IoT Market Still Surging

The Internet of Things has become one of the most important technologies, providing seamless communication between people, processes, and things. The surging need for wireless networking technologies continues to drive the entire market’s growth. According to data presented by TradingPlatforms.com, global IoT revenues are expected to hit $19.5bn in 2022, showing a 13% year-over-year increase. Experts predict that revenues will Spike by 45% in the Next Three Years.

The number of global IoT connections grew by 8% in 2021 to 12.2 billion active endpoints, representing significantly lower growth than in previous years. Even as the global semiconductor shortage has slowed down the market supply and growth from the pre-pandemic levels, the global demand for smart solutions from industrial to security use cases is still rising.

According to a Statista survey last year, global IoT revenues surged by 27% year-over-year to $17.3bn worldwide. Although growth decelerated in 2022, revenues are still up by $2.3bn or 13.3%. However, Statista expects IoT revenues to spike by another 45% to $28.3bn by 2025.

Smart home technologies remain the largest revenue stream of the IoT market, with $19bn in revenue in 2022, 13% more than last year. This segment of the IoT market is forecast to see a 45% growth in the next three years, with revenues rising to $27.7bn worldwide.

The other segment of the IoT market, finance technologies have seen a slight revenue drop to $570 million in 2022, down from $580 million a year ago. By 2025, this figure is expected to increase to $630 million. The US is the Leading Market, But China Sees Higher Revenue Growth.

With revenues of more than $4.7bn in 2022, the United States is the IoT market leader. By 2025, the US market is set to reach a $6.3bn value, growing by a CAGR of around 8% per year. At the same time, China, the world's second-largest IoT market and the leading manufacturer of IoT devices, is expected to see revenues of $4.5bn this year, 18% more than a year ago.

Although both countries will see revenue growth slowing down in the following years, the Chinese market will still grow faster, with an average CAGR of 15% by 2025. As per the report, China is forecast to become the world's leading IoT market in the next three years, with revenues growing to $6.6bn.

Despite a booming demand for IoT solutions and positive sentiment in the IoT community as well as in most IoT end markets, IoT Analytics expects the chip shortage’s impact on the number of connected IoT devices to last well beyond 2023.

Dr. Deepak Kumar Sahu, President & CEO, VARINDIA