Global IoT Market Likely to Grow at CAGR of 19% From 2016 to 2023: Report

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High cost of deployment of connected devices and intelligent systems is hindering the growth of IoT market, specifically in developing regions

The global market for internet of things (IoT) is likely to witness a steady growth and expand at a compound annual growth rate (CAGR) of over 19 per cent from 2016 to 2023, according to a latest report by global market research and counseling firm Credence Research.

Citing the factors for growth of IoT, the report said that rising digitisation of business models, both back-end and front-end across key end-user verticals is driving the growth of IoT market. In addition, the increasing government support and initiatives to implement IoT technologies in small and medium enterprises (SMEs) is pushing the growth of IoT market across the world.

However, the report mentioned that high cost of deployment of connected devices and intelligent systems is hindering the growth of IoT market specifically in developing regions like Latin America and Asia-Pacific.

Major players

The IoT market globally is fragmented in nature, with major players constituting less than 40 per cent market share in the overall market revenue. Presently, the dominant players in the global IoT market are IBM Corporation, Microsoft Corporation and Google Inc. The other prominent players in the market are Cisco Systems, Hewlett-Packard, Accenture PLC, Oracle, SAP, General Electric (GE) and Telefonica.

Regional markets

Geographically, North America was the largest regional market for IoT in 2015, with over 30 per cent market share, followed by Asia Pacific region. The US is the biggest market for IoT solutions, hardware and service provides, in North America region. The major end-user industries like public sectors and manufacturing in the US are increasingly investing in IoT solutions and technologies to enhance business productivity.

On the other hand, the Asia-Pacific market is likely to grow at a fastest rate due to introduction of favourable initiatives by the respective governments in the region to support deployment of IoT technologies in manufacturing, utility & energy and public sectors. In addition, Asia Pacific market is estimated to surpass the North America region by 2023, in terms of revenue.

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