Strong growth profile for IoT platform market: Technavio
The global Internet of Things platform market will grow at over 30 per cent a year for the next five years, according to an analysis by Technavio.
According to Sunil Kumar Singh, a lead analyst from Technavio specialising in research on embedded systems, “The global IoT platform market is growing at a significant rate. The growth stems from the growing demand for digital transformations from traditional industries who are looking to gain a competitive advantage in their respective markets.”
The global IoT platform market was valued at $US420 million in 2016 and is expected to grow at a CAGR of nearly 32 per cent by 2021, says the study.
“The increase in the number of interconnected smart devices such as PCs, laptops, personal digital assistants (PDAs), tablets, smartphones, and sensors integrated into everyday consumer devices and physical assets is driving the market growth. In addition, advances in technology have resulted in low-cost, compact, and energy-efficient sensors and communication devices.”
The report identified five key vendors:
- Alcatel-Lucent (Nokia)
- Amazon Web Services (AWS)
- Cisco Systems
- Microsoft Corporation
And the top three emerging trends driving the global IoT platform market, according to Technavio research analysts, are:
- Development of an open Wi-Fi network OpenWireless.org is a cyber-activist group seeking to improve Internet connectivity and access by encouraging sharing among users. The organisation has developed software that can convert the wireless router of a mobile device into a wireless access point. If people accept and adopt this idea, then a ubiquitous public wireless network can be created. “This untapped bandwidth can be utilised by using the sharing software developed by OpenWireless.org. The group plans to route the guest traffic over the anonymity software Tor or a VPN for enhanced privacy. It will use a protocol called EAP-TLS, which is the equivalent of HTTPS, to encrypt each user’s link,” according to Singh.
- Growing diversity in IoT standards Vendors across the IoT market have to work in tandem on an open-source platform to ensure interoperability among IoT devices, and also set some standards for all the devices. The AllSeen Alliance, founded in 2013, was created to develop a larger ecosystem of vendors and products. Leading enterprises including consumer electronics manufacturers, home appliances manufacturers, service providers, retailers, enterprise technology companies, innovative startups, and chipset manufacturers have joined hands to develop the framework AllJoyn.
- Industrial Internet revolution Industrial Internet of Things (IIoT) is a combination of big data analytics and IoT. It offers a number of opportunities for organisations across sectors such as agriculture, healthcare, manufacturing, mining, oil and gas, and transportation. Currently, these sectors account for 60 per cent of the global economy. At present, IIoT is in its early stages but is poised for tremendous growth. The increase in the number of sensors shipped has fueled the global IIoT market. Large companies and governments have taken industrial Internet initiatives such as Made in China Strategy 2025 and Internet Plus in China and Industry 4.0 in Germany to encourage digitalisation of industries.
The report sells for $US2500.