IoT Device Management Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

IoT Device Management Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The IoT Device Management Market is expected to register a CAGR of 28.7% over the forecast period 2021 - 2026. The IoT device management market encompasses Connected Device provisioning, administration, monitoring, and diagnostics necessary for trouble replication and corrective measures. The overall IoT device management market is driven by a few key factors such as overall growth of IoT networks and systems, growing concerns over network security, growing need to monitor the health (on/off condition, power, connectivity, etc.) of IoT devices and the deployment of 5G networks and its support for massive IoT, coupled with Multi-access Edge Computing (MEC). Besides, IoT device management systems enable the collection and analysis of data, which is another factor anticipated to fuel the growth of the target market.

Key Highlights

• Owing to the expanding adoption of smartphones and mobile devices, coupled with the increasing penetration of the internet, the evolution of IoT device management has witnessed immense growth in recent years. The growth of IoT and connected devices is majorly driven by emerging applications and business models supported by falling device costs and standardization. According to Ericsson’s mobility report, out of the projected 29 billion connected devices by 2022, 18 billion are anticipated to be related to IoT.
• Moreover, Industry 4.0 is transforming industries, from having legacy systems to smart components and smart machines, to facilitate digital factories and the development of an ecosystem of connected enterprises and plants. Industry 4.0 has prompted OEMs to adopt IoT devices across their operations. Anticipating the increased adoption of IoT devices and digital transformation across industry verticals, the European Commission concluded that the value of IoT in Europe itself is anticipated to exceed EUR 1 trillion in 2020, thus encouraging the market to prosper.
• With a rising number of connected devices in the IoT ecosystem, emerging applications, and business models due to IoT have contributed significantly to the growth of IoT device management solutions and services. According to a research by Stanford University and Avast, 66% of homes in North America have at least one IoT device, suggesting that the average household across the globe, would have an average of nine devices by 2022, and nearly half (48%) of total devices and connections will be video capable. Hence, with the growing adoption of IoT devices, the need for IoT device management is expected to increase over the forecast period.
• However, exposure of confidential information concerning the privacy concerns, real-time complexity, dynamic environment, and lack of compatibility and connectivity along with the absence of uniform IoT standards for interoperability is a crucial challenge for the market. The global supply chain is undergoing a level of disruption.
• Additionallyowing to the COVID-19 pandemic, retail, healthcare, fleet management, heavy transport utilities, transportation & logistics, fixed assets, vehicles/equipment, and digital signage are the hardest hit IoT applications. The Internet of Things (IoT) will be fundamental to the long-term recovery plans of the post-COVID-19 economy globally. However, some facets of the IoT itself will be negatively impacted in the short term. However, with no fundamental change to their desirability and utility, they will return to expected growth in subsequent years.

Key Market TrendsRetail to Have a Major Share in the IoT Device Management Market

• Smart devices and IoT in retail aid retailers improve the customer experience and drive more conversions, changing the day-to-day store operations. Energy management, in-store navigation, theft prevention, and customer engagement are a few of the advantages of utilizing IoT in the retail industry.
• IoT in retail and connected technologies are taking the retail industry by storm. According to eInfochips (an Arrow company), 96% of retailers are ready to make adjustments required to implement the Internet of Things in their storehouses.
• Energy consumption is a significant cost-consuming factor for retail businesses, be it in refrigeration, heating, air conditioning, lighting, etc. Utilizing these energy sources efficiently can bring cost savings of up to 20% per year, according to eInfochips. IoT-enabled smart devices can help solve problems of energy management and conservation.
• With IoT, retailers will be ready to increase sales and allow the workforce to act in a way that will help enhance customer experience and manage store inventory effectively. Verizon's report says that 77% of retailers strongly believe that IoT solutions can significantly improve customer experience.
• Numerous IoT-based platforms can log, monitor, and beep alarms or alert the in-store personnel about temperature, gas leakage, electricity breakdowns, energy usage, heating, etc., with the help of integrated sensors. Utilizing these smart energy management devices, store owners can communicate with the controllers of refrigerators and retrieve prioritized information with sensors' help.
• The offense of shoplifting in the retail industry is growing day-by-day because retailers fail to give sufficient attention to shoplifters. As per the National Association for Shoplifting Prevention (NASP), more than USD 25 million worth of merchandise gets stolen from retail shops each day.
• According to Wipro’s State of Cybersecurity Report 2019, the consumer and retail sectors are being targeted at a higher frequency than other industries. The report further adds, at least 73% of the organizations are expected to lose revenue in case of an attack, due to the non-availability of services at critical times.
• The increased attacks and its nature becoming malevolent have pushed for the market end-users to adopt these solutions to mitigate these risks and have created an increasing demand, owing to the evolving nature of attacks.

