Internet of Things (IoT) Market by Software Solution (Real-Time Streaming Analytics, Security Solution, Data Management, Remote Monitoring, and Network Bandwidth Management), Service, Platform, Application Area, and Region - Global Forecast to 2022

The Internet of Things market is expected to grow from USD 170.57 Billion in 2017 to USD 561.04 Billion by 2022, at a Compound Annual Growth Rate (CAGR) of 26.9%. The report considers 2017 as the estimated year for the study and the market size forecast is done from 2017 to 2022.

Objectives of the study

• To define, describe, and forecast the IoT market on the basis of platforms, software solutions, services, application areas, and regions with respect to the individual growth trends and contribution toward the overall market
• To provide a detailed information regarding the major factors influencing the growth of the market (drivers, restraints, opportunities, industry-specific challenges, and restraints)
• To analyze micro markets with respect to individual growth trends, future prospects, and contributions to the overall IoT market
• To analyze the opportunities in the market and the details of the competitive landscape for stakeholders and market leaders
• To forecast the market size of segments with respect to 5 main regions, namely, North America, Europe, Asia Pacific (APAC), Middle East and Africa (MEA), and Latin America
• To profile the key players and analyze their market shares and core competencies
• To analyze competitive developments, such as, mergers and acquisitions, new partnerships, new contracts, and new product developments in the IoT market

The research methodology used to estimate and forecast the IoT market began with the collection and analysis of data on key vendor revenues through the secondary research, such as annual reports and press releases, investor presentations of companies, conferences and associations, such as IoT Association, Institute of Electrical and Electronics Engineers (IEEE) Standards Association, IoT Alliance Australia, white papers, technology journals, certified publications, and articles from recognized authors, directories, and databases. The vendor offerings were taken into consideration to determine the market segmentation. The bottom-up procedure was employed to arrive at the total market size of the Internet of Things market from the revenue of the key IoT service providers in the market. After arriving at the overall market size, the total market was split into several segments and sub segments, which were then verified through a primary research, by conducting extensive interviews with key people, such as Chief Executive Officers (CEOs), Vice Presidents (VPs), directors, and executives. The data triangulation and market breakdown procedures were employed to complete the overall market engineering process and arrive at the exact statistics for all the segments and sub segments. The breakdown of profiles of primary is depicted in the below figure:

To know about the assumptions considered for the study, download the pdf brochure

The Internet of Things market comprises vendors providing IoT services to their commercial clients. Companies such as Intel Corporation (US), SAP SE (Germany), Cisco Systems, Inc. (US), Microsoft Corporation (US), Oracle Corporation (US), International Business Machine (IBM) Corporation (US), PTC Inc. (US), Google Inc. (US), Hewlett Packard Enterprise (US), Amazon Web Services Inc. (US), Bosch Software Innovation GmbH (Germany), and General Electric (US) have adopted partnerships and collaborations as their key strategy to expand their market reach. This strategy accounted for the largest share of the total strategies adopted by the market players.

Target Audience

• Machine-to-Machine (M2M), and Telecom and IoT providers
• IoT platform/middleware providers
• Device and sensor providers
• Application developers and aggregators
• Third-party integration providers
• Application Program Interface (API) integrators
• Consultancy firms and advisory firms
• Regulatory agencies
• Governments

 “Study answers several questions for the stakeholders, primarily which market segments to focus in next 2 to 5 years for prioritizing the efforts and investments.”

Scope of the Report

The research report segments the Internet of Things market into the following submarkets:

By Software Solution

• Real- time Streaming Analytics
• Security solution
• Data management
• Remote monitoring system
• Network bandwidth management

By Platform

• Device management
• Application management
• Network management

By Service

• Professional service
• Deployment and integration
• Support and maintenance
• Consulting service
• Managed service

By Application Area

• Building and home automation
• Smart energy and utilities
• Smart manufacturing
• Connected logistics
• Smart retail
• Smart mobility and transportation
• Others

By Region

• North America
• Europe
• Asia Pacific (APAC)
• Middle East and Africa (MEA)
• Latin America

Available Customizations

With the given market data, MarketsandMarkets offers customizations as per the company’s specific needs. The following customization options are available for the report:

Geographic Analysis

• Further breakdown of the European Internet of Things market
• Further breakdown of the APAC IoT market

Company Information

• Detailed analysis and profiling of additional market players

Development of wireless networking technologies and advent of advanced data analytics and data processing to drive the global Internet of Things (IoT) market to USD 561.04 billion by 2022

IoT can be defined as an interconnection between devices via the internet using sensors, actuators, and network communication technologies. IoT is an integral part of the future internet and could be defined as a vibrant global network infrastructure, with self-configuring capabilities based on interoperable and standard communication protocols. IoT is a computing concept that describes a future where every day physical objects are connected to the internet and are able to identify themselves to other devices. In simple terms, IoT is like a layer of digital information that covers the physical world. IoT can bring together people, data, processes, and enablers to achieve better business outcomes efficiently.

