IoT Connectivity Market Analysis | 2022-2028

Market Insights

The Global IoT Connectivity Market is expected to grow from USD 4.21 billion in 2021 to USD 12.41 billion by 2028 at a CAGR of 16.7% during the forecast period.

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Market Dynamics

Increasing demand for Bluetooth-enabled wearable devices is acting as a key driver for the growth of the market. Bluetooth has been increasingly gaining traction in consumer electronics for enabling a high-bandwidth connection among wearable devices. In contrast to Wi-Fi, Bluetooth uses much less energy and takes less time to connect two devices. Moreover, because of its ease of setup and low signal interference capabilities under frequency-crowded environments, Bluetooth is an appropriate option for numerous smart indoor applications where GPS asset localization is not an option.

Increasing demand for LPWANs such as LoRaWAN, SigFox, LTE-M, NB-IoT, RPMA, and Symphony Link is driving growth in the IoT connectivity market. Compared to Wi-Fi and Cat M1 networks, LPWANs help in smaller data transfers over much larger areas. Due to this, LPWANs are the most preferred network for large-scale IoT projects that include a wide variety of applications, such as worksite monitoring, agricultural management, asset tracking, environmental sensing, fleet management, and infrastructure development.

Moreover, due to their power efficiency, LPWANs can keep these kinds of IoT projects running longer compared to wireless technologies such as Bluetooth and 4G. In addition to this, depending on the circumstances, LPWANs can also use either licensed or unlicensed wireless connectivity. Essentially, this allows LPWAN users to further protect their data from interference by licensing their radio frequency for use.

The technology also ensures that no outside interference causes increased latencies or network failures. This could be beneficial for complex projects involving sensitive data, such as military operations, or for those that heavily depend on careful management and reliable connectivity, such as manufacturing and medical processes.

Segments Analysis

By organization size, large enterprises hold a larger market share over the forecast period.

Based on organization size, the global IoT connectivity market is divided into SMEs and large enterprises. The segmentation has been done based on the employee's strength in the enterprises. The large enterprise segment is expected to have the larger share of the market, because of their early adoption of IoT connectivity platforms and services, and high investment capabilities.

Large enterprises can leverage the cloud services which need IoT connectivity, as they can host their several applications in the cloud servers. This eases application management for them. With the cloud, organizations can achieve greater collaboration, along with higher performance, greater agility, and quick responsiveness, without having to manage server infrastructure. On the other side, the SME segment is expected to witness moderate growth in terms of the adoption of IoT connectivity platforms and related services.

The managed services segment to witness a higher CAGR over the forecast period.

Among services, the managed services segment is expected to register a higher growth rate than the professional services segment over the forecast period. Managed services free clients from managing their IoT connectivity operations from consultancy to implementation and maintenance. The major responsibility of the managed services providers is to cost-effectively enhance the efficiency of inbound and outbound operations for enterprises.

These services are very helpful for business entities, which do not have internal budgets or the necessary skills to implement and manage IoT connectivity systems on their own. The managed service providers manage end-to-end deployment as well as provide post-sales services.

Smart Grid & Utility segment accounted for the largest share in the global IoT connectivity market in 2021.

The smart grid and utility segment is expected to dominate in terms of revenue growth rate over the forecast period. With ever-growing urbanization and increasing demand for efficiency, utility companies need to improve capacity while developing new solutions to optimally manage their existing assets. There is a lot of space for enhancement in how users can manage the use of utilities, as well as how they run their cities.

IoT is acting as an enabler for the adoption of smart grids, smart meters, and innovative methods of generating and transporting energy. The technology enables smart utility services wherein energy, gas, and water consumptions are monitored and effectively managed to achieve higher conservation, waste reduction, and sustainability goals. The most crucial feature of these applications is connectivity.

North America to hold the largest market share over the forecast period.

The geographic analysis of the IoT connectivity market covers five major regions, namely, North America, Asia Pacific, Europe, the Middle East and Africa (MEA), and South America. North America is expected to account for the largest share of the global market and covers the US, Canada, and Mexico, which are early adopters of IoT connectivity technologies that include cellular-based and unlicensed LPWAN.

The US and Canada have well-established and sustainable economies, which empower them to actively invest in research and development activities, thereby contributing to the advancement of new technologies. Because of the early adoption of trending technologies, such as IoT, cloud, big data, AI, and mobility, enterprises are willing to bring IoT technologies into their processes. The advent of SMEs and growing digitalization in manufacturing by large companies has also aided the growth of the North American IoT connectivity market space.

The Asia Pacific IoT connectivity market is expected to witness a steady growth rate during the forecast period. Businesses in this region are also investing heavily to enhance and streamline their business operations. China accounted for the largest market share in the Asia Pacific region because of the presence of a large number of IoT manufacturing companies throughout the country. Moreover, IoT-enabled devices, such as sensors, are majorly manufactured in and exported from China.

Key Players

The major players operating in the global IoT connectivity market are:

• AT&T (US)
• Cisco (US)
• Verizon Enterprise Solutions (US)
• Vodafone (UK)
• Ericsson (Sweden)
• Sierra Wireless (Canada)
• Orange Business Services (France)
• Telefónica (Spain)
• Huawei (China)
• Telit (Italy)
• Hologram (US)
• Particle (US)
• Aeris (US)
• EMnify (Germany)
• Moeco (US)
• Sigfox (France)

Research Methodology

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools. More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data. We conducted more than 15 detailed primary interviews with the market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Report Features

This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision-making for the existing market players as well as those willing to enter the market.

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Recent Developments

• In May 2022, SAP and HCL Technologies partnered to accelerate Industry 4.0-driven smart IoT technologies.
• In April 2022, Cisco and General Motors announced a collaboration to deploy Cisco wireless backhaul technology for real-time and high-speed performance testing of General Motors’ pre-production vehicles. Cisco’s industrial wireless networking enables General Motors’ engineers to quickly analyze crucial vehicle data to make faster and data-driven decisions.
• In January 2022, Intel launched 28 new 12th Gen Intel Core mobile and 22 desktop processors for laptops and desktops, enterprise systems, and IoT applications.