The global IoT sensors market is expected to garner US$ 27.4 Billion in 2022 against US$ 21.8 Billion in 2021.
The projected Y-o-Y growth rate for 2021-2022 is 25.7%. The convergence of technology such as AI, ML, and connectivity is escalating growth across all spheres. Rising deployment of 5G and increased electronic content in automotive, EVs, and AVs, and the expansion of IoT equipment in smart homes are the emerging trends of the global IoT sensors market.
Increasing demand for integration of Industrial IoT (IIoT) in sectors that demand sensor-based measurements for observations and decision support purposes to projected to drive the expansion of the IoT sensors market in the forecast period. Based on region, North America is expected to dominate the market in the forecast period. The U.S alone is anticipated to garner a revenue of US$ 33.8 Billion by 2032. The U.S is expected to emerge as the strongest player across the globe. This can be attributed to the presence of eminent players such as Honeywell. Besides, other cities like San Francisco pioneered smart parking systems that assist drivers to find parking among 8200 parking spots installed with sensors.
Further, Chicago has installed a various array of sensors to detect and respond to floods, or traffic. Moreover, New York, Chicago, and San Francisco are some of the cities in the U.S to embed sensor nodes into light poles for the urban environment, regulate air quality in congested areas, and institute predictive analytics. Owing to such factors, the market in North America is likely to flourish in the coming years.
With increasing Smart City initiatives, the development of field devices, robots, sensors, and the advent of Industry 4.0, the market is anticipated to have fortified its expansion. As per the latest report by Fact.MR, the industry exhibited a growth rate of 23.9% from 2015-to 2021. Unfolding modern applications and business models, along with inexpensive device costs, have played a salient role in driving the market for IoT sensors during the prior mentioned timespan. As a result, various connected equipment such as; connected cars, machines, consumer electronics, and meters, among others started flourishing in the market.
Industry 4.0 initiatives across regions such as; China, and Europe, are the key drivers of the IoT implementation, thus, benefitting the market in the forecast period. As per Accenture, 60% of the manufacturing organizations are already involved in IoT projects, and more than 30% are at a nascent stage. Also, the reduced cost of IoT sensors is one of the salient causes that are likely to fuel the market in the future.
With the increasing adoption of microelectromechanical systems (MEMS) technology and fast reduction in the sensor size, sensors are witnessing significant demand in automotive, consumer products, and healthcare. According to Fact.MR, the global IoT sensors market is anticipated to exhibit a CAGR of 20.3% during the forecast period from 2022 to 2032. Over the last 5 years, smaller sensors have been implemented in devices such as; drones, smartphones, robots, and wearables, thereby, bolstering the market size significantly.
Principal IoT Sensors Market Drivers
Automotive and Transportation Industry to Play Salient Role in Developing the Market
As per NASDAQ, by 2030, driverless cars are likely to fetch dominance in the market. Besides, DHL SmartTrucking is focusing to construct a fleet of 10,000 IoT-enabled trucks by 2028. Players such as; Volkswagen, Mercedes-Benz, Toyota, Google Inc., and Volvo are making aggressive investments to develop smart cars with fine specifics that provide safer and more comfortable driving experiences. IoT has introduced a massive revolution in the transportation and automotive sector. With real-time data access, preventative maintenance, and connected mobility, the IoT market is flourishing significantly.
With the emergence of smart cities, Car2Car connectivity and modern fleet management are likely to enter the market, thereby, offering significant opportunities to the IoT sensors. This has resulted in fast innovation and the adoption of smart sensor technology, increasing the demand for IoT sensors. The automotive sector across the globe is transforming into an autonomous phase with recent business collaborations and joint ventures among system integrators, chip makers, automotive giants, and others.
IoT has allowed various transportation companies to map profitable routes, enhance fuel usage, logistics enterprises to track and trace their products. IoT devices are used in traffic congestion control systems telematics systems within motor vehicles, reservation and booking systems used by security, surveillance systems, and transport operators.
