The global Internet of Things (IoT) analytics market size is swiftly expanding and is expected to reach $57.3 billion by 2025, according to a study by Grand View Research. During this period, the forecasted growth will be registered at a CAGR of 29.7%, marking the sector as one of the most dynamic in the analytics industry. The main growth drivers are the soaring need for advanced technologies and the exponential increase in analytics, which is augmented by cost-effectiveness.
Why Is the IoT Market Growing?
Data is gold, and whoever gets it the fastest puts themselves in a great position compared to the competition. IoT analytics allows users to get real-time or just-in-time information, which they can leverage and convert into actionable insights.
The generation of useful data has become much easier in the past few years due to high-tech sensor collaborations, which enable devices ranging from wearables to smart home appliances to produce data.
However, simply collecting data is not enough. Companies need to act on the extracted data to make better business decisions. Ease of deployment and reduced costs of components are further escalating the adoption of analytics for many companies.
North America is one of the regions with the highest growth expectancy in the forecasted period, boosted by the presence of a strong wireless network and burgeoning data generated by IoT. North America is also the home of some of the most prominent players in the IoT sector, like Google, HP, Microsoft, and Cisco.
What Is IoT Analytics Used for?
According to the report, IoT analytics is used for various applications such as building automation, infrastructure management, and security management. IoT analytics also facilitates the analysis of massive amounts of data generated by IoT devices. There is a great need for tools and solutions to help in connecting, managing, transforming, aggregating, and processing data to provide real-time insights.
Analytics solutions offer benefits such as cost optimization, scalability, and real-time reviewing for enterprises. These factors are estimated to provide a significant push to the market during the forecasted period.
The massive demand and the exponential increase of the IoT market have created a significant opportunity for analytics companies to take the initiative and develop products tailored to the IoT sector.
Key Opportunities for Analytics Companies
Real-time alerts and data monitoring will propel the healthcare and life sciences segment of the IoT market. This sector is projected to command more than 12.5% of the overall revenue by 2025. The data collected by IoT devices helps doctors generate actionable insights and better understand the condition of their patients.
Despite the massive investment from tech giants such as Google, HP, or Cisco, Small-Medium Enterprises (SMEs) are anticipated to lead the race during the forecast period due to the increased competitive rivalry and the adoption of advanced technologies for cost and time management.
We have already anticipated the tremendous demand for cloud solutions, and it seems that the cloud segment will continue to dominate the analytics market in all its sectors, including IoT.
According to the same report, the cloud IoT solutions market will grow at a 30% rate until 2025, driven by the 24/7 accessibility and low maintenance costs.