Internet of Things (IoT) - Thematic Intelligence

Internet of Things (IoT) - Thematic Intelligence


Summary

The Internet of Things, or IoT, describes the use of connected sensors and actuators to control and monitor the environment, the things that move within it, and the people that act within it. Use cases include the automated home, the connected car, wearable technology, the automated home, smart cities, and predictive maintenance for industrial machinery.

We forecast that the global IoT market will reach $1.7 trillion in revenue by 2027. Enterprise IoT will account for 73% of market revenue by 2027, up from 70% in 2022, while the consumer segment will make up 27% in 2027, down from 30% in 2022. In a post-COVID-19 world, the accelerating adoption of artificial intelligence (AI) and further connectivity improvements will drive solid growth across all IoT markets.

Key Highlights

We forecast that the global IoT market will reach $1.7 trillion in revenue by 2027. Enterprise IoT will account for 73% of market revenue by 2027, up from 70% in 2022, while the consumer segment will make up 27% in 2027, down from 30% in 2022. In a post-COVID-19 world, the accelerating adoption of artificial intelligence (AI) and further connectivity improvements will drive solid growth across all IoT markets.

IoT is a relatively mature market, yet significant innovation is emerging as AI is embedded into the operations and services provided by IoT deployments. Artificial Intelligence of Things (AIoT) involves embedding AI into IoT devices, software, and services. Combining data collected by connected sensors and actuators with AI supports automated operations and predictive maintenance. Furthermore, improvements in the physical layer and edge computing support many use cases of AI at the edge, such as smart cameras, smart traffic lights, and smart drones.

The combination of a fragmented security standards landscape and the weak security of many IoT devices could hold back further IoT adoption. Additionally, IoT deployments can become a security risk. Despite ongoing industry efforts, there are no globally accepted standards for IoT security. IoT sensors and cameras typically have limited computing capacity, meaning they cannot run effective security software. This leaves them and the networks to which they are connected vulnerable to cyberattacks.

Scope
  • This report provides an overview of the Internet of Things theme.
  • It identifies the key trends shaping the theme over the next 12 to 24 months, split into three categories: technology trends, macroeconomic trends, and regulatory trends.
  • It includes a comprehensive industry analysis, including market size and growth forecasts for the global Internet of Things market, alongside analysis of trends in GlobalData's proprietary signals data, including M&As, venture financing, patents, company filings, and hiring.
  • The detailed value chain is split into five layers: physical, connectivity, data, apps, and services.
  • Also included are profiles of leading players in the IoT theme, including Alibaba, Amazon, Arm, Baidu, Cisco, Ericsson, Huawei, Microsoft, Nokia and Synaptics.
Reasons to Buy
  • The Internet of Things, or IoT, is an umbrella term referring to the ability of everyday physical objects (such as fridges, watches, or cars) to connect with other devices over the internet, enabling them to send and receive data. It describes using connected sensors and actuators to control and monitor the environment, the things that move within it, and the people that act within it. By collecting and analyzing the data they transmit, consumers and businesses can monitor, maintain, and upgrade these “things” much more efficiently. Using IoT, many aspects of our lives, such as securing our homes or predicting when our car will need its next service, can be automated, saving time, energy, and money.


