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The IoT platform market size is forecast to increase by USD 16.01 billion, at a CAGR of 24.77% between 2022 and 2027. Market expansion relies on various factors, notably the substantial advantages offered by IoT devices across multiple sectors. The increasing adoption of smart homes, propelled by the desire for enhanced convenience and efficiency, contributes significantly to market growth. Additionally, the proliferation of industrial automation drives demand for IoT solutions, as businesses seek to optimize operations and maximize productivity. These trends collectively fuel the market's upward trajectory, with devices becoming indispensable in modern lifestyles and industrial practices. As technological advancements continue to evolve, and the benefits of IoT become more apparent, the market is poised for further expansion. By leveraging IoT's capabilities to improve connectivity, efficiency, and automation, businesses and consumers alike stand to benefit from enhanced convenience, productivity, and cost-effectiveness in various domains.
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The market is witnessing rapid growth, driven by the convergence of middleware, processing units, and memory units with connectivity modules and commercial sensors. Leading players like Amazon Web Services (AWS) are capitalizing on this trend, offering comprehensive solutions for IoT architecture and connectivity. As industrial IoT (IIoT) expands, sectors like the automotive industry are leveraging IoT connectivity platforms and device management platforms to streamline operations. With the emergence of 5G networks and edge computing, the market is poised for further expansion, facilitating innovations in HealthTech and EduTech sectors.
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.
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 such 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. 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 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, such technology helped several organizations continue their operations. They 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 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 market in North America is driven by the rapid growth of the industrial, automotive, and healthcare sectors, coupled with the adoption 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.
In the dynamic landscape of the market, processing units and memory units collaborate seamlessly with connectivity modules like IoT Carrier 1NCE. Market research firms such as MRFR and Forbes contribute insights into market trends. IoT Device Management Platforms, IoT Application Enablement Platforms, and IoT Analytics Platforms empower businesses to harness the potential of the internet of things (IoT). Integrating AI and big data, these platforms drive innovation and efficiency across industries, shaping the future of connected ecosystems. 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.
The large-scale facilities using IoT devices are a key factor driving 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.
Further, the adoption of such devices is rising across domains such as consumer electronics, automotive, and medical. An increasing number of organizations, industries, and technologists are adopting it because of its potential applications and numerous advantages. It 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.
The development of open Wi-Fi networks will fuel 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.
Additionally, 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.
The rise in privacy and security issues is a primary challenge to the market growth. Security is the foremost concern for individual consumers and enterprises that invest 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.
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 market forecast report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Market Customer Landscape
Companies 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.com Inc - The company offers IoT platforms such as Connected field service management technology. Also, they focus on delivering customer data across systems, apps, and devices to help companies sell, service, market, and conduct commerce from anywhere.
The market forecasting report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2023 to 2027, as well as historical data from 2017 to 2022 for the following segments.
In the expansive market, crucial components like processing units, memory units, and connectivity modules form the backbone of the IoT ecosystem. These elements, coupled with robust data centers and enterprise IoT platforms, enable advanced data analytics across various sectors. Particularly in healthcare organizations, IoT platforms facilitate seamless integration of connected medical devices such as Medtronic's ventilator and solutions like Olea Sensor Networks and OSN Digital Health Platform. Elevate platforms empower businesses, including small & medium enterprises and large enterprises, to harness the potential of IoT. From smart manufacturing to smart infrastructure and smart transportation, IoT platforms revolutionize industries, supported by telecommunications advancements. Moreover, IoT expands into consumer IoT, enhancing experiences in audio equipment products, FinTech, GamingTech, and media & entertainment. As the market evolves, the platform segment drives connectivity and communication, offering innovative solutions tailored to hybrid needs.
Further, in the dynamic landscape of the market, key components like the processing unit, memory unit, and connectivity module serve as foundational pillars. Particularly in response to global challenges like the COVID-19 pandemic, PPE management is facilitated through innovative IoT solutions. Insights from Microsoft's IoT Signals report and offerings from BICS SA/NV drive advancements, especially in the healthcare sector where healthcare workers and medical facilities benefit from enhanced connectivity. IoT Hardware Development Platforms and IoT Integration Platforms enable seamless deployment, whether on On-Premises infrastructure or across Smart Grid and Utilities, Connected Healthcare, and Smart Retail environments. Furthermore, the advent of ACES mobility transforms transportation, while connectivity & communication solutions cater to the hybrid segment demands, fostering a connected ecosystem poised for innovation and growth.
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 16.01 billion |
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 Companies, Market Positioning of Companies, 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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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Deployment
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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