IoT Analytics Market

Market Overview

The global IoT analytics market was valued at USD 29.68 billion in 2023. It is estimated to reach USD 210.53 billion by 2032, growing at a CAGR of 24.32% during the forecast period (2024–2032). There has been a paradigm shift toward digitization, which has led to a rise in the rapid adoption of IoT devices worldwide, thereby driving the demand for IoT analytics to collect, analyze, and retrieve this data. This is anticipated to drive the global market growth. The rising demand for predictive analytics solutions also boosts the market expansion. Moreover, integrating IoT analytics with AI and ML-based solutions enhances the efficiency of this tool, which is estimated to create opportunities for market expansion.

IoT is a short form of the Internet of Things. IoT analytics involves gathering, analyzing, and deriving insights from the large volumes of data IoT devices produce. The gadgets have sensors, software, and other technologies installed to share and communicate data over the Internet with other gadgets and systems. IoT analytics can be utilized in various industries and scenarios, such as smart cities, industrial automation, healthcare, agriculture, transportation, energy management, and retail. It is essential for maximizing the potential of IoT by converting raw data into usable information and creating business value.

Highlights

• North America is the highest shareholder in the global market

Market Dynamics

Global IoT Analytics Market Drivers:

Rapid Growth of IoT Devices 

The rapid growth of IoT devices is propelled by their pervasive integration across diverse industries, from smart homes to industrial settings. These interconnected devices, embedded with sensors and actuators, allow data collection and exchange in real time, revolutionizing processes and experiences. IoT devices facilitate automation, predictive maintenance, remote monitoring, and personalized services in the manufacturing, healthcare, transportation, and agriculture sectors.

Moreover, the decreasing costs of hardware components and the advancements in connectivity technologies like 5G further accelerate the deployment of IoT devices on a massive scale. The most recent IoT Analytics report, "State of IoT—Spring 2023," indicates that global IoT connections increased by 18% in 2022, reaching 14.31 billion active IoT endpoints. IoT Analytics predicts that the global number of connected IoT devices will increase by 16% in 2023, reaching 16.7 billion active endpoints. This is anticipated to expedite the global IoT analytics market growth.

Rising Demand for Predictive Analytics

The rising demand for predictive analytics is another prominent factor driving 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 within the shortest distance. Here, GPS majorly exploits predictive analytics to find 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 real-time dashboards mapped on several parameters. Therefore, it is projected that rising demand for predictive analytics will subsequently create avenues for the growth of the IoT analytics market.

Global IoT Analytics Market Restraint:

Data Privacy and Security Concerns 

Data privacy and security concerns significantly restrain the IoT Analytics market. With IoT devices continuously collecting and transmitting vast amounts of sensitive data, there's a heightened risk of data breaches, unauthorized access, and privacy violations. Organizations fear potential regulatory non-compliance and reputational damage if they fail to adequately safeguard IoT-generated data.

The diverse nature of IoT deployments further complicates security measures, as each device and communication protocol may have vulnerabilities. Cybercriminals find IoT ecosystems appealing as their attack surface grows due to the proliferation of connected devices. Addressing these concerns requires robust data encryption, access controls, authentication mechanisms, and adherence to data protection regulations like GDPR and CCPA. Failure to address data privacy and security risks undermines trust in IoT analytics solutions, hindering their adoption and market growth.

Global IoT Analytics Market Opportunities:

Integration with AI and Machine Learning 

The integration of AI and machine learning within the IoT Analytics market represents a pivotal advancement, enhancing the value and capabilities of analytics solutions. By leveraging AI algorithms, organizations can unlock deeper insights from the vast volumes of IoT-generated data. Machine learning techniques enable predictive and prescriptive analytics, empowering businesses to forecast trends, detect anomalies, and automate real-time decision-making processes.

Businesses can now extract actionable intelligence from the growing synergy between AI and IoT analytics, which propels efficiency gains, innovation, and competitive advantage in an increasingly data-driven environment. Therefore, the market players are working to integrate AI and ML solutions in IoT analytics. For instance, in April 2019, Siemens and SAS collaborated on an AI-enabled IoT analytics initiative to create new insights for cloud and edge computing by integrating SAS' open-source streaming analytics with Siemens' MindSphere IoT platform. Such factors create opportunities for market growth.

Regional Analysis

North America Dominates the Global Market

Based on region, the global IoT analytics market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa. 

North America is the most significant global IoT analytics market shareholder and is expected to expand substantially during the forecast period. North America dominates the market due to the presence of major firms like Google, Amazon Web Services, and Cisco Systems, Inc. These firms are investing substantially in research and development to create a strong Internet of Things ecosystem. Microsoft Corporation has stated its intentions to invest USD 5 billion in IoT over the next three years to drive innovation in technology. The advancements are expected to enhance the growth of the IoT analytics market in the area. Moreover, regional companies are introducing innovative and technologically advanced IoT analytics solutions.

