The Internet of Things is changing the way we live and work. It’s transforming the way we drive, the way we learn, the way we interact with our homes and our appliances. It’s making us healthier and more productive.
Global market for Internet of Things
According to recent projections from The World Bank, the global market for IoT is set to surge from $172 billion in 2018 to $610 billion by 2027.
Right now, IoT is being driven by the manufacturing industry, which has already invested over $100 billion in IoT technology. But that’s just the beginning. When we look at the data and see where things are going, we see that retail and healthcare are next up—they’re expected to invest over $40 billion each over the next 5 years.
Specifically, the IOT market will be driven by data analytics and security software. Data analytics software will represent over half of the global IOT market by 2025, while security software will represent one-third.
One of the most important technological advances within the IoT is the arrival of 5G technology. This will significantly increase transmission speeds for IoT devices in areas such as smart cities. However, experts have warned that this could also significantly increase energy consumption levels.
IoT Market Dynamics
Several dynamics come into play when looking at the market. In this article we will look at these main: growth drivers, market trends and issues, and competitive landscape
1. IoT Market Growth Factors
The IoT is sharing data, streamlining processes, and optimizing operations across industries. Numerous external factors will impact the growth rate of IoT over the next 5 years. These factors include:
- Algorithmic advancements that make artificial intelligence more accurate and more accessible.
- The decline in cost of connected devices like smartphones and sensors*
- Rising demand for smart services as global populations become increasingly urbanized.
2. IoT Market Trends
Numerous trends are emerging in the IoT market:
- The emergence of Industry 4.0 technologies like blockchain which are helping manufacturers to overcome challenges related to security, costs, and scalability
- Greater interest in predictive maintenance solutions by companies looking to reduce downtime and equipment failure rates
- The adoption of new security solutions by insurance providers seeking to protect themselves from growing cyber risks
3. Competitive landscape
Competitive landscape speaks to the market share analysis of key industry players. It is an overview of key companies operating in the IoT sector and their positioning in the market.
Industry experts measure sustainability, financial outlook, research & development activity and latest technology deployment to help determine overall competitive positioning in the IoT market.
The competitive landscape of the IOT is currently dominated by a few players: Amazon, Google, Microsoft, Apple, Cisco, Oracle and GE
Segmentation of the IoT market
The IoT market is segmented into application and geography. When segmented by application, the market is classified into businesses (B2B) and consumers (B2C).
Geographically IoT is being used in more and more places around the world every year. In fact, the geographic breakdown of the IoT market looks like this:
- North America: 37%,
- Europe: 21%,
- Asia-Pacific: 18%,
- Latin America: 9%,
- Middle East and Africa: 10%
Impact of IoT on our modern society
The Internet of Things will impact on all aspects of our modern society. It will be a key driver of the digital transformation of the global economy and has the potential to transform lives through better healthcare and improved environment monitoring.
From agriculture to healthcare, from retail to manufacturing, from transportation to energy, the real-time data collection and analysis that IoT makes possible is driving massive change and competitive opportunity.
The IoT global market shows no sign of slowing down. It is growing at an impressive rate and showing promise for growth as it moves into new areas like smart homes and beyond.
It’s easy to see why the Internet of Things comes with a massive range of benefits including cost savings, improved productivity, and better overall quality of life for all. It’s not just a buzzword, it’s an entire new way of living, and we’re here for it.