The global connected enterprise market size had a share of USD 262.2 billion in 2021, which is estimated to grow at a CAGR of 27.9% and reach the value of USD 2,967 billion during the forecast period (2022–2030).
A connected enterprise is a business ecosystem that digitalizes every business line. This includes sales, customer service, finance, human resources, production, R&D, engineering, logistics, and marketing. A connected business can potentially improve its industry-specific maneuvering and operations significantly. Related businesses can utilize data analytics-based intelligent processes by fostering a safe and seamless connection between people, processes, and equipment.
A properly configured enterprise network contributes to increased productivity and decreased operating expenses. A connected enterprise utilizes the Internet of Things (IoT) to gain additional insights and increase productivity. Using a connected enterprise strategy as part of a digital transformation enables a business to synchronize people and technological operations while fostering a deeper level of collaboration.
A significant component of the definition of a connected enterprise is the capacity to utilize data and analytics to improve decision-making. This is distinct from learning from traditional statistics; a connected enterprise has access to more insightful data in real-time, which is immediately analyzed to improve operations. Connected enterprise solutions offer massively advancing opportunities for high product utilization, new functionalities, enhanced capabilities, and more excellent product dependability that surpass conventional product limits.
The evolving nature of solutions and services reshapes value chain activities and enables vendors to invest in R&D to provide distinctive products. The connected enterprise shares data across devices, people, and processes to optimize end-to-end processes. This enables the organizations to react more quickly to customer and supplier actions, shifting market conditions, and business opportunities. The connected enterprise value chain analysis includes component manufacturers, original equipment manufacturers, technology providers, distributors, and end-users.
Automation in industrial operations has gained momentum in recent years due to enhancing product quality and reducing overall costs. In today's manufacturing sectors, the proliferation of technology like the Internet of Things (IoT) and big data has increased the need for automation. End-use industries are adopting connected enterprise solutions due to the Industrial Internet of Things (IIoT) and the introduction of the manufacturing revolution. These solutions integrate plant-floor technology with enterprise-level IT and transform data into intuitive working capital to facilitate improved decision-making.
Through the convergence of IT and OT, the connected enterprise is accelerating industrial performance to access and capitalize transactional, operational, and business data to enhance plant and supply chain performance. The connected enterprise provides customers with enterprise risk management, a quicker time to market, enhanced asset utilization, and a lower total cost of ownership.
Enterprises are becoming increasingly concerned with security and privacy as cyber activities increase. The management of related security concerns lags behind the proliferation of IoT devices. According to AT&T's cybersecurity insights, 85% of businesses are in the process of implementing IoT devices and connected solutions, while only 10% have implemented the necessary security measures.
IoT devices include gateways, cameras, mobile applications, sensors, and RFID tags connected to shopping carts and patients in retail stores and the healthcare industry. All of these devices are linked to a single-level gateway. The gateway to the back-end server where information and data are stored is easily accessible to hackers. In addition, connected solutions create vulnerabilities that deny end-users access to their website and mobile applications. Consequently, these factors are creating roadblocks for the connected enterprise market.
It is anticipated that the expansion of data analytics, more innovative endpoints, visualization, and mobility will reshape the future of enterprises. Connected devices drive the next wave of enterprise efficiency and innovation by transforming business operations. For example, traditional plant floor operations relied on manual paper-based processes for every aspect of the business, including quality checks and inventory management. With the onset of the connected enterprise, businesses overcome their inefficiencies and achieve success.
The expanding use of wearables, machine learning, and artificial intelligence technologies is accelerating the expansion of the connected enterprise. The Digital revolution profoundly changes business operations by transforming their IT architectures into an integrated and dynamic model. This transition necessitates an interconnection strategy that securely permits service providers and enterprises to connect with their customers and end-users. Enterprises rely on connected solutions to enhance the customer experience by leveraging emerging technologies and existing systems. Adidas, for instance, implemented the connected retail platform, which is a global program for all its digital tools operating on a single platform.
With limitless connected technologies, leading companies incorporate workplace transformation to enhance the customer experience. As these organizations transition to the connected era, their employees and partners have begun to anticipate a variety of connected platforms and services. Connected enterprise solutions provide several benefits, including a lower total cost of ownership, improved asset utilization, a quicker time to market, and enterprise risk management.
The globally connected enterprise market share is bifurcated based on components and applications.
The component is further bifurcated into solution, service, and platform.
The solution-based segment is expected to grow at a CAGR of 27% by 2030. This growth is attributable to an increasing number of businesses adopting IoT technology. In addition, businesses are searching for novel approaches to differentiate themselves from their rivals and neutralize the risks posed by new entrants. The Internet of Things is becoming more popular for establishing new revenue streams and expanding profit margins. Connected solutions allow businesses to perform real-time asset monitoring, which in turn helps businesses improve their operational efficiency. For example, 4G LTE connectivity and battery-powered sensors in shipping containers to monitor temperature changes affect the product's quality.
The solution segment is again divided into manufacturing execution systems, customer experience management, business analytics, application value management, and remote monitoring.
The service-based segment is expected to grow at a CAGR of 27% and reach USD 2,487 billion by 2030. The segment is further segmented into professional and managed.
The platform-based segment is anticipated to grow at a CAGR of 27% and reach the value of USD 678 billion by 2030. The segment is divided into connectivity management, application enablement and development, and device management.
The segmentation is manufacturing, BFSI, IT & telecom, retail, healthcare, and food & beverage based on the application.
The manufacturing segment is likely to experience a growth at a CAGR of 27% and reach USD 1,960 billion during the forecast period. It is estimated that the sector will lead the industry directly due to the increased demand for the implementation of intelligent and digital technologies. These technologies benefit businesses by optimizing assets, automating plant routines, and increasing operational efficiencies. Many companies in the manufacturing industry have made significant investments in analytical and sensor capabilities, and these companies are now in a position to realize a return on their investments (ROI).
The global market of connected enterprise is segmented into different regions such as North America, Asia-Pacific, Europe, Latin America, and Middle East and Africa.
Asia-Pacific is envisioned to grow at a CAGR of 27% and reach USD 2,421 billion by 2030. It is anticipated that Asia-Pacific will be the most critical region, with China serving as the dominant connected enterprise market. This is because China has the highest number of devices connected. To increase their profits, the businesses in this area put connected infrastructure in place in previously untapped geographic regions. In addition to this, the region is distinguished by a significant presence of manufacturing economies and extensive production networks. It is expected that this will stimulate spending on connected technologies, which will, in turn, stimulate innovative business solutions and services. It is predicted that the market for connected enterprises in the Asia-Pacific region will expand significantly due to the presence of businesses involved in manufacturing, automation, and retail.
The region of Europe will advance at a CAGR of 26% and reach the value of USD 2,212 billion during the forecast period. It is anticipated that the growing utilization of automation and the requirement for higher levels of flexibility and functionality will positively impact the expansion of the industry. In addition, the region's healthcare and telecommunications industries have both begun to implement internet-enabled solutions and devices to improve the quality of service they provide to their customers. The connected enterprise platforms offer an optimized solution to cut down on the amount of time needed to bring a product to market while also providing end-users with an end-to-end and fully enabled solution. It offers a user interface and tools that make it easier to model interactive applications and create new ones—as a result, contributing to the continued growth of the region.
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|