IoT Devices Market Analysis | 2023-2029

Market Insights

“The IoT Devices Market was estimated at US$ 79.64 billion in 2022 and is expected to grow at an impressive CAGR of 11.9% during 2023-2029 to reach US$ 174.42 billion by 2029.”

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Market Dynamics

Introduction

The Internet of Things (IoT) is a network of devices, automobiles, home appliances, and other things that have electronics, software, sensors, and connectivity that allow these things to interact. IoT defines an actual tangible object that has connectivity to the Internet and can gather information and transfer it throughout the Internet without having to involve a human being.

It can mean something as small as a fitness tracker that you wear on your wrist or something as large as an industrial machine. Some of the well-known IoT devices are smart thermostats, smart locks, smart lights, smart security systems, smart home appliances, automobiles, and industrial sensors. It can be said that such devices are capable of being connected, to a server, or other lines, such as clouds or web services.

These devices are interconnected and contain one or several sensors that perform the data collection and sharing with other devices or servers. This data can be analyzed and used to enhance many spheres of life and people’s performance. For instance, IoT can be employed in smart home automation: turn off the bulbs that are not in use, track the stock in the stores monitor patients’ health, and reduce the time required to notice an accident before it happens.

Market Drivers

The expansion of IoT devices is due to specific factors such as the availability of broadband internet, the evolution of low-cost sensors and wireless communication, and most importantly the shrinking of electronics. Therefore, IoT devices are continuing to get cheaper also popular in the market for widespread use in different fields. Thus, the markets of IoT devices are expected to expand soon because of the constantly increasing rates of smart device usage and the growth of investments of the end-user in IoT technologies.

The penetration of 5G technology, which is dominant in this industry, particularly in the developed countries is promoting the IoT device market growth. Moreover, the continued presence of innovative telecommunication amenities will most strongly influence the market of IoT devices in the forecast period. Industry 4.0 has been revolutionized by the IoT for business and IT. Small business management has received this concept as a boon because of the following advantages.

For instance, Smart shelf analytics in the retail sector has enhanced service quality by incorporating IoT into various Indian small and medium enterprises. In the healthcare sector, IoT helps SMEs monitor the data of their patients and enhance the health status of the clients, at the same time, creating revenues and gaining the patients’ confidence. Nevertheless, some barriers must be addressed in the market of IoT devices, including the problem of compatibility disturbances, scarcity of qualified workforce, and opportunities to disclose private information of individuals.

In addition, a rapidly increasing number of connected devices in a smart home and growing requirements for smart cities are also fueling the Internet of Things devices market growth. This is because these devices offer many convenient and easy-to-use solutions to the intended users. This is because as people keep on demanding these devices, the need to develop some general standards that would make these devices more effective and safer is felt. But this also brings the issue of protection of collected data and even the issue of hacking into the device with malicious intent. However, the Internet of Things devices market also presents several obstacles for businesses and consumers in the next few years, but it is massive in terms of growth.

Segments Analysis

Component Insights

“The sensors segment dominates the market during the forecast period.”

The market for Internet of Things (IoT) devices is segmented based on their components such as processors, connectivity ICs, sensors, and others. The sensors segment dominated the market, contributing to a large share of the revenue. This is due to the rapid decrease in sensor prices and the widespread adoption of Microelectromechanical Systems (MEMS) technology.

Sensors are widely used in industries such as healthcare, automotive, and consumer products, which has driven their growth in the IoT devices market. The connectivity IC segment is expected to grow rapidly with a CAGR of over 7% during the forecast period. This growth is due to the increasing reliance on wireless technologies such as Wireless Local Area Networks (WLAN), Wi-Fi, Bluetooth, cellular, and low-power wireless that heavily rely on connectivity Ics.

Connectivity Technology Insights

“The cellular segment accounts for the largest market share during the forecast period.”

The IoT device market is divided into various connectivity technologies, including Wi-Fi, Bluetooth, Zigbee, Cellular, RFID, NEC, and others. In 2022, the cellular segment was the leading revenue generator in the IoT device market. Cellular IoT technology allows physical objects to be connected to the Internet using the same cellular network as smartphones.

The growing popularity of smartphones in emerging economies is significantly driving the growth of the IoT device market. Additionally, the NFC segment is expected to see a remarkable CAGR of over 15% during the forecast period, thanks to its application in consumer and commercial applications due to features such as high-speed connectivity in a short range, smooth connectivity, and operational efficiency.

End-use Insights

“The consumer electronics segment accounts for the maximum growth during the forecast period.”

The IoT devices market is forecasted to experience substantial growth with a CAGR of 15% due to factors like increased adoption of digital devices and growth in the number of Internet users. Additionally, the growing awareness of health and wellness and the rise of disposable income in developing economies also contribute to the overall market growth.

Regional Insights

“North America is expected to dominate the market during the forecast period.” 

Due to the early adoption of new technologies, high R&D investments, and widespread use of smart connected devices. Meanwhile, the Asia Pacific region is projected to experience the fastest growth, driven by the widespread implementation of IoT in a variety of industries.

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Key Players

The market is highly populated with the presence of several local, regional, and global players. Most of the major players compete in some of the governing factors including price, product offerings, regional presence, etc.

The following are the key players in the global IoT devices market (arranged alphabetically).

• Cisco Systems Inc.
• Cypress Semiconductor Corporation
• Infineon Technologies
• Intel Corporation
• MediaTek
• Microchip Technology Inc.
• Microsoft Corporation
• NXP Semiconductors N.V.
• QUALCOMM Incorporated
• Renesas Electronics Corporation
• TE Connectivity
• Texas Instruments Inc.

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

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Report Features

This report provides market intelligence most comprehensively. 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.

What Deliverables Will You Get in this Report?

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.

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Company Profiling

• Detailed profiling of additional market players (up to three players).
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Competitive Benchmarking

• Benchmarking of key players on the following parameters: product portfolio, geographical reach, regional presence, and strategic alliances.

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Recent Market News & Developments

• In November 2022, Texas Instruments launched new Matter-enabled software development kits for Wi-Fi and Thread SimpleLink wireless MCUs that streamline the adoption of the Matter protocol in various IoT applications.

• In October 2022, Infineon Technologies launched a new IoT sensors platform, called XENSIV connected sensor kit.

• In September 2022, Fabless semiconductor manufacturer Silicon Laboratories opened a new R&D unit in Hyderabad, India, with plans to triple its headcount in the country over the next few years.

• In July 2022, TE Connectivity acquired Linx Technologies, a renowned RF components supplier in IoT markets.

• In June 2022, Microsoft collaborated with STMicroelectronics to develop a comprehensive microcontroller-based device security platform.

• In June 2022, Microchip Technology Inc. launched the AVR-IoT Cellular Mini Development Board based on the AVR128DB48 8-bit MCU. This solution provides a robust platform to build sensor and actuator nodes on 5G narrowband IoT networks.

• In September 2021, MicroEJ and NXP Semiconductors collaborated to deliver ultra-low power optimization on the i.MX RT500 Crossover MCUs for wearables.