The global IoT sensors market is expected to grow at a CAGR of 33.6% between 2018 and 2023, with revenues increasing from $5.28 billion in 2018 to $22.48 billion by 2023, according to a MarketsandMarkets’ report.
The report points to several factors that are driving the market. These include:
- The increased use of sensors in IoT devices and other applications owing to their reduction in size, plummeting costs, and technological advancements;
- Introduction of 3 GPP Release 13 and Release 14 specifications;
- Growth in internet penetration rate;
- High demand for connected and wearables devices; introduction of IPv6 creating larger address space; and
- Importance of real-time computing for IoT applications.
APAC to grow at highest CAGR
By region, North America is expected to hold the largest share of the IoT sensors market by 2018. This is due to the increasing use of internet technologically advancing economies as well as the growing adoption of wireless sensors and networks across major applications—such as industrial, automotive and transportation, healthcare, oil & gas, and consumer electronics—contribute to the growth of the IoT sensors market in this region.
The market in APAC is expected to grow at the highest CAGR from 2018 to 2023 owing to the growing penetration of the internet across commercial as well as residential spaces, wide consumer base, increasing disposable income, and improving IT infrastructure.
Industrial vertical the largest segment in 2018
According to the report,the industrial vertical is expected to hold the largest share of the IoT sensors market by 2018.
The emerging areas of applications such as infotainment and telematics in the automotive industry and increasing preference for carrying out complex industrial processes with ease are likely to drive the market for the industrial IoT sensors.
Factors such as the need to implement predictive maintenance techniques in industrial equipment to monitor their working and to avoid unscheduled downtime in the production cycle are also fueling the growth of the IoT sensors market for the industrial sector.
Meanwhile, pressure sensors are expected to account for the largest share of the global IoT sensors market by 2023, largely driven by the increased concerns regarding safety, comfort levels, and reduction in automobile emissions.
The regulatory mandates requiring the compulsory installation of onboard diagnostics to reduce greenhouse gas emissions will further lead to the growth in the demand for pressure sensors.
Gyroscopes sensors are expected to grow at the highest CAGR during the forecast period, thanks to the growing demand for equipment optimized with sensors for applications such as navigation and satellite positioning.
Further, factors such as the huge demand for remotely operated vehicle guidance and the growing adoption of automation in industries and homes would also drive the market for gyroscopes.
The report also pointed out that the market is also facing a number of challenges, including the lack of common protocols and communication standards, shortage of technical know-how to use IoT devices, high power consumption by connected devices, and high latency and limited bandwidth issues.
And the major growth opportunities will come from supportive government initiatives and funding for IoT projects, emerging need for cross-domain collaborations, high adoption of IoT by small and medium-sized businesses, and benefits of implementation of a predictive maintenance program for IoT applications.