The global Internet of Things (IoT) installation base is expected to reach 194 billion units by 2020, up from 170 billion units in 2013. During the period 2014-2020, adoption of IoT globally will witness a growth rate of over 16 percent annually.The key factors fuelling the incorporation of IoT include proliferation of connected devices, demand for real-time analytics, and spurt in Big Data and cloud computing.
The manufacturing industry is one of the biggest adopters of IoT. Accounting for nearly 34 percent share of the global IoT market in 2013, adoption of IoT in this industry is expected to expand at a compound annual growth rate (CAGR) of over 15 percent between 2014 and 2020. Use of IoT in real-time management and supply chain management are expected to be the key driving forces for its adoption in the manufacturing sector.
North America is currently the most lucrative market for IoT globally. The region accounts for over one-third of the global market value share. Europe is the second-largest market for IoT after North America. The pace of adoption of IoT is fastest in Asia Pacific, where the market is expected to expand at a CAGR of over 18 percent between 2014 and 2020.
The IoT market in Asia Pacific is expected to fuelled by strong demand from China, Japan, and India. The government of India plans to build over 100 smart cities in the near future, and this is expected to drive the demand for IoT systems and components.