GlobalData: IoT technology market to reach $318 billion by 2023

Software and services clearly lead in revenue, but higher growth rate for connectivity and devices like 5G services and the rise of edge computing will drive revenue growth at a CAGR of 20%.

By ·

The global market for Internet of Things (IoT) technology, which consists of software, services, connectivity, and devices, reached $130 billion in 2018 and is projected to reach $318 billion by 2023 at a compound annual growth rate (CAGR) of 20%, according to , a leading data and analytics company.

GlobalData forecasts show that solutions for government, utilities and manufacturing dominate the market, with a total of 58% of the opportunity in 2018 and a slighter smaller 55% of the market in 2023, as others such as travel and leisure and retail grow their respective shares. Energy and transportation are other major verticals, with a combined 15% of the market in both 2018 and 2023.

While IoT devices and connectivity get a lot of airplay from vendors and operators, software and services clearly comprise the largest opportunity. The category includes engineering, installation, maintenance and project management, as well as IoT platforms, application development services, and software.

It also includes cloud computing, machine learning and security services associated with IoT deployments. While software and services still clearly lead in revenue by the end of the period, the growth rate from 2018 to 2023 is slightly higher for connectivity and devices, as new LPWAN and 5G services and the rise of edge computing, respectively, will drive higher revenue growth.

“The diverse ecosystem of providers offering software and services makes this segment especially competitive,” said Kathryn Weldon, technology analyst at GlobalData. “Operators are vying to offer value-added services beyond connectivity, while network and infrastructure vendors are branching out into IoT platforms and applications. IT Service Providers, systems integrators and consultants are providing a wealth of consulting and integration services, while business software vendors and vertical VARs and specialists are providing IoT application development and ‘pre-shrunk’ applications. It is too soon to say whether there is room for all of the different vendors chasing many of the same verticals, with, in many cases, overlapping capabilities. What is clear is that IoT remains a highly strategic growth market in the eyes of all of these vendors; in spite of the fact that some form of IoT has been around for more than twenty years, the real high growth cycle for this market is just beginning.”

On the enterprise adoption side, GlobalData reports companies are just beginning to use IoT for more than cost control or productivity and operations enhancements. Deployments are getting larger, and more lines of business within a given company are seeing opportunities. Capabilities enhanced by new technologies such as augmented and virtual reality, and machine learning/artificial intelligence (AI) are going to change the way companies use IoT, with the eventual goal of enabling them to not only improve their current products and processes, but also generate new revenue streams through the development of their own new products and services.


Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.


Article Topics

All Topics
Latest Whitepaper
Making the Case for Using a Transportation Management System for Parcel Shipping
We discuss the key pain points that all parcel shippers are dealing with right now and show how a multi-carrier transportation management system can help reduce costs, improve efficiencies, and improve the organizational bottom line.
Download Today!
From the June 2019 Logistics Management Magazine
Over the years, we’ve tried to steer clear of too many themed issues because we’re proud to offer our readers a wide breadth of industry information. The logistics and transportation market is so diverse, and shippers are looking to solve a multitude of challenges across a number of modes and services areas—never just one.

Warehouse Execution Systems (WES) Evolves Beyond “inside the four walls”
Got labor? How supply chain companies are recruiting talent during a labor crunch
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly newsletter!
Latest Webcast
How to Solve The Unique Challenges of Multi-Carrier Parcel Shipping
Join Logistyx President Ken Fleming for an appraisal of multicarrier shipping, TMS solutions and the nuances of interpreting Gartner’s Magic Quadrant for TMS, without a barcode label in sight! Using case studies, review scenarios traditional TMS solutions struggle to manage, such as high volume and international shipping, and learn why parcel shipping requires a different solution and how to design your process and architecture to leverage both effectively.
Register Today!
EDITORS' PICKS
Got labor? How supply chain companies are recruiting talent during a labor crunch
How are companies faring in the race to recruit and train high-level supply chain talent in a market...
35th Annual Salary Survey: Compensation matters more than ever
While job satisfaction remains the primary reason for today’s logistics managers to stay with one...

2019 Rate Outlook: Pressure Builds
In 2019, the world economy will enter a third straight year of broad-based growth, but many...
2019 Transportation Management Systems (TMS) Market Update: Keeping pace with the times
The transportation management systems market is growing right along with the number of challenges...
Спин байк купить

У нашей фирмы интересный блог , он рассказывает про Тренболон Энантат danabol-in.com
www.alumix.com.ua