How Revenue In The IoT Market Is Expected To Rise

Reports suggest IoT revenue is expected to reach $2,227 billion by 2028, witnessing a CAGR of 13.60% from 2023 to 2028 and reach US$1,177.00 billion some time 2023.

The Automotive IoT sector is currently dominating with a projected market volume of US$397.20 Billion. The global number of IoT connections (Internet Of Things) also grew by 18% in 2022, reaching 14.3 billion active IoT endpoints and is expected to increase by 16% in 2023, resulting in 16.7 billion connected IoT devices worldwide.

The United States leads the market with revenues exceeding US$141 billion in 2022, closely followed by China, which holds the position of the leading IoT device manufacturer.

The growth of the IoT market is closely intertwined with the advancements in other significant technologies, such as 5G and cloud computing. The deployment of 5G communication standards enables faster and smoother connections between smart devices, opening up new possibilities.

These recent report statistics highlight IoT technology’s ongoing expansion and adoption across industries, indicating its potential for continued growth. The IoT refers to the network of interconnected devices, sensors, and systems that communicate and exchange data over the internet.

These devices range from everyday objects like smart appliances and wearables to complex industrial machinery and smart city infrastructure. The ability to collect and analyse vast amounts of data generated by these devices has opened up new possibilities for efficiency, automation, and innovation in various sectors.

According to recent research conducted by industry analysts, the 18% growth in IoT connections in 2022 was propelled by several factors.

5G Technology

Advancements in connectivity technologies, such as 5G networks and Low-Power Wide-Area Networks (LPWAN), have provided faster and more reliable communication channels for IoT devices and has enabled the deployment of IoT solutions in previously unreachable areas and accelerated the adoption of IoT in diverse industries.

Undoubtedly, 5G technology stands out as one of the most impactful emerging technologies for the Internet of Things (IoT) in 2023. Its robust connectivity capabilities will enhance the reliability and performance of IoT devices.

With features like lower latency, network slicing, real-time data processing, and extensive coverage, 5G brings a multitude of advantages to the table for IoT applications. Additionally, the COVID-19 pandemic has played a significant role in driving IoT growth.

The pandemic highlighted the need for remote monitoring and management capabilities, leading to increased demand for IoT devices in healthcare, home automation, and supply chain management.

As organisations and individuals sought ways to adapt to the new normal, IoT solutions emerged as valuable tools to enhance safety, efficiency, and convenience.

Industries at the forefront of IoT adoption Industries at the forefront of IoT adoption include manufacturing, transportation and logistics, healthcare, agriculture, and smart cities.

Manufacturing

In manufacturing, IoT-enabled sensors and automation systems have revolutionised production processes, enabling real-time monitoring, predictive maintenance, and optimised resource allocation.

Transportation and logistics

In transportation and logistics, IoT applications have improved fleet management, tracking and tracing, and supply chain visibility, leading to cost reductions and improved customer satisfaction.

The healthcare sector

The healthcare sector has witnessed the proliferation of IoT-enabled medical devices, remote patient monitoring systems, and smart hospitals. These advancements have not only improved patient outcomes but also alleviated the burden on healthcare providers by enabling timely interventions and personalised care.

Agriculture,

In agriculture, IoT solutions have enabled precision farming techniques, where data from sensors and weather stations guide irrigation, fertilisation, and pest control, resulting in increased crop yields and reduced resource consumption.

Smart cities

Smart city initiatives have also embraced IoT technology, leveraging connected devices for intelligent traffic management, energy-efficient buildings, waste management, and enhanced public safety.

Smart cities could reduce fatalities by as much as 80% and reduce incidents of assault or robbery by 30%. IoT connections raises concerns While the growth of IoT connections brings remarkable opportunities, it also raises concerns regarding data privacy, security, and interoperability.

As the number of connected devices increases, the need for robust cybersecurity measures becomes paramount to safeguard sensitive data and protect against potential cyber threats.

IoT security market

According to a report by Statista, the IoT security market is projected to grow from 34.2 billion in 2022 to 38.7 billion in 2023. This upward trend can be attributed to the increasing number of interconnected devices that demand robust security measures.

Consequently, the significance of security system software will be greater than ever in the upcoming decade, validating the lack of surprise surrounding the statistics and facts concerning IoT device security.

IoT security has also emerged as a significant concern due to the growing integration of technology in people’s lives. The heightened reliance on interconnected devices has underscored the persistent threat posed by unsecured connections.

IoT adoption

IoT adoption remains promising Looking ahead, the trajectory of IoT adoption remains promising. Experts project that by 2025, the number of active IoT endpoints will surpass 25 billion, indicating an even more interconnected and data-driven world.

As IoT continues to evolve, advancements in artificial intelligence (AI), edge computing, and blockchain technology will further propel its growth, enabling even more sophisticated applications and transformative possibilities.

Growing IoT trends in 2023 In 2023, an emerging trend that will drive growth is the widespread transition from 2G/3G wireless networks to 4G/5G networks.

This transition will notably enhance connectivity in urban communities, but rural areas will continue to rely on less advanced networks, which will further amplify the digital gap between affluent urban regions and economically disadvantaged rural areas.

