IOT DEVICES MARKET ANALYSIS

Market Challenges And Opportunities

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 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.