For instance, in June 2022, Hologram, a worldwide cellular platform for Internet of Things (IoT) connectivity, introduced its enhanced IoT Dashboard analytics. The dashboard analytics is the first in the market to offer teams a quick overview of fleet health data and device usage, along with capabilities for immediate action. Companies in several industries, including transportation, logistics, healthcare, and agriculture, have quickly implemented IoT technology. However, they have faced challenges maintaining the transparency and control needed to manage costs, downtime, and safety concerns effectively. Fleet managers now have a convenient and efficient method to monitor their fleets and respond quickly by integrating Dashboard statistics on the homepage.

Similarly, in October 2019, Verizon and SAP partnered to offer sophisticated Internet of Things (IoT) analytics solutions. Customers are provided with real-time data processing, multi-sensor capabilities for supply chain solutions, field service management, assembly line operations, and retail operations from the warehouse to the customer. Therefore, these factors are expected to enhance the expansion of the regional market.

The Asia-Pacific region rapidly embraces IoT solutions because of technological advancements, expanding digital ecosystems, and changing consumer tastes. Telenor predicts that the Asia-Pacific region will rapidly increase, leading to a significant rise in the usage of IoT technology. More than 38.9 billion IoT devices are anticipated to be in use by 2030. The revenue from cellular IoT modules is expected to grow at a 22.0% annual rate between 2021 and 2026, outpacing the growth potential of other regions.

China is projected to be this area's most significant Internet of Things (IoT) market. According to IoT Analytics, a well-known international firm that specializes in market insights and strategic business intelligence for IoT, Cloud, AI, Edge, and Industry 4.0, the IoT market in China is expected to grow at a rate of 22% from USD 39 billion in 2022 to USD 48 billion in 2023. Statista predicts China will have the largest number of IoT devices, totaling over 8 billion consumer gadgets by 2030. Therefore, these factors contribute to the growth of the regional market.

Segmental Analysis

The global IoT analytics market is bifurcated into deployment mode, enterprise size, and end-user.

Based on deployment mode, the global IoT analytics market is segmented into on-premise and cloud.

Cloud-based IoT analytics involves evaluating data produced by Internet of Things (IoT) devices with the help of cloud computing resources. Cloud-based IoT analytics provides benefits such as scalability, flexibility, cost-efficiency, and accessibility. Due to its customizable features, cloud deployment is expected to see the highest CAGR during the projected period. Organizations may analyze IoT data more efficiently and generate useful insights for company innovation and growth by utilizing the resources and capabilities of cloud computing. Moreover, cloud adoption aids firms in decreasing implementation and management expenses. Small and medium firms are widely using cloud deployment, and the growing number of SMEs is contributing to expanding this deployment strategy.

Based on enterprise size, the global IoT analytics market is bifurcated into large enterprises and small and medium enterprises.

Small and medium-sized enterprises are the fastest-growing sector in the market due to the increasing need for automation in different industries. Due to digitization, internet usage is increasing among small and medium firms, resulting in more adoption of IoT technologies. Eurostat reported that in 2021, 26% of small firms and 37% of medium-sized enterprises utilized IoT technology. Businesses are leveraging cutting-edge technologies to enhance customer service, driving the growth of the IoT analytics market.

Moreover, firms across all industries recognize IoT technology's significant potential and make strategic investments. Small and medium enterprises typically have limited financial resources and struggle to attract talented individuals. IoT technology enables firms to innovate and adapt to changing market trends, making it highly appealing.

Based on end-users, the global IoT analytics market is bifurcated into banking, financial services, and insurance (BFSI), agriculture, healthcare, manufacturing, retail, energy and utility, IT and telecom, government and defense, and others.

IoT healthcare solutions can enhance the effectiveness and quality of treatment. Connected healthcare systems utilizing IoT and analytics facilitate the thorough examination of patient data, advancing market growth. Several healthcare organizations are implementing IoT solutions to enhance healthcare facilities. IoT analytics also enhances the effective examination of patient data, allowing for providing appropriate healthcare solutions to patients. It also aids in decreasing healthcare expenses and mistakes.

Moreover, introducing wearable devices for monitoring blood pressure, heart rate, and other functions has generated significant prospects for the industry. These devices produce large amounts of unorganized data that require organization and analysis, creating profitable prospects for the IoT analytics market.

Impact of covid-19

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.

Recent Developments

• June 2023- ABB and China Telecom introduced a collaborative digitalization and industrial IoT laboratory in Hangzhou, China. ABB Measurement & Analytics China Technology Center and China Telecom's E Surfing IoT subsidiary collaborate to create comprehensive industrial IoT solutions for Chinese enterprises.
• July 2023- Atomberg, a home appliance manufacturer, introduced a new line of smart ceiling fans named Atomberg Smart 2.0 series, equipped with Internet of Things (IoT) technology. The Atomberg Smart 2.0 series is compatible with the Atomberg Home app, allowing users to access features like in-app voice control and performance analytics for added convenience.