Executive Summary
Players
Technology Briefing
The five big IoT market segments
Wearable tech
Automated home
Connected car
Industrial Internet
Smart cities
The digital ecosystem of IoT
AI
Cloud computing
Cybersecurity
Connectivity
Trends
Technology trends
Macroeconomic trends
Regulatory trends
Industry Analysis
Business benefits of IoT
Evolving IoT business models
The three prerequisites for pervasive IoT
Prerequisite 1: The world needs to agree on a global IoT communications standard
Prerequisite 2: The IoT needs to be more secure
Prerequisite 3: The IoT must incorporate real-time intelligence.
Market size and growth forecasts
Enterprise IoT market size and growth forecasts
Consumer IoT market size and growth forecasts
Timeline
Signals
M&A trends
Venture financing trends
Patent trends
Company filing trends
Hiring trends
Value Chain
Physical layer
Connected things
Cameras and lenses
Sensors and microcontrollers
Microprocessors
Connectivity layer
Edge infrastructure
Cloud infrastructure
Networking equipment
Telecom networks
Data layer
Data integration
Data aggregation
Data processing
Data storage
Data validation
Data governance and security
App layer
Apps
Platforms
Services layer
Integration services
Consulting services
Companies
Public companies
Private companies
Sector Scorecards
Consumer electronics sector scorecard
Who’s who
Thematic screen
Valuation screen
Risk screen
Semiconductor sector scorecard
Who’s who
Thematic screen
Valuation screen
Risk screen
Industrial automation sector scorecard
Who’s who
Thematic screen
Valuation screen
Risk screen
Application software sector scorecard
Who’s who
Thematic screen
Valuation screen
Risk screen
Glossary
Further Reading
GlobalData reports
Our Thematic Research Methodology
About GlobalData
Contact Us
List of Tables
Table 1: Technology trends
Table 2: Macroeconomic trends
Table 3: Regulatory trends
Table 4: Prerequisite 1: The world needs to agree on a global IoT communications standard
Table 5: Key M&A transactions associated with the IoT theme since January 2022
Table 6: Key venture financing deals associated with the IoT theme since January 2022
Table 7: Public companies
Table 8: Private companies
Table 9: Glossary
Table 10: GlobalData reports
List of Figures
Figure 1: Who are the leading players in the IoT theme, and where do they sit in the value chain?
Figure 2: There are five major IoT markets, each defined by its own characteristics
Figure 3: Four key technologies intersect with IoT
Figure 4: IoT trends
Figure 5: Evolving IoT business models: IoT is entering the third phase of its evolution
Figure 6: Standardization is the key to pervasive IoT
Figure 7: Edge computing reduces latency by moving cloud processing closer to the data source
Figure 8: An intelligent predictive maintenance system can work proactively to detect issues in the car.
Figure 9: The global IoT market will generate a staggering $1,677 billion in revenue by 2027
Figure 10: The enterprise IoT market will be worth $1,226 billion by 2027
Figure 11: Asia Pacific and North America are the leading enterprise IoT markets
Figure 12: The global market for Industrial Internet will reach $756 billion by 2027
Figure 13: The global market for smart cities will hit $470 billion by 2027
Figure 14: The global market for consumer IoT will reach $452 billion by 2027
Figure 15: The IoT story
Figure 16: IoT M&A volume has been growing over the last 10 years, with a notable decrease after 2021
Figure 17: IoT financing volume increased between 2010 and 2019
Figure 18: Samsung, Huawei, and Qualcomm lead the way in IoT-related patents.
Figure 19: IoT-related patent publications have decelerated since 2021.
Figure 20: IoT mentions were steadily growing until 2021, with a notable decrease after that.
Figure 21: IoT-related hiring peaked in March 2022
Figure 22: The IoT value chain
Figure 23: The IoT value chain - Physical layer: leaders and challengers
Figure 24: The IoT value chain - Connectivity layer: leaders and challengers
Figure 25: The IoT value chain - Data layer: leaders and challengers
Figure 26: The IoT value chain - App layer: leaders and challengers
Figure 27: The IoT value chain - Services layer: leaders and challengers
Figure 28: Who does what in the consumer electronics space?
Figure 29: Thematic screen - Consumer electronics sector scorecard
Figure 30: Valuation screen - Consumer electronics sector scorecard
Figure 31: Risk screen - Consumer electronics sector scorecard
Figure 32: Who does what in the semiconductor space?
Figure 33: Thematic screen - Semiconductor sector scorecard
Figure 34: Valuation screen - Semiconductor sector scorecard
Figure 35: Risk screen - Semiconductor sector scorecard
Figure 36: Who does what in the industrial automation space?
Figure 37: Thematic screen - Industrial automation sector scorecard
Figure 38: Valuation screen - Industrial automation sector scorecard
Figure 39: Risk screen - Industrial automation sector scorecard
Figure 40: Who does what in the application software space?
Figure 41: Thematic screen - Application software sector scorecard
Figure 42: Valuation screen - Application software sector scorecard
Figure 43: Risk screen - Application software sector scorecard
Figure 44: Our five-step approach for generating a sector scorecard

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