IoT Market Forecast to 2028 - COVID-19 Impact and Global Analysis by Offering (Hardware [Processors, Connectivity Modules, Sensors, Memory Devices, and Others], Software, and Services), and End User (Industrial, Commercial, and Residential)

The IoT market is expected to grow from US$ 483.28 billion in 2022 to US$ 2,270.42 billion by 2028; it is estimated to register a CAGR of 29.4% from 2022 to 2028.

The rising adoption of IoT technology across end-use industries such as manufacturing, automotive, and healthcare is driving the market. With the traditional manufacturing sector undergoing a digital transformation, the IoT fuels intelligent connectivity's next industrial revolution. Moreover, e-commerce platforms are rapidly growing due to the ease of shopping and smartphone penetration, which is likely to propel market growth. However, with the increasing number of IoT-connected devices, security issues are also evolving at endpoints. They are potential target points for hackers; therefore, the increase in data security concerns has become one of the major factors hampering the IoT market growth. On the contrary, the growing need for data analysis and integration of analytics and progressive developments of the 5G network is anticipated to create lucrative growth opportunities for the IoT market over the forecast period.

Germany dominated the IoT market in 2021. The growing adoption of big data analytics solutions to manage and analyze the voluminous data generated across the various end-user industries such as consumer goods & retail, manufacturing & engineering, and BFSI is driving the IoT market in Germany. Furthermore, IoT plays a vital role and has already made homes and workplaces smarter and more efficient. In addition, the country has been amid its Industry 4.0 shift for almost a decade and continues to boost digitization across multiple sectors. However, while IoT makes homes and workplaces smarter, security challenges continue to rise due to more connected devices vulnerable to cyberattacks. There are several startups in Germany dedicated to improving IoT security. For example, Bitahoy is focused on helping smart homeowners keep their IoT devices secure and free from data leakages. Also, Comuny is a startup facilitating greater workplace IoT security by providing more effective registration and login via mobile apps. All these factors are surging the demand for IoT solutions in the country.

Moreover, in the US, there is a growing deployment of IoT solutions as a part of government infrastructure and for promoting smart manufacturing and smart city projects in the country. Also, the increasing demand for wearable devices, coupled with a rising focus on the Industrial Internet of Things (IIoT) among industries such as manufacturing, transportation, and BFSI, is accelerating the adoption of IoT solutions. Thus, rising internet penetration and increasing adoption of advance network technologies and smartphones are among the major factors driving the IoT market in the country.

In China, businesses are using IoT to make higher-quality products at lower cost and more sustainable and aim to integrate cloud computing, big data, and IoT across industries such as manufacturing, healthcare, and finance. Furthermore, the country is rapidly accelerating its governance position in leading technologies. The Chinese government aims to invest over a trillion dollars to roll out technologies from IoT to wireless networks to AI. Also, the IoT ecosystem in China comprises key hardware providers such as Huawei, Xiaomi, MediaTek, and Qualcomm. The IoT suppliers of China network providers include China Mobile Limited, China Unicom, and China Telecom Corporation. The country's leading areas of IoT applications include industrial, automation, healthcare, consumer electronics, and transportation.

The Middle East is a dynamic and rapidly developing region that provides massive opportunities for investors and businesses. IoT adoption is already an integral part of the digital transformation of the Middle East. Moreover, organizations across the Middle East are already using IoT to achieve various objectives, from improving asset utilization and managing risks to creating entirely new business models. The increasing use of smartphones, the growing population of young adults in the states of the Gulf Cooperation Council, and the rising number of government initiatives for digital transformation to drive economic growth are a few of the major factors propelling the IoT market growth in the region. Retail, manufacturing, and automotive industries use IoT to differentiate their existing products or services from the competition, create new products, and provide enhanced customer experiences.

Microsoft Corporation; Hewlett Packard Enterprise Development LP; SAS Institute Inc.; VMware, Inc.; Google, LLC; Oracle Corporation; Cisco Systems, Inc.; SAP SE; IBM Corporation; and Qualcomm Technologies, Inc. are among the key players operating in the IoT market. The IoT market report provides detailed insights, which help the key players strategize the growth of the IoT market.

The ongoing developments in IoT are strengthening the IoT market's growth. For instance, in May 2022, Australian operator Telstra Wholesale launched a range of new mobile solutions, including a new 5G service and a series of IoT products. In addition, this new offering will deliver mobile speeds up to 250 Mbps and access to mmWave and initially reaching more than 75% of Australians.

The IoT market is segmented based on offering and end user. Based on offering, the market is segmented into hardware, software, and services. Based on hardware, the IoT market is further segmented into processors, connectivity modules, sensors, and memory devices. Based on end user, it is segmented into industrial, commercial, and residential.

The IoT market is segmented into five major regions-North America, Europe, Asia Pacific, Middle East & Africa, and South America. In 2022, Europe led the market with a substantial revenue share, followed by North America. Further, Asia Pacific is expected to register the highest CAGR in the IoT market from 2022 to 2028.