco Systems, Inc., Google, Inc., IBM Corporation, Microsoft Corporation, Huawei Technologies Co. Ltd are the major companies operating in Internet Of Things (IoT) Market.
IoT Industry Report
Statistics for the 2023 Internet Of Things (IoT) market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Internet Of Things (IoT) analysis includes a market forecast outlook to for 2023 to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.