The global IoT technology market is expected to grow from USD 367.58 billion in 2021 to USD 564.41 billion by 2028 at a CAGR of 6.3% during the forecast period.
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The Internet of Things (IoT) is a terminology that refers to a network of physical objects or “things” that are implanted with sensors, majorly wireless, and can connect and share data with other objects, devices, and servers through various networking technologies. These devices span from ordinary household articles to complicated industrial tools. It helps connect everyday objects, such as kitchen appliances, cars, thermostats, baby monitors, to the internet via embedded devices. This enables seamless communication between people, processes, and things.
Using the cloud, low-cost computing, mobile technologies, big data, and analytics, physical things can collect and share data with negligible human intervention. In this densely-connected world, digital systems can record, monitor, and adjust each communication among connected things.
The IoT technology comprises various node components, such as processors, connectivity ICs, memory devices, sensors, and logic devices. Its software solutions include data management, real-time streaming analytics, network bandwidth management, remote monitoring, and security solutions. The platforms used are device management, application management, and network management.
Key Players
The major players operating in the global IoT technology market are:
Texas Instruments Incorporated
Intel Corporation
STMicroelectronics
Qualcomm Technologies
Cisco Systems
Amazon Web Services (AWS)
IBM
Hewlett Packard Enterprise (HPE)
PTC
Microsoft Corporation
General Electric (GE)
Softeq Development Corporation
SAP
Oracle Corporation
Siemens
Sciencesoft
Schneider Electric
Huawei Technologies Co., Ltd.
Bosch
Microchip Technology Inc.
Vates
ARM Limited
NXP Semiconductors N.V.
TE Connectivity Ltd.
Software AG
Market Dynamics
Growing Use of Cloud Services to Support IoT-enabled Systems
IoT involves transferring, storing, managing, and analyzing data produced from several edge devices. Cloud services enable this by providing analytics features. A cloud service is a cost-effective and easy-to-deploy solution that eliminates the need for on-premises data centers. The data generated from IoT devices are stored on the cloud and managed through cloud services. This helps enterprises to get real-time awareness from IoT-based devices and, therefore, develop processes based on their analysis.
Additionally, the introduction of IoT Platform-as-a-Service (PaaS) has also expanded the use of various IoT solutions across a range of industry verticals. Cloud services give enterprises newer methods of connecting traditional information management systems to IoT-enabled ones. Different companies in the IoT node and gateway market are customizing their cloud services to meet their customers’ requirements.
For instance, in February 2021, NXP Semiconductors introduced the EdgeLock 2GO IoT service cloud platform, designed for zero-touch, secure deployment, and security maintenance of IoT devices throughout the device lifecycle. Enterprises have realized the value of cloud services in delivering comprehensive IoT solutions to their customers, which is expected to further drive the global IoT technology market.
Tons of new data is being produced and will require to be stored, which has increased the need for data centers. For instance, all the data from users while creating new accounts, their personal and financial information, and historical data, all need to be encrypted and stored.
This results in a growing usage of data centers. With such an expansion in data consumption and traffic, the communication channels from devices to data centers require to be enhanced drastically. By the end of 2021, there are estimated to be more than 10 billion IoT units active worldwide, each one requiring a data connection with central systems as well as with other devices. Therefore, the use of IoT is likely to be growing in the coming years.
Segment Analysis
Data management segment to hold the largest share during the forecast period.
In 2021, the data management software solution segment held the largest share of the market. Software solutions help meet interoperability challenges that arise due to heterogeneous devices, and manage an enormous volume of data along with their security and privacy. IBM Corporation (US), Microsoft Corporation (US), Cisco Systems Inc. (US), SAP SE (Germany), and PTC, Inc. (US) are some of the major software solution providers for IoT-based systems.
With the growing count of connected devices, the size of data is also expanding. IoT devices generate a massive volume of data daily. These data can be useful in deriving insights through analytical tools. For the management of the huge volume of data, data management software solutions are increasingly used.
Data management software solutions are the most critical software solutions in the IoT ecosystem as the massive amounts of data generated by IoT devices pose a challenge for the solution providers to deal with. By implementing an effective IoT data management software, enterprises can optimize their operations and get a competitive edge.
The device management platform segment to register the highest growth rate during the forecast period.
The device management platform is expected to witness the highest CAGR during the forecast period. A device management platform helps in tracking, managing, securing, and sustaining the devices that are used in businesses. With the growing number of connected devices, the need for device management platforms is likely to increase.
A device management platform helps in device monitoring, device provisioning, configuration, remote access, software management, and troubleshooting. Without device management software, enterprises may end up investing a heavy amount (cost and labor-intensive effort) for the management of devices.
The market for device management platforms is expected to grow owing to the growing number of connected devices, data traffic, and error rates. The advantages of using device management are quick device registration, simple IoT device management, real-time location tracking of connected devices, and easy remote management.
North America to lead the market for IoT technology during the forecast period.
North America held the largest share in the global IoT technology market in 2021. The region is expected to continue to be the leading region over the forecast period owing to the presence of several major players.
Growing penetration of the internet in the region and increasing adoption of wireless sensors and networks across numerous end-use applications such as retail, healthcare, industrial, consumer electronics, and automotive and transportation have boosted growth of the IoT technology market.
Increased research and development activities in the field of IoT, resulting in emergence of new and enhanced technologies, and the growing demand for improved lifestyle are the two major factors boosting growth of the market in the North American region.
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. The following are the key features of the report:
Market structure: Overview, industry life cycle analysis, supply chain analysis.
Market Environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
Market trend and forecast analysis.
Market segment trend and forecast.
Competitive landscape and dynamics: Market share, Product Portfolio, New Product Launches, etc.
Attractive market segments and associated growth opportunities.
Emerging trends.
Strategic growth opportunities for the existing and new players.
Key success factors.
Customization Options
With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:
Company Profiling
Detailed profiling of additional market players (up to three players)
SWOT analysis of key players (up to three players)
Competitive Benchmarking
Benchmarking of key players on the following parameters: product portfolio, geographical reach, regional presence, and strategic alliances
Custom Research: Stratview research offers custom research services across the sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to sales@Stratviewresearch.com
Recent Developments
In December 2022, Qualcomm unveiled Lowest Power IoT-Optimized LTE-Modem with integrated positioning support for better connectivity, location tracking, and computation features both on device and at the edge.
In June 2022, Siemens launched new IoT-enabled products and solutions that strengthens 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 helps 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 wide range of price, performance and power.
In October 2021, Siemens acquired French startup Wattsense, which helped Siemens to enhance its building automation offering for small and mid-size buildings.
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The major players operating in the global IoT Technology market are Texas Instruments Incorporated, Intel Corporation, STMicroelectronics, Qualcomm Technologies, Cisco Systems, Amazon Web Services (AWS), IBM, Hewlett Packard Enterprise (HPE), PTC, Microsoft Corporation, General Electric (GE), Softeq Development Corporation, SAP, Oracle Corporation, Siemens, Sciencesoft, Schneider Electric, Huawei Technologies Co., Ltd., Bosch, Microchip Technology Inc., Vates, ARM Limited, NXP Semiconductors N.V., TE Connectivity Ltd., Software AG.
North America held the largest share in the global IoT technology market in 2021. The region is expected to continue to be the leading region over the forecast period owing to the presence of several major players.
The device management platform is expected to witness the highest CAGR during the forecast period. A device management platform helps in tracking, managing, securing, and sustaining the devices that are used in businesses. With the growing number of connected devices, the need for device management platforms is likely to increase.