IOT DEVICES MARKET ANALYSIS

The global IoT devices market size was valued at US$ 98.0 million in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 22.7% from 2023 to 2030. The IoT devices market is gaining prominence in the global economy, as companies are investing heavily in this technology. Its growth is primarily attributed to the growing demand for IoT enabled devices and rising awareness of internet connectivity among consumers. The growing demand for IoT-enabled devices and infrastructure upgrades in countries such as Japan, South Korea, and China is driving the market growth in Asia Pacific.

Global IoT Devices Market: Regional Insights

North America is expected to dominate the global IoT devices market during the forecast period. The regions has countries such as the U.S. and Canada with developed economies, which allows them to heavily invest in research and development. Along with this, the increase in digitization across all the industrial areas, growing penetration of smart connected devices, and steady technological developments in the region are driving the growth of global IoT devices market in the region. Furthermore, factors such as rise in use of connected devices as well as related network infrastructure in the region along with growing collaboration of hardware, software, and network providers is also expected to fuel growth of the market in North America region.

Moreover, Asia Pacific is also anticipated to exhibit substantial growth in the global IoT devices market over the forecast period. Major factors contributing to this growth are early adoption of technological developments, such as IoT and AL, growing implementation of industrial automation, and adoption of Smart Nation initiatives by governments in the region. Moreover, presence of favorable infrastructure, such as data centers, high fiber connectivity, submarine cables, and investments of operators in low-power networks are likely to drive adoption of IoT devices across the region. These factors are thus, expected to boost growth of the global IoT devices market in Asia Pacific.

Figure 1. IoT Devices Market, Revenue Share (%), By Region, 2022

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Global IoT Devices Market Drivers:

Constantly growing demand for smart/connected IoT devices to propel the market growth

The adoption of connected devices across various sectors continues to grow around the world. As per Ericsson, massive IoT connections are likely to increase to 200 million and by the end of 2027, 40% of the cellular IoT connections will be broadband IoT having 4G connectivity. However, with the advent of 5G New Radio in older and newer spectrum, the rate of data is projected to grow significantly in the near future. These factors are in turn driving the demand for smart/connected IoT devices. This in turn is expected to fuel growth of the global IoT devices market over the forecast period.

Innovations and enhancements of software in connectivity technologies to boost the market pace

The Internet of Things (IoT) needs connectivity and communications that are reliable for establishing appropriate data-sharing networks. Increasing number of developers and operators are offering wide range of connectivity technologies, owing to the consumer demand. Moreover, investments in development of novel technologies such as Wi-Fi 6, 5G, and LPWAN are increasing, which in turn is likely to drive the demand for IoT devices. Thus, software used in connectivity technologies are witnessing growing improvements and innovations to keep up with the technological developments. This in turn is expected to fuel growth of the global IoT devices market over the forecast period.

Global IoT Devices Market Opportunities:

Growing investments in deployment of IoT devices to bring in significant opportunities in the global IoT devices market over the forecast period. Several industries around the world, including oil and gas, manufacturing, mining and energy, and utility are making heavy investments in IoT technologies. This growing deployment of IoT devices among such industries is for improving the overall operational efficiency and productivity. For instance, in April 2022, SIVA IoT launched REVEAL SERIES of moisture and temperature sensor UHF labels that are powered by an Axzon Magnus S3 processor.

Growing focus of telecom operators in expansion of their 5G services to create promising opportunities in the global IoT devices market over the forecast period. For instance, in May 2022, NTT, a telecom company in Japan launched a novel 5G IoT solution through Transatel, the subsidiary of its network operator, for the IT, Industrial, and automotive sectors. Such initiatives are likely to bring in growth opportunities in the global IoT devices market over the forecast period.

Global IoT Devices Market Trends:

Growing use of IoT technologies in military base is a growing trend

Recently, the use of IoT technologies including drones, security equipment, and surveillance cameras has increased in military sectors around the world. The use of a cellular route for connecting all the IoT devices and applications allows IT teams to deploy such technologies at any point with the ability of separating red/black data. Furthermore, as the 5G technology offers resiliency, low latency, and bandwidth for most payloads and applications, it has become suitable to manage and deploy drones. Thus, these IoT technologies are increasingly being used in military base, which is likely to continue in the global IoT devices market over the forecast period.

