The IoT analytics market has been gaining traction since the past few years and is expected to record significant growth during the forecast period, 2020–2029.
The application of data analytics tools in large data sets generated by connected IoT devices to extract meaningful data is known as IoT analytics. Companies operating in various sectors, including manufacturing, transportation, healthcare, industrial automation, retail, automotive, and many others, generate colossal volumes of data from IoT devices. Moreover, the emergence of industrial IoT has helped companies gather and examine data from several sensors on equipment, such as smart meters, manufacturing machines, pipelines, and delivery trucks. With the help of IoT analytics, this unstructured data can be analyzed to make actionable insights. IoT analytics enables organizations to optimize productivity, empower employees, automate process control, and enhance customer engagement.
A report by Ericcson estimates IoT devices with cellular connections to touch the 1.5-billion market by as soon as 2022. The increasing number of connected devices is exponentially increasing data generation, creating demand for IoT analytics tools, among other solutions for data analysis and management. Companies in the industrial sector are increasingly deploying IoT analytics to simplify factories automated by robots, as these robots generate large volumes of data, which further helps organizations make optimal decisions. The International Federation of Robotics estimated that 2,300 units of robots were active in the U.K, as of February 2019. This extensive use of robots is anticipated to provide lucrative opportunities for the IoT analytics market.
The rising demand for predictive analytics is another prominent factor that drives the market penetration. On account of the rising number of IoT devices, predictive analytics is gaining traction among businesses, as it helps in smart decision-making processes. For instance, autonomous vehicles leverage the global positioning system to deliver parcels via the shortest distance. Here, GPS majorly exploits predictive analytics for finding the shortest distance. Predictive analytics harnesses the IoT data utilized by IoT devices and simplifies unstructured data to generate predictions and analysis. IoT analytics can transform IoT data and further develop dashboards in real-time, which are mapped on several parameters. Therefore, it is projected that rising demand for predictive analytics will subsequently create avenues for the IoT analytics market growth.
The availability of IoT analytics is growing, and key organizations are increasingly adopting it. Amazon, Microsoft Corporation, GE, and SAP are all incorporating IoT analytics in their operations. In addition, some companies are deploying smart sensors in their offices to gain employee engagement data, work activities, and performance ratings. This data is eventually utilized to enhance business operations and optimize employee time and effort more effectively. For instance, Humanyze introduced smart badges for employees equipped with sensors, which help collect employee data. IoT analytics is used to analyze the data generated, and if the decisions are implemented properly, it helps in boosting the overall business.
On the basis of organization size, the global IoT analytics market is bifurcated into large enterprises and small and medium enterprises. SMEs constitute the fastest-growing segment in the market attributed to the growing requirement of automation in various businesses. Owing to digitalization, internet penetration among small and medium enterprises is amplifying. Companies are exploiting advanced technologies for superior customer service, which further accelerates IoT analytics market growth. Moreover, companies in all sectors are identifying the huge potential of IoT technology and making strategic investments. Usually, SMEs lack financial resources as well as the capability for attracting talents. However, IoT technology is a trend that allows them to reinvent new trends in the market and hence, companies are significantly attracted to IoT technology. The figure below depicts the reasons for which SMEs utilize IoT technology.
On the basis of deployment mode, the global IoT analytics market is segmented into on-premise and cloud. Cloud deployment is envisaged to grow with the highest CAGR during the forecast period owing to its customized options. It also offers scalability and agility, and it is a cost-effective deployment option for organizations. With the help of cloud deployment, companies can reduce implementation and management costs. Small and medium enterprises are extensively embracing cloud deployment and, the increase in the number of SMEs is further aiding the growth of this deployment model.
On the basis of end-use industry, the healthcare segment is expected to observe the highest growth during the forecast period. IoT healthcare solutions can enhance the effectiveness and quality of treatment. Connected healthcare systems that harness IoT and analytics help in the efficient analysis of patient data, which further propels the market progression. Many healthcare institutions are adopting IoT solutions for improved healthcare facilities. For instance, in 2017 December, Apollo Hospitals started deploying IoT solutions for enhanced and superior services. Moreover, IoT analytics further enables the efficient analysis of patient data, and patients can be provided with suitable healthcare options. It also helps in reducing healthcare costs and errors.
In addition, the advent of wearable devices used to monitor blood pressure, heart rate, and other functionalities have also created immense opportunities for the market. These devices generate significant volumes of unstructured data that need to be structured and examined, providing lucrative opportunities for the IoT analytics market. The figure below depicts the number of connected wearable devices in millions (global, 2016–2022).
IoT and technological advancements in data analytics, interconnected systems, and AI can inhibit the spread of contagious diseases. These technologies can provide early warnings regarding anomalies, thereby enabling countries to take necessary actions. In order to implement this, cities and enterprises can collectively deploy a significant number of sensors to detect viruses, which will create large volumes of data, and IoT analytics is necessary to convert this data into real-time information.
North America Dominates the Global IoT Analytics Market
North America holds the lion’s share of the market owing to the presence of key players, such as Google, Amazon Web Services, and Cisco Systems, Inc. These players are investing significantly in R&D for the development of a robust IoT ecosystem. For instance, Microsoft Corporation has announced plans to invest USD 5 billion for the next three years in IoT for strong innovation in the technology. Furthermore, IBM and Airwire Technologies have partnered to develop a ‘Connected Car Internet of Things’ solution, which will in gathering data from sensors installed in a vehicle and eventually facilitate the creation of a relation with the driver. These developments are envisaged to boost the development of the IoT analytics market in the region.
Some of the prominent players in the global IoT analytics market are
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In addition to partnerships, the market is also observing several innovations.