The development of wireless networking technologies, increase in cloud platform adoption, and advent of data analytics and data processing are expected to fuel the growth of IoT market.

All industry verticals are undergoing a huge transformation in a bid to provide affordable, accessible, and quality services to their customers. New applications and use cases, a result of cutting-edge technology innovations, are being developed to address changing industry needs. IoT, in combination with cloud computing and big data, is creating lucrative opportunities for organizations. The increasing number of connected devices and the proliferation of smartphones have contributed significantly to the rise of IoT. Rising adoption of cloud platforms, development of cheaper and smarter sensors, and evolution of high-speed networking technologies will drive the growth of the IoT market. However, concerns regarding data security and privacy are restricting the adoption of IoT across industry verticals. These concerns are triggered by the alarming increase in cyber threats, such as hackers gaining access to business and customer records. IoT solution providers are prioritizing digital security for devices and software within the IoT infrastructure to limit these threats. Lack of common governance standards or interoperability is another factor that limits the adoption of IoT. Various alliances and organizations are joining forces to eradicate or minimize interoperability issues and streamline further product development.

IoT traction among Small and Medium-sized Enterprises (SMEs), shared security model and growing opportunity for system integrators are major opportunities in the market

The IoT market is quite fragmented and involves various intermediaries, starting from traditional chip makers to system integrators. Consolidated IoT solutions would solve a majority of these issues, where opportunities exist for manufacturers and system integrators to design flexible platforms by minimizing complexities that arise around various sensors, processors, and software to deliver simpler user experience to the end-users. System integrators bind all component subsystems into a whole and deliver to the retailers. Moreover, 30% of the value in this market is driven by services that have huge opportunities for all types of systems integrators, such as major IT vendors, infrastructure vendors, IT consultants and integrators, and various independent local integrators. As the adoption rate of IoT increases, their role in the IoT value chain increases, thereby opening lucrative opportunities for them.

A shared security model addresses inherent vulnerabilities and ensures proper security and compliance for each constituent in the IoT ecosystem, along with introducing transparency and visibility at different business/operation levels. Today, there is no comprehensive security model for IoT. Generally, enterprises are responsible for the security starting from the initial phase; the customer is responsible for protecting the various devices from unauthorized access and also managing their user accounts. A shared security model incorporates a cohesive blend of responsibilities undertaken by Infrastructure as a Service (IaaS), PaaS, and application providers, along with the end-users.

Globally, SMEs are the backbone of any country’s economy, contributing significantly to the GDP. Like the large and heavy industries, SMEs can derive similar benefits by adopting innovative technologies, particularly IoT. They have much to gain from the IoT, both as the creators of IoT technology and solutions and as adopters and consumers of the IoT. Today, a number of SMEs are inclined to achieve higher efficiency with lower costs globally. Small innovative IoT companies are driving innovation in the domain of IoT; companies such as IoTUK provide a focal point for SMEs that are hoping to bring IoT solutions to market, providing them with support, advice, and more importantly help in getting access to their target commercial clients. Another perfect example for SME adoption is Airporter (a medium sized Northern Irish transportation company), which took advantage of an IoT fleet management system to advance its operational efficiency.

Market Dynamics

Table of Contents

1 Introduction (Page No. - 15)
    1.1 Objectives of the Study
    1.2 Market Definition
    1.3 Market Scope
    1.4 Years Considered for the Study
    1.5 Currency
    1.6 Stakeholders

2 Research Methodology (Page No. - 18)
    2.1 Research Data
           2.1.1 Secondary Data
           2.1.2 Primary Data
                    2.1.2.1 Breakdown of Primaries
                    2.1.2.2 Key Industry Insights
    2.2 Market Size Estimation
           2.2.1 Bottom-Up Approach
           2.2.2 Top-Down Approach
    2.3 Microquadrant Methodology
           2.3.1 Microquadrant Matrix: Weightage Criteria
           2.3.2 Microquadrant Description
    2.4 Research Assumptions
    2.5 Limitations

