NEW YORK, March 11, 2024 /PRNewswire/ — The internet of things market size is estimated to increase by USD 1,036.83 billion from 2022 to 2027, according to Technavio. The market is estimated to grow at a CAGR of almost 15.12% during the forecast period. The rise in market growth is primarily fueled by the increased adoption of industrial automation. Industries are undergoing a profound shift, embracing both digital and physical systems, facilitating seamless machine-to-machine (M2M) communication and enhancing human-machine interfaces (HMI). Developed regions are at the forefront of this transformation, epitomizing Industry 4.0, wherein intelligent machines drive manufacturing operations, robots collaborate alongside humans in production, and autonomous transport vehicles manage logistics. The convergence of physical and digital realms in industrial manufacturing amplifies efficiency, predictive maintenance capabilities, safety standards, and overall profitability. This widespread embrace of Industry 4.0 principles on a global scale is optimizing material flows and revolutionizing error detection across product lifecycles. Pioneering initiatives such as Germany’s Industrie 4.0 program and the Smart Manufacturing Leadership Coalition (SMLC) in the United States are dedicated to setting universal standards and fostering intelligent factory ecosystems. Consequently, the escalating automation of Industry 4.0 processes is poised to fuel the demand for IoT solutions in the foreseeable future.
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Report Coverage |
Details |
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Page number |
193 |
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Base year |
2022 |
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Historic period |
2017 – 2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 15.12% |
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Market growth 2023-2027 |
USD 1,036.83 billion |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
14.43 |
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Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
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Performing market contribution |
APAC at 38% |
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Key countries |
US, China, Germany, Norway, and France |
Segment Overview
Technavio has segmented the market based on Application (Industrial, Retail, Healthcare, ICT, and Others), Technology (RFID, Sensors, NFC, Cloud services, and Others), and Geography (APAC, North America, Europe, Middle East and Africa, and South America).
- The industrial sector, valued at USD 168.54 billion in 2017 and growing until 2021, anticipates significant market share growth driven by IoT technology. This tech boosts productivity, offering a competitive edge globally. By connecting machines and devices, data insights aid in predictive maintenance and performance optimization. Challenges include investment needs, business model redesign, security, lack of standardization, and interoperability. Collaboration among IoT entities and government support aims to overcome these hurdles and enhance expertise levels.
Geography Overview
By geography, the global Internet of Things market is segmented into APAC, North America, Europe, Middle East and Africa, and South America. The report provides actionable insights and estimates the contribution of all regions to the growth of the global Internet of Things market.
- During the forecast period, APAC is projected to contribute 38% to global market growth. Government infrastructure investments in India, China, and the Philippines, with Small and Medium-sized Enterprise (SME) modernization initiatives, are driving the adoption of IoT. APAC governments advocate embedded sensor deployment within smart city projects to improve urban governance and public services.
Insights on the market contribution of various segments including country and region wise, historic (2017 to 2021) and forecast market size (2023 to 2027) – Download a Sample Report
Leading trends influencing the market
- Wearables, including smartwatches and bracelets, serve healthcare needs, monitor COVID-19 symptoms, aid in quarantine enforcement, and enhance workplace safety, driving the demand for IoT solutions.
- Smartphones, equipped with various sensors and connectivity features like GPS and Bluetooth, revolutionize sectors like healthcare, social networking, environmental monitoring, and transportation, becoming pivotal in mobile computing and communication.
Major challenges hindering the market growth
- Lack of skilled personnel and awareness in efficiently managing IoT initiatives hinders industrial adoption and optimization of IoT investments.
- Industries face challenges in training employees for IoT implementation due to the shortage of skilled professionals and reluctance to invest in IoT education, set as barriers to widespread adoption and growth of IoT data management platforms during the forecast period.
Insights on Market Drivers, trends, & Challenges, historic period(2017 to 2021) and forecast period(2023 to 2027)- Request a sample report
Analyst Review
The advent of 5G technology has catalyzed the proliferation of the Internet of Things (IoT) ecosystem, revolutionizing the way devices communicate and interact. In this burgeoning landscape, various IoT vendors are vying for market dominance across a myriad of industry verticals, from healthcare to transportation. At the heart of this interconnected web lie Radio Frequency Identification (RFID) tags, enabling seamless data exchange and tracking capabilities.
IoT hinges on robust communication technology infrastructures, facilitating the seamless flow of information between connected devices. This is particularly significant in developing economies, where improved internet connectivity has the potential to spur economic growth and societal development.
Transformation Consumer behavior is undergoing a paradigm shift, as IoT-enabled experiences reshape interactions with retail outlets. Real-time insights gleaned from sensor-driven decision analytics empower retailers with unprecedented marketing analysis capabilities, facilitating personalized engagements and enhancing customer satisfaction.
Beyond retail, IoT permeates diverse sectors including the energy, healthcare, and transportation industries. In the healthcare sector, IoT facilitates remote patient monitoring and enhances operational efficiencies. Similarly, in the transportation sector, IoT powers smart cities initiatives, optimizing traffic flow and enabling smart transportation systems.
While 4G networks laid the groundwork for IoT proliferation, the emergence of NB-IoT networks promises enhanced scalability and efficiency. These networks underpin a multitude of IoT applications, from smart parking solutions to environment monitoring initiatives aimed at fostering sustainability.
IoT’s transformative potential extends to smart energy and smart infrastructure, where sensor-equipped systems optimize resource utilization and mitigate environmental impact. This paradigm shift towards smart utilities underscores the pivotal role of IoT in shaping a sustainable future.
In conclusion, the IoT market continues to burgeon, driven by advancements in communication technology, software solutions, and sensor innovation. As IoT permeates every facet of modern life, its impact on industry verticals and consumer behavior is profound, heralding a future defined by interconnectedness and automation.
Market Overview
The Internet of Things (IoT) market is booming, driven by the rapid adoption of 5G technology and the proliferation of connected devices across various industry verticals. IoT vendors are leveraging advancements in communication technology to enhance Internet connectivity and enable seamless interaction between devices. Radio Frequency Identification (RFID) tags play a crucial role in tracking and managing assets in IoT ecosystems, particularly in developing economies where efficient resource utilization is vital. As IoT continues to evolve, its impact on industries ranging from healthcare to manufacturing is profound, offering unprecedented opportunities for innovation and efficiency. The synergy between these key elements is reshaping the way we live, work, and interact with technology.
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TOC
- Executive Summary
- Market Landscape
- Market Sizing
- Historic Market Size
- Five Forces Analysis
- Market Segmentation by Application
- Market Segmentation by Technology
- Customer Landscape
- Geographic Landscape
- Drivers, Challenges, and Trends
- Company Landscape
- Company Analysis
- Appendix
About US
Technavio is a leading global technology research and advisory company. Their research and analysis focus on emerging market trends and provide actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions. With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.
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SOURCE Technavio