The application of IoT in various industries, such as the automotive industry, is driving the growth of the global IoT market. The introduction of IoT in the automotive industry has opened up new opportunities for carmakers and consumers worldwide. The IoT has become a popular hotspot for varied multifunctional applications in the automotive sector. IoT offers enhanced communication, control, and data delivery at any transportation point.
Major companies like Mercedes-Benz, Volkswagen, Volvo, Toyota, and Google Inc. are increasingly investing in developing smart cars with rich features that offer healthier, more convenient, and more enjoyable driving experiences. According to UBS, 12% of the total cars sold in 2030 will be for autonomous taxi fleets, with 26 million driverless taxis in operation worldwide, approximately.
The global internet of things (IoT) market size is expected to grow from $326.90 billion in 2021 to $402.72 billion in 2022 at a compound annual growth rate (CAGR) of 23.2%. The internet of things (IoT) industry size is expected to reach $926.61 billion in 2026 at a CAGR of 23.3%.
Major Companies Are Analyzing The Data Collected By IoT Devices To Improve Business
Managing and analyzing data collected by IoT devices will help maximize its value for the company. Data analytics help in the analysis of IoT data in several areas, such as data accuracy in time series, predictive and advanced analytics, data preparation, geospatial and location real-time. Major cloud vendors such as Amazon, Microsoft, and Google are increasingly using data analytics for business improvement, and various companies hope to expand their market share with AI algorithms capable of exploiting machine learning and deep learning, allowing businesses to derive more value and make informed decisions from the increasing data volumes.
The European IoT Market Is Supported By The Adoption Of Advanced Technology
According to TBRC’s IoT market analysis, the IoT market in the European region is supported by increasing adoption of the cloud, artificial intelligence, machine learning, and big data technologies; high internet penetration; high demand for smart infrastructure owing to rapid urbanization; and high demand from the growing end-use industries. The market is also aided by investments and government initiatives. For instance, in 2020, the UK Department of Digital, Culture, Media, and Sport (DCMS) announced funding of £400,000 ($0.5 million) to incentivize the creation of design schemes that test the security of Internet of Things (IoT) products.
The Russia-Ukraine Conflict Is A Significant Market Restraint
The ongoing war between Russia and Ukraine is expected to impact the overall information and communications technology (ICT) market, with sanctions and other measures levied upon Russia by the United States, the European Union (EU), and other countries. The war could lead to a possible shortage of semiconductors, with chip-reliant industries like the Internet of Things being impacted as well. Both Russia and Ukraine are among the top suppliers of essential semiconductor raw materials, with Russia supplying nearly 44% of the world’s palladium and Ukraine producing 70% of global neon supplies. The shortage of chips could translate to lower production output and higher operating costs, leading to higher product costs.