IoT infrastructure enables collection and exchange of data across physical and digital systems through wired and wireless connections, allowing monitoring and controlling of devices over the internet. This leads to improved productivity, efficiency and cost reduction across industries like manufacturing, healthcare, retail, transport and logistics. IoT devices require sensors, processors and embedded systems to connect to each other and integrate with various applications. The growing adoption of IoT across various industries is driving the demand for infrastructure components like connectivity technologies, network infrastructure, hardware platforms and software.
The global IoT Infrastructure Market is estimated to be valued at US$ 703.88 Bn in 2023 and is expected to exhibit a CAGR of 8.4% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Edge computing is gaining prominence with increasing volumes of data being generated on a daily basis by IoT devices. Edge computing shifts computing and storage resources closer to IoT endpoints – sensors, smart cameras and industrial gateways deployed at the edge of the network. This significantly reduces latency and allows real-time analytics at the point of data creation. Many IoT infrastructure providers are investing in edge computing capabilities to offer improved performance, scalability and cost-efficiency to diverse industries implementing IoT solutions. For instance, Cisco’s Edge Intelligence platform enables analytics at the edge for faster insights. This is expected to spur the demand for edge devices and gateways that can process data locally.
Porter’s Analysis
Threat of new entrants: Low barrier for new entrants to enter market. However, significant investment needed for R&D.
Bargaining power of buyers: Large buyers can negotiate price however demand is growing strongly reducing bargaining power.
Bargaining power of suppliers: Few major suppliers for key components. However, new suppliers entering reducing supplier power.
Threat of new substitutes: Potential for alternative IoT solutions however significant switching costs reduce threat.
Competitive rivalry: Market growing rapidly attracting new players. Competition expected to intensify on pricing and value added services.
Key Takeaways
The Global Iot Infrastructure Market Size is expected to witness high growth over the forecast period of 2024 to 2031.
Regional analysis: North America holds the largest share of the global IoT infrastructure market, and is estimated to grow at a CAGR of 9% during the forecast period. High focus on technological advancements along with large number of IoT vendors in the region is supporting market growth.
Key players operating in the global IoT Infrastructure market are Belden Inc., Alpha Wire, General Cable Corporation, L-Com Global Connectivity, LS Cable & System, Southwire, TE Connectivity Ltd, Nexans S.A., Amphenol Corporation, and Coleman Cable Inc. Belden Inc. and Amphenol Corporation hold the majority market share being top players. Players are focusing on strategic partnerships and new product launches to gain market share and better serve customer needs.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
