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 TradingPlatforms.com, global IoT revenues are expected to hit US$19.5 billion in 2022, showing a 13 per cent year-over-year increase.
The IoT is one of the technologies driving Industry 4.0 (IR4.0), so it's not surprising that the market sees a CAGR of over 12 per cent. 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.
Global IoT revenues surged
According to a Statista survey last year, global IoT revenues surged by an impressive 27 per cent year-over-year to US$17.3 billion worldwide. Although growth decelerated in 2022, revenues are still up by US$2.3 billion or 13.3 per cent.
However, Statista expects IoT revenues to spike by another 45 per cent to US$28.3 billion by 2025.
Smart home technologies remain the largest revenue stream of the IoT market, with US$19 billion in revenue in 2022, which is 13 per cent more than last year. This segment of the IoT market is forecast to see a 45 per cent growth in the next three years, with revenues rising to US$27.7 billion worldwide.
As the other segment of the IoT market, the firm said finance technologies have seen a slight revenue drop to US$570 million in 2022, down from US$580 million a year ago. By 2025, this figure is expected to increase to US$630 million.
US the leading market
With revenues of more than US$4.7 billion in 2022, the United States is the IoT market leader. Statista survey showed US revenues grew by 13.7 per cent YoY in 2022, down from the 19.1 per cent growth rate seen last year. By 2025, the US market is set to reach a US$6.3bn value, growing by a CAGR of around 8 per cent per year.
Meanwhile, China, the world's second-largest IoT market and the leading manufacturer of IoT devices, is expected to see revenues of US$4.5bn this year, 18 per cent 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 per cent by 2025.
Also, China is forecast to become the world's leading IoT market in the next three years, with revenues growing to US$6.6 billion.