IoT Sensors Market by Type, Network Technology, Vertical, and Region
The IoT sensors market was valued at USD 3.34 Billion in 2015 and is expected to reach USD 38.41 Billion by 2022, at a CAGR of 42.08% between 2016 and 2022. The growth of the market is driven by the factors such as development of cheaper, smarter, and smaller sensors, growing market for smart devices and wearables, need for real-time computing of applications, supportive government initiatives, deployment of IPv6, and role of sensor fusion concept in IoT sensors market, and surge in demand for IoT sensors in various applications.
The gyroscope market in IoT sensors market is expected to grow at the highest rate during the forecast period because of factors such as the increasing demand for gyroscopes in the industrial IoT vertical are driving the growth of the overall IoT sensors market. Additionally, MEMS-based sensors such as accelerometers, magnetometers, gyroscopes, and inertial sensors are witnessing increasing demand for smart applications such as smart city, automotive, and healthcare among others.
The wireless network technology held the largest share in network technology market in 2015. One of the major reasons behind this is the adoption of cloud platforms & low installation and maintenance cost as compared to wired devices. In wired technology, cost is incurred for wire connectivity & regular maintenance and replacement of these wires. Some other factors contributing towards the growth of wireless market is continuous increase in the Internet users globally which would strengthen the overall market for the IoT.
Among all the verticals, the market for the consumer IoT is expected to grow at the highest rate between 2016 and 2022. According to the studied market, the consumer IoT vertical has been segmented into home automation, smart city, and wearable electronics. The major drivers for this growth is the growing demand for wearable devices, increasing importance of smart devices, and emerging applications in consumer vertical such as smart city and smart home.
North America held largest market share for IoT sensors market in 2015. However, the market in APAC is expected to grow at a high rate between 2016 and 2022. The increased research and development in the field of IoT sensors, in terms of new and improved technologies, as well as the increasing demand for improved lifestyle are the two crucial factors driving the market in this region. Asia-Pacific is a major market for various sectors such as consumer devices and appliances, automobiles, and healthcare among others. Factors such as leading position in the worldwide sale of automotive, emergence of China as a global manufacturing hub, and the presence of major consumer electronics companies located in the region are the major reasons for the growth of the market in APAC.
The major restraints hindering the growth of the IoT sensors market include concerns regarding security & privacy, lack of technological skills in IoT, and lack of standardization. The key players operating in the market such as Texas Instruments Incorporated (U.S.), STMicroelectronics N.V. (Switzerland), and TE Connectivity Ltd. (U.S.) are focusing on the strategies of new product developments and partnerships & agreements to expand their business and leverage the benefits. In February 2016, STMicroelectronics offered new products and solutions for the IoT and smart driving (products for advanced safety systems (ADAS), car connectivity, and security for automotive applications). The solutions would be deployed in smartphones and wearables with NFC, fingerprint authentication, and always-on sensing.