3 Executive Summary (Page No. - 27)

4 Premium Insights (Page No. - 31)
    4.1 Attractive Growth Opportunities in Internet of Things Market
    4.2 Market: Share of Top Three Application Areas and Regions, 2017
    4.3 Life Cycle Analysis, By Region, 2017
    4.4 Market, By Region, 2017 vs 2022
    4.5 Market Investment Scenario
    4.6 Internet of Things Market : Top Three Application Areas, 2017–2022

5 Market Overview (Page No. - 36)
    5.1 Introduction
    5.2 Market Dynamics
           5.2.1 Drivers
                    5.2.1.1 Development of Wireless Networking Technologies
                    5.2.1.2 Increase in Cloud Platform Adoption
                    5.2.1.3 Advent of Advanced Data Analytics and Data Processing
                    5.2.1.4 Reduction in Cost of Connected Devices
           5.2.2 Restraints
                    5.2.2.1 Data Security and Privacy Concerns
                    5.2.2.2 Interoperability and Lack of Common Standards
           5.2.3 Opportunities
                    5.2.3.1 Potential Growth Opportunities for System Integrators
                    5.2.3.2 Shared Security Model
                    5.2.3.3 IoT Traction Among SMES
           5.2.4 Challenges
                    5.2.4.1 Data Migration From Legacy Systems
                    5.2.4.2 Rapid Demand in Bandwidth Requirement
    5.3 Regulatory Implications
           5.3.1 International Organization for Standardization (ISO) Standards
           5.3.2 ISO/IEC JTC 1
                    5.3.2.1 ISO/IEC JTC 1/SWG 5
                    5.3.2.2 ISO/IEC JTC 1/SC 31
                    5.3.2.3 ISO/IEC JTC 1/SC 27
                    5.3.2.4 ISO/IEC JTC 1/WG 7 Sensors
           5.3.3 Institute of Electrical and Electronics Engineers Standards Association (IEEE-SA)
           5.3.4 European Committee for Standardization/International Standardization Organization (CEN/ISO)
           5.3.5 European Committee for Standardization/ European Committee for Electrotechnical Standardization (CEN/CENELEC)
           5.3.6 European Technical Standards Institute (ETSI)
           5.3.7 International Telecommunication Union - Telecommunication Standardization Sector (ITU-T)
    5.4 IoT Characteristics
    5.5 Use Cases
           5.5.1 Smart Retail
                    5.5.1.1 International Business Machines Corporation
                    5.5.1.2 Cisco Systems, Inc.
           5.5.2 Connected Health
                    5.5.2.1 Microsoft Corporation
                    5.5.2.2 Harman Industries
           5.5.3 Building and Home Automation
                    5.5.3.1 International Business Machines Corporation
                    5.5.3.2 Echelon
           5.5.4 Smart Logistics
                    5.5.4.1 Rockwell Automation
           5.5.5 Smart Mobility and Transportation
                    5.5.5.1 Cisco Systems, Inc.
                    5.5.5.2 Intel Corporation
           5.5.6 Smart Grid and Utilities
                    5.5.6.1 Cisco Systems, Inc.
           5.5.7 Smart Manufacturing
                    5.5.7.1 Hewlett Packard Enterprise
           5.5.8 Others (Smart Education and Smart Agriculture)
                    5.5.8.1 Huawei
                    5.5.8.2 PWC (Price Waterhouse Coopers)
                    5.5.8.3 Fujitsu

6 IoT Market Analysis, By Platform (Page No. - 49)
    6.1 Introduction
    6.2 Device Management
    6.3 Application Management
    6.4 Network Management

7 IoT Market Analysis, By Software Solution (Page No. - 55)
    7.1 Introduction
    7.2 Real-Time Streaming Analytics
    7.3 Security
    7.4 Data Management
    7.5 Remote Monitoring
    7.6 Network Bandwidth Management

8 Internet of Things Market Analysis, By Service (Page No. - 61)
    8.1 Introduction
    8.2 Professional Services
           8.2.1 Deployment and Integration
           8.2.2 Support and Maintenance
           8.2.3 Consulting
    8.3 Managed Services

9 IoT Market Analysis, By Application Area (Page No. - 68)
    9.1 Introduction
    9.2 Building and Home Automation
    9.3 Smart Energy and Utilities
    9.4 Smart Manufacturing
    9.5 Connected Logistics
    9.6 Smart Retail
    9.7 Connected Health
    9.8 Smart Mobility and Transportation
    9.9 Others

