A new market report revealed that the global Internet of Things market is expected to maintain a steady growth, with a compound annual growth rate (CAGR) of more than 19 percent between 2016 and 2023, according to a press release.
The report, published by Credence Research, Inc., explains that IoT “has become a mainstream technology in the IT industry, utilized to connect all the smart objects over an integrated network through internet,” with the health care, automotive and transportation sectors working to boost market growth around the world. Growing digitization and increasing government initiatives to deploy IoT technologies is also increasing its value.
However, data privacy and security issues — as well as high costs — have also hindered that growth to a certain extent. While Microsoft, IBM and Google are the current dominant players in the global Internet of things market, they make up less than 40 percent market share of the overall market revenue. And growing implementation of cloud-based IoT solutions and platforms will only increase competition among them.
In addition, these key players — along with Cisco Systems, Hewlett-Packard, Accenture PLC, Oracle, SAP S.E., General Electric (GE) and Telefonica S.A. — will concentrate on entering strategic partnerships to develop industry-specific IoT platforms and solutions. They will also continue acquiring regional players in order to break into untapped market and increase their customer base.
Although North America has been the largest regional IoT market to date, with more than 30 percent of the market share in 2015, Asia-Pacific is projected to surpass North America in terms of revenue by 2023.