The Internet of Things Market to grow at a CAGR of 15.12% from 2022 to 2027

The Internet of Things market is to grow by USD 1,036.83 billion between 2022 and 2027 and register a CAGR of 15.12%, according to Technavio's latest market research report estimates.

APAC is estimated to contribute 38% to market growth during the forecast period. The adoption of IoT elements is on the rise as governments in China, India, and the Philippines increase their investment in infrastructure development, and SMEs in these countries undertake modernization efforts. In addition, governments in APAC countries are promoting the use of embedded sensors to connect smart machines via the internet as part of smart city initiatives to evolve the role of urban governance and achieve better open government. Hence, the factors mentioned above drive the growth of the segment during the forecast period.

The rise of industrial automation is a key factor driving market growth during the forecast period. The industry is undergoing major changes through process automation. The combined use of digital and physical systems to facilitate machine-to-machine (M2M) communications and enhanced man-machine interfaces (HMI) has increased significantly.

In addition, the integration of physical and cyber systems in industrial production will lead to improved safety, increased efficiency, increased profitability, and predictive maintenance of machinery. Therefore, these industries adopt Industry 4.0 to optimize material flow and detect errors early in the product life cycle.

The use of wearables for monitoring human health and the environment is a major trend in the IoT market. Combined with various built-in sensors, mobile phones offer advanced capabilities that are revolutionizing different sectors of the economy. For example, social networks, environmental and surveillance monitoring, health and well-being monitoring, traffic, etc.

The market is fragmented, and the degree of fragmentation will accelerate during the forecast period. Aeris Communications Inc., Alphabet Inc., Amazon.com Inc., AT and T Inc., Cisco Systems Inc., Fujitsu Ltd., General Electric Co., Hewlett Packard Enterprise Co., Honeywell International Inc., Intel Corp., International Business Machines Corp., Koninklijke Philips NV, Microsoft Corp., Oracle Corp., PTC Inc., Robert Bosch GmbH, SAP SE, Siemens AG, Wipro Ltd., and Thales Group are some of the major market participants.