The global IoT communication protocol market size is likely to reach US$ 24.6 billion in 2032. It stood at a valuation of around US$ 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) | US$ 15.9 billion |
| Projected Market Valuation (2032F) | US$ 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.
Principal Consultant
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 US$ 7.5 billion by 2032. It is projected to create an absolute dollar growth of US$ 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 US$ 1.2 billion in 2032. It is likely to create an absolute dollar growth opportunity of US$ 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 US$ 2.1 billion by 2032. It is set to create an incremental opportunity of US$ 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) | US$ 15.9 billion |
| Projected Market Valuation (2032) | US$ 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 (US$ 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 US$ 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.
1. Executive Summary | IoT Communication Protocol Market
1.1. Global Market Outlook
1.2. Demand-side Trends
1.3. Supply-side Trends
1.4. Technology Roadmap Analysis
1.5. Analysis and Recommendations
2. Market Overview
2.1. Market Coverage / Taxonomy
2.2. Market Definition / Scope / Limitations
3. Market Background
3.1. Market Dynamics
3.1.1. Drivers
3.1.2. Restraints
3.1.3. Opportunity
3.1.4. Trends
3.2. Scenario Forecast
3.2.1. Demand in Optimistic Scenario
3.2.2. Demand in Likely Scenario
3.2.3. Demand in Conservative Scenario
3.3. Opportunity Map Analysis
3.4. Investment Feasibility Matrix
3.5. PESTLE and Porter’s Analysis
3.6. Regulatory Landscape
3.6.1. By Key Regions
3.6.2. By Key Countries
3.7. Regional Parent Market Outlook
4. Global Market Analysis 2017 to 2021 and Forecast, 2022 to 2032
4.1. Historical Market Size Value (US$ billion) Analysis, 2017 to 2021
4.2. Current and Future Market Size Value (US$ billion) Projections, 2022 to 2032
4.2.1. Y-o-Y Growth Trend Analysis
4.2.2. Absolute $ Opportunity Analysis
5. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Type
5.1. Introduction / Key Findings
5.2. Historical Market Size Value (US$ billion) Analysis By Type, 2017 to 2021
5.3. Current and Future Market Size Value (US$ billion) Analysis and Forecast By Type, 2022 to 2032
5.3.1. Wi-Fi
5.3.2. Bluetooth
5.3.3. Zigbee
5.3.4. NB-IoT
5.3.5. Others
5.4. Y-o-Y Growth Trend Analysis By Type, 2017 to 2021
5.5. Absolute $ Opportunity Analysis By Type, 2022 to 2032
6. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Application
6.1. Introduction / Key Findings
6.2. Historical Market Size Value (US$ billion) Analysis By Application, 2017 to 2021
6.3. Current and Future Market Size Value (US$ billion) Analysis and Forecast By Application, 2022 to 2032
6.3.1. Consumer Electronics
6.3.2. Automotive & Transportation
6.3.3. Building Automation
6.3.4. Healthcare
6.3.5. Others
6.4. Y-o-Y Growth Trend Analysis By Application, 2017 to 2021
6.5. Absolute $ Opportunity Analysis By Application, 2022 to 2032
7. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Region
7.1. Introduction
7.2. Historical Market Size Value (US$ billion) Analysis By Region, 2017 to 2021
7.3. Current Market Size Value (US$ billion) Analysis and Forecast By Region, 2022 to 2032
7.3.1. North America
7.3.2. Latin America
7.3.3. Europe
7.3.4. Asia Pacific
7.3.5. Middle East and Africa
7.4. Market Attractiveness Analysis By Region
8. North America Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country
8.1. Historical Market Size Value (US$ billion) Trend Analysis By Market Taxonomy, 2017 to 2021
