Global Internet of Things (IoT) in Banking Market Size, Share & Industry Trends Analysis Report By Offering (Solution and Services), By Deployment Model, By Enterprise Size (Large Enterprises and SMEs), By Application, By Regional Outlook and Forecast, 20

Global Internet of Things (IoT) in Banking Market Size, Share & Industry Trends Analysis Report By Offering (Solution and Services), By Deployment Model, By Enterprise Size (Large Enterprises and SMEs), By Application, By Regional Outlook and Forecast, 2022 – 2028

The Global Internet of Things (IoT) in Banking Market size is expected to reach $91.8 billion by 2028, rising at a market growth of 34.3% CAGR during the forecast period.

The term "Internet of Things" (IoT) refers to a network of actual physical items, also known as "nodes," that are equipped with software, sensors, and other technologies in order to communicate and exchange data with other systems and devices over the internet. IoT devices are frequently used by banking and financial institutions to offer their clients special services like contactless payments as well as gamified rewards.

Customers who do banking nowadays are recognized to be less dependable, pickier, and more accustomed to the whole range of digital banking services, from self-service to automated wealth advising. Furthermore, the banks are seriously threatened by the cost, consumer expectations, conventional competitors, and fintech factors together.

In order to compete with increased expectations, the focus has shifted to providing new and enhanced experiences as well as greater value for both consumers and staff. IoT is one of the technologies that banks are utilizing. Banks are investigating how IoT may help create goods that especially correspond to client requests in the midst of a big digital upheaval. Owing to an increased emphasis on customer centricity, a few of the biggest banks in the world are restructuring their front offices.

Giving consumers with debit and credit cards convenient access to services is one of the key advantages of IoT in the banking sector. Banks can examine how frequently ATM kiosks are used in particular locations and adjust the location of ATM installations accordingly. Banks can leverage IoT data to provide kiosks and improve client availability in addition to ATMs to provide on-demand services directly to customers. Financial institutions can discover their customers' business demands, their value chain, and obtain customer insights by using the customer data made available by IoT. Such client data can help banks in offering value-added services, financial support, and tailored goods to create a favorable circumstance for both sides.

COVID-19 Impact Analysis

The vast majority of bank staff worldwide are being urged to work remotely in order to slow the development of COVID-19. The COVID-19 initiative is also challenging customers' ingrained banking practices. The World Health Organization (WHO) has suggested that consumers adopt contactless payment and limit their handling of banknotes. Due to the increased global adoption of the "work from home" lifestyle, the Internet of Things (IoT) in the financial sector is predicted to expand quickly after the pandemic. The market for IoT in banking has seen substantial growth in recent years, but due to the COVID-19 epidemic, banks were compelled to quickly transition their operations to digital platforms. These elements helped IoT in banking expand.

Market Growth Factor

Increase in Applications for IoT Solutions in Banking Sector

Due to their many high-throughput and productivity-boosting uses, networked technologies like edge computing and IoT devices are gaining significant popularity on the global market. Additionally, a broad variety of vendors are producing IoT devices, which is boosting the penetration of linked devices in the contemporary business environment. Radiofrequency identification (RFID), low-energy Bluetooth, near-field communication (NFC), low-energy wireless, LTE-A, low-energy radio protocols, and Wi-Fi-direct are a few examples of common protocols and technologies used by IoT systems.

Enhancements in Communication Networks Among Banks

IoT applications are getting simpler to design and deploy as governments continue to attempt and upgrade the current cellular networking infrastructure of their nations in order to enhance communication speed and comprehensive connectivity for their inhabitants and the improvement of services. Newer enterprises are encouraged to engage in IoT applications thanks to this expansion in many developing countries. Modern communication technologies are also enabling the employment of authentic monitoring & communication systems, enabling banks and financial institutions to provide real-time payment settlement systems. These elements indicate considerable potential for IoT in contemporary financial applications in the future.

Market Restraining Factor

Rise in The Cases of Data and Security Breaches

The biggest barrier to IoT adoption is the delicate subject of data protection and security, which is addressed by the majority of banking sector. The banking industry is closely regulated by strict compliance to standards and governance since any data breach or security breach might be fatal. Businesses are feeding increasingly more user and provider data into sophisticated, AI-powered algorithms, creating novel personal data without being aware of how it will affect customers and employees, which subsequently fuels the escalating privacy concerns.

Offering Outlook

Based on offering, the internet of things (IoT) in banking market is bifurcated into Solution and Services. Services segment procured a significant revenue share in the internet of things (IoT) in banking market in 2021. In order to make educated decisions, banks must transform the IoT-derived data into valuable information. Through the data acquired, the banks may grow their market share thereby providing their clients with improved services.

Deployment Model Outlook

On the basis of deployment type, the internet of things (IoT) in banking market is classified into On-premise and Cloud. On-premise segment recorded the largest revenue share in the internet of things (IoT) in banking market in 2021. On-premise systems' more specialized and secure applications are to responsible for this. Along with that, these solutions are considered to be safer since there is less chance of data breaches and hence are more reliant. Due to this, the growth of the segment would augment in the coming years.

Enterprise Size Outlook

Based on enterprise size, the internet of things (IoT) in banking market is fragmented into Large Enterprises and SMEs. The SMEs segment recorded a significant revenue share in the Internet of Things (IoT) in banking market in 2021. The expansion of IoT in retail banking is projected to be aided by the increasing number of technology expenditures made by small-scale banks to compensate for their smaller fleet of staff. In addition, various benefits of the IoT solutions in banking sector is attracting more SMEs to deploy them and hence, boosting the growth of the segment.

