Advent of 5G will enable Global Internet of Things (IoT) Market to Sustain Double-digit Growth in the Near Future
The global IOT market is expected to be valued at US$ 167 Billion in 2019 primarily driven by increasing deployment of robust telecommunication infrastructure across the globe. In addition, with the aid of 5G connectivity, a new ecosystem will emerge that would include new devices, platforms, and services. This will enable more connected-based use cases to rise globally.
Connectivity is the core of IoT and 5G will have a vital role to play in the near future. Currently, the vast majority of operator IoT revenues come from connectivity, but in the next 5 years, revenue will also come from service enablement platforms, apps, and services. Various telecom operators are focusing on partnerships with various entities in the ecosystem, in order to develop diversified services and solutions and tap in to the huge lucrative market that lies ahead.
- In May 2019, Telefonaktiebolaget LM Ericsson and Síminn partnered in order to modernize and expand its radio network and continue to deploy the 5G-ready Ericsson Radio System. The partnership will focus on introducing new IoT services and aims to accelerate the growth of Iceland’s IoT ecosystem across diverse use cases.
That being said, growing advancements in artificial intelligence (AI) and real-time data analysis would also fuel the demand for IoT market in the near future. This will aid in optimising existing operations and processes among various organisation as well provide rich and intuitive services. With connectivity at the heart of industry transformation, 5G will have a key role to play—not just in the evolution of communication but in the evolution of businesses and society as a whole. On the road to 5G, operators will need to do more than just evolve networks; they will need to transform their business to address new opportunities.
Key Trends in the IOT Market
Increasing number of Partnerships, Collaborations, and Acquisitions
Key players in the market are focusing of developing new IOT-based platforms and solutions through partnerships and acquisitions. Some of the recent developments over past few months are:
- In June 2019, Cognizant announced plans to acquire Zenith Technologies in order strengthen its IoT service portfolio
- In June 2019, Sierra Wireless collaborated with Microsoft in order to offer industry’s first full-stack Internet of Things (IoT) solutions
- In June 2019, Infineon Technologies announced the acquisition of Cypress Semiconductor Corporation in order to focus on new IoT applications in the industrial and consumer segments
Growing Focus Towards Smart Factory Solutions
IT-based services companies are focusing on catering to life science sector. As processes are becoming increasingly more complex due to advances in research and increasing demand for large-molecule biologics, IoT-based service providers focus on offering versatile solutions for smart factories.
Some of the Prime Prominent Use Cases in the Coming Years are:
- Industry 4.0 products and services
- IoT Security
- Environmental monitoring
- Smart Metering
- Integrated End-to-End Supply Chain Connectivity
- Inventory Intelligence
Regional Market Analysis
Europe IoT spending currently holds 38% revenue share of the world’s IoT market. This share is expected to remain stable in the coming years. It is estimated, in Europe, there are above 12 Billion connected devices in 2019 and is expected to double in the next five years. In addition, above 65% of these are consumer oriented.
The IoT market in Western Europe accounted for the largest revenue share in Europe. Countries such as the UK, Germany, France, Italy, Spain, and the Netherlands are prominent in terms of investment in IT. These countries accounts for over 75% of the total IoT spending in Europe. Key primary driver for this is cost reduction, among Europe-based companies and it offers flexibility. In addition, widespread use and affordability of connected devices such as smartphones and tablets drive the growth use of home automation solutions and in turn IoT market.
Global IoT Market Size and Forecast: Competition Landscape
Some key IoT market players are:
- Amazon Web Services (AWS)
- Bosch Software Innovations
- Digi International
- Freescale Semiconductor
- Huawei Technologies
- Juniper Networks
- National Instruments
- Rockwell Automation
- Samsung Electronics
- Schneider Electric
- Texas Instruments
By Product Type:
- Industrial IoT
- Smart Utilities & Energy
- Smart Cities
- Connected Homes
- Connected Cars
- Personal Health
What Will You Discover in the Report?
- An in-depth analysis of the IoT market across regions – North America, Latin America, Western Europe, Central and Eastern Europe, Asia Pacific, Middle East, and Africa.
- How the IoT market revenue is expected to grow throughout the forecast period.
- How geopolitical policies and technological changes will affect the IoT market in near future
- Which current and upcoming technologies will shape up the IoT market?
- Where the stakeholders should invest to generate higher profit margins
- How consumers (end-users) will reflect to the IoT industry during the forecast period
- Who are the IoT industry leaders and what are the key initiatives taken by them for long term growth?
- Industry exclusive use cases
Who will benefit from the Report?
- IoT Industry Component Suppliers
- IoT Industry Solution Provider
- IoT Industry Service Provider
- Consultants and Analysts
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