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Internet of Things (IoT) is internetworking of physical and virtual objects, which enables physical and virtual devices to relate to each other through cloud technology, to exchange data and information. Internet of Things devices are furnished with sensors that identify and acknowledge several types of input, including sound, pressure, position and motion, temperature and light from the physical environment. Miniaturization of devices and development of smarter and low-priced sensors are the major factors propelling the growth of the global IoT sensor market. Moreover, the escalating market for wearable devices and personalized technology are the major factors backing the growth of the IoT sensor market around the globe.
North America contributed the largest revenue to the global IoT sensor market in 2015; however, Asia-Pacific is expected to register the highest growth in the global IoT sensor market, during the forecast period. Some of the factors such as accelerated research and development in the field of IoT sensors, in terms of advanced and better technologies, and raising interest for upgraded lifestyle in the region are spurring the growth of the regional IoT sensor market. Moreover, Asia-Pacific forms largest market for various sectors, including automotive, consumer electronics and healthcare.
Technological innovation in the automotive sector has been helping Asia-Pacific to grow at the fastest rate. China was the largest contributor to the Asia-Pacific IoT sensor market through electric motors used in automotive applications in terms of unit shipment and revenue. India is expeditiously evolving as a global sourcing pivot for automakers across the globe. The development of China as an international manufacturing pivot, and companionship of major consumer electronics companies in the region is also propelling the demand for IoT sensors in Asia-Pacific.
The integration of IoT technologies in healthcare industry has significantly influenced healthcare solutions and has even enhanced readiness of operations in the region. It also helps healthcare industry to fight with several contagious diseases in the region. These factors are acting as drivers for the growth of the Asia-Pacific IoT sensor market. The integration of IT in healthcare is also expected to offer an opportunity to Asia-Pacific market for advanced healthcare in terms of decentralization, democratization and digitization of data and low-priced technologies through inventive attainment models.
Escalation in need for consumer electronics and flourishing demand for smart devices is adding to the growth of the global IoT sensor market. Smart devices account for an appreciable fraction of consumer electronics. Thus, increase in comprehensive sales of consumer electronics is spurring the growth of the IoT sensor market. Although some products such as smartphones are already being used extensively, smart home appliances, smart gas and electricity meters are expected to register increasing demand in near future.
Between wired and wireless technology, wireless network technology has been the larger contributor to the global IoT sensor market. Expanded accessibility is one of the major reasons behind endorsement of wireless technology. Implementation of wireless network technology only requires introductory expenditure. The running and maintenance cost of these networks is minimal. Additionally, wireless networks offer ease to relocate a connecting device without any supplementary cost of rewiring. On the other hand, it is too complex to relocate a connected device in wired network technology and it also incurs additional cost of rewiring. Some other factors influencing the expansion of wireless technology market are uninterrupted increase in the internet users globally, which is likely to bolster the overall market growth for IoT sensor.
The IoT sensor market has tremendous opportunity and extensions in the rising markets of Asia-Pacific and Rest of the World. Modern players in several developing countries, including China, Japan, India, Australia, Russia and Brazil, are endeavoring to embrace progressive technologies. This has led to rise in competitiveness in the global IoT sensor market. Moreover, rigorous government regulations and policies are promising the development of smart cities, which is contributing toward the growth of the global IoT sensors market. Uses of IoT sensors in the concept of smart cities include smart parking, traffic congestion, smart lighting, waste management and smart roads.
The ecosystem of IoT sensors comprises chip designers, component manufacturers, technology providers and system integrators. System integrators help to integrate these sensors into IoT applications. All the services need not necessarily be offered by a single vendor. Some of the chip designers in the IoT sensor market include Maxim Integrated, ARM Holdings Plc., STMicroelectronics N.V., and Greenvity Communications. On the other hand, Infineon Technologies, Robert Bosch GmbH, and Honeywell International Inc are some of the component manufacturers. Technology providers in this market include InvenSense, Inc., TE Connectivity, Inc. and Sensirion AG. Also, some of the key system integrators include Robert Bosch GmbH, NXP Semiconductors N.V. and TE Connectivity, Inc.
Global IoT Sensor Market Segmentation