10 Geographic Analysis (Page No. - 78)
     10.1 Introduction
     10.2 North America
     10.3 Europe
     10.4 Asia Pacific (APAC)
     10.5 Middle East and Africa (MEA)
     10.6 Latin America

11 Competitive Landscape (Page No. - 101)
     11.1 Microquadrant Overview
             11.1.1 Vanguards
             11.1.2 Innovators
             11.1.3 Dynamic
             11.1.4 Emerging
     11.2 Competitive Benchmarking
             11.2.1 Product Offerings
             11.2.2 Business Strategies

12 Company Profiles (Page No. - 106)
(Business Overview, Product Offerings & Business Strategies, Key Insights, Recent Developments, MnM View)*
     12.1 Intel Corporation
     12.2 SAP SE
     12.3 Cisco Systems, Inc.
     12.4 Microsoft Corporation
     12.5 Oracle Corporation
     12.6 International Business Machine (IBM) Corporation
     12.7 PTC Inc.
     12.8 Google Inc.
     12.9 Hewlett Packard Enterprise
     12.10 Amazon Web Services, Inc.
     12.11 Bosch Software Innovations GmbH
     12.12 General Electric

*Details on Business Overview, Product Offerings & Business Strategies, Key Insights, Recent Developments, MnM View Might Not Be Captured in Case of Unlisted Companies.

13 Key Innovators (Page No. - 148)
     13.1 Telit
     13.2 Happiest Minds Technologies
     13.3 Harman International Industries

14 Appendix (Page No. - 152)
     14.1 Industry Excerpts
     14.2 Discussion Guide
     14.3 Knowledge Store: Marketsandmarkets’ Subscription Portal
     14.4 Available Customizations
     14.5 Related Reports
     14.6 Author Details

List of Tables (60 Tables)

Table 1 United States Dollar (USD) Exchange Rate, 2014–2016
Table 2 IoT market Size, By Component, 2017–2022 (USD Billion)
Table 3 Market Size, By Component, 2017–2022 (USD Billion)
Table 4 IoT Market Size, By Platform, 2017–2022 (USD Billion)
Table 5 Device Management Platform: Market Size, By Region, 2017–2022 (USD Million)
Table 6 Application Management Platform: Market Size, By Region, 2017–2022 (USD Million)
Table 7 Network Management Platform: Market Size, By Region, 2017–2022 (USD Million)
Table 8 Internet of Things Market Size, By Software Solution, 2017–2022 (USD Billion)
Table 9 Real-Time Streaming Analytics Software: IoT Market Size, By Region, 2017–2022 (USD Billion)
Table 10 Security Software: Market Size, By Region, 2017–2022 (USD Billion)
Table 11 Data Management Software: IoT Market Size, By Region, 2017–2022 (USD Billion)
Table 12 Remote Monitoring Software: Market Size, By Region, 2017–2022 (USD Billion)
Table 13 Network Bandwidth Management Software: Market Size, By Region, 2017–2022 (USD Billion)
Table 14 Internet of Things Market Size, By Service, 2017–2022 (USD Billion)
Table 15 Professional Services: IoT Market Size, By Type, 2017–2022 (USD Billion)
Table 16 IoT Deployment and Integration Services Market Size, By Region, 2017–2022 (USD Billion)
Table 17 IoT Support and Maintenance Services Market Size, By Region, 2017–2022 (USD Billion)
Table 18 IoT Consulting Services Market Size, By Region, 2017–2022 (USD Billion)
Table 19 Managed Services: Market Size, By Region, 2017–2022 (USD Billion)
Table 20 Internet of Things Market Size, By Application Area, 2017–2022 (USD Billion)
