Next year, the Internet of Things (IoT) market will grow to about $520B, more than twice the amount spent in 2017, which was $235B. IoT technology encompasses a set of advanced equipment, such as meters and sensors, along with network connectivity, smart devices, and software, that send data between machines and devices. This market is gaining rapid growth due to the rising adoption of artificial intelligence (AI) and connected devices based on machine learning, along with the increased use of cloud-based solutions in the IT industry.
Many companies are using this technology to upgrade existing processes, such as developing devices that monitor energy and water usage better. However, the core players in the IoT market, which tend to be large fortune 500 companies, are focusing their energy on developing new advanced IoT products and solutions, while small and medium businesses are adopting IoT solutions to improve their overall cost efficiency, operations, and productivity. Many startup companies have also entered the IoT playing field.
On a global scale, Asia Pacific produced a revenue of $74.5B in 2018 and it’s expected to be the global IoT market leader this year. The largest IoT market is in China, boasting 64% of the 1.5B global networks. Europe has aided China with this growth by increasing the IoT business. North America is having a similar growth as Europe and other countries have started implementing connected devices across healthcare, retail, and transportation industries. Developing countries offer a potential for growth in the IT and telecom industries. [1,2]
Current IoT Market Trends
- Artificial intelligence (AI) provides advanced data analytics, making it easier to manage data and make the most reliable predictions. AI is a machine learning system that can quickly identify the trends.
- Banking, financial services, and insurance (BFSI) industry own the majority of the global IoT market and it’s the most lucrative one. There’s been an increased demand for this industry to monitor the supply of cash across multiple ATMs, bank partners, branches, etc.
- Blockchain technology will be used more for IoT security, since it provides a simple infrastructure for the exchange of money and data between IoT devices in a reliable way, while enabling anonymity and security to multiple networks.
- Cloud service providers (CSP), such as Amazon Web Services (AWS), are emerging as key providers of IoT services, since they’re successful in lowering barriers to IoT adoption, making it easier to scale up quickly.
- Data center and analytics will be the fastest-growing IoT segment, reaching a 50% CAGR from 2017 to 2021. Connectors, consumer devices, data analytics, embedded systems, and system integration are the main solution areas of the IoT market.
- Real-time and remote monitoring is the fastest-growing IoT category. This technology enables companies to remotely monitor their production to improve their workflow.
- Technologies such as 5G cellular connectivity and edge computing have enhanced the capabilities of IoT devices, boosting data transport speed and reducing data latency. Edge computing usually outperforms the Cloud when it comes to speed and cost. Faster processing means lower latency.
Power of IoT Connectivity
The most significant trend is that IoT networks of connected devices are going to expand and the amount of data that can be collected from these networks will increase. The driver of IoT networks improvement in the industries fostering sensor-based technologies is data. These applications are now being tested within an increasing number of verticals, such as healthcare and transportation. The more data a business receives from connected devices, the more likely they be able to deliver personalized experiences to their clients and predict their behaviors. The need for data thus creates a foundation for future IoT trends.
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