Global IoT Market Will Grow To 24.1 Billion Devices in 2030, Generating $1.5 Trillion Annual Revenue: Transforma Insights

Representational Image (Credits - Piqsels)
  • Short-range technologies like WiFi, Bluetooth and Zigbee will dominate connections and account for 72 per cent in 2030
  • Geographically, China, North America, and Europe will dominate
Representational Image (Credits – Piqsels)

The global IoT market will grow to 24.1 billion devices in 2030, generating $1.5 trillion annual revenue as per the IoT Total Addressable Market (TAM) by Transforma Insights. It also said that at the end of 2019, there were 7.6 billion active IoT devices. It will reach 24.1 billion in 2030, a compound annual growth rate (CAGR) of 11 per cent.

In revenue terms, the total IoT market in 2019 was worth $465 billion. Services, including connectivity, will account for 66 per cent of the spend while the remaining accounted for by hardware, in the form of dedicated IoT devices, modules and gateways.

Matt Arnott, principal analyst leading the forecasts at Transforma Insights, explained, “Naturally COVID-19 has loomed large in our consideration when completing these forecasts, having arisen during the process of compiling them. In a way the timing couldn’t have been worse, requiring a radical retake halfway through the process. However, it has allowed us to ensure that these forecasts take account of the impact in every number that we publish.”

China, North America, and Europe will dominate

As per the report, short-range technologies like WiFi, Bluetooth, and Zigbee will dominate connections and account for 72 per cent in 2030 as compared to the 74 per cent it accounts for now. Public networks, which are dominated by cellular networks, will reach 4.7 billion in 2030 from 1.2 billion. It will grow from a market share of 16 per cent to 20 per cent. Private networks account for the balance of connections with 10 per cent in 2019 and eight per cent in 2030 as per the report.

Transforma Insights founding partner Jim Morrish said, “Matt and I are delighted to be back providing the highly granular and rigorously compiled IoT market forecasts with which we have been associated in the past. The value of a robust set of market data from a reputable source is not to be underestimated when planning to address the market opportunity.”

Geographically, China, North America and Europe will dominate. They will take 26 per cent, 24 per cent and 23 per cent respectively of the total value of the IoT market in 2030. The report also said that the consumer sector will dominate in terms of connected devices, accounting for 65 per centof all connections, up from 62 per cent in 2019.

Consumer internet and media devices

As per the report, in the enterprise segment, 34 per cent of devices will be accounted for by ‘cross-vertical’ use cases like track-and-trace, office equipment, and fleet vehicles, 31 per cent by utilities (most prominently smart meters), five per cent by transport and logistics. The government will take four per cent, agriculture will also take up four per cent and three per cent each for financial services and retail/wholesale.

The report said that the single biggest use case is consumer internet and media devices, which will account for one-third of all devices in 2030. After that, comes smart grid, including smart meters, representing 14 per cent of connections. Connected Vehicles, dominated by connected cars, is the third biggest category. It represents seven per cent of the global installed base.

Consumer generating $652 billion in revenue

In financial terms, the biggest vertical sector is consumer generating $652 billion in revenue, or 43 per cent of the total market value. The report said that cross-vertical account for 24 per cent and the remaining 33 per cent is sector-specific applications across sectors such as energy, transport, retail and healthcare.

Transforma Insights founding partner Matt Hatton said, “One of the benefits of building a highly granular set of forecasts is that we can uncover striking trends, such as the huge $500 billion revenue opportunity associated with a diverse range of niche vertical-specific applications.”