Unlike other technologies that are based on one chief architecture, or are defined by one drive type or a method of connectivity, IoT is an assembly of a number of distinct devices and technologies at its very core. The technology stack of IoT has many layers, including applications, hardware, connectivity, analytics, and security. The key interactions between each of these layers as well as other core systems in a business are orchestrated and facilitated by IoT platforms. This suite of software components that assists in the seamless connection and information exchange between the disparate elements of an IoT system is thus one of the most crucial components of any IoT system.
The rising global adoption of IoT is indirectly also upping the growth prospects of the global IoT platform market. In a recent market intelligence report, Transparency Market research states that the global IoT platform market will expand at a massive 21.0% CAGR from 2017 to 2025, ushering the valuation of the of US$1.78 bn in 2016 to an opportunity of US$10.06 bn by 2024.
Which way of deploying IoT platforms is most preferred?
Of the two key methods of deploying IoT platforms – on-premise and cloud – the on-premise segment is presently the most profitable segment owing to higher demand as compared to the cloud segment. The on-premise segment held the dominant share in terms of revenue in 2017 and continues to be the most preferred way of deploying IoT platforms. It is estimated to continue to account for a significant share of the market in the near future as well.
Security concerns associated with cloud-based deployment of IoY platform continue to dampen consumer interest in cloud despite it being more flexible and cost-effective. However, the cloud segment is expected to benefit in the near future due to technological advancements and conscious efforts of cloud service providers to make their systems more foolproof to data threats. The cloud sector is also expected to profit from the massive cost reductions in IoT sensors over the years and rising consumer confidence in cloud technologies.
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Geographically, how are opportunities distributed in the global IoT platform market?
From a geographical perspective, the North America market for IoT platforms is presently the leading contributor of revenue to the global market and is also envisioned to witness a promising upward trajectory in the near future. The strong position of the North America market is courtesy the increased adoption of advanced technologies and the presence of some of the leading IoT solution providers in the region. However, the market in Europe is projected to outperform the North America market in terms of rate of growth and revenue, surpassing the North America market to be the leading regional market. This can be attributed to encouraging government initiatives and the rising trend of automation and data communication in the industrial sector in the region.
Asia Pacific is a promising regional market and is expected to witness rapid growth in the next few years, with developed and emerging economies such as Australia, Japan, China, and India emerging as the most influential contributors to the overall development of the regional market. With a promising rate of adoption of IoT solutions across industries such as oil and gas, banking, and the government sector, the market for IoT platforms in Middle East and Africa market is also expected to register a healthy growth. In the MEA market, South Africa and key oil producers within the Gulf Co-operation Council are projected to remain the key revenue generators.