IoT Solutions Market Analysis | 2022-2028

“The IoT Solutions Market is expected to grow from USD 211.52 billion in 2021 to USD 675.52 billion by 2028 at a CAGR of 18.0% during the forecast period”.

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Market Dynamics

Introduction

An IoT Solution is an integrated pack of technologies, including many sensors, that companies purchase to solve problems efficiently and create new organizational value. IoT solutions are interrelated with computing devices, mechanical and digital machines, and objects that are fixed with sensors, software, and other technologies for connecting and exchanging data with other devices. IoT solutions help organizations in reducing costs with improved process efficiency, asset utilization, and productivity.

IoT solutions have been helpful for almost every industry, enabling the formation of new businesses, and strengthening efficiency. The IoT solutions also help connect devices, manage tasks, analyze opportunities, and securely transfer information. They give a safe environment to run in and help attain business growth.

Market Drivers: High-speed connectivity technologies

In recent years, wireless technologies have evolved from hypothetical observations to a quickly applied science that plays a crucial role in several aspects of today’s human life. These technologies include Bluetooth, Wi-Fi, ZigBee, Insteon, Z-Wave, and Digital Enhanced Cordless Telecommunications (DECT). Peer-to-peer solutions, such as DLNA, AllSeen, and UPnP, also witness faster advancement and enable direct device-to-device communication. An increasing number of wireless technologies enables compatible desktop computers, smartphones, laptops, and tablets to easily share data.

This growing connectivity will lead to a larger base of users interested in buying IoT devices. High-speed network connectivity has provided several new options for businesses across industries. The development of high-speed wireless network technology and the number of devices enabled by this technology are growing rapidly. Long Term Evolution (LTE) is the advanced high-speed wireless communications standard for mobile phones, enabling 4G and 5G services. It easily deploys and optimizes network connectivity by using different radio links for the device-to-tower uplink and tower-to-device downlink.

LTE is important as it enables efficient use of the ever-limited spectrum for connecting low-power IoT devices with end servers. In addition to this, the evolution of IPv6 is further driving the demand for connected technologies among enterprises. IPv6 is expected to positively impact the growth of IoT-connected devices. Furthermore, its additional features include easier management of networks using auto-pattern techniques, greater privacy, and advanced security measures.

Market Restraint: Data security and privacy concerns

Organizations demand improved security and privacy protection as the IoT market grows to safeguard against corporate surveillance and data breaches. With the growing number of IoT-enabled systems, many security and privacy problems will arise; every endpoint, sensor, gateway, and smartphone may become a potential target for attackers. The most sensitive part of the IoT ecosystem is that businesses surrender their privacy, bit by bit, without even realizing it because they are not aware of what data is being stolen and in what way it is being used.

In many business processes, IoT devices measure variables, such as speed, consumption, pressure, and temperature. At the same time, actuators handle physical systems, such as brakes, lights, valves, power circuits, or automated drug dispensers. These applications are important from the privacy and security perspective as they all affect the physical world directly, sometimes controlling crucial infrastructure and sometimes collecting private data about various operations and smart equipment. There is a need for IoT security and privacy protection among businesses as some of the IoT devices have very limited processing capacity, memory, and battery power.

Recent Developments

• In June 2022, Siemens launched new IoT-enabled products and solutions that strengthen its fire safety portfolio.
• In May 2022, SAP and HCL Technologies partnered to accelerate Industry 4.0-driven smart IoT technologies.
• In April 2022, Arm launched two new solutions for Arm Cortex-M and Cortex-A processors, which help streamline and accelerate the IoT and embedded development processes.
• In January 2022, Intel introduced 12th Gen Intel Core processors to accelerate Internet of Things (IoT) application innovation. The new processors offer manufacturing, healthcare, retail, and digital safety customers increased core counts and advanced graphics, media, display, and AI capabilities, with a wide range of price, performance, and power.
• In October 2021, Siemens acquired French startup Wattsense, which helped Siemens enhance its building automation offering for small and mid-size buildings.

Segments Analysis

By Deployment Model Type

“The on-premise segment held the largest market share during the forecast period”.

The market is segmented into cloud and on-premises. The on-premise segment held the largest market share in 2021, and this trend is expected to continue over the forecast period. This is attributed to one of the key benefits offered by the on-premise deployment model, offering a high level of data security and privacy protection.

However, the cloud segment is expected to grow with a higher CAGR during the forecast period. The cloud deployment model does not require large investments in IT infrastructures, as all data is stored on cloud servers, which boosts the demand for IoT software among SMEs.

By Organization Size Type

“The large enterprise segment dominated the market over the forecast period”.

The market is segmented into large enterprises, small- and medium-sized enterprises. The large enterprise segment dominated the overall market in 2021 and is expected to continue this trend over the forecast period. This can be attributed to the growth in adopting IoT technology by enterprises to gain a strategic and competitive advantage over their competitors. Businesses adopt IoT to discover new insights from a large volume of diverse data, including historical and current data.

IoT technology very well collects data and executes algorithms and analysis across a large volume of data to discover relevant relationships, patterns, entities, and insights. Moreover, IoT continues to become mainstream, as more large-sized enterprises are increasingly adopting it for the extraction of valuable insights from big data, which acts as an opportunity for the market.

However, the small- & medium-sized enterprise segment is expected to exhibit a higher growth rate over the forecast period. This is attributed to the fact that SMEs are increasingly moving their businesses to new digital platforms, and are using IoT solutions, helping them become smarter, productive, and efficient.

Regional Analysis

“Asia-Pacific to witness the highest CAGR during the forecast period”.

The market is broken down geographically into areas like North America, Europe, Asia-Pacific, and the Rest of the World (RoW). APAC to witness the highest CAGR during the forecast period. The APAC region consists of several developed and emerging economies, such as India, China, Japan, Australia, and Singapore.

The high adoption rate of innovative technologies has made this region a lucrative market for the ICT industry. Due to this reason, the IoT solutions market in the APAC region is expected to grow at the highest rate.

Key Players

The following are the key players in the IoT Solutions Market (arranged alphabetically)

• ARM (UK)
• AWS (US)
• Aeris Communications (US)
• Ayla Networks (US)
• Cisco (US)
• ClearBlade (US)
• Confidex (Finland)
• Fujitsu (Japan)
• GE Digital (US)
• Google (US)
• HQ Software (Estonia)
• Hitachi (Japan)
• Hologram (US)
• IBM (US)
• Intel (US)
• Litmus (US)
• Losant (US)
• Microsoft (US)
• Oracle (US)
• Oxagile (US)
• PTC (US)
• Particle (US)
• Qualcomm (US)
• SAP (Germany)
• Samsara (US)
• Siemens (Germany)
• Software AG (Germany)
• Telit (UK)

Note: The above list does not necessarily include all the top players in the market.

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