June 8, 2017 by Canadian Underwriter
The global market for the Internet of Things (IoT) is expected to grow from US$170.57 billion in 2017 to US$561.04 billion by 2022, according to a new market research report published this week by MarketsandMarkets.
The market research firm said in a press release that the IoT market size is expected to grow at a compound annual growth rate of 26.9% between 2017 and 2022. The major force driving the market includes the adoption of cloud platform-as-a-service (PaaS), the release said, adding that “the advent of advanced data analytics and data processing is also fuelling the growth of the IoT market, as advanced analytics and data processing are useful in deriving results from the high volumes of data collected using the machine-to-machine communication.”
North America is expected to hold the largest market share in the IoT market during the forecast period. “The countries in this region have established economies, which empowers them to strongly invest in [research and development],” MarketsandMarkets noted in the release. “The rapid digitalization across industry verticals, the increasing adoption of smart connected devices and the technological advancements have further fuelled the growth of the IoT market in this region.”
Service is the fastest-growing component during the forecast period. Factors such as the increasing adoption of connected devices across organizations and the evolution of high-speed networking technologies have encouraged organizations in every industry sector to adopt IoT solutions, MarketsandMarkets pointed out. However, the integration of new services and solutions into the company’s contemporary functioning system or the infrastructure necessitates the company to be acquainted with comprehensive detailed insights about the services. Additionally, the organizations also need to have an in-depth knowledge about the benefits that the new service can offer to their customers and employees. This knowledge is provided through a specific set of channelized services offered by the IoT service providers, and sometimes the solution providers themselves.
In terms of the largest market share, MarketsandMarkets said that the smart manufacturing application area is expected to hold this title. Smart manufacturing – the integration of machine-gathered data and human intelligence, and the data sharing between sensors, computerized control, IT and production management software – allows businesses to develop advanced models and simulation for optimizing the manufacturing process, the market research firm explained.
In addition to market share, components and largest market share, the report also segments the IoT market into software solution, platform and service.