IoT Market Set To Grow During COVID Lockdowns
As retailers Harvey Norman and JB Hi Fi go head-to-head on the Internet of Things (IoT) market new research from IDC reveals that they are on a winner with the market tipped to grow over 10% this year as more people work from home,
Worldwide the market is forecast to surpass US$14.3 billion in 2021 with IoT spending across A/NZ achieving a compound annual growth rate (CAGR) of 9.5% over the forecast period through to 2025.
Rising demand for smart devices, digital infrastructure, automation, and growing government initiatives is driving the growth.
At a retail consumer level voice activation and security as well as smart lighting are the main categories driving growth.
Some researchers claim that the introduction of an open standard called Matter will also drive growth.
IDC claim that organisations and individuals adapted to COVID-19 during the past year and adjusted course relative to how they worked and lived despite restrictions and constantly changing protocols.
Such events have highlighted the need for accelerated digital transformation and IoT based use cases can assist in delivering remote and distributed operations across the enterprise” notes Hugh Ujhazy, VP of Telecom & IoT in APEJ. “Though the pandemic caused temporary slowdown in IoT investments, we expect transformation initiatives to pick up pace as enterprises look to become more resilient and thrive despite the pandemic”, he added.
Industries that are asset-rich, device-rich, and physically intense such as manufacturing, utilities, and transportation, have been the largest source of IoT spending in A/NZ. Together these industries account for more than 50% of the overall IoT spending. IoT spending by the construction and utilities sector is growing the fastest in 2021. The lifting of restrictions on construction sites and increased digitisation of utility transmission and distribution networks drives this growth.
IDC claims the IoT services market will be the most significant technology group in 2021 and through to the end of the forecast. Industrial implementation and other ongoing services dominate IoT services spending.
Together with consumer spend on IoT this accounts for roughly a third of all IoT spending.
Software will be the second-largest technology group in 2021 and the fastest growing technology category with a five-year CAGR of 11.3%, focusing on application and analytics software purchases. Software spending is followed by hardware spending in 2021, primarily driven by purchases of module and sensors.
In Australian brands such as Laser Corporation with their $10 light bulbs and Google and Amazon with their voice activated IoT technology along with brands such as Arlo, Uniden, D Link and Swann in the security markets are driving growth.