Asia Pacific region to register “tremendous” growth in IoT market in near future: Report

The Asia Pacific (APAC) region is expected to showcase a tremendous growth in the market of the Internet of Things (IoT) in the near future, according to a newly released research report.

Research Nester, a well-known service provider for strategic market research and consulting with clients from over 120 countries, said in its report that the IoT market was driven by the presence of huge players of consumer electronics in Asia-Pacific region such as Philips, Samsung, among others, which would lead to the introduction of advanced and affordable consumer electronics in the near future.

The rapid urbanisation across the globe was changing the way of using devices and things present in the technological environment. The devices were embedded with sensors, chips, and others to enhance user experience. These devices and services were efficient to operate various tasks with less time consuming methods. The growing trend of Internet-enabled devices and the rising need of Net connectivity were some of the major factors which would propel the positive growth of the IoT market globally, added the report.

Technological advancements in semiconductors offered the advantage to develop lightweight and efficient devices which were much smarter than the conventional and heavy devices. Rapid advancements in manufacturing, electronics and IT sectors across the globe were gaining traction from consumers which in turn intensified the demand for the IoT. Increasing usage of the Internet along with rising penetration of smart phone users around the world was another reason behind the positive growth of this industry.

Market size and forecast

The global IoT market reached US $598.2 bln in 2015 and the market was expected to reach US $724.2 bln by 2023. Further, the market was projected to register a CAGR of 13.2 per cent during the forecast period 2016-2023 globally.

However, consumer electronics segment accounted the market share of 32 per cent in 2015 of overall IoT market. Rapid adoption of Web connectivity enabled appliances such as washing machines, microwaves and televisions, and ease of operating of appliances through remote operating facility were the prime features which were expected to uplift this market.

The report pointed out that the APAC market acquired 36 per cent of the global revenue share in 2015, on the other hand, North-America (especially United States) was expected to maintain its revenue share of 24.2 per cent during the forecast period – 2016-2023. Europe was expected to generate more revenue and would jump from 12.2 per cent in 2015 to 20.2 per cent by 2023.

 

Growth drivers and challenges

The IoT market was majorly driven on the back of rising investment by tech giants in the IoT industry. Several IT companies were collaborating and investing to establish innovative laboratories to increase product applications. These laboratories and increasing tech startups across the globe were focusing towards affordable and advanced smart devices with internet connectivity. These factors were expected to foster the growth of the IoT market during the forecast period, i.e. 2016-2023.

Rising demand for advanced consumer electronics in growing economies, increasing adoption of smart devices due to hike in personal disposable income and growing need of Internet enabled devices were some of the major factors which are swelling the demand for internet of things globally. Apart from this, rising industrialisation and advancement in healthcare industry raised the need of the IoT from consumers end, the report added.

 

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