Size of Industry
$1,463,190,000,000
What is it?
In the broadest sense, the term IoT encompasses everything connected to the internet, but it is increasingly being used to define objects that "talk" to each other. "Simply, the Internet of Things is made up of devices – from simple sensors to smartphones and wearables – connected together," Matthew Evans, the IoT programme head at techUK, says.
By combining these connected devices with automated systems, it is possible to "gather information, analyse it and create an action" to help someone with a particular task, or learn from a process. In reality, this ranges from smart mirrors to beacons in shops and beyond.
"It's about networks, it's about devices, and it's about data," Caroline Gorski, the head of IoT at Digital Catapult explains. IoT allows devices on closed private internet connections to communicate with others and "the Internet of Things brings those networks together. It gives the opportunity for devices to communicate not only within close silos but across different networking types and creates a much more connected world."
HOW does it work?
Devices and objects with built in sensors are connected to an Internet of Things platform, which integrates data from the different devices and applies analytics to share the most valuable information with applications built to address specific needs.
These powerful IoT platforms can pinpoint exactly what information is useful and what can safely be ignored. This information can be used to detect patterns, make recommendations, and detect possible problems before they occur.
For example, if I own a car manufacturing business, I might want to know which optional components (leather seats or alloy wheels, for example) are the most popular. Using Internet of Things technology, I can:
Use sensors to detect which areas in a showroom are the most popular, and where customers linger longest;
Drill down into the available sales data to identify which components are selling fastest;
Automatically align sales data with supply, so that popular items don’t go out of stock.
The information picked up by connected devices enables me to make smart decisions about which components to stock up on, based on real-time information, which helps me save time and money.
With the insight provided by advanced analytics comes the power to make processes more efficient. Smart objects and systems mean you can automate certain tasks, particularly when these are repetitive, mundane, time-consuming or even dangerous. Let’s look at some examples to see what this looks like in real life.
Use Case
Scenario #1: IoT in your home
Imagine you wake up at 7am every day to go to work. Your alarm clock does the job of waking you just fine. That is, until something goes wrong. Your train’s cancelled and you have to drive to work instead. The only problem is that it takes longer to drive, and you would have needed to get up at 6.45am to avoid being late. Oh, and it’s pouring with rain, so you’ll need to drive slower than usual. A connected or IoT-enabled alarm clock would reset itself based on all these factors, to ensure you got to work on time. It could recognize that your usual train is cancelled, calculate the driving distance and travel time for your alternative route to work, check the weather and factor in slower travelling speed because of heavy rain, and calculate when it needs to wake you up so you’re not late. If it’s super-smart, if might even sync with your IoT-enabled coffee maker, to ensure your morning caffeine’s ready to go when you get up.
Scenario #2: IoT in transport
Having been woken by your smart alarm, you’re now driving to work. On comes the engine light. You’d rather not head straight to the garage, but what if it’s something urgent? In a connected car, the sensor that triggered the check engine light would communicate with others in the car. A component called the diagnostic bus collects data from these sensors and passes it to a gateway in the car, which sends the most relevant information to the manufacturer’s platform. The manufacturer can use data from the car to offer you an appointment to get the part fixed, send you directions to the nearest dealer, and make sure the correct replacement part is ordered so it’s ready for you when you show up.
Market
Internet of Things (IoT) Market Worth USD 1463.19 Billion by 2027 Backed by Rising Awareness Regarding Precision Farming to Aid Market Growth, says Fortune Business Insights™
The global internet of things market size is projected to reach USD 1463.19 billion by 2027 while exhibiting a CAGR of 24.9% during the forecast period. Heightening demand for artificial intelligence and twin technology and precision farming by industries worldwide will stoke the market growth, suggests Fortune Business Insights™ in its report, titled “Internet of Things (IoT) Market, 2020-2027”. The report mentions that the market stood at USD 250.72 billion in 2019. Factors such as the increasing adoption of IoT in precision farming and the healthcare sector are anticipated to boost the growth of the market during the forecast period. For instance, precision farming combines use of sensors, GPS, robots, AI, mapping tools, and different type of data-analytics software to customize care for plants.
