While Internet of Things (IoT) technology records advanced utilities in supply chain and manufacturing, a new report predicts that IoT-based smart buildings will grow.
The report compiled by QKS Group projects smart building IoT to reach a market with a compound annual growth rate (CAGR) of 21.19% by 2030. Per the report, Smart Building IoT platforms are surging in popularity, leapfrogging the combined sector growth pre-2020 over the last three years. QKS Group analysts say that the trend will continue, driven by several factors, including energy optimization, consumer choices, and changing ESG goals.
“Smart Building IoT platforms are no longer viewed as niche; they’ve become foundational for organizations seeking intelligent energy and asset management,” Divya Prakash, analyst at QKS Group, said.
The report notes that Smart Building IoT will record the biggest growth in healthcare and data centers. Smart campuses in universities will contribute a chunk to Smart Building IoT, with residential apartments making up a slice of the market capitalization.
Across the board, the need for energy efficiency will drive adoption in the emerging sectors, with lighting and HVAC as key areas of concern. Furthermore, government policies and tax breaks for energy-efficient buildings will drive a spike in market capitalization over the next five years.
“HVAC systems are being integrated with IoT platforms to enable real-time performance monitoring, automated fault detection, and smarter climate control,” the report read.
Another factor moving the needle for Smart Building adoption is the potential for integrating emerging technologies. Combining IoT with artificial intelligence (AI) and blockchain technology will open new opportunities and use cases for the industry.
Barring any major disruptors, key industry players during the forecast period include Accruent, Clockworks Analytics, Johnson Controls, Honeywell, and ClearBlade. In terms of regional distribution, the report tips North America and Europe to lead the charge while Asia, Latin America, and Africa will play catch-up.
IoT use cases reach high utility levels
Interest in IoT is surging globally, given its potential for predictive maintenance and real-time monitoring of assets. Kia and Samsung (NASDAQ: SSNLF) have inked a deal to collaborate on IoT technologies, with the automobile giant keen on integrating Samsung’s consumer IoT offering in its cars.
Keen to push the frontiers, Japanese researchers have unveiled a solution to control multiple IoT devices using a single network. Experts say that a broad DLT integration is the best way to expand IoT functionalities while improving security standards.
IoT managed services will exceed a $200 billion market capitalization
As the IoT technology grows, other affiliated verticals are poised to record similar growth spurts with IoT managed service tapped to rack impressive numbers.
Research by Insight Partners says IoT managed services will latch onto the tailwind of IoT’s growth and balloon in size in the coming years. IoT-managed services are third-party services that support the installation and maintenance of IoT platforms for enterprises.
Still a growing niche, IoT managed services offer enterprises a suite of management services, allowing them to focus on their native operations.
The report tips the sector to achieve a market capitalization of over $200 billion by 2030 from its current under $5 billion. The projected figures represent a compound annual growth rate (CAGR) of 20% per year over five years.
Key drivers of the growth trend for IOT managed services include the rise in IoT devices and the accompanying appetite for managed services. Increasing complexity and regulatory compliance are expected to provide steam for the demand for IoT managed services.
Furthermore, other emerging technologies are contributing to the sector’s projected figures. In recent years, innovation around 5G and edge computing is expected to drive up interest in IoT managed services in key sectors.
The report projects applications in healthcare, smart cities, logistics and manufacturing to contribute a large slice to the market capitalization of IoT managed services. Other key growth drivers will include increased risks and the need for dedicated cybersecurity teams to manage IoT systems.
North America and Europe will contribute over half of the market capitalization, while Southeast Asia and Latin America will record the fastest CAGRs during the forecast period.
The report mentions leading entities in IoT managed services tipped to hold large slices of the market capitalization by 2030. The study mentions Cisco Systems (NASDAQ: CSCO), Cognizant (NASDAQ: CTSH), Harman International, Tata, IBM (NASDAQ: IBM), and Microsoft (NASDAQ: MSFT).
IoT is recording increased growth
By the end of the forecast period, IoT’s market capitalization is expected to reach $1.5 trillion. Currently, the sector is garnering utility, with enterprises increasing investments in the sector alongside Big Data, blockchain and AI.
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