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The Internet of Things market size is forecast to increase by USD 1,036.83 billion between 2022 and 2027, accelerating at a CAGR of 15.12%. In 2017, the US held the largest market share, projecting an annual revenue of USD 161.06 billion. The rise of industrial automation is a major driving force behind the significant growth in the market. In 2017, the industrial sector was valued at USD 168.54 billion and has continued to expand through 2021. This market forecast and report includes Market size, historical data (2017-2021), and future projections in terms of value (in USD billion) for all the mentioned segments.
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The growth of the market is significantly propelled by the increasing industrial automation. Industries are experiencing transformation due to the adoption of digital and physical systems, enabling machine-to-machine (M2M) communication and improved human-machine interfaces (HMI). Developed regions have widely adopted these systems, resulting in Industry 4.0, where smart machines perform manufacturing processes, robots collaborate with humans for product assembly, and driverless transport vehicles handle logistics autonomously.
The integration of physical and digital systems in industrial manufacturing enhances efficiency, predictive maintenance, safety, and profitability. This has led to global implementation of Industry 4.0 for optimizing material flows and early error detection in product lifecycles. Initiatives like Germany's Industrie 4.0 program and the Smart Manufacturing Leadership Coalition (SMLC) in the United States aim to establish global standards and intelligent factory systems. Consequently, the increasing automation of Industry 4.0 processes will drive the demand for IoT in the forecast period.
The industrial segment was valued at USD 168.54 billion in 2017 and continued to grow until 2021. The market share growth by the industrial segment will be significant during the forecast period. Globally, the industrial segment is reaping the benefits of IoT technology in terms of increasing business productivity and gaining a competitive advantage. The software connects machines and devices to the Internet. The data generated and the insights gained into the manufacturing process are used for predictive maintenance and performance optimization on the factory floor. This segment is confronted with a number of challenges, including the need for additional investments, the redesign of business models, security concerns, a lack of standardization, and interoperability issues. Favorable government policies and collaboration among various organizations operating in the IoT space should help to improve the level of expertise and, as a result, aid in overcoming these challenges.
APAC is estimated to contribute 38% to the growth of the global market during the forecast period. Government investments in infrastructure in India, China, and the Philippines, along with SME modernization efforts, are boosting IoT adoption. APAC governments are promoting embedded sensor usage in smart city initiatives to enhance city management and public services. For example, Bangalore, India, uses IoT-connected streetlights that adjust light based on pedestrians, monitor pollution, recognize license plates, and enforce traffic rules.
Increased IoT spending has driven the adoption of technologies like nanoscale devices and sensors. China leads in industrial IoT solutions in APAC, thanks to government initiatives such as Made in China Strategy 2025 and Internet Plus. Strong collaboration between mobile operators and the government has spurred rapid growth in the industrial IoT market.
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The Internet of Things Market is fragmented in nature. Some significant players include Aeris Communications Inc., Alphabet Inc., Amazon.com Inc., AT and T Inc., Cisco Systems Inc.
This market research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Fujitsu Ltd., General Electric Co., Hewlett Packard Enterprise Co., Honeywell International Inc., Intel Corp., International Business Machines Corp., Koninklijke Philips NV, Microsoft Corp., Oracle Corp., PTC Inc., Robert Bosch GmbH, SAP SE, Siemens AG, Wipro Ltd., and Thales Group
The Internet of Things (IoT) market continues to flourish, fueled by advancements in 5G technology and a proliferation of IoT vendors offering innovative solutions. With the widespread adoption of sensors and Radio Frequency Identification (RFID) tags, various communication technology industry verticals are leveraging IoT to enhance operations and efficiency. From smart cities to smart transportation and smart utilities, IoT is revolutionizing how connected devices communicate and interact. In developing economies, IoT is driving connectivity and enabling new opportunities across sectors such as energy sector, healthcare sector, and transportation sector. Real-time marketing analysis and sensor-driven decision analytics empower businesses to better understand consumer behavior and optimize operations. As IoT knowledge grows, demand for software solutions tailored to IoT applications is on the rise, shaping the future of this dynamic market.
This market research and growth market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 - 2027.
Internet Of Things Market Scope |
|
Report Coverage |
Details |
Page number |
193 |
Base year |
2022 |
Historic period |
2017 - 2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 15.12% |
Market growth 2023-2027 |
USD 1,036.83 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
14.43 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 38% |
Key countries |
US, China, Germany, Norway, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Aeris Communications Inc., Alphabet Inc., Amazon.com Inc., AT and T Inc., Cisco Systems Inc., Fujitsu Ltd., General Electric Co., Hewlett Packard Enterprise Co., Honeywell International Inc., Intel Corp., International Business Machines Corp., Koninklijke Philips NV, Microsoft Corp., Oracle Corp., PTC Inc., Robert Bosch GmbH, SAP SE, Siemens AG, Wipro Ltd., and Thales Group |
Market dynamics |
Parent market analysis, Market forecasting, Market Growth and Trends, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our market analysis and report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Technology
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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