USD 167 Bn Internet of Things (IoT) Market is Set to Register 16.7% CAGR, Driven by 5G Connectivity, says Bekryl
According to the recently report by Bekryl, Global Internet of Things (IoT) Market was valued at US$ 142.3 billion in 2018 and is set to register 16.7% CAGR and witness 4X increase in revenue by 2028. In 2019, it is estimated to be valued at US$ 167 billion in 2019. Growth in the segment is expected to be primarily driven by deployment of robust infrastructure powered by 5G connectivity. IoT is changing the way businesses used to be carried out and is driving new business models for various industries. In today’s world, sensors are placed in various physical objects, churning out huge volume of data that flows through computer for analysis. The industry is expected to hold a total potential worth US$ 3.5 trillion by 2028. However, only 19% of the total potential is expected to be capitalized by 2028. Currently, most IoT data is not leveraged despite integration with the systems. Widespread adoption of Internet of Things will take time, however, the advancement in the field is steady increasing with emergence of newer technologies.
Bekryl market research report, Global Internet of Things Market Size Analysis and Industry Opportunity finds that Europe accounted for 38% of global sales in 2018. As per the estimates, there are over 12 billion connected devices in 2019 and is expected to grow by 2X in another five years. United Kingdom, Germany, Italy, Spain, and the Netherlands are the lucrative destination for industry vendors in Europe. Collectively, these countries accounted for over three-fourth of total IoT spending in the region.
Trend#1: Chemical and Manufacturing Industry are Deploying IoT in Order to Optimize Process
Internet of Things has not only streamlined the retail sector, but has also raised the production output across various industry verticals. Chemical, automotive and manufacturing sectors are the most benefited due to increasing integration of IoT. These industries are generally fitted with range of sensors that brings granularity to monitoring. Data collected from sensors is then analyzed by system and efficient condition is set for production output. The system, however, is expected to change with emergence of complex autonomous systems which will be able to detect and process large sets of data in real-time scenario. Artificial intelligence will hold key role in overall integration of IoT in chemical and manufacturing sector.
Trend#2: IoT Technology Suppliers to Triple in Number By 2028
Internet of Things holds huge market opportunity not only for service providers but also technology suppliers. Burgeoning growth in the market has created lucrative market for range of industry players across value chain. Among these, IoT components and systems is currently registering fastest growth. This is mainly due to diverse nature of IoT requirement. While some players offer technology and data, others rely on IoT enabled machinery as a service. Demand will heighten with rising demand for vertical expertise across companies. Altogether, this has necessitated the demand for technology suppliers.
Trend#3: B2B IoT Application Segment to Register 27% CAGR between 2019 and 2028– Higher than Consumer Applications
B2B application segment is expected to capture over 61% of total IoT market share by 2028 end. However, currently, consumer applications drive the IoT market owing to increasing demand for wearable devices and self-driving cars. Industry players can generate higher revenue by integrating B2B with consumer applications as in healthcare industry. Healthcare ecosystem works with product developer, payers and providers.
Trend#4: IoT Industry Vendors are Focusing on Mergers & Acquisitions to Enhance Business Footprint
Since 2016, a range of partnerships, collaborations and acquisitions was witnessed in the IoT market. For instance, in June 2019, Cognizant announced plans to acquire Zenith Technologies in order strengthen its IoT service portfolio. Another company – Sierra Wireless collaborated with Microsoft in order to offer industry’s first full-stack Internet of Things (IoT) solutions in June 2019. Similar developments are expected to be seen during the next ten years.
Bekryl has analyzed the probable impact of these trends on the Internet of Things Market ecosystem.