8.2. Market Size Value (US$ billion) Forecast By Market Taxonomy, 2022 to 2032
8.2.1. By Country
8.2.1.1. United States
8.2.1.2. Canada
8.2.2. By Type
8.2.3. By Application
8.3. Market Attractiveness Analysis
8.3.1. By Country
8.3.2. By Type
8.3.3. By Application
8.4. Key Takeaways
9. Latin America Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country
9.1. Historical Market Size Value (US$ billion) Trend Analysis By Market Taxonomy, 2017 to 2021
9.2. Market Size Value (US$ billion) Forecast By Market Taxonomy, 2022 to 2032
9.2.1. By Country
9.2.1.1. Brazil
9.2.1.2. Mexico
9.2.1.3. Rest of Latin America
9.2.2. By Type
9.2.3. By Application
9.3. Market Attractiveness Analysis
9.3.1. By Country
9.3.2. By Type
9.3.3. By Application
9.4. Key Takeaways
10. Europe Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country
10.1. Historical Market Size Value (US$ billion) Trend Analysis By Market Taxonomy, 2017 to 2021
10.2. Market Size Value (US$ billion) Forecast By Market Taxonomy, 2022 to 2032
10.2.1. By Country
10.2.1.1. Germany
10.2.1.2. United Kingdom
10.2.1.3. France
10.2.1.4. Spain
10.2.1.5. Italy
10.2.1.6. Rest of Europe
10.2.2. By Type
10.2.3. By Application
10.3. Market Attractiveness Analysis
10.3.1. By Country
10.3.2. By Type
10.3.3. By Application
10.4. Key Takeaways
11. Asia Pacific Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country
11.1. Historical Market Size Value (US$ billion) Trend Analysis By Market Taxonomy, 2017 to 2021
11.2. Market Size Value (US$ billion) Forecast By Market Taxonomy, 2022 to 2032
11.2.1. By Country
11.2.1.1. China
11.2.1.2. Japan
11.2.1.3. South Korea
11.2.1.4. Singapore
11.2.1.5. Thailand
11.2.1.6. Indonesia
11.2.1.7. Australia
11.2.1.8. New Zealand
11.2.1.9. Rest of Asia Pacific
11.2.2. By Type
11.2.3. By Application
11.3. Market Attractiveness Analysis
11.3.1. By Country
11.3.2. By Type
11.3.3. By Application
11.4. Key Takeaways
12. Middle East and Africa Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country
12.1. Historical Market Size Value (US$ billion) Trend Analysis By Market Taxonomy, 2017 to 2021
12.2. Market Size Value (US$ billion) Forecast By Market Taxonomy, 2022 to 2032
12.2.1. By Country
12.2.1.1. GCC Countries
12.2.1.2. South Africa
12.2.1.3. Israel
12.2.1.4. Rest of Middle East and Africa
12.2.2. By Type
12.2.3. By Application
12.3. Market Attractiveness Analysis
12.3.1. By Country
12.3.2. By Type
12.3.3. By Application
12.4. Key Takeaways
13. Key Countries Market Analysis
13.1. United States
13.1.1. Pricing Analysis
13.1.2. Market Share Analysis, 2021
13.1.2.1. By Type
13.1.2.2. By Application
13.2. Canada
13.2.1. Pricing Analysis
13.2.2. Market Share Analysis, 2021
13.2.2.1. By Type
13.2.2.2. By Application
13.3. Brazil
13.3.1. Pricing Analysis
13.3.2. Market Share Analysis, 2021
13.3.2.1. By Type
13.3.2.2. By Application
13.4. Mexico
13.4.1. Pricing Analysis
13.4.2. Market Share Analysis, 2021
13.4.2.1. By Type
13.4.2.2. By Application
13.5. Germany
13.5.1. Pricing Analysis
13.5.2. Market Share Analysis, 2021
13.5.2.1. By Type
13.5.2.2. By Application
13.6. United Kingdom
13.6.1. Pricing Analysis
13.6.2. Market Share Analysis, 2021
13.6.2.1. By Type
13.6.2.2. By Application
13.7. France
13.7.1. Pricing Analysis
13.7.2. Market Share Analysis, 2021
13.7.2.1. By Type
13.7.2.2. By Application
13.8. Spain
13.8.1. Pricing Analysis
13.8.2. Market Share Analysis, 2021
13.8.2.1. By Type
13.8.2.2. By Application
13.9. Italy
13.9.1. Pricing Analysis
13.9.2. Market Share Analysis, 2021
13.9.2.1. By Type
13.9.2.2. By Application
13.10. China
13.10.1. Pricing Analysis
13.10.2. Market Share Analysis, 2021
