Monday, 20 March 2017

Internet of Things Market is estimated to grow at 15.2 % to reach over USD 1.88 trillion by 2022

The Internet of Things (IoT) market was worth USD 605.69 billion in 2014 owing to rising requirement for internet connectivity worldwide coupled with technological advancements. The emergence of start-ups in different industries to satisfy growing need of consumers is anticipated to result in increasing venture capital investments. The market is estimated to grow at 15.2 % to reach over USD 1.88 trillion by 2022.


IoT market is projected to increase at a significant pace on account of its ability to improve efficiency and enable new services. IoT connects devices including industrial equipment and consumer electronics through a network that allows users to gather information and manage devices via software. Key factors that are expected to propel future growth include improving connectivity and internet access, data processing requirements and decreasing costs of internet enabled sensors. In addition, the market is likely to witness significant growth opportunities over the forecast period owing to increase in demand for gadgets such as wearable devices and futuristic elements including connected homes, vehicles, and cities coupled together with industrial internet of things (IIoT)

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Further key findings from the study suggest:
  • The absence of universally accepted standards that give rise to security and privacy issues are expected to hamper growth in the industry. Moreover, the introduction of stringent rules and regulation in the U.S and Europe to tighten data security and privacy for internet users are anticipated to restrict further market growth.
  • The global IoT market was dominated by device segment comprising of sensors and modules and contributed to over 30.0% of the overall market in 2014. The device segment is projected to witness significant growth opportunities through introduction of innovative IoT platforms as a substitute for competitor devices such as HomeKit by Apple Inc and Brillo by GoogeInc
  • A significant revenue share in the IoT market is anticipated to be occupied by the consumer electronics application segment followed by manufacturing and retail. The introduction of new concepts such as connected cars in the transportation sector is expected to propel demand for IoT over the forecast period. In 2014, about 25.0% of the overall industry was acquired by this segment.
  • Emerging economies such as Japan, India and China are expected to be the key drivers of IoT industry on account of manifestation of major component and technology manufacturers such as Huawei and Samsung coupled with the potential for the high-speed broadband internet. Asia Pacific is thereby projected to grow at a CAGR of approximately 16.0% over the next seven years.
  • IoT is a dynamic market majorly fuelled by new product developments and enhancements in technology. Organizations are focussing on investing in IoT divisions, innovation labs, and R&D to obtain the first-mover advantage to expand globally and mark their presence. Key companies include major telecom and technology giants such as Alcatel-Lucent, Accenture PLC, Google Inc., Apple Inc., General Electric, IBM, Freescale Semiconductors, SAP SE and Samsung Electronics.

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