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  • IoT Software Market Growth Analysis | 2023-2029

    IoT Software Market Growth Analysis | 2023-2029

    IoT Software Market Growth Analysis | 2023-2029
    Report code - SR2365 Delivery - 2 Weeks
    IoT Software Market Size, Share, Trend, Forecast, Competitive Analysis & Growth O See more...

    Market Insights

    The Global IoT Software Market is expected to grow from USD 346.58 billion in 2022 to USD 1,625.64 billion by 2029 at a CAGR of 24.7% during the forecast period.

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    What is an IoT Software?

    IoT (Internet of Things) software refers to a specialized category of software applications designed to enable and manage the connection, communication, and data exchange between various internet-connected devices and sensors. This software plays a crucial role in facilitating the seamless integration of IoT devices into a network, allowing them to collect, transmit, and analyze data for various purposes.

    IoT software typically includes components for device management, data processing, security, and connectivity protocols. It helps businesses and individuals harness the power of IoT by enabling remote monitoring, automation, and control of devices and systems. Whether in industrial applications, smart homes, healthcare, or transportation, IoT software serves as the backbone for creating intelligent, interconnected ecosystems that enhance efficiency, convenience, and decision-making.

    Market Dynamics

    Drivers: Availability of low-cost, low-power sensor technology

    Sensors play a crucial role in IoT devices as they collect information about physical events and states. They can monitor a wide range of environmental factors, including orientation, motion, light, sound, humidity, temperature, and biometrics such as blood pressure and heart rate. These sensors drive the growth of IoT across various industry sectors and applications. The continued improvement of sensor technologies is expected to enhance IoT capabilities.

    Initially, the cost of sensors in IoT devices was a hindrance to their widespread adoption. However, with the decline in sensor prices, the adoption of IoT has increased significantly across various organizations. Over the past decade, the cost of certain types of Radio Frequency Identification (RFID) tags and sensors, such as low-frequency passive sensors, has dropped significantly.

    In 2004, the average cost per unit of a sensor was $1.30, while in 2020 it has fallen to $0.38. As the IoT market matures, the widespread deployment of low-cost sensors and devices will become the norm, and their technology will be less viewed as ground-breaking.

    Restraints: Lack of developments in communication technology and poor operational efficiency in emerging economies

    The successful implementation of IoT requires technology advancements and operational efficiency. Some regions in the Asia Pacific, the Middle East & Africa, and Latin America lack basic technologies like telecom and networking infrastructure, which hinders the rapid deployment of smart projects due to low budgets and low literacy rates.

    In some countries, the 4G technology is not mature or has yet to be introduced, while others, like China, have already finished their trials with 5G technology. Despite being aware of the benefits of IoT technology and the high potential return on investment, the limited initial budget often plays a major role in limiting the development of the Internet of Things market in these countries. Even developed countries in Europe and North America face challenges in upgrading their legacy infrastructures with new, smart ones.

    Opportunities: Increasing adoption of connected devices to drive the growth of IoT

    The integration of internet connectivity and connected devices has opened doors for organizations to gather important data through sources such as consumer behavior analysis in retail outlets, real-time marketing analysis, and decision analytics based on sensor data. IoT allows companies and governments to tap into smart initiatives such as smart cities, smart transportation, and smart utilities and access location-based data in real-time.

    High-speed network connectivity has brought opportunities for various industries, including energy, healthcare, transportation, and others, to monitor and manage their infrastructure efficiently. For instance, the healthcare sector is already implementing IoT in areas such as remote consultation, virtual health kiosks and portals, and electronic personal health records. In the energy sector, IoT-based solutions are used for predictive maintenance, Asset Performance Management (APM), security, and other purposes.

    The transportation sector utilizes IoT for congestion control, safety, city traffic surveillance, and crime reduction. 4G networks have been upgraded to NB-IoT networks to provide widespread public mobile IoT coverage, with an emphasis on indoor coverage, low cost, long battery life, and high connection density. A notable example of this is the establishment of "IoT Weifang" by Huawei and the Government of Weifang City in China to enhance the industrial applications of NB-IoT.

    Segments Analysis

    By Component, the software solutions segment is expected to have the largest market share during the forecast period.

    IoT software solutions are designed to improve business processes, enhance customer experiences, and generate new revenue streams. These solutions allow IoT devices to communicate and exchange data with other devices, systems, and applications to deliver accurate and reliable data to end-users.

