The proliferation of interconnected networks and the explosion of data volumes across smart homes and smart grids in different industries has been in large part due to the mushrooming of devices, particularly mobile devices. Data integration from various cyber, social, and physical resources within the IOT market enables the development of apps and services that can incorporate situational decision making mechanisms and create enhanced services along with smarter applications. Fog computing is another new technology similar to edge computing in the IOT market. Fog computing is quite likely to support the IOT market and can exist in data centers, the cloud, or even edge devices such as routers, gateways, sensors, etc.
Edge computing is a relatively new concept in the IOT market compared to cloud analytics. In the case of edge computing, data is processed near the source instead of in the cloud. Edge analytics is currently at a developmental stage but can still be successfully implemented in large IOT deployments because of the handling of large data volumes. The factors benefiting widespread edge computing adoption are better data security, latency reduction, and lesser connectivity issues. Many vendors in the IOT market are launching edge analytics solutions to attract more clients and expand their product portfolio. In April 2017, Microsoft Corp. launched the IoT Central service to manage the enterprise IoT ecosystem. IoT Central allows enterprises to launch new products and is a part of SaaS.
Companies would be advised to focus on the IoT Platform and IoT Analytics segments in the global IOT market. The IoT Analytics component is predicted to grow to nearly 5x its size in 2017 and be a market opportunity exceeding US$ 50 Bn in 2025. The CAGR for the IoT Platform is considerably higher at 25.6% during 2017-2025, making it critical in the long term.
Smart cities are the buzzword of the 21st century and are popular due to digital technologies becoming essential in both developed and emerging economies. Smart cities comprise electronics equipment effectively deployed in areas such as smart traffic, smart homes, smart utilities and security. A recent trend has been the need for IoT devices in home gateways, smart meters, smart sensors, smart appliances, and smart plugs, primarily because of governmental encouragement. In addition, people are expected to demand smart technology in all of their gadgets such as connected cars, wearables, smartphones, and smart TVs. The U.S, Canadian, and Indian governments have taken the lead in the concept of smart cities and are launching projects for indigenous communities, regional governments, and municipalities. The national governments in these nations are inviting participation from local authorities, businesses, and civil society to implement clean, digitally connected technology consisting of advanced energy systems, smarter roads, and greener buildings.
It isn’t surprising that North America is the largest region in the global IOT market as the continent is often at the forefront of technological innovation and acceptance. The U.S. market is already twice the size of its northern neighbor and is likely to remain so for the foreseeable future. Within North America, IoT Analytics and IoT Security are poised to push past US$ 17 Bn and US$ 23 Bn respectively. However, key stakeholders in the North America IOT market may want to consider the fact that both IoT Platform and IoT Data Transport record a higher CAGR for the period.