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A number of technology giants conventionally catering to industries such as consumer electronics and internet and communication technologies have ventured into the internet of things market in the past few years, making it largely fragmented and intensely competitive, observes Transparency Market Research in a recent report. To retain their strongholds in the rapidly expanding market, companies are putting emphasis on the development of new products and technological advancement of existing products.
Companies are also adopting collaborations as means of expanding their product and service portfolios and geographical outreach. Some of the leading companies in the market are Google Inc., Apple Inc., Cisco Systems Inc., and Microsoft Corp.
According to the report, the global internet of things market will exhibit an outstanding 20.55% CAGR over the period between 2016 and 2024, rising from a valuation of US$334.22 bn in 2016 to a revenue opportunity of US$1,490.31 bn by 2024. Of the key technologies that make up IoT, the segment of ZigBee accounted for the dominant share of the market in 2015 and is likely to retain its dominant position in the overall market throughout the forecast period as well. From a geographical standpoint, the North America internet of things market is the most established as well as the most lucrative regional market owing to a good confluence of some of the world's notable players in the area and a consumer base that is highly approving of technological advancements.
Rising Set of Applications to Help Market Sail Smoothly Across Globe
The market is expected to benefit the most from the vast rise in the set of applications of IoT in industries such as automotive, healthcare, consumer electronics, and media and entertainment. The massive rise in uptake of smart devices for the development of smart workplaces and residential areas as well as the increased focus on the development of smart cities with interconnected processes and operations from a number of sectors are also working well for the internet of things market and will play a crucial role in the overall development of the market in the near future.
Moreover, as the demand rises for connected processes, operations, and objects, a rising number of companies are venturing into the IoT sector, leading to the development of new and more reliable products, core components, and services. The resultant rise in the number of options available at reasonable prices are leading to the increased adoption of IoT across emerging regional markets as well, which are often otherwise apprehensive regarding the uptake of advanced technologies due to their high costs. Dropping costs of services and solutions will continue to remain a key factor favoring the expansion of the global internet of things market.
Lack of Standardization of Components to Hold Back Market
Despite mostly promising growth avenues, the internet of things market suffers a setback and fails to achieve its true potential owing to concerns associated with safety and security of personal data that IoT products gather during their operations. Moreover, the lack of standardization that a variety of IoT sensors and components suffer is also a key challenge that the market needs to overcome to see wide-scale usage. The lack of necessary communication infrastructure in a number of regional markets also holds back the market to a certain degree.