The Internet of Things refers to the network of physical objects which are embedded with software, electronics, network connectivity and sensors which enable the objects to exchange and collect data. Internet of Things is defined as an invisible and intelligent network of things that communicate indirectly or directly with each other. The internet is used to facilitate experience and efficiency. Internet of Things enable the communication between the physical objects and other Internet-enabled systems and devices. In addition, technological advancement in the field of healthcare, government initiatives for the expansion of Internet of Things and need to increase efficiency and cost reduction are the major factors that are driving the Internet of Things market globally. However, security risk and over-reliance on technology are posing challenges to the growth of the Internet of Things market.
The global Internet of Things market is segmented on the basis of technology into: ZigBee, Bluetooth low energy (BLE), near field communication (NFC), Wi-Fi and radio frequency identification (RFID). Wi-Fi technology led the global Internet of Things market in 2014. Key growth factors driving the Wi-Fi technology market owing to its wide usage across several industries such as campuses, schools, office buildings, lodging and residential homes among others. Wi-Fi can provide secure connection with software-defined networking by scanning and securing the devices at network entry point.
By application, global Internet of Things market is divided into: industrial, automotive, consumer electronics, retail, healthcare and others (including energy and utilities, and entertainment). As of 2014, industrial sector was the largest contributor in the global Internet of Things market. The potential for cyber physical systems to improve productivity in the supply chain and production process are increasing the demand for Internet of Things. Healthcare and consumer electronics sectors are expected to be the fastest growing applications in the Internet of Things market globally.
By geography, as of 2014, North America led the global Internet of Things market, accounting for 38.6% of the overall market. The rapid growth of industrial, automotive and healthcare industries is the major factor driving the growth of Internet of Things in North America. Europe held the second largest market share and the demand for Internet of Things market is expected to increase during the forecast period in the region. The market in Europe is primarily driven by government regulation supporting the growth of Internet of Things. The strong regulations in place will ensure the effective operability of the Internet of Things concept in various application areas. The automotive industry is expected to contribute a large share in Europe. Asia Pacific is expected to be the fastest growing region throughout the forecast period.