[162 Pages Report] MarketsandMarkets forecasts the global Internet of Things market size to be USD 170.6 billion in 2017 and is expected to reach USD 561.0 billion by 2022, at a Compound Annual Growth Rate (CAGR) of 26.9% during the forecast period. The report covers the internet of things market by software solution, services, platform, application area, and regions. The software solution segment is further divided into real-time streaming analytics, security solution, data management, remote monitoring, and network bandwidth management. The application area segment is further segmented into Building and home automation, smart energy and utilities, smart manufacturing, connected logistics, smart retail, smart mobility and transportation.
By Software Solution, the security solution segment is expected to grow at the highest growth rate during the forecast period
Smart devices connected to the internet enable unified connectivity with people, things, and networks. These seamless network connections create an efficient and customized user experience for both end-users and manufacturers. End-to-end security of IoT is critical for both device and network connection. However, growing network-connected device is threatening the IoT itself. These challenges comprise security aspects of various IoT-driven concepts such as smart city, logistics and transportation, healthcare, grid, water management, and building and manufacturing. IoT security threatens industries with cybercrime, privacy breaching, and infrastructural threats to enterprise, homes, and nation. Recently, in 2017, the world was hit by largest ever cybercrime WannaCry Ransomware attack, which compromised businesses, individuals, and government sensitive computer data files. This attack has exposed the shortcomings approach of the world to tackle cyberattacks. Such attacks create a great volume of risk for critical data, which leads to identity theft, network and device manipulation, and data falsification.
IoT security solutions provide governance and information security throughout the enterprise network during the attack. These solutions include network and data center, cloud, mobility and end-point solutions, content gateways, and access and policy management security to the enterprise. Companies such as GE, Gemalto, Trustwave, Cisco Systems, and Symantec provide solutions to protect IoT ecosystem from sophisticated and advanced threats.
By Platform, the device management segment to record the highest CAGR during the forecast period
The device management platform allows carriers and enterprises to manage IoT devices, apply security patches, set-up alerts, and provide device-centric reports using administrative tools. While using IoT devices, organizations require applications and platforms to manage information and devices. The deice management platform provides capabilities for device provisioning, remote access, configuration, administration, software management, device monitoring, and troubleshooting. The device manufacturers are increasingly adopting device management platforms to configure firmware via Firmware Over-The-Air (FOTA) or an Ethernet connection and remotely monitor, manage configurations, control settings, and automate software deployments. Every IoT system must address 4 fundamental categories of device management, namely, provisioning and authentication, configuration and control, monitoring and diagnostics, and software updates and maintenance. Any IoT product works on data acquired by sensors or machines, but between these sensors and the business applications, there is an infrastructure made of communication devices, routers, sim cards, operators, and fixed lines. Therefore, managing this infrastructure is essential to run the business processes properly. A major driver for the IoT device management platform is the growing requirement for the access and control over IoT devices.
North America to account for the largest market size during the forecast period.
North America is one of the largest contributors in the IoT space attributed to the factor that it is technologically developed. The US and Canada are the top contributing countries in the IoT market of this region. These countries have established economies, which empower them to strongly invest in R&D activities. Moreover, the start-up culture in North America is growing more rapidly in comparison to the other regions. Rapid digitalization across industry verticals, increasing adoption of smart connected devices, and technological advancements have further fueled the growth of IoT in this region.
In 2016, the US Senate unanimously passed the “Developing Innovation and Growing the Internet of Things (DIGIT) Act.” Under this act, a working group of federal and private sector representatives was formed to identify the regulations and practices related to adoption and development of IoT. Moreover, the committee has to plan a regulatory environment for things such as privacy, protection, and security. This act further opened the lines of communication between the private and public sector to capitalize on developing the technology.
IoT has seen vast application around different industries in the US. For instance, Lineage Logistics, a warehouse and storage company in the US collaborated with Monnit Corporation for IoT-enabled sensors. Monnit Corp. provided Lineage Logistics with IoT temperature and vibration sensors. The temperature sensors were used to ensure that all parts of the warehouse stayed at the desired temperature, and the vibration sensors were deployed to monitor refrigeration problems by measuring vibration magnitude and vibration count. This project helped to protect warehoused food and to optimize energy cost.
The US educational institutions are also incorporating IoT solutions for student’s safety and better utilization of time. For instance, the Watkins Glen Central School District deployed Cisco’s digital solution. This institute equipped its school buses with ‘Cisco’s 829 industrial integrated service routers’ for the management of vehicles and optimized operational efficiency and reduced the risk of downtime with ‘Smart Net Total Care Service.’ Similarly, the Alaska Department of Transportation deployed IoT solution to manage secure radio channels, coordinate dispatching, and provide network connectivity on roadways. This helped them to broaden their reach and improve responsiveness. Moreover, it equipped them with better asset management.
Similarly, Daimler Trucks deployed the IoT solution for improved agility and scalability to support its production needs. The deployed wireless connectivity was used by employees and machines to be connected all over the manufacturing unit. This shared network helped the management to be connected with the process. Moreover, the solution provided robust and standard based cyber security to the company.
After the US, Canada holds the major share in the IoT space in North America. The growth of IoT is attributed to factors such as high rate of cloud adoption, low cost of business operations, and highly skilled workforce. The Canadian companies are improving and optimizing their business processes by utilizing IoT capabilities. Moreover, the companies are manufacturing and selling IoT infrastructure for optimization of businesses. For instance, Miovision Technologies, a Canadian infrastructure company, is developing a data network using a grid of internet-connected traffic signals to link infrastructure wirelessly. This data is being used to optimize the traffic flow. Moreover, Rogers Communication, a Canadian communication and media company, signed an agreement with blueRover, a Canadian technology company. This agreement was signed to offer solutions for food and farm monitoring. The sensors were installed for monitoring of equipment throughout the food production chain and the real-time information led to waste reduction and process optimization.Market DynamicsDriver: Development of wireless networking technologies