IoT Middleware Market Report

Market Insights

The global IoT middleware market is expected to grow from USD 10.29 billion in 2022 to USD 38.27 billion by 2029 at a CAGR of 20.6% during the forecast period.

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IoT Middleware acts as an interface between physical world objects and the virtual world and establishes communication between the objects and information management systems. It is also sometimes known as “software glue”. IoT middleware allows software developers to easily establish communication between input and output. Middleware is an agent between the service providers and service consumers. It is a moderator interface that allows the interconnection between the internet and ‘things’.

IoT middleware gives solutions to common problems, such as security, interoperability, and dependability. IoT middleware is a multilayer technology that manages different IoT components, such as actuators, sensors, routers, smart devices, gateways, and edge computing systems, along with applications and other important software.

As the number of internet-connected devices increases, the need for smooth and efficient communication between these devices becomes crucial. This is why businesses are placing great emphasis on IoT middleware as a key component of their operations. It plays a vital role in simplifying future changes to IoT solutions and addressing the growing demand for integration between various devices, such as mobile phones, machinery, equipment, and tablets.

Key Players

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

• Google (US)
• IBM (US)
• Microsoft (US)
• PTC (US)
• AWS (US)
• SAP (Germany)
• Cisco (US)
• Hitachi (Japan)
• HPE (US)
• Salesforce (US)
• Bosch (Germany)
• Oracle (US)
• Schneider Electric (US)
• GE (US)
• MuleSoft (US)
• ClearBlade (US)
• Davra (US)
• Axiros (Germany)
• TIBCO Software (US)
• Siemens (Germany)
• Eurotech (Italy)
• Exosite (US)
• Litmus Automation (US)
• Ayla Networks (US)
• Aeris (US)
• QiO Technologies (UK)
• Flutura (US)
• Atos (France)

Market Dynamics

Governments around the world, including the implementation of smart city programs, are expected to drive demand for IoT middleware. The rise of connected buildings and homes, as well as smart factories, presents exciting opportunities for the market. The potential of IoT to transform key sectors, such as energy, waste management, and infrastructure, in smart cities has garnered significant interest. By 2025, it is predicted that there will be about 30 smart cities worldwide, with North America and Europe being home to half of them.

Driver: Increasing need for centralized monitoring

Organizations have complex infrastructures due to interconnected processes. To keep track of assets and monitor activities, many organizations utilize IoT devices and control systems, which produce a significant amount of operational data. This data can be analyzed for centralized monitoring, which provides real-time, continuous, and standardized task-level insights for improved performance analysis and infrastructure management. With the goal of optimizing their operations, organizations are adopting centralized monitoring, fueling growth in the IoT middleware market.

Restraint: Lack of uniform IoT standards and interoperability

The challenge of IoT connectivity between devices and products is a major barrier to growth for all industries. Current systems do not meet the global connectivity standards, leading to increased complexity and cost in deploying IoT platforms. This is further complicated by the long lifespan of equipment, which may require costly upgrades to work with newer technologies. Interoperability is critical for the success of products and services that utilize IoT technology.

Seamless interoperability between connections is also important, as vendors must work together to promote the use of standards that drive IoT development and interoperability.

Opportunity: Growing adoption of IoT among Small- and Medium-sized Enterprises

Small and large businesses alike aim to achieve higher efficiency at a lower cost, both domestically and globally. To this end, they are leveraging the benefits of IoT platforms to increase the scalability and efficiency of their operations. In order to meet the specific needs of clients across various industries, IoT solution providers are pursuing aggressive business strategies, such as strategic acquisitions, to expand their service offerings in the IoT space.

The many benefits of IoT, including cost reduction, improved agility and scalability, increased revenue, and better performance, are encouraging SMEs to adopt these solutions, driving the growth of IoT adoption among SMEs.

Challenge: Deployment and security challenges

As IoT continues to grow and evolve, it presents new challenges and risks. As hardware becomes more advanced and software becomes more sophisticated, new standards, protocols, and connectivity options will become more prevalent. To make IoT services accessible and secure, organizations must overcome several challenges, such as managing a large number of IoT nodes, which requires scalable security solutions, and connecting various devices with different capabilities in a secure manner. IoT devices are susceptible to various types of attacks, including physical, environmental, cryptanalysis, software, and cyber attacks.

IoT platforms have a complex structure, with many devices connected to a network that sends data to the cloud. Integrating with existing infrastructure can also make it difficult to implement IoT platforms. For example, a study by Cisco found that about 60% of IoT projects fail to progress beyond the proof-of-concept stage and only 26% of companies were able to successfully implement the IoT platform.

Segment Analysis

Connectivity management segment to witness a larger CAGR over the forecast period.

In today's business world, organizations with distributed teams and devices situated in multiple locations face challenges in maintaining network security and smooth operations. The IoT connectivity management platform offers a centralized solution for managing the entire network and ensuring secure communications. This platform analyzes data transmission and automatically directs it to prevent network congestion.

Many IoT connectivity platform providers offer an open, flexible, access-agnostic, and secure platform for centralized monitoring, helping organizations optimize operations and improve efficiency.

Asia Pacific to the lead the IoT middleware market, globally, by volume during the forecast period.

The Asia Pacific region is expected to see the highest growth in the IoT middleware market during the forecast period. This is due to the increasing awareness about the benefits of these platforms for boosting business productivity, as well as the availability of well-designed solutions offered by vendors in the region. Furthermore, cost-effective facilities for deploying and managing data applications in the region are contributing to its growth.

The growth is further fueled by the presence of rapidly developing economies, such as China, Japan, and India, where the adoption of IoT middleware is on the rise to meet the data quality and governance needs of both large enterprises and SMEs. The growth of the market in the region is also driven by factors such as economic development, globalization, and the growing adoption of data regulatory practices.

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 August 2022, Schneider Electric and SAP signed a memorandum of understanding (MOU) to collaborate on IT/OT integration applications. The companies aim to explore opportunities to improve industry innovation and digital transformation.
• In June 2022, Microsoft collaborated with STMicroelectronics to develop a comprehensive microcontroller-based devices security platform.
• In May 2022, IBM signed a Strategic Collaboration Agreement (SCA) with AWS, with plans to offer a wide range of its software catalog as SaaS on AWS.