We bid adieu to 2022 on a high, as the global spending on IoT reportedly surpassed USD 1 trillion. As we start off the new year, we are expecting some big changes. But before that happens, let us take a look at what the last year looked like for Internet of Things.
What to expect: In this article, we'll take a look at the most important IoT statistics for 2023. We'll explore the expected growth of the IoT market and the number of devices that will be in use. Also, we will examine the top industries and countries for IoT adoption, as well as the most popular use cases for these devices.
IoT in 2022
IoT growth continued at a rapid pace in 2022, with over 14.4 billion IoT devices in use. Here are some preliminary facts and stats from the past year:
- The top 5 industries for IoT were healthcare, transportation, energy, manufacturing, and construction.
- The top 5 countries for IoT were the United States, China, Japan, South Korea, and Germany.
- The top 5 use cases for IoT are asset tracking, predictive maintenance, condition monitoring, quality control, and supply chain management.
- Supply chain was the most accelerated IoT vertical in 2022.
- There were no major IoT security breaches in 2022, according to IoT Analytics.
- Google, IBM, SAP, and Ericsson discontinued their IoT verticals.
- The European Union published the Cyber Resilience Act to standardize the manufacturing and security of digital products.
- Connectivity Standards Alliance released Matter 1.0, their home automation standard.
Several amazing things happened this year, and more are to follow. IoT devices are becoming increasingly common in every industry and country around the world. This growth is being driven by the benefits that these devices can offer businesses and consumers alike.
In healthcare, for example, IoT devices can be used to track patients' vital signs and provide early warning of potential health problems. In transportation, IoT devices can be used to monitor traffic conditions and optimize routes to reduce travel times.
Important IoT Statistics worth note for 2023
2023 is not just another revolution around the sun, we are looking at some major tech developments across industries. The new standards and developments that are coming up in IoT alone are mind-boggling. So it is amazing to witness the data that promises more.
The global IoT market is expected to reach $1.1 trillion this year(2023)
The global IoT market is expected to reach $1.1 trillion in 2023, according to a new study by International Data Corporation (IDC).
IoT already has a major impact on these industries, with asset tracking, predictive maintenance, condition monitoring, quality control, and supply chain management being just some of the use cases that are benefiting from the technology.
So what does this mean for businesses? If you're not already using IoT technology in your business, now is the time to start investigating how it can benefit you. The potential applications for IoT are almost limitless, so there's sure to be a use case that can help your business improve its efficiency or bottom line.
IoT devices worldwide will cross the 15 billion mark this year
IoT devices are expected to cross 15 billion this year, which is a 55% increase from 2020. Additionally, it is expected that these devices will generate 79.4 zettabytes (ZB) of data in 2025. The proliferation of IoT devices has been driven by the falling cost of sensors and connectivity, as well as the increasing processing power of edge devices.
The demand for IoT devices is being driven by the need for better data collection and analysis across industries.
The top 5 industries for IoT are manufacturing, healthcare, transportation, energy, and construction
IoT devices are becoming increasingly prevalent due to their many benefits, with growth expected to continue at a rapid pace in the coming years.
The top 5 industries for IoT are healthcare, transportation, energy, manufacturing, and construction.
The top 5 countries for IoT are the United States, China, Japan, South Korea, and Germany
As of 2023, the United States, China, Japan, South Korea, and Germany will be the top 5 countries for IoT. These countries have the highest number of IoT devices as well as the largest IoT markets. The United States is expected to have the most growth in IoT, followed by China and Japan. South Korea and Germany are expected to see more moderate growth.
The United States has the largest number of IoT devices, with 8.4 billion devices expected to be in use by 2023. The country also has the largest IoT market, which is expected to reach $1 trillion by 2025. The United States is expected to see strong growth in all industries that adopt IoT devices. However, the healthcare, transportation, and construction industries are expected to be the major contributors to this growth.
China is expected to have the second-largest number of IoT devices, with 6.4 billion devices in use by 2023. The country's IoT market is expected to reach $847 billion by 2025. China's transportation and manufacturing industries are expected to be the major contributors to its IoT growth.
