IoT Sensor Market - Growth, Trends, and Forecasts (2020 - 2025)

The global IoT Sensor market is expected to register a CAGR of 24.05% during the period of 2020-2025. The new emerging applications and business models, coupled with the falling device costs, have been significantly driving the adoption of IoT, and consequently, the number of connected devices - connected cars, machines, meters, wearables, and consumer electronics. According to the Ericsson study, of the 28 billion total devices connected by 2021, close to 16 billion will be IoT devices. This robust growth is expected to be driven by the increased industry focus on deploying a connected ecosystem, and the standardization of 3GPP cellular IoT technologies.

• Industry 4.0 initiatives across regions like Europe, China, etc., are the major drivers of the IoT deployments, and therefore, the IoT sensors. According to Accenture, 60% of the manufacturing companies are already engaged in IoT projects, and more than 30% of them are at an early stage of deployment. Moreover, the decreasing cost of IoT sensors is one of the prominent factors that would fuel the technology's adoption over the forecast period.
• Besides, smart city initiatives are also instrumental in driving the demand for IoT sensors. Singapore has already implemented a sensor-based Elderly Monitoring System that helps office working family members to receive alerts when the health condition of their home living elderly parents or dependents deteriorates or exhibits abnormal behaviors.
• Further, the advancements in field devices, sensors, and robots are expected to expand the market's scope. 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.
• For instance, the new-gen IoT sensors, developed on smaller chips/wafers and evolved fabrication units, offer better flexibility, connectivity, and efficiency. It is deemed necessary for upcoming connected factory infrastructure to be visioned, with less power consumption, and are expected to prompt industry to adopt solutions that help them upgrade their infrastructure suited for creating an IIoT environment and complement the demand.
• On the other hand, owing to the recent outbreak of COVID-19, the global supply chain and demand for multiple products have been disrupted. The IoT sensor adoption is expected to be influenced until the end of 2020. Moreover, due to the production shutdown in countries like China, multiple industries have been observing a shortage of various products during February and March. However, with the prolonged period of "social distancing," becoming a norm is expected to drive the reliance on automated solutions in a range of industries. Smart retail, for instance, could see a tremendous boost.