Statista reports that the Internet of Things (IoT) market is expected to see a significant surge in revenue, reaching a staggering $1,387 billion worldwide this year. It predicts that the market will continue grow, anticipating an annual growth rate of 12.57% (CAGR 2024-2028).
If this growth rate holds firm, the resulting market volume would be $2,227 billion by 2028. So what is driving this extraordinary growth?
What are the market trends that are driving IoT growth?
There are a number of push and pull factors that are driving the growth of the IoT and, especially, the IIoT.
Interest of big industry players
When the big technology players start introducing IoT solutions, it signals the maturation of the market. Trust in these brands and their established solutions encourage people who might otherwise not have considered an IoT strategy to begin thinking about investing more seriously in IoT.
Manufacturing and the industrial IoT
The Industrial Internet of Things (IIoT) has experienced fast growth rates. Manufacturing currently accounts for the largest single sector as a consumer of the Internet of Things. It accounted for 26 percent of the market in 2022. The needs to optimise manufacturing operations, reduce resource consumption, track goods and materials around the factory and supply chain and develop predictive maintenance solutions are driving growth in the sector.
The drive towards smart vehicles
Among various segments, Automotive IoT is projected to dominate the market, with a substantial market volume of $494bn by 2028. The need to track, monitor and charge electric vehicles and integrate new payment mechanisms and renewable sources into the grid network are spurring a huge growth in IoT deployments.
Environmental regulation & energy efficiency goals
The idea that “what gets measured gets managed” is driving a huge growth in IoT metering and sensor solutions to help track and manage the consumption of energy. This is true in the home, in offices and business premises, in consumer locations such as cinemas and shopping centres and in public sector buildings, such as government offices and hospitals. The energy crisis has added a convincing financial dimension to the need to reduce energy use – making these IoT monitoring solutions the first step in a circular process to monitor, manage and reduce.