COVID-19 Impact
COVID-19 pandemic has led to a severe economic downturn, impacting industries and businesses but demand for internet of things solutions have surged. People are using advanced solutions that help to detect people who have symptoms or are infected. Besides, adoption this technology is helping the government officials to efficiently monitor the areas with high infection rate. Therefore, the growing adoption of these technologies is expected to favor the growth of the market positively amid the pandemic.
Segmentation
Based on components, the market is divided into platforms and solutions & services. By platform, the market is divided device management, cloud platform and network management.
Based on platform, the device management segment held a market share of about 35.5 %in 2020. The segment is expected to experience considerable growth as it provides industries with centralized management system and offers real time data of other integrated devices.
On this basis of end-user, the market is divided into BFS, retail, government, healthcare, manufacturing, agriculture, sustainable energy, IT& telecom and transportation. Lastly, in terms of geography, the market is categorized into North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America.
Highlights of the Report
The global market for internet of things report gives a thorough analysis of the latest internet of things market share trends, top market segments, factors that are majorly driving the market. The different market segments, their regional analysis are discussed in the report. Additionally, it talks about the dominant strategies adopted by key market players and the impact of COVID-19 on the market.
Driving Factors
Rising Demand for Smart Sensors in Healthcare Sector to Propel Growth
The sensors measure inputs provided by users and transform them into raw data, which is then digitally stored to analyze the data and then pass on information through the internet. Therefore, the adoption of smart sensor devices has seen an upsurge in different sectors such as smart metering, security and emergency services, home automation, and the e-health sector. For example, the healthcare sector uses smart sensors devices to monitor remote patients. These smart devices are connected to the patient and measure their vitals, such as glucose level, brain activity, blood pressure, and cardiac status. The data is then accessible to doctors present at any location. This helps doctors to analyze the patient's data and then provide them with correct recommendations. Therefore, the high demand from the healthcare sector is expected to favor the global internet of things (IoT) market growth in the forthcoming years.
Regional Insights
Asia-Pacific to Remain at Forefront; Increasing Focus on Development of Smart Cities to Aid Growth
Asia-Pacific is expected to remain dominant and hold the largest global internet of things (IoT) market share during the forecast period. China is expected to be leader in this region, as they also are looking forward to expand industries such as robotics, autonomous and electric vehicles, artificial intelligence (Al), biotech, and aviation under Made in China 2025 Plan, which is likely to boost the demand for the IoT solutions.
Moreover, the Indian government has implemented the Make in India policy that will help them establish technology programs for the industries and start-ups. Also, the government's plan to build 100 smart cities in the country will create a massive and quick expansion of the market.
North America is anticipated to hold a major share in the market revenue owing to the presence of number of key market players in the region. Investment from the government and private venture capitalists in the IoT market has increased as many start-ups in the country are also rising. For instance, in the year 2018, United States did major venture capital (VC) investments in the IoT market by companies such as Robert Bosch, Amazon, and others, fueling the regional market.
Competitive Landscape
Key Players to Expand their Solutions to Intensify Industry Competition
Top entities in the market are expanding their services, and they are coming up with new launches and widening their offerings to expand in their market. For example, Cisco Systems offers IoT solutions throughout manufacturing, retail, transportation, and more. The company believes in providing its services to its partners to help them grow their loT businesses. The company is investing highly in R&D services to come with advanced solutions to serve around 67,000 firms around the globe. Additionally, Cisco is majorly investing in iot security platforms, as in January 2020 it launched its security architecture under its security intelligence group Cisco Talos. This will improve IT and operational technology and visibility.
Industry Developments
March 2020 Cisco Systems and Microsoft collaborated to integrate their loT hub solution with Cisco-Edge-to Microsoft-Azure. It will help to create various apps for enterprises.
February 2019 SAP SE introduced SAP Leonardo loT solution. This will support industries and enterprises with digital transformation.
List of Key Players in Profiled in the Market:
Amazon.com Inc.
AT&T Inc
Bosch Software Innovations GmbH
Cisco Systems, Inc.
IBM Corporation
Intel Corporation
Oracle Corporation
Microsoft Corporation
SAP SE
Siemens AG
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