Internet of Things Analytics Market Size, Share & Trends Analysis Report By Vertical (Retail, Healthcare, Manufacturing, Transportation), By Organization Size, By Deployment, And Segment Forecasts, 2018 - 2025

Industry Outlook

The global internet of things analytics or analytics of things market size was valued at USD 5.7 billion in 2016. It is expected to progress at a CAGR of 29.7% over the forecast period. Volume of internet of things (IoT) data is constantly increasing due to introduction of smart glasses, smart watches, smart infrastructure, and smart cities. Analytics of things help in analyzing such data. Social media & rapid changing technologies, mobile utility, and internet are boosting the use of analytics of things. Additionally, declining costs of sensors and reduced processing power are among key trends triggering market growth.

Increasing emphasis on cost and time management, soaring need for real-time data, rising penetration of automation in businesses, growing competitive rivalry, and emergence of advanced technologies are providing a fillip to the market. Analytics of things help enterprises in gaining real-time insights and increasing effectiveness of their decision-making process for maximizing profit.

IoT analytics offer numerous benefits such as real-time insights and advanced processing. The solutions help users to get a better understanding of a product, cut down the time, getting detailed insights, and make better operational and marketing decisions. The major challenge faced by market players is controlling massive amounts of IoT data. Moreover, concerns related to ownership and processing of data are anticipated to hinder the growth of the market.

Developed regions such as Europe and North America will be key revenue contributors to the market, owing to a higher adoption of analytics of things solutions across all verticals. The regions have been an early adopter of novel innovative technologies due to presence of large technology players. Moreover, availability of better technology infrastructure and reliable network connectivity across the region is encouraging the growth of the regional markets.

Vertical Insights

The healthcare & life sciences vertical segment is poised to be the fastest-growing segment over the forecast period. Some of the leading technology enterprises are increasingly investing resources for tapping into the IoT healthcare market. Analytics of things help in data recording, storage, and analysis. It also helps in lowering healthcare operational errors and costs. Additionally, increasing competition is encouraging enterprises to adopt analytics of things for gaining a competitive advantage.

The manufacturing segment is anticipated to witness significant growth over the forecast years. Various companies in the industrial machinery, heavy machinery & construction, transportation & logistics, and oil & gas sectors are utilizing analytics of things for improving use of assets. Manufacturing enterprises are increasingly opting for cloud-based solutions such as predictive maintenance solutions. IoT analytics improve manufacturing processes and link products, machines, and people to a combined system. Manufacturers can easily monetize data insights generated by analytics of things.

Organization Size Insights

The SMEs segment is likely to expand at the highest CAGR over the forecast period, owing to increasing need for automation in various businesses. Due to digital transformation, the penetration of internet in SMEs is increasing. Entrepreneurs are adopting advanced technologies to enhance customer experience, thereby accelerating the IoT analytics market. Additionally, easy availability and decreased costs of cloud-based deployments are contributing to the growth of the segment.

The large enterprises segment was at the forefront of the market in 2016 and is estimated to maintain its position over the forecast years. Large enterprises have abundant resources and various operating units, which impel the demand for analytics of things. Additionally, large enterprises generally have strong research and development department, which triggers the growth of the market.

Deployment Insights

The on-premise segment led the market in 2016, owing to data security concerns and rising internet usage. However, the cloud segment is poised to make inroads in the shares of on-premise deployment. Technological innovations have led to a shift from on-premise to cloud deployment.

The cloud segment is projected to exhibit the highest CAGR during the forecast period as this type of deployment offers more customized options. Cloud-based solutions are anticipated to dominate towards the end of forecast period, owing to increment in IoT devices.

The agility, scalability, and cost-effectiveness of cloud solutions are enabling organizations to implement analytics of things solutions. Additionally, small and medium enterprises are widely adopting cloud based services to deliver a variety of services to its customers.

Regional Insights

North America dominated the market in 2016, owing to presence of prominent players such as Amazon Web Services, Inc. (AWS); Cisco Systems, Inc.; Google; Hitachi, Ltd.; Hewlett Packard Enterprise Development LP; and others. Early adoption of the latest technologies in various sectors such as healthcare & life sciences, transportation & logistics, and manufacturing is influencing the regional market positively.

The demand for analytics of things solutions in this region is likely to increase, owing to increase in IoT devices, mobile computing, and social media. Countries, such as India, China, and Japan, are the major developing economies in the APAC region. The use of internet & social media in these countries is increasing. This is expected to drive the market over the forecast years.

Internet of Things (IoT) Analytics Market Share Insights

The prominent players operating in the market include Amazon Web Services, Inc. (AWS); Cisco Systems, Inc.; Google; Greenwave Systems; Hitachi, Ltd.; Hewlett Packard Enterprise Development LP; and International Business Machines (IBM).

The key players are primarily focusing on providing cost-effective and innovative solutions. They are increasing their R&D spending to develop innovative solutions in order to gain a competitive edge over other competitors. Dominant market players have adopted strategies such as expansion and mergers & acquisitions, apart from product development and building partnerships, to gain traction in the market.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the industry trends in each of the sub-segments from 2014 to 2025. For this study, Grand View Research has segmented the global internet of things (IoT) analytics market report based on vertical, organization size, deployment, and regions:

• Vertical Outlook (Revenue, USD Million, 2014 - 2025)

  • Manufacturing

  • Energy & Utilities

  • Retail & E-commerce

  • Healthcare & Life Sciences

  • Transportation & Logistics

  • Others

• Organization Size Outlook (Revenue, USD Million, 2014 - 2025)

  • Small & Medium Enterprises (SMEs)

  • Large Enterprises

• Deployment Outlook (Revenue, USD Million, 2014 - 2025)

  • On-premise

  • Cloud

• Regional Outlook (Revenue, USD Million, 2014 - 2025)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

  • Middle East & Africa