IoT Testing Global Market Report 2024

The iot testing market size has grown exponentially in recent years. It will grow from $1.21 billion in 2023 to $1.64 billion in 2024 at a compound annual growth rate (CAGR) of 35.7%. The growth observed in the historical period can be attributed to several factors, including a diverse device ecosystem, heightened complexity of IoT solutions, adherence to industry standards and compliance regulations, heightened security concerns, and a growing demand for quality assurance in IoT implementations.

The iot testing market size is expected to see exponential growth in the next few years. It will grow to $5.1 billion in 2028 at a compound annual growth rate (CAGR) of 32.8%. Forecasted growth relies on IoT deployment scale, AI/ML integration, emphasis on edge computing, evolving connectivity standards, and adoption of continuous deployment. Key trends include edge computing testing challenges, continuous testing in DevOps, test automation growth, compliance and regulatory testing, and AI/ML integration in testing.

The expansion in the usage of IoT (Internet of Things) devices contributes to the demand for IoT testing, propelling the growth of the IoT testing market. IoT, encompassing a system of interconnected devices accessible through the internet, finds applications in a wide array of gadgets and sectors, including smartwatches, refrigerators, air conditioners, lock systems, infrastructure, and healthcare products. Thorough testing of these devices is crucial to ensure their connectivity, performance, usability, and security. Gartner estimates project that the number of IoT devices in operation will surpass 20 billion by 2026, further driving the growth of the IoT testing market.

The surge in mobile connections is anticipated to be a key driver for the expansion of the IoT testing market. Mobile connections involve the interaction between a mobile device and a cell tower, facilitating the device's access to the internet and other mobile network services. These connections play a vital role in IP testing, adapting to specific test requirements. As of February 2023, Uswitch Limited reports that there were 71.8 million mobile connections in the UK, reflecting a 3.8% increase (approximately 2.6 million) from 2021. Moreover, with 95% of the UK's 68.3 million population expected to own a smartphone by 2025, the rising number of mobile connections is poised to drive the growth of the IoT testing market.

The IoT testing market faces a hindrance in the form of the absence of uniform standards for privacy and security. This lack of standardized norms poses a barrier to the market's growth, especially concerning the storage of vast user data on IoT devices, which remains susceptible to hacking. Presently, there are no established standards to monitor devices and interfaces for security purposes. A Forbes survey revealed that 98% of respondents anticipate an increase in security issues with the rapid growth in the number of IoT devices. Furthermore, a significant incident involved the FDA recalling half a million RF-enabled pacemakers of St Jude Medical due to reported security concerns. The absence of regulatory standards not only jeopardizes user security but also restrains the adoption of IoT-enabled devices, thereby negatively impacting the IoT testing market.

The prevailing trend in the IoT testing market is the adoption of virtualization for IoT test automation. Virtualization addresses challenges encountered in traditional testing approaches, including scalability issues for connected devices, maintenance difficulties, problems in unit-level code checking, and issues related to high-performance deliverables. By simulating hardware and software, virtualization aligns dependencies with real behavior, providing accurate test results, expediting testing time, and reducing efforts. Components such as sensor, API, and service virtualization play distinct roles in this context. An illustrative example is Ericsson's automation test, which involved 879 devices such as window sensors, lights, and occupancy sensors, demonstrating Bluetooth mesh capabilities under a system-level simulator.

Leading companies in the IoT testing market are actively innovating with technologies such as Executive Risk View to enhance their market profitability. Executive Risk View is a solution designed to standardize risk scoring for both cloud and on-premises environments. Rapid7 Inc., a US-based software company, introduced Executive Risk View in July 2023 as part of its Cloud Risk Complete offering. This solution addresses the evolving risk management landscape in hybrid environments by providing security leaders with a comprehensive and contextual view. It enables them to monitor overall risk across cloud and on-premises assets, enhancing their understanding of organizational risk status and trends.

In February 2021, Cognizant, a U.S.-based information technology company, successfully acquired Magenic Technologies for an undisclosed sum. This acquisition played a crucial role in Cognizant's strategic initiative to strengthen its digital engineering capabilities and reinforce its global software product engineering network. Magenic Technologies, the acquired entity, is a U.S.-based software development company.

Major companies operating in the iot testing market report are AT&T Inc., Huawei Technologies Co. Ltd., Siemens AG, Intel Corporation, International Business Machines Corporation, Cisco Systems Inc., Verizon Enterprises Solutions LLC, HP Enterprise Company LLC, Infineon Technologies AG, Fortinet Inc., Symantec Corporation, Gemalto NV, ARM Holdings PLC, Check Point Software Technologies Ltd., PTC Inc., Alcatel-Lucent SA, Forgerock Inc., Trustwave Holdings Inc., NSIDE Secure Inc., Allot Communications Ltd., Armis Inc., Sophos Group PLC, Broadcom Inc., Wurldtech Security Inc., Centri Security Inc., SecuriThings, Mocana Corporation, Newsky Security Inc., Axeda Machine Cloud LLC, NETCOM On-Line Communication Services Inc., Palo Alto Networks Inc., Rapid7 Inc., SimpliSafe Inc., Cradlepoint Inc., SonicWall Inc., Medigate Corporation, CyberMDX Healthcare Cybersecurity, Entrust Datacard Corporation, Microsoft Corporation, Amazon Web Services, Google LLC, Ericsson AB, Thales Group, Atos SE. The Asia-Pacific was the largest region in the IoT testing market in 2023. Asia-Pacific is expected to be the fastest-growing region in the global iot testing market share report during the forecast period. The regions covered in the iot testing market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

Key types of IoT testing include functional, usability, security, compatibility, performance, and network testing. Functional testing verifies software against specified requirements by testing each function, comparing inputs and outputs. IoT testing employs software and hardware tools for devices such as connected cars, smart appliances, energy meters, wearables, and healthcare devices.

The iot testing market research report is one of a series of new reports that provides iot testing market statistics, including IoT industry global market size, regional shares, competitors with a iot testing market share, detailed iot testing market segments, market trends and opportunities, and any further data you may need to thrive in the IoT industry. This iot testing market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The countries covered in the iot testing market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The IoT (Internet of Things) testing market includes revenues earned by entities by offering testing services for IoT, which include usability, security, connectivity, performance, regulatory testing, and others. IoT is a system of connected devices that can communicate and interact with each other and can be accessed through the internet. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.