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

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.

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