Japan is expected to have 3 billion IoT devices in use by 2023. The country's IoT market is expected to reach $642 billion by 2025. Japan's transportation and healthcare industries are expected to be the major contributors to its IoT growth.
South Korea is expected to have 2.6 billion IoT devices in use by 2023. The country's IoT market is expected to reach $557 billion by 2025. South Korea's transportation and energy industries are expected to be the major contributors to its IoT growth.
Germany is expected to have 2.5 billion IoT devices in use by 2023. The country's IoT market is expected to reach $545 billion by 2025
The top 5 use cases for IoT are asset tracking, predictive maintenance, condition monitoring, quality control, and supply chain management
IoT devices offer a variety of benefits, making them useful for a wide range of applications. Here are the five most important ways that IoT can be used in businesses and organizations:
Asset Tracking: IoT devices can be used to track the location of assets, such as vehicles, equipment, and inventory. This information can be used to improve asset management and prevent loss.
Predictive Maintenance: IoT devices can be used to monitor the condition of assets and predict when they will need maintenance. This information can be used to improve efficiency and reduce downtime.
Condition Monitoring: IoT devices can be used to monitor the condition of assets in real time. This information can be used to improve decision-making and prevent problems.
Quality Control: IoT devices can be used to monitor the quality of products and services. This information can be used to improve quality control and ensure compliance with standards.
Supply Chain Management: IoT devices can be used to track the movement of goods through the supply chain. This information can be used to improve logistics and prevent delays.
5G will continue to drive the growth of IoT with 5G cellular subscriptions reaching 1.9 billion by 2024.
5G is the next generation of cellular technology, and it will provide faster speeds and lower latency than 4G LTE. This will enable new applications and use cases for IoT, such as connected cars and augmented reality.
5G cellular subscriptions are expected to reach 1.9 billion by 2024, according to a report from Ericsson.
5G will also help to drive the growth of IoT by reducing the cost of connecting devices to the internet and by increasing the battery life of IoT devices.
Over 10% of VC funding is IoT-related
In 2019, $134.6 billion was invested in IoT-related startups. IoT is still one of the most well-funded industries by VCs.
According to Pitchbook, Global IoT startups brought in $2.8 billion in venture funding in Q2—a more than 57% decline from the record first quarter and the lowest deal value since Q4 2019.
The top 5 countries for VC funding for IoT are the United States, China, United Kingdom, India, and Germany. Whereas, the top 5 industries for VC funding for IoT are healthcare, transportation, manufacturing, retail, and energy.
The number of IoT platforms more than doubled in the last four years
Publicly known IoT platform providers have increased from 250 in 2015 to 620 in 2019. The number of IoT platforms is expected to continue to grow in the coming years. The increase in IoT platforms is due to the growing demand for IoT solutions such as device management, data management, security, and analytics.
IoT platforms provide a way for businesses to connect their devices and sensors to the internet and to each other while tracking the device health and function.
The chip shortage will continue to slow down IoT expansion for another year.
IoT devices require chips to function and the global chip shortage has been a major obstacle to the growth of IoT.
The world saw a major shortage of semiconductors in recent years due to several factors such as a drought in South Korea, a global pandemic, disruption of supply chain, and other market factors. As semiconductors are used in all IoT devices, this severely derailed the production and overall growth of the industry.
The chip shortage is expected to continue for another year, which will slow down the expansion of IoT.
However, the MCU market is still expected to grow by leaps and bounds in the longer term.
According to ABI Research, the secure MCU market will grow to $2.2 billion by 2026.
Evidently, IoT has been growing at a breakneck speed in the last few years. This growth is expected to continue in 2023 as well.
It is important to consider the effect of a looming recession and a dearth of investments in the coming year, but the overall penetration of the technology is expected to remain the same. Investing in IoT solutions that are cost and time efficient can help you maximize your returns this year.
If you would like to know more about how you can invest smartly in IoT, feel free to reach out to us for a quick chat.