IoT Connectivity Management Platform Market Trends [2031]

Report Description

The global IoT Connectivity Management Platform market size was USD 6.8 Billion in 2022 and is likely to reach USD 32.3 Billion by 2031, expanding at a CAGR of 17.3% during 2023–2031. Increasing number of connectivity technologies having an impact on industries for better secure, reliable, and high-speed connectivity is driving the market.

The Internet of Things (IoT) plays a major role in connecting the world. IoT connectivity management system allows connection and information exchange between IoT applications and devices. It addresses consolidation challenges related to operating and managing IoT devices. Furthermore, the growing number of connecting devices across organizations is boosting the market.

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Rising demand for industrial IoT and connected devices fuels the demand for IoT connectivity management platforms, which facilitate asset monitoring, resource management, and others through cloud computing. However, the increasing need for security in data transfer and management of the data warehouse structure is anticipated to influence the demand for the IoT management platform. For instance,

• In May 2023, the Global Cellular IoT Connectivity Tracker & Forecast, the number of global IoT connections grew by 18% in 2022 to 14.3 billion active IoT endpoints. In 2023, IoT Analytics expects the global number of connected IoT devices to grow another 16%, to 16.7 billion.

Covid-19 Analysis

The Covid 19 has hampered the global IoT connectivity management platforms market. During the pandemic, due to government restrictions such as social distancing, and trends such as working from home, hybrid culture impacted security & privacy increasing cybersecurity & hacking strategies that impacted the IoT connecting management platforms. The ongoing projects are on hold due to the lack of workforce in the industry. The decline in the demand for new projects or device services hampered the market during that period.

Impact of Artificial Intelligence (AI) in IoT Connecting Management Platforms

Artificial intelligence (AI) plays a vital role in the IoT sector. It helps IoT to handle the data based on algorithms. These AI developers help the company monitor operations that can improve insight and accuracy from the data. Furthermore, many industries are getting benefits from AI and IoT, which boosts revenues and smart services-based solutions. It also helps in reducing operational costs, forecasting and minimizing unpredictable incidents, and enhancing risk management to better manage safety or any other cybersecurity attacks. Thus, AI aims to process and store data with a visionary approach that can escalate businesses. For instance,

• In October 2023, Siemens announced powerful new AI capabilities for IoT in buildings. The addition of two new AI partners. Tagnos is a healthcare solution provider to drive patient care and asset tracking workflows and the other is Zan Compute, a smart building provider for reducing building cleaning costs and improving occupant experience.

IoT Connectivity Management Platform Market Dynamics

Drivers

Growing adoption of these systems promoted bring-your-own-computer (BYOC) connectivity is driving the market. The key market players are adapting BYOC to eliminate the initial infrastructure expenses and minimize the deployment cost of the equipment. Moreover, the connectivity systems provide a productive and flexible work environment to the employees of the organization. Additionally, IoT trends are playing a significant role such as LPWAN connectivity. The convergence of technology is adopted by the companies to provide multi-connectivity of several LAWPN technologies at the same time. The LAPWAN modules act as solutions for end-to-end connectivity in verticals such as logistics and mobility. For instance,

• In November 2022, Sony Semiconductor launched the ALT1350 world’s first cellular LTE-M/NB-IoT solution to enable additional LPWA communication protocols. This enhances the reduction in costs and decreases power consumption.

Increasing demand for LEO-based satellites is boosting the market, as it provides minimal delays in data transmission. Industries such as maritime, agriculture, and logistics use these technologies, as they are reliable and resilient in challenging environments. Furthermore, most IoT platforms provide services to manage multiple networks and accounts across devices and deploy the next generation of firewalls and web filters with an easy-to-use interface. Moreover, the emergence of cost-effective interoperable wireless devices creates vast demand.

• In June 2023, strong growth of the satellite IoT industry is expected with connection revenue reaching USD 7.8 Billion by 2030. The manufacturers within the industry are focused on developing standardized SatCom protocols and catering to the growing demand for truly global IoT connectivity.

Restraints

High initial cost of deployment of IoT devices & infrastructure is hindering the growth. Small and medium-sized enterprises with limited accessibility and low budget control to deploy IoT connectivity management systems restricting the market.

Breach of data security and sensitive information is a major concern for IoT connectivity management platforms. Numerous devices are connected to the internet, thus leading to the risk of cyber-attacks, which in turn, limits the market.

Opportunities

Growing demand for telecommunication networks such as 5G networks is projected to create lucrative opportunities in the market. The 5G technology enabled with IoT platforms offers low-latency connectivity and high speed, which enables the deployment of a large number of IoT devices. Furthermore, an increase in the need for robust connectivity management solutions to ensure the security and optimal performance of the devices. For instance,

• In February 2022, TSMC, Sony Semiconductor Solutions Corporation (SSS), and Denso Corporation jointly announced a joint venture with Japan Advanced Semiconductor Manufacturing (JASM). In the process, TSMC plans to enhance JASM’s capabilities with 12/16 nanometer FinFET process technology.

