by The IoT Infrastructure Market is estimated to be valued at US$ 611.00 Bn in 2023 and is expected to exhibit a CAGR of 30% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
IoT infrastructure refers to the basic physical and logical building blocks needed to enable communication between IoT devices and the systems that collect and process data from them in order to enable useful applications and services. This includes various hardware components such as sensors, RFID tags, actuators, gateways and connectivity technologies such as Wi-Fi, Bluetooth, Zigbee, NFC, GSM, GPS etc. that allow objects to communicate over the internet. IoT infrastructure also includes cloud platforms, storage solutions and various device management tools required to connect, monitor and control IoT devices.
Market Dynamics:
Widespread adoption of cloud computing is a major driver for the IoT infrastructure market. Cloud platforms provide IoT infrastructure as a service and are increasingly being utilized by organizations to develop scalable IoT solutions efficiently. They provide hosting, data analytics, connectivity and various tools to build, manage and monitor IoT applications without heavy upfront investment. Rapid growth of connected devices across industries is another key factor fueling market growth. Proliferation of low-cost sensors and rise of Industry 4.0 are enabling widespread integration of IoT in factories for predictive maintenance, asset monitoring, precision agriculture and supply chain optimization among others.
Segment Analysis
The IoT infrastructure market is dominated by the platform sub segment which accounts for over 40% share of the overall market. A platform allows devices and applications to connect and exchange data over the internet by providing data collection, storage and applications for data analysis. It provides a common interface for connecting various types of devices and applications. As more number of connected devices get added every year, the need for effective platform to manage this connectivity and data exchange is driving the demand for IoT platforms.
PEST Analysis
Political: Countries are formulating regulations around data privacy and security to protect data being generated via IoT devices. Cybesecurity standards are also being developed.
Economic: Huge market potential exists with growing adoption of IoT across industries. However, high initial investment requirement can be challenge for some organizations.
Social: Increased mobility and connectivity trends are driving consumers to adopt new IoT devices for comfort, efficiency and experiences. However, concerns around data privacy and security act as restraint.
Technological: Advancements in areas of sensors, cloud computing, edge computing, 5G, AI/ML are allowing development of new IoT use cases. Interoperability between devices still needs to be improved.
Key Takeaways
The Global Iot Infrastructure Market Size is expected to witness high growth, exhibiting CAGR of 30% over the forecast period, due to increasing adoption of connected devices and integration of advanced technologies like AI, 5G and edge computing. The market size for 2023 is estimated to be US$ 611 billion.
Regional analysis indicates North America currently dominates the market due to large base of IoT vendors and early adoption by organizations for digital transformation. Asia Pacific is projected to grow at fastest pace led by countries like China and India with increasing government initiatives for smart infrastructure projects.
Key players operating in the IoT infrastructure market include CISCO Systems, Amazon Web Services, Accenture, IBM Corporation, Microsoft Corporation, SAP SE, Oracle Corporation, Intel Corporation, PTC Inc., and AT&T Inc. Major players are focused on developing comprehensive IoT platforms and solutions through partnerships and mergers & acquisitions.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.
