IoT communication protocol market to be US$24.6 Billion by 2032: FMI
In 2032, the IoT communication protocols market will be worth US$24.6 billion. In 2022, its estimated value was US$15.9 billion. It will likely see a CAGR of 4.5% between 2022 and 2032.
Consumer electronics are integrating IoT communication protocols, enabling connectivity and communication across devices. These facilitate the development of connected and smart products further.
These protocols give data sharing a defined structure and enable devices from various manufacturers to work together. In addition, they aid in guaranteeing smooth data transport and communication. For example, smart home appliances frequently use Wi-Fi to connect to a network at home and the internet.
Bluetooth is often utilised in audio and wearable technology. In addition, consumer gadgets using IoT connection protocols can perform functions, including remote monitoring and control, real-time data analysis and feedback, and improved device compatibility.
Standardisation and interoperability through IoT communication protocols are vital as IoT devices are widely adopted in consumer electronics. These improve user experience and enable smooth data sharing and communication between devices.
“Demand for IoT communication protocols that can support edge devices is expected to increase. Edge computing, which involves processing IoT data at the edge of networks, is set to become highly popular by 2032,” says FMI.
Edge computing decreases the quantity of data that needs to be transferred to the cloud and allows for real-time data processing. As a result, it can lower the need for bandwidth while enhancing device performance.
The usage of IoT has increased significantly recently all across the world. Around 8.6 billion IoT devices were present worldwide in 2019. As IoT device adoption accelerated globally, the total number of IoT devices was estimated to be 12.14 billion in 2022.
By 2030, it is predicted that there will be about 23.14 billion IoT devices on the planet. Furthermore, the need for IoT communication protocols is anticipated to rise throughout the assessment period as more IoT devices are in use worldwide.
“Some of the key takeaways in our report are as follows. The global IoT communication protocol industry exhibited a CAGR of 3% in the historical period from 2017 to 2021. The United States IoT communication protocol industry is expected to be worth US$7.5 billion by 2032. The United Kingdom IoT communication protocol industry is anticipated to reach a valuation of US$1.2 billion in 2032. By type, the Wi-Fi segment is expected to bolster at a CAGR of 4% from 2022 to 2032. Based on application, the consumer electronics segment exhibited a CAGR of 0% from 2017 to 2021,” adds the research team of FMI.
Leading developers of IoT communication protocols are concentrating on creating real-time protocols to support IoT applications. Applications, including industrial automation, smart grid management, and autonomous cars, would call for quick and dependable data interchange.
Several additional businesses are creating protocols that can be connected with cloud services. They want to make it possible for IoT systems and devices to be managed, monitored, and have their data analysed remotely. Scalable protocols that can handle a lot of devices and data traffic are still being developed.
“For instance, in April 2020, Infineon Technologies revealed its acquisition of Cypress Semiconductor. It encompasses Cypress's range of IoT communication technologies, specifically Wi-Fi and Bluetooth. Through this acquisition, Infineon Technologies is aiming to enhance its IoT solutions for clients and broaden its range of offerings,” concludes FMI.