In recent years, the Internet of Things has become one of the most important technologies out there, providing seamless communication between people, processes, and things. The surging need for wireless networking technologies continues to drive the entire market’s growth.
According to data presented by Trading Platforms, global IoT revenues are expected to hit $19.5bn in 2022, showing a 13% year-over-year increase.
Revenues to Spike by 45% in the Next Three Years
The Internet of Things is one of the technologies driving Industry 4.0, so it’s not surprising that the market sees a CAGR of over 12%. It improves data collection, security, and efficiency and saves time. Both personal and business possibilities of its use are endless.
Even as the global semiconductor shortage has slowed down the market supply and growth from the pre-pandemic levels, the global demand for smart solutions from industrial to security use cases is still rising.
According to a Statista survey last year, global IoT revenues surged by an impressive 27% year-over-year to $17.3bn worldwide. Although growth decelerated in 2022, revenues are still up by $2.3bn or 13.3%. However, Statista expects IoT revenues to spike by another 45% to $28.3bn by 2025.
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.
As the other segment of the IoT market, finance technologies have seen a slight revenue drop to $570 million in 2022, down from $580 million a year ago. By 2025, this figure is expected to increase to $630 million.
US the Leading Market, But China Sees Higher Revenue Growth
With revenues of more than $4.7bn in 2022, the United States is the IoT market leader. Statista survey showed US revenues grew by 13.7% YoY in 2022, down from the 19.1% growth rate seen last year. By 2025, the US market is set to reach a $6.3bn value, growing by a CAGR of around 8% per year.
China, the world’s second-largest IoT market and the leading manufacturer of IoT devices, is expected to see revenues of $4.5bn this year, 18% more than a year ago. Although both countries 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.
Also, China is forecast to become the world’s leading IoT market in the next three years, with revenues growing to $6.6bn.
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Jastra Kranjec
Finanace Writer
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