Developments in Sensor Technologies and Communication Devices to Aid the Global IoT Market Post a CAGR of Nearly 36% Until 2020, Reports Technavio
The research study covers the present scenario and growth prospects of the global IoT market for 2016-2020. The report categorizes the market into the following end-user segments: manufacturing, retail, healthcare, ICT, and others. The manufacturing segment was the largest end-user market in 2015 with approximately 27% market share.
Technavio ICT analysts highlight the following four factors that are contributing to the growth of the global IoT market:
- Realization of potential benefits by businesses and governments
- Favorable support from governments
- Developments in sensor technologies and communication devices
- Increased Internet connectivity
Realization of potential benefits by businesses and governments
With the ever-increasing number of devices, the capacity to manage, monitor, and maintain data in an organization becomes increasingly difficult. As a result, the demand for M2M and machine-to-human (M2H) communication is increasing as it helps end-users simplify the management, monitoring, and maintenance of connected devices.
Also, the rise in the number of connected devices in multiple industries has led to massive data generation. Businesses are making use of these data through analytics to optimize costs, enhance delivery services, and boost revenues. They are realizing the opportunities to change business models. For example, aviation engine manufacturers now offer an inclusive rental program for their equipment and servicing. The expectation is that the feedback from engine users will likely enhance their design and reduce manufacturing and maintenance costs, which leads to a significant competitive advantage.
Amit Sharma, a lead analyst at Technavio for research on IT professional services, says, "Companies are introducing automation and flexible production techniques in manufacturing to enhance productivity. Along with this predictive asset maintenance helps companies to save money on scheduled repairs, reduce maintenance costs, and eliminate the occurrence of sudden breakdowns."
Favorable support from governments
Favorable support from governments and growing industrial pressure for digital transformations of traditional industries to enhance business productivity and gain competitive advantage have resulted in increased adoption of IoT worldwide.
The European Union's 7th Framework Programme for Research and Technological Development has funded more than USD 145 million in research and innovation related to IoT projects. Also, Europe's Horizon 2020 supports a series of IoT large-scale pilots in the areas of assisted living, wearables, connected vehicles, smart agriculture, smart cities, and water management. Germany's Industry 4.0 aims to encourage digitalization of traditional industries in Germany. The German government plans to invest USD 221.9 million in the industrial Internet projects. Initiatives taken by the German government should boost the country's cumulative GDP and this will have a major impact on its economic growth.
Developments in sensor technologies and communication devices
Advances in technology related to sensors and innovations in material sciences have led to proliferation of different types of sensors. This has increased the availability and affordability of sensors for all industries to consume. These sensors are in high demand due to their advantages, such as low power consumption and prices. As a result of the automation of several processes in industries, IT has become an integral part of industrial automation. As industries embrace IoT, opportunities for IT players continue to expand.
"In an industrial Internet setup, sensors help achieve enterprise mobility, remote monitoring, and remote controlling of systems. All these pave the way for significant cost savings and boost revenues. Therefore, as more industries worldwide embrace different types of sensors, enabling IoT becomes a high possibility," states Amit.
Increased Internet connectivity
According to a 2015 report by the International Telecommunication Union, a UN agency, the number of people using the Internet is on a rise. About half of the world's population used Internet in 2015, thus reaching 3.2 billion.
The Internet revolution is fueling ubiquitous connectivity by bringing unconnected devices on the network. The network technology has evolved to meet the needs of different applications. Such technologies provide an effective communication infrastructure for the rapid pace of communication among Internet-enabled devices at high speed.
The scope of Internet use has been extended due to the increased interconnection of sensors with consumer devices and other physical assets. IoT enables data collection, processing, and sharing with end-users. It finds application in industries such as healthcare, manufacturing, transportation and logistics, energy and utilities, and other services.
Browse Related Reports:
- Global Industrial IoT Market: Research report 2015-2019
- Global IoT Security Market 2015-2019
- Global IoT Devices Market 2015-2019
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