The Internet of Things is a system of interconnected devices and it has the capability to transfer data over a network without requiring a computer and human interface. Internet of Things (IoT) consists of a different element such as electronics, sensors, software and network connectivity that facilitate these objects to replace and collect data. Furthermore, government initiatives and budget allocation for smart product development which offering better lifestyle across the industries is projected to be important factor fueling of this market demand during the forecast period.
In the year of 2015, North America holds the largest regional market share for Internet of Things (IoT) market, of the global market in terms of revenue. The primary factor behind this region’s dominance is attributed to the rapid technological advancements taking place in the field of IoT. Moreover, early penetration of the latest technology in the U.S. is another important factors fuelling the growth of the Internet of Things market in this region. In 2015, the electronics manufacturing services (EMS) industries in North America has observe constant growth in the recent years in terms of revenue and is expected to witness steady growth during the forecast period, which in turn is set to drive the Internet of Things market in this region from 2016-2024.
In 2015, Europe held a substantial share of the Internet of Things market, in terms of revenue. This region held the second largest share of the global market in 2015. The Internet of Things market in Europe is expected to record further growth in the coming years owing to rapid technological innovations and considerable investment in the smart electronics industry. The Internet of Things market in Europe is primarily driven by countries such as France, Germany, and U.K.
Asia Pacific is the fastest growing market for Internet of Things by in terms of revenue and growth. Countries in APAC such as China, India, Taiwan and others have presence of a large number of electronic manufacturing firms. China is the main hub for the manufacturing of electronics components and the export-import value of the electronics produced is China is on a surge. Further, Taiwan’s integrated circuit industry is strongly established, with a vertically integrated chain and electronics is one of the prime industry underpinning the economic growth in Singapore. Thus, this region is expected to record strong growth of the Internet of Things in its well-established electronics industry during the forecast period. Companies in this region moving their storage solution in Cloud services which helps to improve IT capabilities without investing large amounts in new data centres which are further expected to drive the growth of this market during the forecast period.
The market for high Internet of Things is projected to record stable growth from 2016-2024 in the regions of the Middle East and Africa and South America. The most lucrative markets is anticipated to be Israel and United Arab Emirates (UAE) which offer a strategic location to manufacturers who re-export electronics and have a wide presence of assembling facilities and regional distribution office. UAE government initiative and budget allocation for smart homes and transportation development is a key factor to drive the growth of this market. Further, with the localization of manufacturing capabilities and continued globalization of the microelectronics industry, the South American market is set to offer potential growth opportunities to electronics manufacturing and supply chain companies.These growth potentials are expected to generate demand for high Internet of Things market in this region during the forecast period.