Internet of Things (IoT) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)
The Internet of Things (IoT) Market is segmented by Type (Hardware, Software/Platform, Connectivity, Services), Industry Vertical (Manufacturing, Transportation, Healthcare, Retail, Energy and Utilities, Residential), and Geography.
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Scope of the Report
Key Market Trends
TABLE OF CONTENTS
2018 - 2026
Fastest Growing Market:
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The global IoT market is expected to reach a value of USD 1,386.06 billion by 2026 from USD 761.4 billion in 2020 at a CAGR of 10.53%, during the period 2021-2026. 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.
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, the 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 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.
Moreover, owing to the recent outbreak of Covid-19, IoT investment and deployments are ecratinly slowing down. However, with major disruptions in global healthcare and supply chains, governments, hospitals, insurers, and logistics providers are having to react quickly for a more connected world that could help better address the current crisis and mitigate future ones.
However, the vendors are taking opportunity in the Covid-19 pandemic situation by offering emerging technology-enabled solutions to the healthcare organizations. For instance, at the end of January, the Shanghai Public Health Clinical Center (SPHCC) has 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.
Scope of the Report
IoT is a network of internet-connected objects. These objects collect and exchange the data using sensors embedded within them. IoT has combined hardware and software with the internet to create a more technically-driven environment. The scope of study on IoT market is structured to track the spending on hardware, platforms and services across end user industries, such as manufacturing, transportation, retail, healthcare, energy and utilities, and other end-user industries
Software / Platform
Energy and Utilities
Other Industry Verticals
Middle East and Africa
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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.
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North America to Witness a Significant Growth
North America is expected to be a prominent market, owing to the growing role of IoT among the significant revenue-generating end-user industries of the region, driven by the deployment of connected cars, smart energy projects, home automation, and focus on smart manufacturing. Additionally, rapid digitalization across industry verticals and technological advancements have further fueled the growth of IoT in this region.
Moreover, the region has a strong foothold of IoT vendors, which contributes to the growth of the market. Some of them include IBM Corporation, Microsoft Corporation, Intel Corporation, Cisco Systems, Inc., and Google Inc, among others. In February 2020, Cisco announced enhancements to its IoT portfolio that enable service provider partners to provide optimized management of cellular IoT environments and new 5G use-cases. New wireless technologies such as 5G, Wi-Fi 6 – would lead to more devices and new IIoT use cases and would give service providers the tools to create competitive cellular IoT offerings for their customers. Machine-to-machine connections are anticipated to rise 19% and account for 50% of all connections by 2023, according to Cisco's 2020 Annual Internet Report.
Another primary market in the region is the home automation systems. The products consumers are looking to add to their homes include connected cameras (highest demand), video doorbells, connected light bulbs, smart locks, and smart speakers of late. According to a study at Stanford University and Avast, North American homes have the highest density of IoT devices of any region in the world. Notably, 66% of homes in the region have at least one IoT device. Additionally, 25% of North American homes boast more than two devices. The average household in the region would have an average of 9 devices by 2022, and nearly half (48%) of total devices and connections will be video capable.
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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.
March 2020 - Microsoft & Cisco Systems announced a partnership to enable seamless data orchestration from Cisco IoT Edge to Azure IoT Cloud. One of the outcomes of this collaboration would be to provide customers a pre-integrated IoT edge-to-cloud application solution.
January 2020 - Cisco introduced an IoT security architecture that provides enhanced visibility across both IT and IOT environments and protects processes. Cisco’s new solutions enable the collection and extraction of data from the IoT edge so organizations can increase efficiencies to make better business decisions and accelerate digitization 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.