IoT market to see double digit growth

IoT market to see double digit growth

Market news |
By Jean-Pierre Joosting

In their latest report, Allied Market Research finds that the global IoT industry generated $740.47 billion in 2020, and is estimated to reach $4,421.62 billion by 2030, witnessing a CAGR of 19.6 percent from 2021 to 2030.

Development of wireless networking technologies, rise in adoption of cloud platform for deployment of IoT, and advent of advanced data analytics and data processing drive the growth of the global IoT market. However, high costs associated with implementation and maintenance of IoT platform and security and privacy concerns restrain the market growth. On the other hand, reduced costs of connected devices and surge in use of IoT among SMEs create new opportunities in the coming years.

There has been a rapid surge in the demand for cloud-based IoT to support the businesses as they adopted remote working culture during the pandemic. These systems played a crucial role in keeping the business operations under control and running. IoT technology played a major role in maintaining high quality connectivity between different devices. Various IoT solutions such as digital data exchange, remote access, real-time data analytics, and real-time work floor control were implemented.

Based on component, the solution segment accounted for the highest market share in 2020, contributing to around two-thirds of the global IoT market, and is estimated to continue its lead position in terms of revenue throughout the forecast period. This is due to ease in creation of new businesses, surge in business efficiency, and assistance in connecting devices, managing tasks, analyzing opportunities, and securely transferring information to offer safe environment for operations. However, the services segment is expected to witness the highest CAGR of 21.0 percent from 2021 to 2030, owing to rise in the adoption of IoT services among end users for effective functioning of solutions and platforms throughout the business process and increase in adoption of data analytics software and cloud platforms.

Based on industry vertical, the manufacturing segment contributed to the highest market share in 2020, holding more than one-fourth of the global IoT market, and is projected to maintain its leadership status during the forecast period. This is attributed to rapid technological advancements in their infrastructure and cutting-edge technologies such as IoT, artificial intelligence, and 5G technologies. However, the healthcare segment is expected to manifest the fastest CAGR of 26.2 percent from 2021 to 2030, owing to enhanced security, cost benefits, and improved bandwidth along with the major shift toward digitalization and rapid data analytics.

Based on region, North America held the highest market share in terms of revenue in 2020, contributing to around two-fifths of the global IoT industry, and is expected to maintain its dominance by 2030. This is attributed to implementation of emerging digital technologies such as artificial intelligence, big data analytics, and industrial automation for a customer-centric approach and a greater market share. However, Asia-Pacific is estimated to witness the fastest CAGR of 23.1 percent during the forecast period, owing to numerous economic and process benefits such as real-time data analytics, network management, and industrial automation of IoT along with rise in demand for smartphones and the internet access.

If you enjoyed this article, you will like the following ones: don't miss them by subscribing to :    eeNews on Google News


Linked Articles