GLOBAL IoT TRENDS & MARKET

The IoT has evolved from a concept discussed primarily in laboratories, think tanks, and technology companies to reality. From the fitness trackers we wear to the smart thermostats we use in our homes, to the fleet-management solutions that tell us when our packages will arrive, to systems that monitor the air quality we breathe—the IoT has become embedded in our lives and the operations. IoT remains a hot technology topic, with many projects moving into the rollout phase. The number of connected IoT devices is expected to reach 14.5 billion globally by 2022.

According to GlobalData’s latest report, the global Internet of Things market by revenue will be worth $ 1.1 trillion by 2024, with much of the growth from wearables. The global IoT market was worth 622 billion in 2022, up from 586 billion in 2019. It will grow to reach 1,077 billion by 2024, with a compound annual growth rate (CAGR) of 13% over the period, according to GlobalData forecasts. The enterprise IoT dominates the overall IoT market, generating 76% of the total revenue in 2020. This dominance of the enterprise IoT will continue for the foreseeable future.

The enterprise IoT market grew 22.4% to 157.9 billion in 2021, according to the March 2022 update of IoT Analytics’ global IoT Enterprise Spending Dashboard. Due to several factors, the market grew slightly slower than the 24%, including a slower-than-anticipated overall economic recovery, a lack of chipsets, and disrupted supply chains. Nevertheless, North America was the fastest-growing region in 2021 (+24.1%), and process manufacturing was the fastest-growing segment (+25%).

At this point, IoT Analytics forecasts the IT market size to grow at a CAGR of 22.0% to 525 billion from 2022 until 2027. Several growth headwinds have had a much more profound impact than anticipated, the labor shortages. In addition, IoT Analytics provides insight into how major macro trends influence the IoT growth trajectory in economics, political development, environmental factors, and technological advances.

In addition, one of the success stories of adopting IoT and digital technologies was Moderna. Moderna has shown the pharma industry what it means to put digital first. In 2020, Moderna’s smart factory was tested by the COVID-19 pandemic. In July 2020, the company became one of the first US companies to enter phase III of a clinical trial for a potential coronavirus vaccine, just months after the virus’s genetic code was released.

The increased adoption rate of new technologies has made Asia Pacific a lucrative market for the IT industry. The Asia Pacific consists of several emerging and developed economies, such as Australia, India, China, Japan, and Singapore. Due to this reason, the IoT market in the Asia Pacific is expected to grow at the highest rate as the world’s most dynamic region for urbanization.

While creating enormous business opportunities, this trend also presents grave challenges for sustainable development. To illustrate, Japan has already declared completion of most of its “smart city project,” while other countries in the region are still in the initial development phase. China is the biggest marketplace in developing IoT in smart cities. In India, more than 5,000 innovative city projects with investments valued at over INR 2 trillion were in various stages of implementation. Some countries are more technologically developed, while some are still reluctant to adopt the latest technologies. The lack of knowledge and expertise among end-users and the lack of resources and infrastructures in the developing economies are expected to restrict the growth of the IoT market in the Asia Pacific.

Article by: Asst. Prof. Suwan Juntiwasarakij, Ph.D., Senior Editor & MEGA Tech