The global IoT communication protocol market size is likely to reach USD 24.6 billion in 2032. It stood at a valuation of around USD 15.9 billion in 2022. It is projected to witness a CAGR of 4.5% in the assessment period from 2022 to 2032.
IoT communication protocols are being integrated with consumer electronics as they enable connectivity and communication between devices. These further allow for the creation of smart and connected products.
These protocols provide a standardized framework for data exchange and enable interoperability between devices from different manufacturers. They help in ensuring seamless communication and data transfer. Wi-Fi is widely used in smart home devices, allowing them to connect to a home network and the internet.
Bluetooth is also commonly used in wearable devices and audio devices. IoT communication protocols in consumer electronics enable features such as remote monitoring & control, real-time data analysis & feedback, and enhanced interoperability between devices.
With increasing adoption of IoT devices in consumer electronics, standardization and interoperability through IoT communication protocols are becoming increasingly important. These are allowing for seamless communication and data exchange between devices, as well as enhancing user experience.
Growth of edge computing, which involves processing IoT data at the edge of networks, is set to drive demand for IoT communication protocols that can support edge devices. Edge computing enables real-time data processing and reduces the amount of data that needs to be sent to the cloud. It can improve device performance and reduce bandwidth requirements.
IoT adoption has been significant around the world in recent years. In 2019, there were around 8.6 billion IoT devices in the world. As adoption of IoT devices around the world grew rapidly, number of IoT devices in 2022 reached around 12.14 billion devices.
It is projected that the number of IoT devices around the world would surge to around 23.14 billion by 2030. With rising number of IoT devices in the world, IoT communication protocol demand is expected to increase during the assessment period.
| Attributes | Key Insights |
|---|---|
| IoT Communication Protocol Market Estimated Size (2022E) | USD 15.9 billion |
| Projected Market Valuation (2032F) | USD 24.6 billion |
| Value-based CAGR (2022 to 2022) | 4.5% |
| United States Value-based CAGR (2022 to 2032) | 3.4% |
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Future Market Insights (FMI), in its latest report, states that the global IoT communication protocol market is projected to witness a CAGR of 4.5% in the next ten years. It exhibited a CAGR of 5.3% in the historical period from 2017 to 2021.
Number of IoT devices has been rapidly increasing across various industries, including healthcare, manufacturing, transportation, and smart homes. These devices need a communication protocol to exchange data and interact with each other, leading to a surging demand for IoT communication protocols.
Several IoT devices are battery-powered, and they require a communication protocol that consumes minimal power to extend their battery life. IoT communication protocols are designed to minimize energy consumption, making them an ideal choice for battery-powered devices.
IoT devices are also vulnerable to cyber-attacks, and the security of these devices and their data is critical. IoT communication protocols offer various security features that can protect IoT devices and data from unauthorized access and cyber-attacks.
As the number of IoT devices from different manufacturers expands, need for interoperability between devices and systems becomes increasingly important. IoT communication protocols provide a common language for devices and systems to communicate, ensuring seamless integration and interoperability.
IoT Device Protocols to Exhibit High Demand with Need for Efficiency and Reliability in the United States
The United States IoT communication protocol market is expected to be worth USD 7.5 billion by 2032. It is projected to create an absolute dollar growth of USD 2.1 billion till 2032.
The United States market exhibited steady growth at a CAGR of 3.9% from 2017 to 2021. The country is anticipated to broaden at a CAGR of 3.4% from 2022 to 2032.
As the cost of IoT devices continues to decrease, there is a growing demand for low-cost communication protocols that can transmit data efficiently and reliably. Different industries in the United States have unique requirements for their IoT applications.
A few of these include low latency for real-time monitoring or high reliability for critical infrastructure. Industry-specific communication protocols can address these needs and improve performance.
