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The Russia Internet of Things (IoT) market is segmented into components such as devices, sensors, actuators and platforms. Among these segments, IoT devices segment is expected to occupy the top position in the market. The demand for IoT devices segment is increasing on account of rising adoption of connectivity devices such as wearable gadgets and others.
The Russia IoT market is expected to register a 19.62% CAGR from 2016 to 2023. The market was valued at $21.1 billion in 2016, and is expected to expand on the back of the rising digitalization in the country.
The non-wearable electronic segment is estimated to register a CAGR of 16.34% during the forecast period. Moreover, the segment is expected to account for the largest share of revenue in the Russia due to the rising penetration of smartphone users in Russia. Further, rising personal disposable income is the major factor contributing to the largest share of revenue in the Russian market.
Rapid Pace in Digitalization
The digitalization in Russia is rising on the back of rising adoption of innovative digital technologies by various entities such as businesses, consumers and government authorities. The digitalization of businesses and systems in Russia further encourage the population to adopt smart devices and gadgets to remain connected. These factors are expected to propel the growth of the IoT market.
Advancement in Communication Technology
The advancement in communication technology and low-cost data services are encouraging people to adopt advanced communication services. Moreover, the large-scale adoption of smartphones and increasing number of smartphone users in the nation further likely to adopt connectivity devices for various remote monitoring applications. These adoptions further boost the demand for IoT device and software.
Although, the rising concerns towards the privacy, lack of security of data and lack of expertise and lack of support services are some of the factors that are likely to inhibit the growth of the IoT market in the near future.