IoT Market Gaining Traction as Smarter Devices Find More Takers

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The global Internet of Things (IoT) market comprises numerous players such as Google Inc., Cisco Systems Inc., Apple Inc., Microsoft Corp., and IBM Corp, to name a few. The top three players accounted for 48.69% of the market in 2014. Google Inc. has surpassed the competition thanks largely to the expansion of their product line through product innovation and acquisitions, according to a new report by Transparency Market Research (TMR). A similar strategy is also being followed by IBM Corp., which has broadened its interests in the IoT field by acquiring Phytel to enhance the effectiveness and quality of personal healthcare. Apple Inc. is striving to extend its business through product enhancements. In June 2015, the company introduced a new version of OS X, which enhances the system performance and Mac experience. 

According to the report, the global IoT market is expected to be worth $924.86 billion by 2021. On the basis of application, the industrial segment led in the past and will continue to be in a dominant position, accounting for 23.40% of the market in 2021. By geography, North America is anticipated to lead the global IoT market and account for 37.45% of global revenues by 2021. On the basis of technology, the Wi-Fi segment will continue to lead, accounting for 32.56% of the market in 2021.

Technological advancements in the field of healthcare are an important driver for the IoT market. IoT is proving effective in enhancing the efficiency of the healthcare system and in reducing the cost incurred for patients. IoT also has the potential to cover economic expansionary phases and thus, governments across countries are investing heavily in IoT to enhance the comfort, convenience, and management of patients as well as healthcare service providers. This is improving the quality of life of people and thus, IoT will continue to remain in demand.

IoT helps in achieving machine to machine communication and offers more efficiency and accurate results. Thus, optimal utilization of energy and resources can be achieved with the adoption of IoT. Additionally, costs can be saved through proactive maintenance programs which make use of IoT, thus driving their demand further.

Security risks to pose a challenge

Internet of Things devices can expose consumers to various security risks by allowing unauthorized access to a third person who could misuse sensitive personal information. Thus, there are many possibilities of vulnerabilities which can increase owing to the use of IoT. Moreover, a connected smart device may also be used to send malicious emails. However, with advancements in technology, the impact of this restraint is expected to reduce in the coming years.

Over dependence on the IoT is another factor restraining the growth of the market. Minor glitches of a few seconds in IoT can ruin the entire process and cause several problems. For instance, if glitches were to occur in sensors in a car, the system could fail to provide vital information to a driver, possibly leading to an accident. 

In the future, it is expected that an increasing number of devices such as televisions, cars, and refrigerators, among others, will make use of IoT and become smarter. These devices are expected not only to be equipped with sensors but also have internet connectivity for communication. This will help alert the user to a critical information. TMR predicts that the demand for IoT will increase significantly, driving the market towards tremendous growth.