Noting that the surging need for wireless networking technologies continues to drive the entire market’s growth, online education and trading comparison provider TradingPlatforms.com has released research showing that the internet of things (IoT) has become one of the most important technologies available to businesses, providing seamless communication between people, processes and things, and is now set to generate global revenues of $19.5bn in 2022, a 13% year-over-year increase.
The study predicted such revenues to spike by 45% in the next three years, with a market engine being the fact that the IoT is one of the technologies driving Industry 4.0.
TradingPlatforms.com said it was not surprising that the market will enjoy a CAGR of over 12%. The analyst added that IoT improves data collection, security and efficiency and saves time, and that both personal and business possibilities of its use were “endless”.
The study added that such growth would come even as the global semiconductor shortage has slowed down the market supply and growth from pre-pandemic levels, as the global demand for smart offerings from industrial to security use cases is still rising. It cited a Statista survey from 2021 showing that global IoT revenues surged by 27% year-on-year to $17.3bn worldwide.
Even though growth decelerated in 2022, revenues were still up by $2.3bn, or 13.3%. However, Statista expects IoT revenues to spike by another 45% to $28.3bn by 2025.
TradingPlatforms.com also noted that smart home technologies remain the largest revenue stream of the IoT market, with $19bn in revenue in 2022, 13% more than last year. This segment of the IoT market is forecast to see a 45% growth in the next three years, with revenues rising to $27.7bn worldwide.
The other key segment of the IoT market, financial technologies, have seen a slight revenue drop to $570m in 2022, down from $580m a year ago. By 2025, this figure is expected to increase to $630m.
On a regional basis, TradingPlatforms.com highlighted the US as the market leader, but with China seeing higher revenue growth.
The US was the IoT market leader, with revenues of more than $4.7bn in 2022. The aforementioned Statista survey showed US revenues grew by 13.7% year-on-year in 2022, down from the 19.1% growth rate seen the year before.
By 2025, the US market is set to reach a $6.3bn value, growing by a CAGR of around 8% per year. TradingPlatforms.com expects China, not only the world’s second-largest IoT market but the leading manufacturer of IoT devices, to see revenues of $4.5bn this year, 18% more than a year ago.
Although both the US and China will see revenue growth slowing down in the following years, the Chinese market will still grow faster, with an average CAGR of 15% by 2025.
China is also forecast to become the world’s leading IoT market in the next three years, with revenues growing to $6.6bn.