Product Code: 72237
The IoT Devices market is expected to register a CAGR of 14.98% during the forecast period (2021 - 2026). Due to the COVID-19 outbreak, the global supply chain and demand for electronics are disrupted. The IoT market hardware adoption is expected to be severely influenced until the end of 2020. Due to the production shutdown in countries such as China, the electronics industry has observed a shortage of electronics supply during February and March. Also, the shutdown of businesses across significant markets, owing to the coronavirus, is expected to negatively influence the IoT device market, as prices may increase over time due to no production and exhaustion of stocks maintained by the manufacturers in few months.
- The rising demand for automation and the growing application of IoT devices across various end-user verticals, such as healthcare, consumer electronics, industrial, automotive, BFSI, and retail, are further driving the adoption of IoT devices.
- Moreover, Google is taking steps in hardware and software to bring its machine learning and analytics capabilities to edge networks and even to individual IoT devices. This aims to deal better with the data generated by increasing IoT devices, which the company claimed at its Cloud Next Technology conference.
- Tech giants, such as Cisco Systems Inc. and IBM Corporation, heavily invest in developing IoT technologies. At the same time, platforms such as InvenSense Inc. and Skyworks Solutions Inc. concentrate on increasing revenues from manufacturing the actual hardware used in IoT.
- Further, The sheer growing demand for connected devices across the world is expected to increase even further. For instance, according to Ericsson, by 2026, there will be around 26 billion connections related to IoT. IoT devices will include connected cars, meters, machines, sensors, point-of-sale terminals, consumer electronics, and wearables.
- Additionally, the number of devices connected to the internet per person is also on the rise. For instance, according to Jaze networks, the number of connected devices per person was expected to reach 6.58 by 2020.
- Further, IoT devices use various protocols that enable them to communicate and operate. This includes satellite protocols, such as 4G LTE and EDGE, Wi-Fi protocols, radiofrequency, RFID, Bluetooth, and NFC. There are various protocols used by IoT developers, which become useless or incapable in terms of features if there's a mismatch of protocols. Additionally, multiple vendors use BLE 5.0, but some also incorporate recent technology, such as ZigBee. When it comes to connectivity, if the protocols mismatch, the devices may become incapable of communication; hence, in such cases, vendors are offering two or more protocol supports.
Key Market Trends
Connected & Smart Home is Expected to Hold Significant Market Share
- IoT is currently widely used in home electronics, ranging from entertainment to smart home control. Smart TVs, washing machines, and other household equipment are quickly embracing IoT and becoming connected. An increase in demand for application-specific microcontroller units and flexible SoC type design are two main reasons driving the growth of IoT devices.
- Moreover, LifeLong has entered the Internet-of-Things (IoT) industry in July 2021. The IoT solutions will be available in three categories: sensors and detectors, lights and fans, and gadgets and appliances, and will be designed to address typical problems with managing electrical appliances. These types of developments are expected to boost the market significantly in the upcoming years.
- Further, the concept of smart cities has marked a great prospect with the IoT in the energy, waste, and infrastructure sectors. Smart home, a significant trend in the smart city concept, offers several benefits. Moreover, the new technologies such as 5G would become an enabler for IoT by allowing a broad number of simultaneous connections and ubiquity of networks in smart cities specified by densely populated areas with high mobility.
- Products such as Amazon Echo and Google Home, which have become a central hub for smart home gadgets and their voice-activated assistants, offer convenience increasingly penetrating homes worldwide. In 2020, Amazon Web Services (AWS) announced that it had more than half a billion devices connected across over 10,000 customers utilizing its IoT infrastructure.
- Further, smart appliances are increasingly becoming common, and newly shipped devices are embedded with different connected solutions. For example, smart LG fridges allow users to extra pre-order ice while buying products that require ice. These fridges also help check expiration dates on products to help consumers optimize shopping lists.
North America Accounts For the Largest Market Share
- North America is one of the significant markets for IoT devices in terms of market size. The wide-scale adoption of IoT technologies in many industries, like automotive and transportation, manufacturing, retail, healthcare, and consumer electronics, is one of the reasons to enable the growth of the market studied in this region. It is one of the leading regions in terms of research into developing IoT applications in new end-user industries. According to Cisco, the United States and Canada will have the highest average per capita devices and connections by 2022.
- Further, the electronics sector of the United States was driving the manufacturing activity to a 37-year high in March 2021 as increased demand due to expected widespread economic recovery post-COVID-19. According to the Institute for Supply Management, there are no signs of a slowdown of electronics sector demand in the country. However, manufacturers would face supply and labor constraints at least till the third quarter of 2021.