Table 21 Building and Home Automation Application: Market Size, By Region, 2017–2022 (USD Billion)
Table 22 Smart Energy and Utilities Application: IoT Market Size, By Region, 2017–2022 (USD Billion)
Table 23 Smart Manufacturing Application: Market Size, By Region, 2017–2022 (USD Billion)
Table 24 Connected Logistics Application: Market Size, By Region, 2017–2022 (USD Billion)
Table 25 Smart Retail Application: Market Size, By Region, 2017–2022 (USD Billion)
Table 26 Connected Health Application: Market Size, By Region, 2017–2022 (USD Billion)
Table 27 Smart Mobility and Transportation Application: Market Size, By Region, 2017–2022 (USD Billion)
Table 28 Others Application: Market Size, By Region, 2017–2022 (USD Billion)
Table 29 Global Internet of Things Market Size, By Region, 2017–2022 (USD Billion)
Table 30 North America: IoT Market Size, By Component, 2017–2022 (USD Billion)
Table 31 North America: Market Size, By Software Solution, 2017–2022 (USD Billion)
Table 32 North America: Market Size, By Service, 2017–2022 (USD Billion)
Table 33 North America: Market Size, By Professional Service, 2017–2022 (USD Billion)
Table 34 North America: IoT Market Size, By Platform, 2017–2022 (USD Million)
Table 35 North America: Internet of Things Market Size, By Application Area, 2017–2022 (USD Billion)
Table 36 Europe: IoT Market Size, By Component, 2017–2022 (USD Billion)
Table 37 Europe: Market Size, By Software Solution, 2017–2022 (USD Billion)
Table 38 Europe: Market Size, By Service, 2017–2022 (USD Billion)
Table 39 Europe: Market Size, By Professional Service, 2017–2022 (USD Billion)
Table 40 Europe: IoT Market Size, By Platform, 2017–2022 (USD Million)
Table 41 Europe: Internet of Things Market Size, By Application Area, 2017–2022 (USD Billion)
Table 42 APAC: Market Size, By Component, 2017–2022 (USD Billion)
Table 43 APAC: IoT Market Size, By Software Solution, 2017–2022 (USD Billion)
Table 44 APAC: Market Size, By Service, 2017–2022 (USD Billion)
Table 45 APAC: Market Size, By Professional Service, 2017–2022 (USD Billion)
Table 46 APAC: Market Size, By Platform, 2017–2022 (USD Million)
Table 47 APAC: Internet of Things Market Size, By Application Area, 2017–2022 (USD Billion)
Table 48 MEA: Market Size, By Component, 2017–2022 (USD Billion)
Table 49 MEA: Market Size, By Software Solution, 2017–2022 (USD Billion)
Table 50 MEA: IoT Market Size, By Service, 2017–2022 (USD Billion)
Table 51 MEA: Market Size, By Professional Service, 2017–2022 (USD Billion)
Table 52 MEA: Market Size, By Platform, 2017–2022 (USD Million)
Table 53 MEA: Internet of Things Market Size, By Application Area, 2017–2022 (USD Billion)
Table 54 Latin America: IoT Market Size, By Component, 2017–2022 (USD Billion)
Table 55 Latin America: Market Size, By Software Solution, 2017–2022 (USD Billion)
Table 56 Latin America: Market Size, By Service, 2017–2022 (USD Billion)
Table 57 Latin America: Market Size, By Professional Service, 2017–2022 (USD Billion)
Table 58 Latin America: IoT Market Size, By Platform, 2017–2022 (USD Million)
Table 59 Latin America: Internet of Things Market Size, By Application Area, 2017–2022 (USD Billion)
Table 60 Market Ranking of IoT Security Solution Providers, 2017