    The software solutions market is expected to be the largest in the IoT industry due to the automation of key processes in industries such as critical infrastructure and manufacturing. IoT software solutions’ flexibility and remote-control capabilities also contribute to their growing popularity. Despite some setbacks during the 2020-2021 period, IoT software solutions are expected to see continued growth in the future.

    Asia Pacific to grow at the highest CAGR during the forecast period.

    The Asia Pacific region, comprising economies such as Australia, India, China, Japan, and Singapore, is a promising market for the IT industry due to the high rate of adoption of new technologies, including IoT. As a result, the IoT market in this region is projected to grow at an exceptional pace. With most developing nations experiencing rapid urbanization, the region presents opportunities and challenges for sustainable development.

    Japan has completed many of its smart city projects, while others are in the early stages. China is the largest market in the region for developing IoT in smart cities, while India has over 5,000 smart city projects underway with investments exceeding INR 2 trillion as of January 2019.

    Although the countries in the region are making efforts to enhance their IT infrastructure, some lack knowledge and expertise, as well as resources and infrastructure, which could hinder the growth of IoT in the Asia Pacific. Government initiatives aimed at improving service efficiency exist in the region, but some countries still show a reluctance to adopt new technologies.

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    Key Players

    The major players operating in the global IoT Software Market are:

    • Siemens
    • Microsoft
    • AWS
    • Oracle
    • Cisco
    • Qualcomm
    • SAP
    • IBM
    • Google
    • Intel
    • Hitachi
    • GE Digital
    • PTC
    • Aeris Communications Inc
    • Arm
    • Software AG
    • Fujitsu

    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?

    Key questions this report answers

    Relevant contents in the report

    How big is the sales opportunity?

    In-depth Analysis of the IoT Software Market

    How lucrative is the future?

    The market forecast and trend data and emerging trends

    Which regions offer the best sales opportunities?

    Global, regional, and country-level historical data and forecasts

    Which are the most attractive market segments?

    Market Segment Analysis and Forecast

    Who are the top players and their market positioning?

    Competitive landscape analysis, Market share analysis

    How complex is the business environment?

    Porter’s five forces analysis, PEST analysis, Life cycle analysis

    What are the factors affecting the market?

    Drivers & challenges

    Will I get the information on my specific requirements?

    10% free customization

    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.

    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 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 January 2023, Lifecycle Software collaborated with Microsoft where Lifecycle Software leverages the Microsoft Cloud across its solutions, allowing some of the biggest mobile operators to provide improved services to customers.

    • In November 2022, ZainTech, the digital and ICT solutions powerhouse of Zain Group, partnered with Oracle where it selected Oracle Exadata Cloud@Customer to introduce new technology services to enable business advantages for its customers across the Middle East.

    • In August 2022, Siemens Smart Infrastructure (SI), acquired Brightly Software, a US-based software-as-a-service (SaaS) provider of asset and maintenance management solutions.

    • In May 2022, IBM signed a Strategic Collaboration Agreement (SCA) with AWS, with plans to offer a wide range of its software catalog as Software-as-a-Service (SaaS) on AWS.

    • In May 2022, HCL Technologies collaborated with SAP on industry-pertinent IoT packaged offerings and services.

    Frequently Asked Questions (FAQs)

    The market is expected to grow at a CAGR of 24.7% during 2023-2029.

    The major players operating in the global IoT Software market are Siemens, Microsoft, AWS, Oracle, Cisco, Qualcomm, SAP, IBM, Google, Intel, Hitachi, GE Digital, PTC, Aeris Communications Inc, Arm, Software AG, and Fujitsu.

    The market size is estimated to grow from USD 346.58 billion in 2022 to USD 1,625.64 billion by 2029.

    Asia Pacific to grow at the highest CAGR during the forecast period. The Asia Pacific region, comprising of economies such as Australia, India, China, Japan, and Singapore, is a promising market for the IT industry due to the high rate of adoption of new technologies, including IoT.

    Sensors play a crucial role in IoT devices as they collect information about physical events and states. They can monitor a wide range of environmental factors, including orientation, motion, light, sound, humidity, temperature, and biometrics such as blood pressure and heart rate. These sensors drive the growth of IoT across various industry sectors and applications.

    The study period of the market is 2017-2029.