Increasing Smart City Initiatives to Augment the Market Size
With increasing urbanization and population, various countries across the world are implementing the Smart City projects. Connected devices such as; smart lights, sensors, smart meters, and others, are assisting in enhancing functions and efficiency of infrastructure and other services. The increasing number of smart homes, smart infrastructures, smart manufacturing, and Industry 4.0 projects are likely to transform the business arrangement, thereby, bolstering the industry growth.
As per the White & Case LLP Report 2021, Saudi Arabia is in the process to construct four smart cities, the Red Sea Project, NEOM, Qiddiya, and Amaala. Resources reveal that the most significant development among all is NEOM, which is US$ 500 Billion megacities that would include a zero-carbon hyper-connected city.
Furthermore, there has been significant growth in the adoption of smart grids, smart air quality controllers, smart waste management, and smart grids. This is projected to play a significant role in driving the global IoT sensors market in the forecast period. Also, with rising acquisitions amongst players in the market, the industry is projected to grow significantly. For instance, in April 2022, Antin Infrastructure Partners announced that it had inked an agreement to acquire a majority stake in SNRG. SNRG is an owner-operator of fully integrated smart grid systems for industrial and residential customers. The acquisition was part of Anti’s NextGen strategy, which was disclosed in 2021.
Factors Inhibiting the Global IoT Sensors Market
Concerns Associated with Privacy of Data and Security to Limit the Market Growth
Despite the huge potential and benefits offered by IoT devices, there are severe concerns associated with data privacy. IoT-enabled devices and sensors generate a massive volume of data each second. As IoT connects various devices, it offers more opportunities for entry points for malware. The intervention of privacy may occur as a result of the growing dependency on connected devices, reflecting the vulnerability of connected equipment.
Various players in the industry are developing solutions. However, owing to the market’s ecosystem and complexities, 100% data security is not been offered. In April 2022, Trend Micro Incorporated announced the launch of Trend Micro One, a new unified cybersecurity management platform. The cloud-based solution collects more than 250 billion data signals across the users’ environment. It uses native sensors across a wide array of technology such as; Bit Discovery, Google Cloud, Slack, Tenable, and Rapid7 among others.
In December 2020, the U.S introduced cybersecurity regulations to protect all vulnerable devices from hackers. The IoT Cybersecurity Improvement Act 2020 is expected to provide security against undesirable security breaches by hackers. The market is likely to see limitations in the forecast period, however, with increasing favorable initiatives by the government and the launch of new software/products, the market is expected to witness positive results in the coming years.
Key Takeaways from the Market Study
- The global IoT sensors market to secure US$ 173.7 Billion by 2032
- The IoT sensors industry to exhibit a CAGR of 20.3% from 2022-to 2032
- The accelerometers segment to experience a 20.7% growth rate during the forecast period
- The consumer electronics segment to exhibit a CAGR of 21.4% from 2022-to 2032
- The U.K market to value US$ 10 Billion
- Market in India to expand at 30.3% CAGR from 2022-2032
- Market in the U.S to value US$ 33.8 Billion by 2032
- Growth rate of China is projected at 22.2% from 2022-to 2032
“Favorable initiatives by governments such as smart city projects, across the globe are supporting the growth of IoT-based equipment. Governments are seeking innovation in areas such as energy conservation, smart traffic management, security system improvements, and others. Such actions are likely to offer various remunerative opportunities to the market in the forecast period,” opines a senior analyst.
Key players in the global IoT sensors market are focusing on launching new products and performing various R&D programs. Eminent players in the market include STMicroelectronics N.V. (Switzerland), Robert Bosch GmbH (Germany), Infineon Technologies (Germany), IBM (U.S.), and Honeywell International Inc. (U.S.). Key developments in the market include:
- In January 2022, PTC announced a partnership with Schaeffler Group, a Germany-based manufacturer that deploys an absolute IT landscape. The initiative focuses to support Schaeffler’s call for digital twin and visualization of 3D models.
- In February 2022, Siemens updated its NX Software under the Xcelerator portfolio, with features such as; intelligence-based design. This enables the application to use AI and modern simulation technologies, providing helpful insights to the consumers.