The IoT (Internet of Things) sensors market consists of sales of IoT sensors. These IoT sensors are used for industrial, personal or commercial purposes.
The global IoT sensors market was valued at about $5.39 billion in 2018 and is expected to grow to $16.61 billion at a CAGR of 32.5% through 2022.
North America was the largest region in the IoT sensors market in 2018. This region is expected to remain the largest during the next five years.
The rising number of people living in urban areas is expected to drive the market for IoT sensors. As urban areas expand, IoT devices and related services will play an important role in catering to the rising urban population. According to the United Nations Department of Economic and Social Affairs, 55% of the world’s population currently lives in urban areas and this percentage is expected to go up to 68% by 2050. IoT technology is being widely used in smart buildings, connected transportation and connected infrastructure. IoT technology is also being used to collect real-time data such as voltage, current, power consumption making energy management more efficient and helping reduce wastage. The increasing urbanization and the rising use of IoT technology in urban infrastructure is driving the market for IoT sensors.
Concerns regarding data security and privacy is acting as a restraint on the IoT sensors market. IoT devices are capable of collecting, storing and analyzing large amounts of personal data which is prone to unethical use. For instance, IoT devices such as Amazon Echo and FitBit collect sensitive private data such as location, audio recordings which can be misused. IoT devices are increasingly becoming prone to ransomware and malware attacks which causes users to lose control of their devices and violation of their private data. According to a survey conducted by Gemalto in 2017, 90% of consumers lack confidence in the security of Internet of Things (IoT) devices. Thus, concerns related to data privacy and lacking consumer confidence in security of IoT devices is acting as a restraint on the IoT sensors market.
Companies are increasingly investing in the development of IoT sensors with cheaper, smarter and advanced technology. As the adoption of IoT devices increases, there is a need to design IoT sensors that are small, cheap and help the device consume less energy. For instance, researchers from the Green IC research group invented a low-cost, no-battery wake-up timer that reduces power consumption of IoT sensor nodes. Also, Texas Instruments uses their ultra-low power MSP 430 MCU to build a smart fault indicator for electric power distribution networks that reduces operating costs and equipment damage.
Manufacturers of IoT sensors are governed by various regulations related to quality, data safety and protection. For instance, in the USA, the Internet of Things (IoT) Cybersecurity Improvement Act of 2019 aims to increase cybersecurity requirements for IoT devices purchased and used by the US government. The act prohibits the federal government from purchasing any internet-connected devices that do not to comply with the recommendations of the National Institute of Standards and Technology (NIST). The NIST lays guidelines for the secure development, identity management, patching, and configuration management for IoT devices. The act also mandates companies and vendors providing IoT devices to the U.S government to adopt coordinated vulnerability disclosure policies, in case a vulnerability is uncovered.
Major players in the market are Stmicroelectronics N.V, Texas Instruments Incorporated, Te Connectivity Ltd, Broadcom Limited and NXP Semiconductors N.V.