IoT Sensor Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Market Overview

The global IoT Sensor market is expected to register a CAGR of 24.05% during the period of 2021-2026. 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.

Scope of the Report

Internet of things is a network of objects/devices that are primarily surrounded by sensors, network connectivity, and software to exchange and collect data. Their applications are found in multiple industries, such as healthcare, automotive, transportation, and manufacturing. IoT systems connect specialized devices designed for specific purposes with a limited degree of programmability and customizability. Moreover, IoT systems also store and process data in a distributed manner. The market study primarily comprises estimates derived for sensor types, such as pressure, temperature, chemical, motion/proximity, and similar types. Additionally, the geographical coverage provides the market number for the regions. The country-level data comprises qualitative trends to provide deep insights into the market trends in the region.

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Key Market Trends

Automotive and Transportation Industry to Drive the Market Growth

• The automotive sector across the globe is steadily transitioning toward an autonomous era, owing to the recent business collaborations and joint ventures among automotive giants, cybersecurity providers, chip makers, and system integrators.
• This indicates the inevitable advent of highly (Level 4) and fully (Level 5) autonomous vehicles, at the earliest, by 2020. Vehicle connectivity is expected to become necessary for proper communication among vehicles for 'decision-making' proper assimilation and comprehension of visual, geographical, audio, and other data.
• As smart cities emerge, Car2Car connectivity and advanced fleet management are expected to emerge, thus, providing scope for IoT sensors. This has fuelled rapid innovation and adoption of intelligent sensor technology, therefore, driving the demand for IoT sensors.
• Companies, such as Mercedes-Benz, Volkswagen, Volvo, Toyota, and Google Inc. are increasingly investing in developing smart cars with rich features that deliver safer, convenient, and comfortable driving experiences. According to a NASDAQ, driverless cars are likely to dominate the market by 2030. Moreover, DHL SmarTrucking aims to build a fleet of 10,000 IoT- enabled trucks by 2028. This is expected to boost the adoption of the IoT sensors over the forecast period.
• IoT is also bringing a massive revolution in the automotive, transportation, and logistics industries. Access to preventative maintenance, connected mobility, and real-time data access are some major factors driving IoT adoption in the studied segment. The global IoT transportation and logistics spending almost increased by an exponential rate in 2019 compared to 2015.
• The IoT has enabled many transportation organizations to map the most efficient routes, maximize fuel usage, logistics companies track-and-trace their shipments, and parking start-ups to monitor their available spots in real-time. IoT devices are deployed in traffic congestion control systems in telematics systems within motor vehicles, reservation and booking systems used by transport operators, security and surveillance systems, and remote vehicle monitoring systems.

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