Application Outlook

By application, the internet of things (IoT) in banking market is divided into Smart ATMs, Customer Management and Support, Security and Authentication and Others. Smart ATMs segment procured the highest revenue share in the Internet of Things (IoT) in banking market in 2021. Automated teller machines (ATMs) with additional features might be referred to as smart ATMs. Consumers can now do a variety of services that once required an appointment in a local branch, like creating an account, depositing checks & cash, and transfer funds, using smart ATMs.

Regional Outlook

Region-wise, the internet of things (IoT) in banking market is analyzed across North America, Europe, Asia Pacific and LAMEA. North America emerged as the leading region in the Internet of Things (IoT) in banking market with the largest revenue share in 2021. The high investment in technological solutions is what is anticipated to fuel the growth of the IoT in banking market over the forecast period. In addition, the expansion of the banking sector in various nations of the region along with the rapid technological advancements would augment the growth of the regional internet of things (IoT) in banking market in the coming years.

The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Microsoft Corporation, IBM Corporation, SAP SE, Oracle Corporation, Cisco Systems, Inc., Accenture PLC, Infosys Limited, Capgemini SE, Software AG and Vodafone Group Plc.

Strategies Deployed in Internet of Things (IoT) in Banking Market

May-2022: Capgemini completed the acquisition of Chappuis Halder & Cie, a global strategy and management consulting firm specializing in the financial services industry. This acquisition aimed to contribute to the company's in-depth expertise in Financial Services, a major condition to be capable to advise and assist its customers in the industry with their business transformation.

Apr-2022: Infosys completed the acquisition of Oddity, a Germany-based digital marketing company. This acquisition reinforces Infosys’ branding, creative, and experience design abilities. Additionally, Oddity brings to Infosys a complete service offering including digital-first brand communication and management, in-house production, such as virtual and augmented reality, experience strategy, and e-commerce services along with its metaverse-ready set-up within Europe.

Mar-2022: Software AG acquired StreamSets, a developer of digital business and application integration software. This acquisition aimed to further differentiate the hybrid integration offering for clients and fully complement Software AG's strategy to provide sustainable, profitable growth.

Mar-2022: SAP SE acquired Taulia, a leading provider of working capital management solutions. This acquisition aimed to expand SAP’s business network and strengthen SAP’s solutions for the CFO office. Taulia’s solutions would be tightly integrated into SAP software as well as continue to be available standalone. In addition, Taulia would operate as an independent company with its own brand within the SAP Group.

Jun-2021: Microsoft took over ReFirm Labs, the developer of the open-source Binwalk firmware security-analysis product. This acquisition aimed to bring expertise in firmware security and the Centrifuge firmware platform to boost their ability to evaluate and assist in protecting firmware backed by the power and speed of the cloud.

Apr-2021: SAP SE came into a partnership with Dediq, an entrepreneurial investor focused on information technology and digital businesses. This partnership aimed to boost the support for the digital transformation of clients in the Financial Services Industry and offer advanced cloud solutions at a rapid pace that would assist them to transform their business holistically.

Oct-2020: Infosys took over Blue Acorn iCi, an Adobe Platinum partner in the US. This acquisition aimed to strengthen Infosys’ end-to-end customer experience portfolio and show its continued commitment to assisting customers to navigate their digital transformation journey.

Sep-2020: Accenture acquired SALT Solutions, a technology consultancy headquartered in Würzburg, Germany. This acquisition aimed to expand Accenture Industry X’s digital manufacturing, operations, and supply chain business in Germany.

Aug-2020: Cisco took over ThousandEyes, a network intelligence company. This acquisition aimed to enable customers to have an end-to-end view into the digital delivery of applications as well as services over the internet.

Jun-2020: Microsoft acquired CyberX, a software company. This acquisition aimed to offer more value to the customers as CyberX would be integrated with Microsoft's broad portfolio of IoT security offerings in threat protection, which includes users, applications, endpoints, data, and more.

Oct-2019: Accenture took over Nytec, award-winning product innovation and engineering company. Through this acquisition, Nytec would expand Accenture Industry X.0’s ability to advance connected, Internet-of-Things (IoT)-enabled experiences for customers from idea to realization, which is an area in which both Accenture and Nytec have already succeeded.

Jun-2019: Cisco acquired Sentryo, makers of an industrial Internet of Things platform. The acquisition aimed to integrate Cisco's intent-based network architecture with Sentryo's offering, to enable the customer to gain IoT benefits, handle networks and devices at scale, allow collaboration across IT and OT departments, and better safeguard their assets and data.

Scope of the Study

Market Segments covered in the Report:

By Offering

• Solution
• Services

By Deployment Model

• On-premise
• Cloud

By Enterprise Size

• Large Enterprises
• SMEs

By Application

• Smart ATMs
• Customer Management & Support
• Security & Authentication
• Others

By Geography

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• UK
• France
• Russia
• Spain
• Italy
• Rest of Europe
• Asia Pacific
• China
• Japan
• India
• South Korea
• Singapore
• Malaysia
• Rest of Asia Pacific
• LAMEA
• Brazil
• Argentina
• UAE
• Saudi Arabia
• South Africa
• Nigeria
• Rest of LAMEA

Companies Profiled

• Microsoft Corporation
• IBM Corporation
• SAP SE
• Oracle Corporation
• Cisco Systems, Inc.
• Accenture PLC
• Infosys Limited
• Capgemini SE
• Software AG
• Vodafone Group Plc

Unique Offerings from KBV Research

• Exhaustive coverage
• Highest number of market tables and figures
• Subscription based model available
• Guaranteed best price
• Assured post sales research support with 10% customization free