List of Figures (48 Figures)

Figure 1 Internet of Things Market: Market Segmentation
Figure 2 IoT Market: Research Design
Figure 3 Breakdown of Primary Interviews: By Company, Designation, and Region
Figure 4 Data Triangulation
Figure 5 Market Size Estimation Methodology: Bottom-Up Approach
Figure 6 Market Size Estimation Methodology: Top-Down Approach
Figure 7 IoT Market: Assumptions
Figure 8 Global Internet of ThingsMarket: North America to Hold Largest Share in 2017
Figure 9 Fastest Growing Market Segments in 2017
Figure 10 Professional Services Segment to Hold Largest Market Share in 2017
Figure 11 Increasing Use of IoT in Smart Manufacturing, Connected Health, and Smart Energy and Utilities Driving Market Growth
Figure 12 Smart Manufacturing Application and North America Region to Hold Largest Market Shares
Figure 13 Regional Life Cycle Analysis: APAC Market to Record Significant Growth During Forecast Period
Figure 14 North America to Hold Largest Market Share in 2017 (USD Billion)
Figure 15 APAC to Emerge as Best Market for Investment During Forecast Period
Figure 16 Smart Manufacturing, Smart Energy and Utilities, and Connected Healthcare to Dominate Market (USD Billion)
Figure 17 Internet of Things Market: Drivers, Restraints, Opportunities, and Challenges
Figure 18 Device Management Platform to Dominate Market in 2017 (USD Billion)
Figure 19 North America to Dominate Global IoT Device Management Platform Market in 2017 (USD Million)
Figure 20 Real-Time Streaming Analytics to Dominate IoT Software Solutions Market During Forecast Period (USD Billion)
Figure 21 North America to Dominate Global Market for IoT Data Management Software in 2017 (USD Billion)
Figure 22 IoT Professional Services to Hold Largest Market Share During Forecast Period (USD Billion)
Figure 23 Deployment and Integration Services Segment to Dominate IoT Professional Services Market During Forecast Period (USD Billion)
Figure 24 North America to Dominate Global Market for IoT Deployment and Integration Services in 2017 (USD Billion)
Figure 25 APAC IoT Managed Services Market to Record Highest Growth During Forecast Period (USD Billion)
Figure 26 Smart Manufacturing Application to Dominate Market During Forecast Period (USD Billion)
Figure 27 North America to Dominate Global IoT Market for Smart Manufacturing Application in 2017 (USD Billion)
Figure 28 APAC Internet of Things Market to Record Highest Growth During Forecast Period (USD Billion)
Figure 29 Global Market Snapshot: APAC Emerges as the New Hot Spot
Figure 30 Security to Record Highest Growth in North American IoT Software Solutions Market During Forecast Period (USD Billion)
Figure 31 North America: Internet of Things Market Snapshot
Figure 32 Device Management Platform to Dominate European Market During Forecast Period (USD Billion)
Figure 33 APAC: IoT Market Snapshot
Figure 34 Security Solution Software to Record Highest Growth in APAC Market During Forecast Period (USD Billion)
Figure 35 Data Management to Hold Largest Share in MEA IoT Software Solutions Market in 2017 (USD Billion)
Figure 36 Smart Retail to Record Highest Growth in Latin American IoT Application Market During Forecast Period (USD Billion)
Figure 37 Microquadrant
Figure 38 Intel Corporation: Company Snapshot
Figure 39 SAP SE: Company Snapshot
Figure 40 Cisco Systems, Inc.: Company Snapshot
Figure 41 Microsoft Corporation: Company Snapshot
Figure 42 Oracle Corporation: Company Snapshot
Figure 43 International Business Machine Corporation: Company Snapshot
Figure 44 PTC Inc.: Company Snapshot
Figure 45 Google Inc.: Company Snapshot
Figure 46 Hewlett Packard Enterprise: Company Snapshot
Figure 47 Bosch Software Innovations GmbH: Company Snapshot
Figure 48 General Electric: Company Snapshot

The Internet of Things market is expected to grow from USD 170.57 Billion in 2017 to USD 561.04 Billion by 2022, at a Compound Annual Growth Rate (CAGR) of 26.9%, owing to the advent of advanced analytics and data processing techniques, which have been useful to derive results from high volumes of data collected from the machine-to-machine communication devices. The integration of data analytics is done in 3 different stages; analysis of high volumes of data, identification and integration of the relevant data, and reporting of the data. The analysis of IoT data is performed using dashboards, streaming data analysis, and edge analytics. Data analytics and processing is useful in the IoT environment to increase the uptime of the smart sensors and devices, accelerate the business outputs, and detect and control the errors.

The IoT market is segmented on the basis of software solutions, services, platforms, application areas, and regions. The software solution holds the largest market size among all the other segments, owing to the increase in development of cloud-based applications and adoption of cloud for storage of data. The service segment is categorized into professional services and managed services. The application area segment is segmented into building and home automation, smart energy and utilities, smart manufacturing, connected logistics, connected health, smart retail, smart mobility and transport, and others (education and agriculture).

IoT is an ecosystem of connected physical objects that are accessible through the internet. IoT ecosystem represents a wide range of technologies, ranging from sensor-powered microcontrollers to devices powered by processors, which are interconnected in such a way that it makes it possible to collect and analyze data in real time.  Though IoT is not considered as a new term, the business application of IoT is in its nascent stage. The Internet of Things market consists of things or objects that are connected to the internet, i.e. anything can be accessed from anywhere. It comprises the integration of sensors and devices that are connected to the internet over fixed or wireless networks. The fact that the internet is available everywhere makes mass adoption of this technology more feasible. The concept of IoT has revolutionized the way organizations across industry verticals interact with customers and help them achieve operational efficiency and optimize their business processes. Various business verticals are adopting IoT-based solutions to provide affordable, accessible, and quality services to their customers.

North America is expected to hold the largest market share in the Internet of Things market in 2017. The rapid digitalization across industry verticals and technological advancements have fueled the growth of the market. With these developments, the Internet of Things market in North America has gained a significant share. Manufacturing and automation companies in the region are incorporating IoT solutions to boost their efficiency.  Most of the enterprises across the US have been populating the North American region to dominate the market. Asia Pacific (APAC) consists of emerging economies. The high adoption rate of new technologies has made this region a lucrative market for the IT industries. Moreover, the countries in this region are taking aggressive initiatives to upsurge the IT infrastructure, enabling the commercial users to adopt cutting-edge technologies.

