Internet of Things (IoT) Platform Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Internet of Things (IoT) Platform Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Internet of Things (IoT) platform market is expected to register a CAGR of 15.2% over the forecast period. IoT platforms consist of development boards that are designed particularly for IoT applications. These platforms play an important role in helping various designers of IoT devices to connect their projects to the internet. IoT platform provides connectivity to various IoT-compatible hardware devices such as laptops, mobiles, wearable fitness devices, industrial control systems, automotive telematics units, etc.

Key Highlights

• IoT platforms, also called application enablement platforms or AEPs, are defined as a form of middleware that lies between the layers of IoT devices and gateways and applications, which it enables to build. A typical IoT platform consists of essential components that include a processing unit, a memory unit, and a connectivity module. They allow easy integration of existing commercial sensors and actuators.
• IoT platforms are the main component of IoT architecture that connects the virtual world and the real world and enable communication between objects while managing data flows. They also support application development and provide basic analytics for connected IoT devices.
• IoT platforms are designed specifically for IoT applications and consist of various development boards that play a crucial role in helping multiple designers of IoT-compatible hardware devices such as mobiles, laptops, industrial control systems (ICS), wearable fitness devices, and automotive telematics units to connect their project to the internet. Consistent collaborations are broadening market positions as consolidations of platforms has become the trend, with an emphasis on increasing functionality whilst minimizing the number of applications required to access them. For instance, in January 2022, the IoT Carrier 1NCE and Amazon Web Services (AWS) collaborated to boost the expansion of 1NCEs IoT platform, dispersing its cloud-native IoT offering closer to customers worldwide. Its unique software offering is built on AWS to enable quick integration of cellular IoT connectivity into solutions developed by IoT developers with plug-and-play functionalities.
• The market has been witnessing an increasing number of connected devices in an IoT ecosystem. Because of this, the need for transferring, downloading, and uploading large volumes of data, mostly in enterprise data centers, has become essential. These centers are deploying IoT platforms to enhance their capabilities in terms of expertise, speed, and agility to manage IoT data resources. As the amount of data grows owing to an increasing number of connected IoT devices, big data is another field that is expected to complement the studied market.
• Factors such as increasing demand for data storage over the cloud and growing demand for data analytics are expected to boost the market for enterprise IoT platforms over the forecast period. Increased data traffic has been the main underlying factor responsible for the demand for cloud data storage. With an increase in IoT adoption across the world, connectivity among devices is also growing. Hence, there is an accumulation of vast piles of data.
• The increased efforts to minimize contact amid the pandemic drive healthcare organizations to deploy IoT solutions that help preserve PPE. Five US hospitals have jumped to test Medtronic’s first-of-its-kind ventilator that can be monitored and adjusted remotely. Medtronics’ ventilator, which was created in response to COVID-19, is helping to reduce hospital use of PPE by allowing practitioners to remotely monitor and adjust the ventilator via a laptop computer from anywhere. According to Microsoft’s IoT Signals report from October 2021, COVID-19 resulted in unexpected benefits for organizations and their IoT strategies, with nearly 44% of all surveyed industry professionals expected to accelerate their IoT investments as a result of the COVID-19 pandemic compared to 31% in 2020.

Key Market TrendsMedical is Expected to Witness Significant Growth

• According to the BICS SA/NV, connected medical devices are expected to represent 40% of all IoT technology, transforming the industry by building an enhanced patient experience with easy-to-deploy monitoring and reporting proficiencies.
• A worldwide shortage of healthcare workers is a significant concern for the industry. In the United States alone, the shortage is projected at 124,000 physicians by 2025. Although it is lower than the anticipated shortages in Asia and Africa, it still signifies a crucial deficiency. This factor indicates a need for upgraded medical facilities and rapid growth in the healthcare sector, which may further drive the market. Advanced and connected medical equipment are more likely to experience demand.
• Lifestyle disease management applications involving IoT are still at a nascent stage and are costly. Ordinary consumers generally do not experience these services. This creates an opportunity for vendors serving such consumer segments.
• For instance, in January 2022, Olea Sensor Networks announced the OSN Digital Health Platform at CES 2022, based on Olea's next-gen system for contactless and remote vital sign monitoring of OleaSense. The digital health development platform for IoT product development and advanced research processes real-time data using Olea's AI signal processing and peak detection algorithms, extracting vital statistics such as cardiac, respiration, and heart-rate variability.
• To promote innovations in IoT applications, enabling technologies is an essential need for the healthcare sector. The implementation of IoT-based healthcare systems is based on big data collected from hospitaals, rehabilitation centers, communities, and homes. The gathered data updates in real-time, and the data transactions may happen simultaneously among the connected things. Information can be stored on the servers.

