The IoT devices market comprises products such as sensors, processors, connectivity ICs, and memory devices. The adoption of IoT devices is growing across industries such as consumer electronics, automotive, healthcare, agriculture, and industrial automation due to their advantages such as remote monitoring, reduced costs, improved efficiency, predictive maintenance, and enhanced customer experience. The IoT devices assist in collecting data from connected physical assets and transmitting it over a network. This collected data is further analyzed for optimized operations, predictive maintenance of equipment, inventory management, and alerts for anomalies.
The global IoT devices market is estimated to be valued at US$ 98 Mn in 2024 and is expected to exhibit a CAGR of 22% over the forecast period of 2023 to 2030.
Key Takeaways
Key players operating in the IoT devices are Robert Bosch GmbH, Apple Inc., Amazon Inc., ABB Limited, Sony Corporation, Cisco Systems Inc., Vuzix Corporation, Google Inc. (Alphabet), Siemens AG, Samsung Electronics Co. Limited, and LG Electronics. These players are focusing on developing innovative IoT devices with enhanced features and connectivity. For instance, in 2023, Robert Bosch GmbH launched an IoT starter kit for connecting devices, sensors, and gateways for quick IoT deployment.
The growing adoption of advanced technologies such as AI, 5G, and edge computing is expected to create significant opportunities for IoT device providers. AI and 5G assist in processing large volumes of data generated from IoT devices. Edge computing brings computation and data storage closer to IoT devices, reducing latency issues. Furthermore, opportunities exist in developing smart cities, autonomous vehicles, AR/VR, and Industry 4.0 applications using IoT devices.
The IoT device manufacturers are expanding their business globally, especially in developing regions, to tap the growth opportunities. For example, in 2022, LG Electronics set up its first IoT research center in Brazil to develop solutions for smart cities, logistics, and agriculture verticals. Meanwhile, Bosch expanded its IoT surveillance camera business in Southeast Asia and Africa in 2023. The growth in global IoT connections is driving this international expansion of IoT device providers.
Market Drivers
One of the key drivers for the IoT devices market is the increasing adoption of IoT across different industries. IoT devices help organizations optimize operations, reduce costs, enhance worker productivity, and improve customer experience. Various industries like manufacturing, healthcare, logistics are implementing IoT at a large scale. This wide adoption is propelling the demand for IoT devices.
Market Restrain
One of the key restrain for the IoT devices market is the data privacy and security concerns. As IoT devices collect and transmit vast amounts of sensitive data over the network, they are prone to cyberattacks. Ransomware attacks on IoT infrastructures can severely disrupt industrial operations. Furthermore, inadequate security of IoT devices can lead to privacy issues like profiling individuals based on their personal data. These security and privacy challenges restrict the broader adoption of IoT devices.
Segment Analysis
The hardware segment dominates the IoT devices market currently as majority of devices require hardware components like sensors, processors and controllers to capture data and connect to cloud platforms and networks. Within hardware, the sensors sub-segment has highest demand as most IoT solutions use various types of sensors to detect physical properties like temperature, ambient light, motion, pressure etc. and convert them into digital signals for processing. Use of low cost and low power sensors across various industry verticals is driving significant growth of this segment.
The software segment is expected to witness higher growth during the forecast period as adoption of IoT solutions increases exponentially. Most organizations are focusing on development of operating systems, analytics and security software to efficiently integrate and manage large networks of connected devices. Integration of edge and cloud computing platforms also requires specialized IoT software for reliable data management and real-time analytics. Growing complexity of IoT infrastructure is contributing to rising revenue share of this segment.
Global Analysis
North America presently captures over 40% share of global IoT devices market led by large scale adoption across sectors like manufacturing, transportation and healthcare in countries like United States. Rapid technological innovations, high speed networking capabilities and supportive government policies for R&D in IoT are driving the region’s prominence. Asia Pacific is identified as the fastest growing regional market with countries like China, Japan and India emerging as highly lucrative markets. Initiatives towards development of smart cities and industrial automation projects involving IoT provide significant future opportunities in the region. Europe is another key market powered by increasing focus on Industry 4.0 and IIoT (Industrial Internet of Things) based solutions across German, UK and Nordic nations. Established infrastructure and presence of major industry players make these three regions dominate the global market currently.
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- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it