IoT Integration Market

Market Overview

The Global IoT Integration Market Size was valued at USD 2.51 billion in 2022 and is projected to reach a value of USD 32.91 billion by 2031, registering a CAGR of 33.1% during the forecast period 2022-2031.

IoT integration refers to the services procured by the companies to function IoT devices efficiently. Various companies are opting for cloud-based integration systems to incorporate digital transformation, which enables rapid growth of the IoT integration industry. Integration helps capture data from smart devices and move it into business applications to automate processes and apply analytics for insights. Furthermore, IoT integration is also beneficial to meet the rapidly growing competitive nature of the current market scenario of manufacturing, hospitality, retail, transportation, logistics, and energy, among others.

Increasing regulatory compliance, needing high-speed data, burgeoning BYOD, and remote workplace management fuel market growth. However, data security and privacy concerns hinder the market growth.

Market Dynamics

Global IoT Integration Market Drivers

Growth of BYOD and Remote Workplace Management

Over the past few decades, a significant increase has been witnessed in adopting BYOD and remote workplace management solutions. Enterprises are encouraging employees to bring their own devices to the office. This has enabled enterprises to reduce their cost by not spending on corporate devices and enables employees to work from home and use the device of their choice. This trend has paved the way for a common platform across all devices that incorporate various applications. Furthermore, IoT integration services have emerged as a practical solution to connect multiple devices, providing two-way and real-time communication between the devices and systems.

These platforms act on data locally, automate corrective responses, and store data on the cloud for better business insights. The growth in BYOD and remote workplace management has propelled the need to manage devices and assets in enterprises. For instance, in March 2017, Brunel University deployed the intelligent BYOD Cisco solution to create a flawless experience of BYOD for students and staff. The integration of BYOD has enabled access to a network of approximately 5800 devices.

Improved wireless IoT integration technology

New medical devices, drones, self-driving cars, and other emerging technologies rely heavily on wireless technology. Due to the growing adoption of wireless sensor networks, LoRaWAN, Low Power Wide Area Networks (LPWAN), 5G, and IPV6, there will probably be a rise in the demand for wireless technologies over the next two years. These new technologies offer low power consumption and long-range connectivity to lay the proper groundwork and build the appropriate platforms for advancing the IoT landscape.

Global IoT Integration Market Restraints

Lack of standardization 

A common protocol and communication standards are needed for IoT-enabled devices to share data from an intelligent network. The easy exchange of information between connected devices and their interoperability is crucial. Current technical and market scenarios related to IoT integration services need to offer a better architectural service or a global standard to solve the interoperability problems between various connected devices. The IoT connectivity between devices and products is the most significant barrier for all industries and customers, as their systems need to adhere to international standards for connectivity and integration.

Global IoT Integration Market Opportunity

IoT Home automation

The introduction of connected devices for homes and buildings has advanced the idea of "IoT home automation." With the help of IoT home automation, businesses can connect with their customers to provide better service, more value, and more innovation. However, managing many connected devices calls for extremely sophisticated IoT software and services. Vendors offer IoT integration services to manage IoT home automation devices and other connected solutions. These platforms simplify setting up and securing IoT devices, managing and integrating the data they generate, and extracting insights from it.

Regional Analysis

Depending on the region, the market is analyzed in North America, Asia-Pacific, Europe, and LAMEA. North America dominates the market.

North America dominates the IoT integration market because of the surge of IoT-enabled devices across different industry verticals in the region. Numerous vendors offering IoT-enabled services, such as Cognizant, Intel Corporation, and Mulesoft, drive market growth. Similarly, the robust presence of SMEs in the region has significantly surged the adoption of cloud-based services because of budget constraints, further driving the market growth.

Asia-Pacific

Asia-Pacific is the fastest-growing region in the IoT integration market because of the rapid adoption of IoT-based devices among various industrial verticals and rising government initiatives in developing economies to enhance connectivity and drive market growth. Additionally, increasing smartphone penetration in developing economies and various digital payment services provide an impetus to market growth.

Europe

Regions like the United Kingdom, France, Germany, Italy, Spain, and the remaining nations making up the Rest of Europe's regional segment are considered when analyzing the European market scenario. The market finds use in automated smart homes and buildings, industrial manufacturing, and intelligent transportation. Over the years, the German market is anticipated to grow with the highest CAGR. When automation devices, sensors, and actuators become internet-enabled devices, the industrial automation sector in Europe heavily utilizes the IoT integration market to reduce operating costs. However, the need for standards for connectivity and interoperability and concerns about data security and privacy are hindering the development of the Europe IoT integration market.

Segmental Analysis

The market is analyzed by service, organization size, application, and region for better understanding.

On the Basis of Service

By service, the market is sub-segmented into Device and Platform Management Services, Application Management Services, Advisory Services, System Design and Architecture Services, Testing Services, Service Provisioning and Directory Management Services, Third Party API Management Services, Database, and Block Storage Management Services, Network Protocol Management Services, Infrastructure, and Workload Management Services, where device and platform management services dominate the market.

Device And Platform Management Services

Device and Platform Management Services Segment to Dominate the Market during the Forecast Period. The device and platform management services segment dominates the market as they offer a wide variety of services, including remote monitoring, connectivity, and troubleshooting of heterogeneous devices. The platform also allows integrating, connecting, and managing visibility across global IoT chains. Moreover, the increasing adoption of automation across various industry verticals to meet the growing consumer demand drives market growth. 

On the Basis of Organization Size

Based on organization size, the market is divided into SMEs and large organizations, where SMEs dominate the market.

SMEs

SMEs: Largest User of IoT Integration; SMEs are the fastest-growing segment in the market because of the rapid adoption of IoT integration and cloud-based connectivity across different industry verticals, particularly manufacturing. Cloud-based services offer several benefits, including a reduction in infrastructure costs, high security, and better customer support, further driving their adoption in SMEs. Additionally, growing investment by governments to enhance connectivity within the country propels the IoT integration market. For instance, in February 2020, the U.S. Department of Energy's (DOE) Office of Electricity (OE) announced USD 6.7 billion in funding for four university-led research projects to design and develop approaches to integrate Internet of Things (IoT) technologies.

On the Basis of Application

Based on application, the market is bifurcated into Smart Building and Home Automation, Smart Healthcare, Energy and Utilities, Industrial Manufacturing and Automation, Smart Retail, Smart Transportation, Logistics, and Telematics.

Industrial Manufacturing And Automation

Industrial manufacturing is the fastest-growing segment in the IoT integration market because of the increasing pressure to improve operational performance and enhance production processes. Thus, the manufacturing sectors are adopting IoT solutions, sensors, and wireless connectivity to improve operational efficiency. Moreover, IoT-enabled services offer more comprehensive functions, which allow manufacturing sectors to track the assets, production, and supply chain line. Additionally, modification in FDI policies in several countries has surged foreign investment in the manufacturing sector, further driving market growth. For instance, in July 2020, Taiwan contract manufacturer Foxconn announced plans to invest USD 1 billion in a production facility in India.

Recent Developments

• In November 2022, TCS was chosen by TAP Air Portugal to speed up its digital transformation process and foster innovation.
• In November 2022, Randstad Strengthens Strategic Alliance with TCS to Upgrade Digital Core.
• In November 2022, In Europe, Wipro started offering cybersecurity consulting services.aca
• In November 2022, Wipro announced the establishment of its APMEA (Asia Pacific, Middle East, and Africa) Headquarters in Dubai.