Consumer IOT Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

Key Highlights

• Further, in February last year, Leaders from Consumers International, the Cybersecurity Tech Accord, and I Am the Cavalry - representing more than 400 organizations globally - worked together through the World Economic Forum's Council of the Connected World to recognize an emerging consensus on baseline cyber security provisions for consumer IoT devices.
• A wide range of consumer categories, including fitness, healthcare, automobiles, and the home, create the consumer Internet of Things. Smartwatches, earbuds, and televisions have been rising for the last few years. Further component-level miniaturizations, increased sensor accuracy, and data analysis are paving the way for connected medical accessories.
• Additionally, allied sales are expected to maximize as 5G network rollouts for powering IoT consumer electronics gain traction. The new cellular network technology is expected to offer speed and low latency to the consumer market.
• Accordingly, in the wake of rising demand, most FMCG industry players may experience shelving IoT devices and networks, thus, reducing the supply/availability-level constraints. This is also a result of lowering the cost of IoT hardware and services, with the cost of sensors and controllers dropping over the years.
• On the automotive front, applications like connected car systems and in-car infotainment systems leverage IoT capabilities. Major automotive OEMs have collaborated with component and solution providers to develop mission-critical offerings. This is their take on competing across an enhanced customer experience stack.
• The recent shutdown of businesses across the globe owing to the influence of COVID-19 is expected to influence the consumer IoT market negatively, as prices of chips, sensors, and other components used in IoT devices may increase over time due to no production and exhaustion of stocks maintained by the manufacturers in few months. ​

Consumer IoT Market Trends

Home Automation is Expected to Account for Maximum Market Share

• With the growing penetration of high-speed internet, the adoption of connected devices and smart home applications is increasing, especially in Europe, North America, and Asia-pacific regions. Some majorly incorporated solutions include voice assistants, smart thermostats, smart lighting, security cameras, smart locks, and smart doors.
• Further, the consumer propensity toward the adoption of smart speakers is increasing. This is, in turn, driving the demand for other connected devices, which may be controlled via such devices. According to Loup Ventures, globally, the smart speaker market's revenue is expected to reach USD 35.5 billion by 2025.
• Further, the developments in the smart home IOT hardware propel market growth. For instance, in November last year, the IoT Bundle is a kit Arduino released that includes all the necessary hardware, software, and parts for creating its connected gadgets.
• Devices with IoT capabilities may contribute to cost and energy savings in domestic applications. For instance, according to the UK-based company Carbon Trust, which sells occupancy sensors, these devices can tell if someone is in the room. The company also asserts that a machine like this one has the potential to lower energy consumption in houses by 30%. In comparison, its Daylight sensors can save energy use by up to 40%.
• Automated HVAC control systems and smart thermostats are increasingly becoming part of homes. For instance, Nest is one of the famous smart home device manufacturers. It is a learning thermostat that automatically adjusts temperature based on the location using a far-field sensor to determine the time and temperature from a distance; the device also works with Alexa. Multiple device manufacturers have been witnessed collaborating with solution providers to enter this segment category.

North America Occupies the Largest Market Share

• North America is one of the significant markets for the consumer IoT market in terms of market size. The wide-scale adoption of IoT technologies in many industries like automotive, retail, healthcare, and consumer electronics is one reason for the growth of the IoT market in this region.
• Further, between Q3 of 2021 and Q1 last year, IoT companies with expertise in AI and analytics, IoT software, and semiconductors/chips accounted for almost 45% of all significant IoT-related acquisitions. The acquirer's ambition to build a complete technological stack or product portfolio and lessen external dependency was an essential motivator in several of these transactions. Among the important announcements are Panasonic's $8.4 billion purchase of Blue Yonder and Generac Power Systems' acquisition of Ecobee.
• It is one of the leading regions in terms of research into developing IoT applications in new end-user industries. According to Cisco, the US and Canada are expected to have the highest average of per capita devices and connections by 2022.​
• Furthermore, the rising number of chronic cases and a growing number of diabetes cases have increased the adoption of IoT-enabled devices in the healthcare sector in the region. The rapid adoption of smart connected devices and rising digitalization is likely to drive this market's growth in North America.
• On the other hand, the growth of companies providing supporting technology for consumer IoT also boosts the market's growth. Microsoft Azure Sphere is a new microchip technology that enables device manufacturers to create equipment with native, highly secure cloud integration. This latest offering from the company can connect the billions of MCU-based devices that cannot currently be connected securely due to limited computing and storage capabilities.​

Consumer IoT Market Competitor Analysis

• November 2022 - A Memorandum of Understanding was signed between Disrupt-X, an IoT platform provider based in the UAE, and LORIOT, a global IoT company based in Switzerland, to assist the adoption of the next generation of IoT solutions leveraging the adequate LoRaWAN® infrastructure. The partnership primarily focuses on the European Market when promoting IoT technologies.
• September 2022 - International connectivity and IoT enabler BICS has teamed up with global technology Thales to remove obstacles to eSIM adoption in IoT devices to maximize the potential of IoT for businesses. As a connection provider partner with BICS, Thales has developed a ground-breaking eSIM activation solution for IoT devices. This strategy has succeeded in the consumer electronics industry and simplifies IoT implementation.

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