North America to Hold a Dominant Position in the Market

• The significant factors for the growth of the IoT Device Management market in the region are the high adoption of advanced technologies, increasing cyberattacks, and a growing number of connected devices in the region. North America is one of the dominant areas for IoT deployment. Other factors include the growth in digitalization and IoT security spending in the region.
• As per the researchers at Stanford University and Avast, North American homes have the largest density of internet of things (IoT) devices globally. According to the study, prominently, 66% of households in North America own at least one IoT device. Additionally, 25% of North American homes boast more than two devices.
• Smart technologies continue to spread roots in the industrial sphere. In this region, most of the factories are already fitted with modern machines and technology, and it will be easier for the companies to switch over to smart manufacturing compared to staying with traditional forms of manufacturing.
• IoT and smart devices are already growing the performance metrics of major US-based firms, covering routine management issues and enhancing their productivity by 40-60%, according to BBVA Group. In addition to that, the region homes some players in the IIoT market, which are primarily tech giants and international industrial vendors like Cisco, GE, Oracle, IBM, and Microsoft, fueling the growth of the IoT Device Management market.
• With several consumers increasingly embracing the smart home environment in the United States, the possibility of security and privacy hazards through exploitation by malicious hackers are also increasing. In the United States, more than 8 and 10, home and office routers, respectively, were vulnerable to hacking, according to the 2018 study by the American Consumer Institute. All such factors are contributing majorly to the growth of the IoT managed devices market in the region.
• Furthermore, the growing adoption of IoT in the manufacturing sector in the region is boosting the adoption of IoT security solutions, thereby positively impacting the market’s growth.

Competitive Landscape

The IoT Device Management Market is moderately competitive. The widespread use of IoT across industry verticals has resulted in the boom in the number of opportunities that the industry offers. Though dominated by a few significant players in the market as of now, the market is expected to witness the entry of several players as the depth of IoT applications across industries increases. The majority of vendors are participating in various marketing strategies to expand their market share. The vendors available in the market are competing on price, quality, brand, and product & service differentiation, and also, the acquisition of small players is happening to ensure an optimum position in the IoT Device management services globally.

• March 2020 - Azure IoT from Microsoft, introduced seamless integration with Cisco IoT. This partnership between Cisco and Azure IoT is expected to simplify customer deployments. Customers with this service integration can securely connect their assets, and simply ingest and send IoT data to the cloud. Cisco IoT Gateways with this now will be pre-integrated to take advantage of the latest in cloud technology from Azure.
• Feb 2020 - Smith Micro Software, Inc. announced that it acquired the operator business of Circle Media Labs Inc. This newly acquired technology is expected to further enhance Smith Micro’s SafePath Connected Life Platform, providing a comprehensive connected life experience for Family Location and Parental Controls, IoT, and Home under a common experience.
• Oct 2019 - Advantech officially opened its new Japan Service Center located in Fukuoka Prefecture. The Advantech Japan Service center with it embraced OMRON Nohgata’s quality of excellence, own fully enough expandable size of its warehouse and see production capacity nearly tripled, helping Advantech drive regional growth and meet customers’ growing Industry 4.0 needs through “Configured Order to Service (CTOS)”.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned
 
Microsoft Corporation
International Business Management (IBM) Corporation
Smith Micro Software, Inc.
Advantech Co., Ltd.
Bosch Software Innovations GmbH
Amplia Soluciones S.L.
Aeris Communication, Inc.
PTC Incorporation
Oracle Corporation
Smith Micro Software, Inc.
Telit Communications PLC
Cumulocity GmbH
Enhanced Telecommunications Inc.
Zentri Inc.

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