North America Expected to Witness Significant Share

• According to GSMA Intelligence, it is anticipated that there will be 5.4 billion Internet of Things (IoT) connections overall in North America by 2025. In North America, there was 2.8 billion Internet of Things connections in 2019. In order to promote operational efficiency and boost competitiveness, IoT adoption is driven by organizations; however, in the area, IoT adoption is driven by the desire to save costs. An Ovum survey found that American businesses frequently used IoT to cut costs.
• IoT is a rapidly growing industry in the United States. Modern manufacturing facilities in the US rely on new technologies and innovations for producing higher quality products at an enhanced rate with lower costs. According to Consumer Technology Association, in 2021, the connected device shipments will be 791 million units in the United States from 621 million units in 2016.
• IoT technologies are overcoming the labor shortage in the manufacturing sector, especially in developed countries, like the United States. Due to this, the Federal Government and the private sector in the United States are investing in Industry 4.0 IoT technologies to increase the American industrial base, which China and other low-labor cost countries have taken over. Therefore, IoT technologies may mainly drive the adoption of smart factory solutions across the region.
• To meet the dynamic demands of the customers and enhance their product portfolio, the companies are incorporating new features in existing products and developing new products. For instance, in November 2021, Ayla Networks, a player in the Internet of Things (IoT) platforms that speed up digital transformation for consumer brands and Internet service providers (ISPs), announced that Canadian Tire, a member of the Canadian Tire Corporation group of companies with over 500 stores across Canada, selected its turnkey IoT firmware to power a new, globally available line of smart home products.
• Furthermore, in February 2022, New internet of things (IoT) solutions for smart cities and smart buildings was introduced by Rogers Business, the part of Rogers Communications that focuses on businesses. These new solutions from diverse Rogers partners increase response and efficiency in water, parking, traffic, transit, and fleet management, expanding Rogers' current IoT portfolio. Advanced technology in air quality, security, and digital signage systems have also been included in new smart building solutions.

Competitive Landscape

The Internet of Things (IoT) Platform Market is fragmented and highly competitive, owing to the presence of many players in the market operating in the domestic as well as the international market. The market appears to be fragmented due to the presence of many technological giants in the market. Various strategies are being adopted by the major players in the market, such as product innovation and mergers and acquisitions. Some of the major players in the market are IBM Corporation, Microsoft Corporation, and SAP, among others.

• March 2022 - In order to strengthen its global Low Power Wide Area (LPWA) connectivity offering through its Smart Connectivity service, Sierra Wireless, an MVNO and provider of IoT solutions, announced an expanded agreement with T-Mobile, the market leader in 5G and owner of the largest and fastest nationwide 5G network in the United States. The collaboration also makes T-multi-band Mobile's 5G connectivity available to customers in the US, along with 4G LTE ultra-high data offers for fixed applications like commercial security/video surveillance, telehealth services, digital vending, signage, and others that demand high throughput and low latency.
• November 2021 - The Energy & Sustainability Manager solution from L&T Technology Services Ltd (LTTS) will be made available on Microsoft Azure in order to transform and build sustainable factories of the future digitally. The most recent deal is a part of LTTS' growing collaboration with Microsoft to make its advanced technology manufacturing solution suite available to businesses all over the world via Azure's enterprise cloud-first, mobile-first architecture.

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