- Additionally, in February 2020, Microsoft's Azure Sphere security solution for the Internet-of-things devices was made generally available, which is two years post-introduction. The aim of making Azure Sphere generally available is to create an overall trusted environment for deploying and using IoT devices. The ecosystem comprises various hardware, software, and services components.
- Moreover, the adoption of IoT in enterprises is triggered by increasing the ease of operations and data analytics to help increase competitiveness; however, in the region, the IoT adoption is triggered by the need for reducing cost. According to a study by Ovum, American companies often adopted IoT to reduce costs.
- In addition to enterprise IoT adoption, the growing propensity of consumers to incorporate connected devices as part of their smart home solutions is further propelling the growth. Currently, the region commands a significant share of the smart home solutions market.
IoT Device Market is fragmented, with a prominent share in the market, the significant players focus on expanding their customers globally. This industry is being viewed as a lucrative investment opportunity due to the enormous consumer interest gained recently. The companies invest in future technologies to gain substantial expertise, which would enable them to achieve sustainable competitive advantage. Some of the recent developments in the market are:
- March 2021 - Novocomms has launched its new FPCB LTE 4G IoT-based antenna. The FPCB LTE 4G is the latest addition to the British technology company's family of patented multi-channel antennas for use within the Internet of Things (IoT) sector.
- October 2020, SoftBank-owned chip manufacturer Arm partnered with Microsoft to create Azure-based tools that enable developers to transfer data from Arm-based Internet of Things (IoT) devices to Azure Cloud. This will allow developers to target a broad range of Arm-based devices such as intelligent computer-vision-enabled cameras, connected vehicles, AI gateways, and intelligent appliances.
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
TABLE OF CONTENTS
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
- 4.1 Market Overview
- 4.2 Market Drivers
- 4.2.1 Steady growth in demand for connected/smart IoT devices in key segments
- 4.2.2 Software innovations and improvements in connectivity technologies to drive market growth (by lowering replacement cycle)
- 4.3 Market Challenges
- 4.3.1 Lack of Standardization of Communication Protocol across Different Platforms
- 4.3.2 Issues Related to Security and Privacy of Data to Hinder the Adoption of IoT Devices
- 4.4 Industry Stakeholder Analysis - Device Manufacturers, Connectivity Solution Providers, Software & Service Vendors, System Integrators, etc
- 4.5 IoT Lifecycle Analysis - Deploy, Monitor, Service, Manage, Update, Decommission/Revamp
- 4.6 Industry Attractiveness Model - Porter's Five Forces Analysis
- 4.6.1 Bargaining Power of Suppliers
- 4.6.2 Bargaining Power of Buyers
- 4.6.3 Threat of New Entrants
- 4.6.4 Intensity of Competitive Rivalry
- 4.6.5 Threat of Substitutes
- 4.7 Industry Regulations - ISO/IEC JTC, ETSI, ITU, etc.
- 4.8 Pricing Analysis
5 TECHNOLOGY SNAPSHOT
- 5.1 Evolution of IoT
- 5.2 Analysis of key disruptive technologies expected to aid adoption
- 5.3 Analysis of major IoT component - Connectivity IC, Processor, Sensors, Storage, Gateway, etc.
6 MARKET SEGMENTATION
- 6.1 By Application Type
- 6.1.1 Connected and Smart Home
- 6.1.2 Medical IoT
- 6.1.3 Connected Car
- 6.1.4 Smart Cities
- 6.1.5 Industrial IoT
- 6.1.6 Personal IoT
- 6.1.7 Other Application Type
- 6.2 By Connectivity Type
- 6.2.1 WPAN
- 6.2.2 WLAN
- 6.2.3 LPWA
- 6.2.4 Cellular/M2M
- 6.2.5 Others (WNAN, Wired, etc.)
- 6.3 By Geography
- 6.3.1 North America
- 6.3.2 Europe
- 6.3.3 Asia Pacific
- 6.3.4 Latin America
- 6.3.5 Middle East and Africa
7 COMPETITIVE LANDSCAPE
- 7.1 Company Profiles
- 7.1.1 Apple Inc.
- 7.1.2 ABB Limited
- 7.1.3 IBM Corporation
- 7.1.4 Google Inc. (Alphabet)
- 7.1.5 Samsung Electronics Co. Limited
- 7.1.6 General Electric
- 7.1.7 Siemens AG
- 7.1.8 Vuzix Corporation
- 7.1.9 Sony Corporation
- 7.1.10 Dell Technologies Inc.
- 7.1.11 Oracle Corporation
8 INVESTMENT ANALYSIS
9 MARKET OUTLOOK