13.10.2.1. By Type
13.10.2.2. By Application
13.11. Japan
13.11.1. Pricing Analysis
13.11.2. Market Share Analysis, 2021
13.11.2.1. By Type
13.11.2.2. By Application
13.12. South Korea
13.12.1. Pricing Analysis
13.12.2. Market Share Analysis, 2021
13.12.2.1. By Type
13.12.2.2. By Application
13.13. Singapore
13.13.1. Pricing Analysis
13.13.2. Market Share Analysis, 2021
13.13.2.1. By Type
13.13.2.2. By Application
13.14. Thailand
13.14.1. Pricing Analysis
13.14.2. Market Share Analysis, 2021
13.14.2.1. By Type
13.14.2.2. By Application
13.15. Indonesia
13.15.1. Pricing Analysis
13.15.2. Market Share Analysis, 2021
13.15.2.1. By Type
13.15.2.2. By Application
13.16. Australia
13.16.1. Pricing Analysis
13.16.2. Market Share Analysis, 2021
13.16.2.1. By Type
13.16.2.2. By Application
13.17. New Zealand
13.17.1. Pricing Analysis
13.17.2. Market Share Analysis, 2021
13.17.2.1. By Type
13.17.2.2. By Application
13.18. GCC Countries
13.18.1. Pricing Analysis
13.18.2. Market Share Analysis, 2021
13.18.2.1. By Type
13.18.2.2. By Application
13.19. South Africa
13.19.1. Pricing Analysis
13.19.2. Market Share Analysis, 2021
13.19.2.1. By Type
13.19.2.2. By Application
13.20. Israel
13.20.1. Pricing Analysis
13.20.2. Market Share Analysis, 2021
13.20.2.1. By Type
13.20.2.2. By Application
14. Market Structure Analysis
14.1. Competition Dashboard
14.2. Competition Benchmarking
14.3. Market Share Analysis of Top Players
14.3.1. By Regional
14.3.2. By Type
14.3.3. By Application
15. Competition Analysis
15.1. Competition Deep Dive
15.1.1. NXP Semiconductors
15.1.1.1. Overview
15.1.1.2. Product Portfolio
15.1.1.3. Profitability by Market Segments
15.1.1.4. Sales Footprint
15.1.1.5. Strategy Overview
15.1.1.5.1. Marketing Strategy
15.1.2. STMicroelectronics
15.1.2.1. Overview
15.1.2.2. Product Portfolio
15.1.2.3. Profitability by Market Segments
15.1.2.4. Sales Footprint
15.1.2.5. Strategy Overview
15.1.2.5.1. Marketing Strategy
15.1.3. Texas Instruments
15.1.3.1. Overview
15.1.3.2. Product Portfolio
15.1.3.3. Profitability by Market Segments
15.1.3.4. Sales Footprint
15.1.3.5. Strategy Overview
15.1.3.5.1. Marketing Strategy
15.1.4. Mediatek
15.1.4.1. Overview
15.1.4.2. Product Portfolio
15.1.4.3. Profitability by Market Segments
15.1.4.4. Sales Footprint
15.1.4.5. Strategy Overview
15.1.4.5.1. Marketing Strategy
15.1.5. Synopsys
15.1.5.1. Overview
15.1.5.2. Product Portfolio
15.1.5.3. Profitability by Market Segments
15.1.5.4. Sales Footprint
15.1.5.5. Strategy Overview
15.1.5.5.1. Marketing Strategy
15.1.6. Microchip
15.1.6.1. Overview
15.1.6.2. Product Portfolio
15.1.6.3. Profitability by Market Segments
15.1.6.4. Sales Footprint
15.1.6.5. Strategy Overview
15.1.6.5.1. Marketing Strategy
15.1.7. Enocean
15.1.7.1. Overview
15.1.7.2. Product Portfolio
15.1.7.3. Profitability by Market Segments
15.1.7.4. Sales Footprint
15.1.7.5. Strategy Overview
15.1.7.5.1. Marketing Strategy
15.1.8. Mindtree
15.1.8.1. Overview
15.1.8.2. Product Portfolio
15.1.8.3. Profitability by Market Segments
15.1.8.4. Sales Footprint
15.1.8.5. Strategy Overview
15.1.8.5.1. Marketing Strategy
15.1.9. Ceva,
15.1.9.1. Overview
15.1.9.2. Product Portfolio
15.1.9.3. Profitability by Market Segments
15.1.9.4. Sales Footprint
15.1.9.5. Strategy Overview
15.1.9.5.1. Marketing Strategy
15.1.10. Telit
15.1.10.1. Overview
15.1.10.2. Product Portfolio
15.1.10.3. Profitability by Market Segments
15.1.10.4. Sales Footprint
15.1.10.5. Strategy Overview
15.1.10.5.1. Marketing Strategy
16. Assumptions & Acronyms Used
17. Research Methodology
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IoT Communication Protocol Market