The lack of consistency among the standards for interconnectivity, interoperability, and security threats are some of the restraining factors for the growth of the Internet of Things market. Moreover, the growing demand for bandwidth requirement is one of the major challenges impeding the market growth. However, the recent developments, new product launches, and acquisitions of major market players in the IoT arena are boosting the growth of the market. This study also measures and evaluates the major offerings and key strategies of major vendors, such as Google Inc. (US), Hewlett Packard Enterprise (US), Amazon Web Services (US), Bosch Software Innovation GMBH (Germany), General Electric (US), Intel Corporation (US), SAP SE (Germany), Cisco Systems, Inc. (US), Microsoft Corporation (US), Oracle Corporation (US), International Business Machine (IBM) Corporation (US), and PTC Inc. (US),who have been at the forefront in offering innovative IoT platforms, services, and solutions to their commercial clients across diverse locations.

The growth of IoT market is depending on the factors, such as development of wireless networking technologies, increase in cloud platform adoption, advent of data analytics and data processing, and reduction in cost of connected devices are expected to drive the market growth.

Apart from established players in the industry, the new entrants in the market are introducing IoT connected solutions to lure customers across multiple application area

Smart Manufacturing

Smart manufacturing is an integration of machine and human intelligence and data sharing between sensors, computerized control, information technology, and production management software. It interconnects and harmonizes individual stages of manufacturing production to advance plant-wide efficiency. It allows business to develop advanced models and simulation for optimization of manufacturing process.

Manufacturing enterprises have been integrally focusing toward increasing their business process efficiency and production output with optimum resource utilization. One of the key factors driving the manufacturing enterprises toward IoT-enabled deployments is having standardized and consistent unified view of the data and processes for seamless access for most of the stakeholders. Industrial IoT vendors have been achieving control over multiple heterogeneous manufacturing processes by integrating advanced IoT platforms and solutions to automate manufacturing operations.

Smart Energy and Utilities

The IoT in energy and utilities means the deployment of IoT solution in power generation industry. The solutions are primarily aimed at achieving convergence of machines and intelligent data to enhance the operational efficiency targets being set by the energy companies. The solutions also improvise the analytics-based decision-making, by diminishing the threats and vulnerabilities of the market by the use of efficient tools and techniques. Moreover, IoT applications have enabled energy utilities to control assets from anywhere to monitor assets performance.

The development of ‘Smart Grids’ is the first application of IoT in the energy sector. They are capable to meet rising demand, increasing quality and reliability of power supplies, increasing efficiency and can integrate low carbon sources to the power network. Moreover, the energy sector has started deploying end-to-end solutions such as ‘Advance Metering Infrastructure’ (AMI), which enables two-way communication between the customers and utilities; and ‘In-Home Displays’ (IHD), which allows consumers to monitor and control their usage of electricity. It imparts benefits to various end-to-end needs, such as increase in overall operational efficiency, cost cutting in productivity, optimization of supply chain, diminishing the energy trading risk factors, and data privacy and security of all the affiliated industries spanning across the entire energy industry value chain.

Connected Health

The IoT revolution is redesigning modern health care with promising technological, economic, and social prospects. IoT is constantly offering new tools and efficiencies that make up an integrated healthcare system with the view of ensuring patients are cared for better, health care costs are reduced significantly, and treatment outcomes are improved. The IoT has the potential to give rise to many medical applications such as remote health monitoring, fitness programs, chronic diseases, and elderly care. Compliance with treatment and medication at home and by healthcare providers is another important potential application of smart health. Various medical devices, sensors, and diagnostic and imaging devices can be viewed as smart devices or objects constituting a core part of the smart healthcare. IoT-based healthcare services are expected to reduce costs, increase the quality of life, and enrich the user’s experience. Healthcare networks driven by wireless technologies are expected to support chronic diseases, early diagnosis, real-time monitoring, and medical emergencies. Gateways, medical servers, and health databases play vital roles in creating health records and delivering on-demand health services to authorized stakeholders. Various wearable sensors and IoT devices are wirelessly connected to healthcare gateways connecting the patient’s environment to the health-IoT cloud, a Heterogeneous Network (HetNet) that enables clinical diagnosis and other analyses.

