Consumer IoT Market By Component (Processor, Hardware, Software, Services, Others), Connectivity Technology (Wired and Wireless) Application (Consumer Electronics, Healthcare, Home Automation, Wearable Devices, and Automotive), and Region - Market Perspective, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecast for 2023 – 2030
Market Perspective
The global Consumer IoT Market size was valued at USD 75.10 billion in 2022 and is anticipated to grow to around USD 193.58 billion by 2030 at a CAGR of around 12.71% between 2023 and 2030.
The Internet of Things (IoT) has revolutionized consumer lifestyles, prompting companies to integrate sensors and features into their products to enhance user experience, resource management, and product control. Advanced home appliances and wearable devices are driving market growth, with IoT technology facilitating data sharing via microcontrollers and wireless technologies. IoT wearable devices have become common in healthcare and sports, monitoring vital signs and enhancing industry statistics.
However, cyber threats pose a security risk, and the need to generate large volumes of data is a key trend. The market is expected to grow due to increasing internet penetration, rising disposable income, and R&D in IoT products and services. Governments and private sectors are boosting internet penetration and infrastructure, leading to the widespread use of voice assistants and smart home devices.
Key Insights
- Based on the component, the services segment held the largest market share
- Based on connectivity technology, the wireless segment generated the highest revenue
- Based on network infrastructure, the storage segment is the most dominating segment
- By application, the consumer electronics segment dominated the market share
- On the basis of region, North America accounted for the largest market share
Growing Trend of Home Automation Flourish the Market Growth
Home automation not only provides convenience but also ensures the safety and security of homes. It minimizes human effort, optimizes energy consumption, and saves time. A robust automation system designed to control and monitor home appliances can be easily accessed through an Android phone or tablet. With the increasing prevalence of smart technologies in consumer devices such as smart hubs, DIY home security cameras, and voice-activated speakers, consumers are seeking seamless integration of these devices with other products to create a connected home ecosystem.
However, to ensure the scalability, interoperability, connectivity, compatibility, and security of devices and networks, it is imperative to have strong expertise and deep knowledge of connectivity protocols and industry standards. In line with this, the market vendors offer core technologies that provide solutions to connectivity and interoperability issues, thus contributing to an integrated home automation experience and accelerating market growth.
The emergence of the 5G Network is Driving the Market Growth
The emergence of 5G networks is a game-changer in the consumer IoT market, offering improved reliability and performance. With the combination of IoT and 5G, medical devices, wearables, smartphones, and vehicles are set to benefit from faster and more reliable connectivity. The development of 5G-enabled IoT systems is poised to accelerate the growth of smart cities and connected vehicle networks, boost manufacturing companies, and streamline healthcare operations.
The adoption of 5G has gained significant traction in recent years, and 5G-enabled smartphones have become increasingly affordable, making it accessible to a wider audience. Furthermore, significant operator investments in 5G technology, spectrum, and infrastructure, as well as global standards implementation, are helping to drive growth and increase market interest in consumer IoT. As per estimates, the number of connected devices is set to grow from 700 million to 3.2 billion by 2023, underlining the potential for consumer IoT growth. The future is bright for connected devices, powered by the speed and efficiency of 5G networks.
Concerns Regarding Data Breach and Privacy of Data Pose as a Challenge for the Market
Data breaches and privacy concerns pose a significant challenge to the growth of the Internet of Things (IoT) in the consumer electronics industry. Consumers are increasingly worried about the privacy risks associated with IoT devices and the potential energy consumption of connected devices. The need for regular system updates to address new vulnerabilities is also a pressing issue. As the use of digital technologies becomes more widespread, the risk of cyber-attacks also increases, necessitating robust security measures to safeguard devices.
The lack of proper security measures and the fear of data breaches are hindering market growth. To address these concerns, the industry players are prioritizing the development of secure IoT devices and adopting best practices to safeguard data privacy. They are also emphasizing more on consumers with assurance that their personal data is safe and secure, and adequate measures are in place to address any vulnerabilities.
Recent Developments
In June 2022: Freeway AG received an investment of USD 3.5 million to expand the market share in the industrial and consumer IoT connectivity subscription business. The company is significantly strengthening all functional units and providing customers with the tools to monetize IoT subscriptions and mobile data contracts as part of their connected products and services.
In March 2021: Pepper IoT and Firedome collaborated to secure millions of consumer IoT devices which brings cybersecurity, video, and privacy capabilities to everyday consumer devices in the home. The collaboration aims to provide distributors and brands with IoT comfort, knowing their customers have high privacy and cybersecurity protections.