Increasing adoption of IoT connecting platforms within industries such as transportation and healthcare are creating opportunities in the market. The IoT platforms help gather data-driven analyses, which enables decision-making and optimization. Many manufacturers are integrating the IoT platforms with upcoming trends such as artificial intelligence and machine learning techniques to make more informed decisions for business-oriented firms is boosting the forecast period.

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Scope of the IoT Connectivity Management Platform Market Report

The market report includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

IoT Connectivity Management Platform Market Segment Insights

Component Segment Analysis

On the basis of component, the global IoT connectivity management platform market is divided into platforms and services. The service segment is expected to expand at a significant pace during the projection period. The service providers and consultancy helped the clients with their IoT connectivity to simplify the IoT deployment within the organizations. Furthermore, the key companies use the services to improve the efficiency of inbound and outbound operations that are cost-effective.

The platform segment is anticipated to expand during the forecast period. It is designed to reduce the operational workload, which enhances the efficiency within the organization. Furthermore, the connectivity management platforms create a link between the IoT devices and the network allowing them to remotely manage various linked groups.

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Deployment Mode Segment Analysis

Based on deployment mode, the global market is segregated into cloud-based and on-premises. The cloud-based segment is projected to dominate the market during the forecast period, as it carries a large number of applications in the cloud network, which eases application management. With cloud development, organizations can achieve their goals, as it provides faster performance and boosts the security system, without having to operate in a server infrastructure.

The on-premise segment is anticipated to witness considerable growth. The benefit the organization takes full control over its data and devices when using an on-premise platform. Many companies that need to comply with strict regulations and data security are using on-premises platform that tends to boost the segment in the coming period.

Organization Size Segment Analysis

In terms of organization size, the global IoT management platform market is segregated into small & medium size and large enterprises. The large enterprise segment is dominated in the market in 2022, as it manages different types of cellular connectivity cost-efficiently. The large enterprise is expected to hold the largest market share in the early adoption of IoT platforms and high capital investment.

The small and medium-sized industries are expected to witness significant growth during the forecast period. It helps companies to reduce the time required for tasks, which helps increase the company's efficiency. These tools benefits organization by increasing internal and external office communication resulting in improved productivity.

Vertical Industry Segment Analysis

On the basis of vertical industry, the IoT connectivity management platform market is segmented into BFSI, IT & Telecom, consumer goods and retail, healthcare, aerospace and defense, energy & utilities, and manufacturing. The IT and telecom segment dominated the market in 2022 due to advanced bandwidth and speed boosts. The IoT helps businesses to attract customers and retain the existing ones through the data generated by telecom operators. It allows utilities such as tracking and monitoring to trace logistics and mobility, enhanced security, and advanced model development while reducing cost and effort.

The healthcare segment is expected to witness significant growth during the forecast period. The Internet of Medical Things (IoMT) is transforming the healthcare industry by improving patients who virtually connect doctors and patients. The technology helps hospitals to track the real-time location of medical equipment and analyze the deployment of the medical staff at multiple locations. Furthermore, it provides various uses within the segment for end-to-end connectivity and helps in monitoring and reporting, which prevents healthcare IoT attacks. These factors are anticipated the fuel the market. For instance,

• In March 2022, Cynerio launched no-cost active attack detection for healthcare at ViVE, HIMSS. A new solution to empower hospitals and healthcare facilities to identify ongoing IoT attacks.

Regional Analysis

In terms of region, the global IoT connectivity management platform market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America dominated the market in 2022 due to the early adoption of technologies such as AI and IoT to integrate secure and reliable connectivity platforms. Countries such as the US and Canada are adopting connectivity technologies such as unlicensed low-range wide area network (LoRaWAN), which provides high connectivity platforms and secure networks to perform tasks within the organizations. It is expected to dominate the market during the projection period.

• In October 2022, Semtech’s LoRa Connect enhances CWD limited dual combo module connecting IoT devices to the cloud. It helps coverage ideal for asset tracking applications in hazardous work environments.

The market in Asia Pacific is estimated to expand in the forecast period. Growing demand for IoT devices is an enterprise connected through an IoT connectivity management platform for data management. With the presence of many manufacturing countries, such as Taiwan, South Korea, and China are responsible for more than 90% of global semiconductor chips embodied in IoT devices. These semiconductor devices are essential in manufacturing virtually all modern electronic applications, including smartphones and personal computers. Resulting in IoT platforms gaining demand, as they provide network monitoring and lowering security threats. For instance,

• In December 2022, TSMC announced plans to begin the production of 3nm process technology in 2026. The overall investment for these two fabs is likely to be approximately USD 40 billion.

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