IoT Growth Market Expected to Surge by 2026
The current global market for the Internet of Things is growing rapidly. Research and analytics organizations predict even further growth in the next five years.
It is projected that the global IoT market will reach USB 1,306 billion by 2026, with a CAGR of 10.53%, according to research by Mordor Intelligence.
The impact of COVID-19
Vendors in the IoT market collaborated with several organizations to offer tech-enabled solutions in the healthcare industry to battle Covid-19.
In March 2020, Advanced Remote Monitoring LLC collaborated with Advanced Wearables Inc. and KaHa to produce a 360-degree solution for monitoring and isolating potential COVID-19 cases.
The smart wearables monitor temperature, heart rate, and other metrics to provide healthcare professionals with real-time data, leading to a quicker response time.
In late January, the Shanghai Public Health Clinical Center’s started using VivaLNK’s continuous temperature reading device to monitor COVID-19 patients in their facility. As a result, fewer healthcare workers were exposed to the virus.
IoT in healthcare is continuing to be a vital part of medical facilities, thanks to a better quality of services, advanced user experiences, and lowered costs.
The Internet of Medical Things (IoMT) is then expected to grow from USD 72 billion in 2020 to USD 188 billion in 2025.
IIoT’s role in the growth market
Other than the healthcare sector, Industrial IoT (IIoT) has been considered a major player in the global growth market for IoT.
The manufacturing industry is touted as going through the next industrial revolution, thanks to IIoT’s integration with existing systems and machines to improve efficiency and reduce downtime.
Microsoft’s IoT Signals study states that 93% of the manufacturing companies they surveyed have adopted IIoT in their processes.
One such example is smart factory automation, where enterprises adopted agile, smarter, and innovative ways to advance production.
This is notable in utilizing robotics to complement and augment human labor, reducing industrial accidents caused by a process failure.
Other use cases, according to Microsoft’s study, also deal with production flow monitoring, industrial automation, and production planning and scheduling.
Process manufacturing, on the other hand, utilized IIoT for quality and compliance, condition-based monitoring, and condition-based predictive maintenance than discrete manufacturing organizations.
IIoT is projected to reach a total USD 912.7 billion market by 2026, with USD 153.5 billion of the market share coming from manufacturing. The expected CAGR will be at 17.9%.
Asia Pacific at the forefront
The Asia Pacific region is expected to hold the largest market share in IoT, with China as the leading player in the game.
Under the Made in China 2025 plan, the nation is looking to expand in industries such as robotics, autonomous and electric vehicles, AI, and biotech.
In India, the national government is setting is sights on building 100 smart cities in the country. Tech programs for local industries and start-ups are also underway.
North America is anticipated to hold a major share in the market revenue, thanks to the number of key market players in the region such as IBM, Intel, Google, and Cisco.
New wireless technologies such as 5G and Wi-Fi 6 would lead to more devices and new IIoT use cases. These devices would give service providers the tools to create competitive cellular IoT offerings for their customers.
Machine-to-machine connections are anticipated to rise 19% and account for 50% of all connections by 2023, according to Cisco’s 2020 Annual Internet Report.
More to come in IoT
As companies find ways to mitigate the spread of COVID-19 and more sectors are continuing to adopt innovative technological solutions, we can expect positive growth in the IoT market in the years to come.
Despite prevalent security breaches and difficulty adopting new systems, IoT is here to stay–and may even transform how we do life and work as we know it.