Segmentation Analysis
Based on the component, the consumer IoT market is segmented into processors, hardware, software, services, and others. The services segment is dominating the market, driven by increased demand for solutions that encourage consumers to use IoT tools. Service providers offer full-featured software solutions for consumer IoT, including project design, testing, and deployment. They also provide consulting services such as IoT technology stack, architecture design, software audit, and more.
Based on connectivity technology, the market is bifurcated into wired and wireless. The wireless segment is expected to dominate as it provides better network scalability. Wireless connections require no hardware installation and can be easily expanded without considering hardware barriers. Wireless sensors consist of nodes that can be expanded by adding additional nodes as needed. In addition, they are cost-effective due to the current development of wireless technology and the increase in the number of companies.
Based on application, the market is classified as consumer electronics, healthcare, automotive, home automation, and others. The consumer electronics segment is the most dominant segment due to the growing desire of consumers to integrate smart consumer electronics devices into their living spaces. The emergence of technologies such as sensors, digital assistants, advanced networks, and cloud computing has enabled home automation in everyday life.
North America is Dominating the Market Share Due to the Growing Prevalence of Chronic Diseases and Increasing Health Awareness among Diabetic Patients
North America is a dominant player in the global consumer IoT market, primarily driven by the growing demand for fitness trackers and increasing health awareness among diabetic patients. The region's strong infrastructure and the rapid adoption of smart connected devices have further fueled the market growth. Additionally, ongoing technological breakthroughs and the increasing demand for digital technologies in the United States and Canada have contributed significantly to the market's expansion. For instance, in 2022, Cisco says U.S. and Canada will have the highest average number of Fitbit devices and connections per capita. According to a poll by ValuePenguin of approximately 1,500 users, 45% of Americans already own smartwatches like Apple Watches and Fitbits, and 69% are willing to do so in order to receive health insurance discounts in 2022.
However, as more companies adopt cloud services, they are becoming increasingly concerned about the security of their data. To address these concerns, businesses are adopting additional cloud security layers and solutions to manage cloud workload protection. The report identifies the United States and Canada as the two key regions in the market, with the United States holding the largest market share and Canada exhibiting the fastest growth. This growth is being driven by the high risks associated with new applications of cloud-based data security, which is a significant factor in the overall expansion of the market.
Asia Pacific is the Fastest Growing Market Owing Rapid Adoption of Innovative Home Solutions
The Asia Pacific region is witnessing the fastest growth in the consumer IoT market, primarily driven by the higher adoption of innovative home solutions. The growth is being supported by increasing internet penetration, the adoption of cloud services among small and medium-sized businesses, and government policies that encourage digitization and innovative urban development.
The regional market's growth is being fueled by the booming electronics market, especially in China and India. Additionally, the adoption of high-speed network technologies has been a significant driving force in the market. The proliferation of interest in the region from international players has also contributed to market growth across the region. This growth is being fueled by the rising popularity of various IoT devices such as voice assistants, smart lighting, smart thermostats, smart locks, security cameras, and smart doors among consumers.
Competitive Landscape
- Amazon Web Services, Inc.
- AT&T
- Cisco Systems, Inc.
- FIREDOME
- Freeway
- IBM
- Intel Corporation
- Samsung
- Schneider Electric
- Texas Instruments Incorporated
- L&T Technology Services Limited
The global consumer IoT market is segmented as follows:
By Component
- Processor
- Hardware
- Software
- Services
- Others
By Connectivity Technology
- Wired
- Wireless
By Network Infrastructure
- Server
- Storage
- Ethernet Switch and Routing
- Gateway
By Application
- Consumer Electronics
- Healthcare
- Automotive
- Home Automation
- Others
By Region
- North America
- The U.S.
- Canada
- Mexico
- Europe
- France
- The UK
- Spain
- Germany
- Italy
- Nordic countries
- Denmark
- Finland
- Iceland
- Sweden
- Norway
- Benelux Reunion
- Belgium
- The Netherlands
- Luxembourg
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- New Zealand
- Australia
- South Korea
- Southeast Asia
- Indonesia
- Thailand
- Malaysia
- Singapore
- Rest of Southeast Asia
- Rest of Asia Pacific
- The Middle East & Africa
- Saudi Arabia
- UAE
- Egypt
- Kuwait
- South Africa
- Rest of the Middle East & Africa
- Latin America
- Brazil
- Argentina
- Rest of Latin America
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Consumer IoT Market By Component
- February-2023
- 148
- Global
- information-technology-communication-iot
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