High Demand for Fitness Trackers in the United Kingdom to Propel Need for IoT Standards and Protocols
The United Kingdom IoT communication protocol industry is anticipated to reach a valuation of USD 1.2 billion in 2032. It is likely to create an absolute dollar growth opportunity of USD 360.6 million in the next ten years.
The United Kingdom experienced a CAGR of 4.2% between 2017 and 2021. It is projected that this growth will continue, with a CAGR of 3.7% expected in the forecast period.
High demand for wearable devices in the country is projected to boost IoT communication protocol sales by 2032. These devices include smartwatches and fitness trackers.
These require reliable and secure connectivity to communicate with other devices such as smartphones or other wearables. IoT communication protocols provide the necessary connectivity for these devices to function effectively.
As with other IoT devices, there are numerous proprietary communication protocols used in wearable technology. Need for standardization is essential to ensure interoperability between different devices and platforms.
Wearable devices are increasingly being used in healthcare applications across the United Kingdom to monitor patient health and improve clinical outcomes. IoT communication protocols that support remote monitoring and secure data transmission are critical for ensuring patient privacy and data security.
High Demand for Smart Homes in China to Fuel Sales of IoT Standard Protocols
China IoT communication protocol market is likely to cross a valuation of USD 2.1 billion by 2032. It is set to create an incremental opportunity of USD 867.5 million till 2032.
The China market showcased moderate growth at a CAGR of 6.8% from 2017 to 2021. It is expected to broaden at a CAGR of 5.4% from 2022 to 2032.
Adoption of smart home devices such as smart thermostats, lighting systems, security systems, and appliances, is growing rapidly in China. These devices require reliable and secure connectivity to communicate with each other and with the cloud. IoT communication protocols provide the necessary connectivity for these devices to function effectively.
With a wide range of smart home devices from different manufacturers, there is a need for standardization and interoperability between different devices and platforms. IoT communication protocols provide the necessary standardization to ensure smooth integration and compatibility between different devices.
Increasing Use of Wi-Fi to Boost Demand for IoT Data Communication Protocols Worldwide
By type, the Wi-Fi segment is projected to witness significant growth through 2032. It exhibited average growth at a CAGR of 5.2% from 2017 to 2021. It is expected to bolster at a CAGR of 4.4% from 2022 to 2032.
Wi-Fi is one of the most commonly used communication protocols for IoT devices due to its widespread availability, high data rates, ease of setup, and low cost. Wi-Fi allows IoT devices to communicate with each other and connect to the internet wirelessly, making it a popular choice for smart homes, smart cities, and industrial IoT applications.
IoT devices that use Wi-Fi generally connect to the local network using the Wi-Fi access point (AP) or router. Wi-Fi AP acts as a communication hub for various devices, allowing them to transmit and receive data wirelessly.
Once connected, these devices can communicate with each other and the internet using the Wi-Fi network. To ensure secure communication between IoT devices and the network, Wi-Fi protected access (WPA) and Wi-Fi protected access II (WPA2) protocols are typically used.
These protocols provide security features such as encryption, authentication, and key management to prevent unauthorized access to the network. One of the leading advantages of using Wi-Fi in IoT communications is the high data rate it provides.
It is hence considered to be suitable for devices that require a lot of bandwidth such as cameras, video doorbells, and smart TVs. Wi-Fi is easy to set up and configure, making it accessible to non-technical users. It is also compatible with a wide range of devices, including smartphones, tablets, and laptops.
Rising Sales of Consumer Electronics Globally to Accelerate Demand for Different Communication Protocols in IoT
Based on application, the consumer electronics segment is projected to lead in terms of the IoT communication protocol market share by 2032. It exhibited a CAGR of 5.0% from 2017 to 2021. It is expected to surge at a decent CAGR of 4.3% from 2022 to 2032.
IoT communication protocols are the backbone of the IoT industry, enabling devices to connect and communicate with each other and the Internet. In consumer electronics, IoT communication protocols play a vital role in facilitating seamless interaction between devices.
