According to a recent Grand View Research report, the worldwide Internet of Things (IoT) technology market is anticipated to reach $566.4 billion by 2027. The market will also grow at a Compound Annual Growth Rate (CAGR) of 6.7 percent between 2018 and 2027, the report states.
The market is primarily driven by critical factors such as the rising demand for smart and connected devices, the need for real-time information, and improvements in safety and security, according to the report.
So, while the IoT won’t revolutionize the world overnight, it will certainly do so progressively. After all, many industries are now leveraging the IoT at every level to drive a steady stream of intelligence, data, and technology – from manufacturing to retail.
IoT to Transform the Way Businesses and Individuals Work
The proliferation of the IoT will have a broad-based impact on all aspects of operations, management, and security in modern organizations. By connecting people with devices, objects, and machines over the internet, IoT can generate enormous volumes of data that can be used to understand customer behavior and gain insights into business operations.
Experts believe that IoT will revolutionize the economy and spur the creation of new industries quickly. In fact, it has been estimated that by 2027, there will be more than 200 billion connected devices globally.
Driven by this rapid expansion, IoT is already impacting several sectors such as healthcare, transportation, retail and manufacturing. In addition, a study by the market research company Tufts Center for the Study of Drug Development (CSDD) found that 17 percent of life sciences companies had used IoT in 2017 for many activities, including clinical trials. This percentage is expected to grow significantly over the next few years.
The Cloud Segment Dominated the Platform Market in 2020
The cloud segment dominated the platform market in 2020 and is expected to continue its dominance for the forecast period of 2021-2025.
Factors such as the rising adoption of cloud computing, enhanced security and scalability, and increased affordability are driving the growth of the cloud segment in the platform market.
Cloud computing enables enterprises to store and access data remotely through the internet. It also provides a flexible and scalable environment for businesses to execute tasks and manage workloads using on-demand resources from the cloud.
The public cloud segment dominated the market in 2020, with a share of 40.25 percent. The cloud-based software solutions enable organizations to utilize real-time data insights, predictive analytics and other features offered by the platform through a web browser or mobile device application.
As the use of public clouds increases, a large number of businesses are shifting to cloud-based platforms due to their scalability, enhanced security, low cost and reduced IT burden. However, the cloud segment is expected to witness slower growth during the forecast period due to its high implementation cost and security concerns voiced by companies operating across various industries.
North America Takes the Lead
North America is currently leading the global IoT technology market, with a market share of 31.9 percent. This is mainly due to the increased demand for consumer electronics, industrial automation, telemedicine, and remote monitoring services.
North America also held the largest share of the global IoT technology market in 2020, followed by Asia-Pacific and Europe. North America has a robust IT infrastructure and security ecosystem, which provides significant opportunities for manufacturers to integrate new technologies into their products.
However, Asia-Pacific is predicted to be the fastest-growing area during the prediction period due to its extensive investments in the development of smart cities, smart grids and connected devices. In addition, the Asia-Pacific region is witnessing rapid growth in industrial automation, which further contributes to the development of its IoT technology market.
The Asia-Pacific region will only continue to occupy more market share in the years to come, especially in China, India and Southeast Asia regions.
Meanwhile, North America took the lead in the IoT technology market in 2020, thanks to the early adoption of IoT technology in the retail and healthcare industries. In addition, the increasing demand for secure data transmission across all verticals is driving growth in this region.
North America’s dominance in the IoT market is primarily due to its large technology sector combined with high rates of enterprise and consumer adoption of smart devices such as smartphones and smart home devices.
Factors such as the increasing adoption of cloud computing services in various sectors, including manufacturing and retail, are expected to drive the market demand over the forecast period. The low cost and high accessibility of IoT technology also contribute to the market’s growth.
In addition, new technologies such as machine learning and artificial intelligence have facilitated industrial automation and helped enterprises process large volumes of data at a faster pace.
A Brave (Reve)Nue World
The future of the Internet of Things is bright, and with numerous possible applications, estimates point to a revenue stream in the hundreds of billions in just ten years.
Companies continue to work on innovative solutions that will push the boundaries of home and personal connectivity, and new solutions are cropping up every day to help meet this demand. The future looks bright as far as innovators and consumers are concerned.