The Internet of Things (IoT) refers to the use of various information sensors, radio frequency identification technology, global positioning systems, infrared sensors, laser scanners, and other devices. The Internet of Things (IoT) technologies collect any real-time monitoring, connection, and interaction object and access through various possible networks to realize the ubiquitous connection between things and people, for identification, achieving intelligent perception, and management of processes and items. The Internet of Things is an information carrier based on the internet, traditional telecommunications networks, etc. It allows all common physical objects that can independently address to form an interconnected network.
The Internet of Things (IoT) combines a variety of information sensing devices with the internet to form a huge network that can implement at any time, at any place, people, machines, and things that are interconnected. The Internet of Things is to use radio frequency identification, infrared sensors, global positioning systems, laser scanners, and other information sensing equipment to connect any item with the internet as per the agreed protocol for information exchange and communication to achieve.
Global Internet of Things (IoT) market estimated to grow with a CAGR 12.30% over the forecast period, 2020-2027, and expected to generate USD 1.3 trillion revenue by 2027. The growing use of e-commerce platforms owing to the ease of shopping and increasing smartphone penetration is likely to flourish the global Internet of Things (IoT) market in the future time. Additionally, the increasing application of IoT in the connected car and driverless vehicles, ultra-high-definition video, and smart home industries will accelerate the global IoT market in future periods. According to IDC, Global IoT connections predicted to increase from 7 billion to 25 billion approximately from 2017 to 2025.
Additionally, various developing countries promoted the internet of things for smart cities and helped improve the livability index of these cities, which led to robust IoT market trends. Furthermore, rapid urbanization, which results in rising digitalization investment coupled with favorable regulatory policies, are some key factors projected to expand the global IoT market. Further, the development of wireless technologies such as Wi-Fi, ZigBee, Z-Wave, Insteon, and Digital Enhanced Cordless Telecommunications (DECT) witness to accelerate the demand for global IoT market in the projected periods.
The Low Power Wide Area (LPWA) and 5G networks are the connecting technologies supporting IoT-based technologies. Additionally, the amalgamation of IoT, fog computing, Big Data, analytics, and cloud technology will affect the IoT market forecast in the next few years. Most operators expect new IoT use cases, such as remote control, to drive much of the demand for 5G, so operators need to develop relationships and joint technology with key partners, such as automobile and industrial companies, as well as to build out their networks. According to IDC, the number of global IoT devices would exceed 20 billion by 2025.
Various governments of developing and developed countries enable IoT-related policies and regulatory frameworks in place. For example, the government of India drafted IoT Policy Document in 2016. This policy lays the foundation of a strong governance framework for the holistic execution and implementation of IoT-related campaigns and policies. It plays an essential role in realizing the GoI’s vision of building USD 15 billion Indian IoT market and enabling India to hold nearly 5%-6% of the global IoT industry.
Based on components, the global Internet of Things (IoT) Market categorized into Software Solutions, Services, and Platform. The Software Solutions segment likely to generate maximum revenue by 2027. The software solutions provide governance and information security such as network and data center, cloud, mobility and end-point solutions, and policy management security to the enterprise.
Services segment will drive by services features such as it provides support for IoT- based problems such as cybersecurity solutions, cybercrime, privacy breaching, and cyber threats to the enterprise.
Based on Platform, the Global Internet of Things (IoT) Market classified Device Management, Application Management, Network Management, and Cloud Platform. The Device Management segment estimated to dominates as it manages IoT devices, connected devices and provides a solution such as device provisioning, remote access, and configuration.
Network Management will grow by benefits such as lower security risks, reduce costs, and improve network management.
Based on software solutions, the global Internet of Things (IoT) Market categorized into Real-Time Streaming Analytics, Security, Data Management, Remote Monitoring, and Others. Real-Time Streaming Analytics segment expected to gain maximum revenue by 2027 owing to its application in e-commerce, network monitoring, risk management, fraud detection, and pricing & analytics.
The security segment will propel by the application of IoT security to reduce cyber threats and hacking, maintain data confidentiality, integrity, and availability across the IT infrastructure.
Based on the technology, the global Internet of Things (IoT) market classified into Digital Twin, 5G, Virtual & Augmented Reality, Blockchain, and Others. The 5G segment projected to lead on account of 5G reshaping wireless communication methods used for IoT-based applications. 5G provides much more than just fast downloads such as high-speed connectivity, very low latency, and ubiquitous coverage for smart vehicles and transport infrastructure.
Virtual & Augmented Reality expected to influence by bridging the physical and digital worlds by overlaying information, such as audio, text, images, and interactive graphics, onto the physical environment.
Based on End-Users, the global Internet of Things (IoT) market segregated into Building and Automation, Smart Cities, Manufacturing, Connected Logistics, Smart Retail, Connected Healthcare, Banking, and Financial Services, Government & Defense and Others (Smart Agriculture, Smart Mobility and Transportation, etc.,). The Smart Cities segment predicted to dominate based on the use of IoT technologies in smart cities for communication networks, highly distributed wireless sensor technology, and intelligent management systems to solve smart governance, smart economy, smart environment, smart living, etc.
The manufacturing segment will bolster owing to the most spending industry on IoT spending, focusing on solutions that support production asset management and manufacturing operation. IoT based manufacturing industry drives the demand for the industrial IoT market.
Based on geography, the global Internet of Things (IoT) market segmented into North America, Europe, Asia Pacific, South America, and Middle East & Africa. North America estimated to occupy the lion’s market share by 2027 on account of massive digitalization across various industries and the growing adoption of smart connected devices in these regions.
The Asia-Pacific will be the swelling investment in IoT technology by major companies along with government policing for promoting IoT.
In 2016, the global IoT industry attracted USD 4.46 billion funding from 690 deals. By 2020, the Internet of Things (IoT) predicted to generate an additional $344 billion in revenues and to drive USD 177 billion in cost reductions. The USA saw the majority of global IoT deals, followed by Canada and the UK. Israel and Germany accounted for 2% of global IoT deals each.
Companies such as Intel Corporation, SAP SE, Cisco Systems, Inc., Microsoft Corporation, Oracle Corporation, International Business Machine, PTC Inc., Google Inc., Hewlett-Packard Enterprise, Amazon Web Services Inc., Bosch Software Innovation GmbH, Qualcomm, Huawei Technologies, Alcatel Lucent, Gemalto NV and General Electric are the key players in the Global Internet of Things (IoT) Market.
By Software Solution
By End-User Industry