The Global IoT Market is forecasted to grow from $ 916.9 billion in 2020 and is expected to reach USD 1994.3 billion in 2029, at a Compound Annual Growth Rate (CAGR) of around 10.2% during the forecast period, as per the ResearchAndMarkets.com. The cumulative market is predicted to reach USD 13100 billion.
The global market for Internet of things (IoT) would be dominated by three regions – North America, Western Europe, and Asia Pacific. The Asia Pacific market is expected to exceed 30% of the total market.
Restraining factors of IoT market
Implementation and legacy devices costs may hinder the growth of the IoT market during the forecast period. This is because there are many legacy and existing tools, and to connect them safely, new solutions are needed, which also require a new infrastructure to reap the benefits of IoT.
Currently, there’s a lack of standardization for IoT solutions, especially in terms of communications. IoT is extensively used in cars, smart manufacturing, connected homes, and other automation solutions. With low protocols in IoT, it becomes difficult for devices to communicate between different IoT systems. This will result in inefficient data management and reduced interoperability mechanism, directly impacting the growth of the IoT market.
The risk of bottleneck issues will also arise as the IoT market grows, which will ultimately result in the shift from cloud computing to edge computing and then to a mesh topology.
Driving factors of IoT market
The number of businesses using IoT technology has increased greatly in recent years which is driving the IoT market growth positively. In fact, IoT investments are growing every year thanks to new sensors, high computing power and reliable internet connectivity (with the advent of 5G). The IoT technology has enhanced over the past few years — meanwhile, each layer holds significant growth opportunities for the market.
IPV4 standard will soon be replaced by the IPV6 standard to accommodate the large number of connected devices which would be present in the IoT market in the future. The upcoming, IPV6 has the features and solutions that are required by the modern Internet, such as greater internet connection, more security, and support for web-capable devices.
It is also estimated that there will be a change in the way the data is being processed. Data processing would not remain in the cloud and centralized, but it will shift to the edge technology where the data analysis and development of applications and solutions would take place at the site where the data is generated. Edge computing is expected to have huge applications in time-critical processes like driverless transport applications. The reduced size of the sensor is mainly driven by MEMS technology.
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