It offers new levels of convenience and enhances the user experience. Wi-Fi is a popular communication protocol for consumer electronics devices that require high bandwidth and low latency such as smart TVs, gaming consoles, and home automation systems.
Wi-Fi provides high data rates, as well as easy connectivity to the internet and other devices on the network. Wi-Fi Direct is a variant of Wi-Fi that allows devices to connect to each other without the need for a Wi-Fi network, making it ideal for devices such as smartphones and tablets.
Bluetooth is another widely used communication protocol in consumer electronics devices, including smartphones, smartwatches, wireless headphones, and speakers. Bluetooth provides a short-range connection between devices. It is suitable for low-bandwidth applications, making it ideal for streaming audio and transferring small files.
Z-wave is also a wireless communication protocol used in home automation devices such as thermostats, door locks, and security systems. Z-wave provides reliable connectivity, and is designed to be low-power, making it suitable for battery-powered devices.
Cellular communication protocols such as 4G LTE and 5G, are used in IoT devices that require wide-area connectivity. These include smart city systems, industrial automation, and connected cars. Cellular protocols provide high data rates and reliable connectivity, but they can be expensive and power-hungry.
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Leading IoT communication protocol providers are focusing on developing real-time communication protocols to support IoT applications. These would require fast & reliable data exchange such as industrial automation, smart grid management, and autonomous vehicles.
A few other companies are developing protocols that can be integrated with cloud services. They are aiming to enable remote management, monitoring, and data analysis of IoT devices & systems. They are further developing scalable protocols that can accommodate large numbers of devices and data traffic.
A few recent developments in the IoT communication protocol industry are:
| Attribute | Details |
|---|---|
| Estimated Market Size (2022) | USD 15.9 billion |
| Projected Market Valuation (2032) | USD 24.6 billion |
| Value-based CAGR (2022 to 2032) | 4.5% |
| Forecast Period | 2022 to 2032 |
| Historical Data Available for | 2017 to 2021 |
| Market Analysis | Value (USD billion) |
| Key Regions Covered | North America; Latin America; Europe; South Asia & Pacific; East Asia; and the Middle East & Africa |
| Key Countries Covered | United States, Canada, Germany, United Kingdom, France, Italy, Spain, Russia, China, Japan, South Korea, India, Australia & New Zealand, Gulf Cooperation Council Countries, Türkiye, and South Africa |
| Key Segments Covered | Type, Application, and Region |
| Key Companies Profiled | NXP Semiconductors; STMicroelectronics; Texas Instruments; Mediatek; Synopsys; Microchip; Enocean; Mindtree; Ceva; Telit |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, Market Dynamics and Challenges, and Strategic Growth Initiatives |
The IoT communication protocol market is valued at USD 15.9 billion by the end of 2023.
NXP Semiconductors, STMicroelectronics and Texas Instruments are the leading market players.
The Wi-Fi segment is expected to lead IoT communication protocol market until 2033.
From 2018 to 2022, the IoT communication protocol market registered a 5.3% CAGR.
China’s IoT communication protocol to surge at a CAGR of 5.4% CAGR from 2023 to 2033.
| Market Size (2023) | USD 48,100 million |
|---|---|
| Market Revenue Forecast (2033) | USD 99,441.1 million |
| Market Growth Rate (2023 to 2033) | 7.5% |
| Market Estimated Size (2023) | USD 3.5 billion |
|---|---|
| Projected Market Valuation (2033) | USD 40.5 billion |
| Value-based CAGR% (2023 to 2033) | 27.5% |
| Market Size (2023) | USD 265.2 billion |
|---|---|
| Market Size (2033) | USD 948.6 billion |
| Market CAGR (2023 to 2033) | 14.7% |
| Market Estimated Value (2022) | USD 4.4 Billion |
|---|---|
| Projected Market Size (2032) | USD 39.7 Billion |
| Value-based CAGR (2022 to 2032) | 24.4% |
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IoT Communication Protocol Market
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