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The IoT platform market is estimated to grow at a CAGR of 24.77% between 2022 and 2027. The size of the market is forecast to increase by USD 16,010.78 million. The growth of the market depends on several factors, including the large-scale benefits of using IoT devices, the growing demand for smart homes, and the growth in industrial automation.
This report extensively covers market segmentation by end-user (manufacturing, retail, healthcare, ICT, and others), deployment (public cloud, private cloud, and hybrid), and geography (North America, Europe, APAC, Middle East and Africa, and South America) and geography North America, Europe, APAC, Middle East and Africa, and South America. It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The large-scale benefits of using IoT devices are notably driving the Internet of things (IoT) platform market growth, although factors such as growing demand for the rise in privacy and security issues may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key IoT Platform Market Driver
The large-scale facilities using IoT devices are a key factor driving the global internet of things platform market growth. With the emphasis given to the connected environment has resulted in IoT becoming one of the most rapidly growing markets. By 2021, it was seen that 35 billion devices were part of this connected environment. IoT devices store data using sensors and actuators and transmit it to a centralized location on a real-time basis. IoT with its connecting environment helps end-users make informed decisions.
The adoption of IoT devices is rising across domains such as consumer electronics, automotive, and medical. An increasing number of organizations, industries, and technologists are adopting IoT because of its potential applications and numerous advantages. IoT integrates technologies such as data communication, data storage, hardware design, and mining and is the latest trend in the global technology arena. IoT connects essential electronic products and devices like cars, TVs, laptops, coffee makers, automated door locks, mobile phones, and even entire industrial process control to the Internet. Such factors will drive market growth during the forecast period.
Significant IoT Platform Market Trend
The development of open Wi-Fi networks will fuel the global Internet of Things (IoT) Platform market growth. The untapped bandwidth can be used by sharing software developed by OpenWireless.org. The group is expected to route the guest traffic over the anonymity software Tor or a virtual private network (VPN) for enhanced privacy. It will use a protocol called extensible authentication protocol - transport layer security (EAP-TLS), which is the equivalent of the hypertext transfer protocol (HTTPS), to encrypt each user link. However, the group promises that priority will be given to router owners based on their requirements and needs.
This network will help to resolve privacy issues to some extent and restore their faith in connecting to the Internet. Startups can utilize open-source project-manufactured devices that access open networks without reporting the location and communications to phone companies. These devices would be able to skip smoothly from one open wireless network to another without providing any kind of granular information about the user’s activities, as is done by the current single-carrier systems. We believe that if this initiative becomes a success, the digital divide and connectivity-related issues will decline to a large extent across the world. This would also increase the adoption of IoT devices.
Major IoT Platform Challenge
The rise in privacy and security issues is a primary challenge to the global Internet of Things (IoT) platform market growth. Security is the foremost concern for individual consumers and enterprises that invests in IoT devices. Connecting the physical world to the digital world requires the highest standards of security to minimize the impact of cybersecurity attacks or hackers. This is a major factor slowing the market growth as most people are not totally confident about integrating such technologies into the different devices they own.
For instance, hacking smart meters within an energy grid can lead to consequential blackouts. A case of hacking into a refrigerator was registered in the US. This hacking event exposed the e-mail accounts and credentials of the owners and affected more than 1,000 other devices. Malware like Stuxnet, which infected Iranian nuclear facilities, can leak vital information into the wrong hands and endanger the entire global population. Thus, the vulnerability of devices connected to the Internet, in terms of privacy and security concerns, must be dealt with before the large-scale commercialization of IoT devices.
Key IoT Platform Market Customer Landscape
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global IoT Platform Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Salesforce - The company offers IoT platforms such as Connected field service management technology. Also, under this segment, the company focuses on delivering customer data across systems, apps, and devices to help companies sell, service, market, and conduct commerce from anywhere.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the manufacturing segment will be significant during the forecast period. The manufacturing segment is experiencing increased use of location-based sensors to track and manage inventories. Manufacturers worldwide are reaping the benefits of IoT technology to enhance their business productivity and gain a competitive advantage. Machines and devices are connected to the Internet through software. Data are generated, and insights about the production process are used for predictive maintenance and optimization of factory floor performance.
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The manufacturing segment showed a gradual increase in market share from USD 276.09 million in 2017 and continued to grow by 2021. The manufacturing segment faces certain challenges, such as the need for heavy investments, redesigning business models, security concerns, the lack of standardization, and interoperability issues. Favorable government policies and partnerships among different organizations operating in the IoT space should help improve expertise levels and thereby overcome these challenges. The COVID-19-triggered lockdowns put a lot of strain on the industrial sector in 2020 and 2021. For example, manufacturing industries were affected in many ways, such as various manufacturers having to shut down their plants in response to lockdown orders issued by different governments. During the crisis, IoT technology helped several organizations continue their operations. IoT also facilitated the smooth transition of manufacturing floor operations in several ways in organizations. Hence, such factors are expected to drive the growth of the manufacturing segment in the global IoT platform market during the forecast period.
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North America is projected to contribute 34% by 2027. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The IoT platform market in North America is driven by the rapid growth of the industrial, automotive, and healthcare sectors, coupled with the adoption of IoT in these sectors to achieve operational efficiency and competitive advantages. The US federal government has enacted legislation such as the Affordable Care Act and the Health Information Technology for Economic and Clinical Health (HITECH) Act to speed up the adoption of the latest technologies, such as telehealth, mHealth, and nanomedicine, to improve patient care.
This report forecasts the contribution of all the segments to the growth of the market. In addition, we have included the COVID-19 impact and the recovery strategies for each segment. The outbreak of COVID-19 led to a surge in demand for IoT platforms in North America. The COVID-19 pandemic in 2020 propelled market growth in North America. With work from home becoming the new normal, the adoption of cloud services and digitization increased, leading to the emergence of a new business environment. The restrictions put in place on various industries during the lockdowns implemented in North America to contain the spread of the disease led to an exponential rise in digital and online transactions. This propelled the demand for automation services and solutions in the region. Moreover, the key vendors in the regional IoT platform market are expanding their businesses in the region. Such initiatives by key market players will substantially drive the growth of the regional IoT platform market during the forecast period.
Technavio categorizes the global IoT platform market as a part of the Application Software & within the global Information Technology industry. The parent global application software market covers companies that are engaged in developing and producing application and system software. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by End-user (Manufacturing, Retail, Healthcare, ICT, and Others), Deployment (Public cloud, Private cloud, and Hybrid), and Geography (North America, Europe, APAC, Middle East and Africa, and South America).
IoT Platform Market Scope |
|
Report Coverage |
Details |
Page number |
183 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 24.77% |
Market growth 2023-2027 |
USD 16,010.78 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
19.94 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 34% |
Key countries |
US, China, Japan, Germany, and the UK |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Accenture Plc, Alphabet Inc., Amazon.com Inc., AT and T Inc., Axiros GmbH, Cisco Systems Inc., Davra, Echelon Solutions Group, General Electric Co., Huawei Technologies Co. Ltd., Intel Corp., International Business Machines Corp., Microsoft Corp., Nokia Corp., PTC Inc., Salesforce.com Inc., Samsung Electronics Co. Ltd., SAP SE, Siemens AG, and Wipro Ltd. |
Market dynamics |
Parent market analysis, 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 the forecast period |
Customization purview |
If our 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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