Increasing collaborations among market players is a recent trend in the market

Several market players are increasingly adopting collaboration strategies to gain a competitive edge in the global IoT devices market. For instance, in April 2022, Microsoft collaborated with Nokia and SES to demonstrate secure access to the Azure cloud platform over private satellite communication and 5G networks, which enables the cloud services anywhere and anytime, including austere and remote environments. Such activities are expected to drive growth of the global IoT devices market over the forecast period.

Global IoT Devices Market Restraints:

Absence of appropriate regulations for communication protocol to hinder the market growth

Open standards are important for success of wireless communication technologies such as GSM or RFID, and also for any machine-to-machine (M2M) communication. The absence of globally recognized standards can impact the expansion of M2M and RFID solutions on a global scale. To deploy IoT applications, the need for rapid setting of interoperable standards has become crucial, and lack of such standards are expected to hinder adoption of IoT devices, further hampering growth of the market.

Security and privacy issues of data to obstruct the market pace

The use of multiple devise such as IoT increases the use of network, which further creates higher risks of cyber-attacks. A single presence of an unsecured device connected to a network can open a door for an active network attack. Thus, the concerns regarding data security are acting as a major challenge, as businesses are moving towards deployment of various connected devices. This factor in turn is expected to limit growth of the global IoT devices market over the forecast period. However, several market players are focused on creating solutions that offer stronger data security and privacy, which is further expected to support the market growth.

Figure 2: IoT Devices Market, Revenue Share (%), By Application, 2022

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Global IoT Devices Market Segmentation:

The global IoT devices market report is segmented into Application Type and Connectivity Type.

Based on Application Type, the market is segmented into Connected and Smart Home, Medical IoT, Connected Car, Smart Cities, Industrial IoT, Personal IoT, and Other Application Types. Out of which, Connected and Smart Home is expected to dominate the global market over the forecast period and this is attributed to the growing need for combating security challenges in smart homes and home automation solutions. This in turn is driving the adoption of novel wireless IoT devices such as access and security controllers, HVAC controllers, and entertainment controls.

Medical IoT segment is also expected to witness significant growth in the near future and this is owing to the growing demand for smart wearable medical devices, as the number of people suffering from lifestyle diseases in increasing around the world. Such medical IoT devices include electrocardiogram monitor and diabetes devices such as glucose meters and smart insulin pens.

Based on Connectivity Type, the market is segmented into WPAN, WLAN, LPWA, Cellular/M2M, and Other Connectivity Types (WNAN, Wired, etc.). Out of which, WPAN is expected to dominate the global market over the forecast period and this is attributed to the increasing investments in WPAN solutions for IoT devices by market players. For instance, in July 2022, Onomondo, who focuses on wireless networks for IoT devices, raised US$ 21 million in funding. Such initiatives are driving growth of this segment in the global IoT devices market.

WLAN segment is also expected to witness significant growth in the near future and this is owing to the various benefits of WLAN leading to rise in adoption. WLAN connectivity offers various benefits such as easy installation and management, extended reach, device flexibility, network management, and scalability. Market players are offering novel products of WLAN, leading to rise in its adoption. This in turn is expected to augment growth of this segment in the near future.

Global IoT Devices Market: Key Developments

In October 2021, Siemens Smart Infrastructure announced the acquisition of Wattsense, a French startup that focuses on offering novel, plug-and-play IoT management systems for all medium and small-size buildings. With this acquisition, the building product portfolio of Siemens is likely to expand.

In January 2023, Intel launched the Intel Core mobile processor, 13^th Gen. This new advancement of Intel is powered by its hybrid architecture.

In April 2022, Samsung entered into collaboration with ABB for enhancing SmartThings, the smart device hub of Samsung, in order to provide support to more commercial and residential devise. With the collaboration with other firms, the SmartThings by Samsung has become a one-stop shop to monitor connected devices.

In December 2022, Aeris Communications, a U.S.-based provider of IoT solutions, and Ericsson formed an agreement for obtaining the Connected Vehicle Cloud businesses as well as Ericsson’s IoT Accelerator.

Global IoT Devices Market: Key Companies Insights

The global IoT devices market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the global IoT devices market are Robert Bosch GmbH, Apple Inc., Amazon Inc., ABB Limited, Sony Corporation, Cisco Systems Inc., Vuzix Corporation, Google Inc. (Alphabet), Siemens AG, Samsung Electronics Co. Limited, and LG Electronics.           

*Definition: An IoT device is any wireless sensor, software, or actuator that is attached to a certain object and operates through the Internet. The devices can be programmed for certain applications and can be embedded into other devices to enable them to communicate with each other for a more seamless experience.