IoT: Key market research findings
- APAC dominates the market geographically
- Manufacturing sector accounts for a majority of the market’s revenue
- Key vendors – Alcatel-Lucent, AT&T, Cisco, and Qualcomm
Technavio’s market research analysts predict the global IoT market to surpass $1 trillion by 2020. Factors such as support from governments of countries across the globe and increased industrial pressure for digital transformations of traditional industries to enhance business productivity and gain competitive advantage are some of the factors driving growth in the global Internet of things (IoT) market. During 2015, the APAC region dominated the global IoT market by accounting for almost 49% of the overall market share. Increased investments in infrastructure development by governments in China, India, and the Philippines and the local business modernization by small and medium-sized enterprises (SMEs) in these countries coupled with smart city initiatives by governments in the region are expected to drive growth in the IoT market in APAC during the forecast period.
The new market research report from Technavio presents a breakdown and analysis of the IoT segments based on end-users.
“Recently, there has been an upsurge in the demand for big data analytics in the market. IoT adoption has resulted in the rapid generation of large volumes of unstructured data, spurring demand for data analytic solutions. Big data analytics allows end users to analyze sensor data and allows data collection of industrial equipment, such as turbines or oil refineries. Also, it helps organizations to optimize their business decisions and innovate new business models, products, and service offerings,” says Rakesh Panda, Lead Analyst, ICT, Technavio Research.
In 2015, the manufacturing sector led the market with a share of around 27% owing to the rising usage of location-based sensors to track and manage inventories. Manufacturers across the globe are adopting IoT technology to enhance their business productivity and gain a competitive advantage. The demand from the manufacturing sector for digital transformation and the trend of performing remote operations on high-value assets is expected to further fuel growth in this segment during the forecast period.
The key vendors in the market include Alcatel-Lucent, AT&T, Cisco, and Qualcomm. This market is highly fragmented due to the presence of numerous large and small players. Established players, network and internet services providers, and core M2M vendors are adopting M&A strategies to expand their global presence and increase their customer reach. The market is also expected to witness the entry of several new vendors during the forecast period, which in turn will further intensify the level of market competition.
A more detailed analysis is available in the Technavio report, Global IoT Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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