Growth of the Internet of Things (IoT) will be contibuted by the gradual resolution of chip shortages as new production facilities come online, and potentially due to a decrease in demand. While chip shortages are expected to persist into 2024, reduced demand resulting from financial uncertainties has led to price declines for various chips, such as dynamic RAM (DRAM) and NAND flash.

Forecasted reports

Forecasted reports indicate a robust trajectory for the Internet of Things (IoT) sector, with anticipated revenues soaring to $2,227 billion by 2028.

This surge is expected to be underpinned by a compound annual growth rate (CAGR) of 13.60% from 2023 to 2028. By 2023, the sector is poised to hit $1,177.00 billion, with the Automotive IoT domain taking the lead at an estimated market volume of US$397.20 billion.

The global landscape of IoT connections experienced an 18% surge in 2022, reaching an impressive 14.3 billion active endpoints. Projections indicate a 16% growth in 2023, elevating the number of connected IoT devices to 16.7 billion on a global scale.

Within this panorama, the United States stands at the forefront, generating revenues surpassing US$141 billion in 2022. China closely follows, securing its position as a leading IoT device manufacturer.

The expansion of the IoT market is intricately linked with advancements in pivotal technologies like 5G and cloud computing. The implementation of 5G standards facilitates expedited and seamless connections between smart devices, unveiling unprecedented possibilities.

These statistical insights underscore the continuous proliferation and integration of IoT technology across diverse industries, signaling a trajectory of sustained expansion. The IoT, a network interlinking devices, sensors, and systems for data exchange over the internet, spans from everyday smart appliances to intricate industrial machinery and smart city infrastructures.

The capacity to amass and analyze vast data volumes from these devices has opened avenues for efficiency, automation, and innovation across various sectors.

In 2022, the 18% surge in IoT connections can be attributed to factors such as advancements in connectivity technologies, particularly 5G and Low-Power Wide-Area Networks (LPWAN), which offer swifter and more reliable communication channels.

Extended Summary 

5G technology emerges as a pivotal force in the IoT realm in 2023, presenting robust connectivity capabilities that enhance device reliability and performance.

With features like lower latency, network slicing, real-time data processing, and extensive coverage, 5G brings substantial advantages to IoT applications.

The COVID-19 pandemic has also played a significant role in propelling IoT growth. The imperative for remote monitoring and management capabilities has heightened demand for IoT devices in healthcare, home automation, and supply chain management.

Industries spearheading IoT adoption include manufacturing, transportation and logistics, healthcare, agriculture, and smart cities. Manufacturing benefits from IoT-enabled sensors and automation, revolutionizing production processes. In transportation and logistics, IoT applications enhance fleet management, tracking, and supply chain visibility, resulting in cost reductions and improved customer satisfaction.

The healthcare sector witnesses a proliferation of IoT-enabled medical devices and smart hospitals, enhancing patient outcomes and easing the burden on healthcare providers.

Agriculture leverages IoT for precision farming, optimizing resource use and increasing crop yields. Smart cities deploy IoT for intelligent traffic management, energy-efficient buildings, waste management, and improved public safety.

While the growth of IoT connections presents lucrative opportunities, it raises concerns about data privacy, security, and interoperability. Robust cybersecurity measures become imperative as the number of connected devices escalates.

The IoT security market is projected to grow from $34.2 billion in 2022 to $38.7 billion in 2023, reflecting the escalating need for stringent security measures. Despite these challenges, the trajectory of IoT adoption remains promising, with experts foreseeing over 25 billion active IoT endpoints by 2025.

As IoT continues to evolve, advancements in artificial intelligence, edge computing, and blockchain technology are expected to further fuel its growth, enabling more sophisticated applications and transformative possibilities.

In 2023, a notable trend driving IoT growth is the widespread transition from 2G/3G to 4G/5G networks. While this enhances connectivity in urban areas, rural regions may still rely on less advanced networks, exacerbating the digital gap.

Chip shortages, expected to persist into 2024, are showing signs of resolution as new production facilities come online. Reduced demand due to financial uncertainties has led to price declines for various chips, potentially mitigating the impact of shortages on IoT product costs.

The convergence of IoT and AI is a key development, with the integration of AI algorithms into IoT systems. This collaboration enables the creation of intelligent machines capable of automating tasks and making autonomous decisions, offering efficiencies and predictive maintenance across industries.

Noteworthy statistics in 2023 include an expected worth of North American smart factories surpassing $500 billion, 646 million IoT devices in healthcare settings in 2020, annual spending on IoT security measures reaching $631 million in 2021, an estimated 3.5 billion cellular IoT connections in 2023, and a projection of 152,200 IoT devices connecting to the internet every minute by 2025.

Enterprise IoT is poised for significant growth, with expenditures projected to reach $1.1 trillion in 2023, reflecting a sustained year-over-year growth rate. As the number of connected devices continues to rise, businesses must strategically integrate IoT into their operations, prioritizing robust cybersecurity measures.

The global IoT market is forecasted to burgeon from $662.21 billion in 2023 to $3,352.97 billion by 2030, showcasing a remarkable CAGR of 26.1%. This technological trajectory is expected to usher in new revenue streams, enhance business efficiencies, and catalyze innovative business models.