Building and Home Automation

The market for IoT home automation is advancing with the introduction of connected devices for buildings and houses. Nowadays, consumers are increasingly interested in knowing how home automation can provide more convenience, savings, and security. IoT home automation promises to open up significant new sources of revenue and allow businesses to connect with customers to deliver better service, more value, and greater innovation. However, managing a multitude of connected devices requires highly advanced IoT software. The companies are providing platforms that are managing IoT home automation devices and other connected solutions. It takes the complexity out of provisioning and securing IoT products, managing, and integrating the data they produce and turning that data into insight.

A smart home or building is equipped with special connected platform enabling its occupants to remotely control and program an array of automated electronic devices. Building and home automation cover a wide array of applications such as energy management, entertainment, security and safety, and lighting control. It monitors performance and device failures in all systems and provides malfunction alarms to building maintenance staff, results in convenience, energy efficiency, and safety benefits. The smart devices are becoming more self-governing and intelligent in how they share data with building automation systems and the cloud. The cloud provides the administrative user interface and the data analytics function, and analyses building, weather forecast, and utility data.

Smart Mobility and Transportation

Smart mobility means the development of smooth and sustainable society by optimization of transport services for the people using them through optimization of coordination between transportation companies and intra-company optimizations. IoT is particularly useful in the transportation industry, where valuable data provided in real-time can ensure a smooth transition and ensure the safety of goods or passengers.

Advanced cars, buses, trains, as well as bicycles along with roads and/or rails are becoming more equipped with sensors, actuators, and processing power. These IoT-enabled devices have enabled Vehicle-to-Vehicle (V2V) communication for traffic reduction and increase overall security. Moreover, IoT-enabled devices allows tracking of real-time vehicle location information and data. These IoT devices allow the traffic controllers to analyse and improve routes based on the analysis of real-time data.

Connected Logistics

Connected Logistics is an interdependent set of communication devices, joints, and IoT technologies that change key logistical processes to become more customer-centric by sharing data, information, and facts with supply chain partners. It imparts benefits to various logistic needs such as reduction in loss of asset in transit, optimization of fuel cost, management of warehouse stock, demand prediction, and goods safety.

It offers connectivity for tracking goods, trucks, trains, planes, ships, and boats and the sensors installed on each vessel allows keeping track of the shipments and monitors the performance and health of the vehicles carrying them. Applications of IoT with regards to connected logistics allow the customers and logistics providers to make rapid adjustments, in case there is any delay in the shipment. Implementation of IoT is expected to strengthen the supply chain management by offering them transparency so that they can take effective decisions in real-time. It also optimizes the routes of the vehicles according to the traffic on the road. Moreover, RFID tags on the product enable the company to determine the location of the shipment.

Smart Retail

IoT is reshaping and revolutionizing the retail industry. The IoT in retail is accelerating the time to solution deployment, simplifying the path to cost savings, new efficiencies, inventory accuracy, smarter marketing, and better customer experiences with an end-to-end solution. With the advent of additional technologies and improvements in sensors, better connectivity and communication solutions and new devices, lead to the development of the smart retail industry. The retailers are gaining a competitive advantage by installing smart shelves that detect when inventory is low, RFID sensors that track goods throughout the supply chain, systems that send personalized digital coupons to shoppers when they enter the store and sensors that monitor the quality of perishable items. Automating and optimizing the supply chain is one of the key uses of IoT among retailers. The IoT is helping retail companies optimize supply chain operations with data-driven forecasting, purchasing, and inventory management, resulting in increased operational efficiency and maximized asset productivity.

Others

Other application areas of IoT include smart education and smart agriculture. In smart education, the interactive technologies and instant communication services have transformed the methods adopted for education into a more interactive, visualizable, and accessible means. With the advent of IoT, schools can now keep track of important resources, create smarter lesson plans, design safer campuses, and improve access to information. Educational organizations have started to leverage solutions such as cloud computing and Radio Frequency Identification (RFID) across IoT platform, to provide institutions with a real-time view of students, staff, and assets. It is this asset intelligence that enables them to make informed decisions in an effort to improve student learning experiences, operational efficiency, and campus security. The benefits of smart education technology include increased student engagement, use of mobile learning, more personalized education, the easier learning process for students, improved efficiency, better measurements of student success, and enhanced creativity.

Key questions

• Which are the substitute products/solutions and how big is the threat from them?
• Which are the top use cases where IoT can be implemented for revenue generation through new advancements such as artificial intelligence, real-time analytics, and cloud computing?
• What should be your go-to-market strategy to expand the reach into developing countries across APAC, MEA, and Latin America?

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