Future Market Insights (FMI) states that the sales of internet of things (IoT) in product development market in 2022 stood at US$ 35 billion. It is projected to expand at 14.5 % CAGR during the forecast period 2023 to 2033.
The market is set to hold a US$ 155.8 billion valuation by the end of the forecast period. The design and engineering segment of IoT in product development industry is expected to be a significant revenue-generating product. It is projected to propel at a CAGR of over 14.1% from 2023 to 2033.
IoT enables the development of smart and connected products that can communicate with each other, as well as with users and backend systems. These products can collect data, perform analytics operations, and offer enhanced functionalities. For instance, smart home devices, wearable fitness trackers, and connected cars are all products that leverage IoT technology.
IoT devices embedded in products can collect vast amounts of data about their usage, performance, and environmental conditions. This data can be analyzed to gain insights, enabling companies to improve product design. It will help identify maintenance needs, optimize operations, and offer personalized services.
IoT also facilitates remote monitoring and maintenance of products, reducing the need for physical inspections and enabling proactive maintenance. Manufacturers can remotely track product performance, detect anomalies, and address issues before they become critical. This leads to improved product reliability reduce downtime, and enhanced customer satisfaction.
IoT can streamline the product development process by enabling real-time visibility and tracking of goods throughout the supply chain. Connected devices can monitor inventory levels, track shipments, and optimize logistics. This results in improved efficiency, reduced cost, and fast time-to-market.
IoT enables personalized and context-aware experiences for customers. Products can adapt to user preferences, provide real-time feedback, and offer customized services. For instance, smart appliances can learn user habits and adjust settings automatically. Wearable devices can now provide health recommendations based on real-time data.
With the increasing rate of connected devices, security, and privacy become critical considerations. Manufacturers must implement robust security measures to protect IoT-enabled products from cyber threats. They should be transparent about data collection and usage practices to address privacy concerns.
Key Trends Driving Demand in the IoT Product Development:
| Attributes | Key Insights |
|---|---|
| IoT in Product Development Market Estimated Size (2023) | US$ 40.3 billion |
| Projected Value (2033) | US$ 155.8 billion |
| Historical Valuse-based CAGR (2018 to 2022) | 16.8 % |
| United States Market CAGR (2023 to 2033) | 14.5 % |
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According to Future Market Insights (FMI), the sales of the internet of things (IoT) in product development market increased to 16.8% CAGR during 2018 to 2022. It will create an absolute opportunity of US$ 115.6 billion during the forecast period. The market is projected to reach a US$ 155.8 billion valuation by 2033.
IoT enables products to offer enhanced capabilities and features. By incorporating sensors, connectivity, and data analytics, products can gather real-time information about their usage, performance, and environment. This data can be used to optimize product functionality and enable remote monitoring, and control. It also helps in improving user experience.
IoT can significantly improve efficiency in product development. By capturing data on product usage, performance, and maintenance, companies can gain valuable insights. This helps to streamline processes, identify bottlenecks, and optimize resource allocation. This leads to cost savings, improved productivity, and efficient product development cycles.
IoT-enabled products can provide valuable data for predictive maintenance by continuously monitoring product performance and detecting anomalies and signs of wear and tear. This approach will help in minimizing unplanned downtime, reduce repair costs, and improve product reliability.
IoT allows companies to gather data on how customers use their products, enabling them to understand customer needs better. This information can be used to personalize product experiences and offer tailored recommendations. It develops new features that align with customer preferences. Improved customer experience leads to increased customer satisfaction and loyalty.
As products become connected and generate vast amounts of data, ensuring data security and privacy is of paramount importance. Companies need to implement robust security measures to protect sensitive data. These factors are likely to help in boosting demand for IoT in product developments during the forecast period.
Internet of Things (IoT) is rapidly expanding and influencing product development across several sectors. Advancements in technology, particularly in areas such as wireless connectivity, miniaturization, data analytics, and cloud computing have been gaining pace.
Technological advancements have played a significant role in the expansion of IoT. These advancements have made it easy and cost-effective to integrate connectivity and smart capabilities into a wide range of products.
IoT in product development is specifically used for creating IoT products that are interconnected and intelligent. These IoT products encompass a wide range of devices, from smart home appliances to industrial sensors and wearables. By incorporating IoT capabilities, such as connectivity, sensors, and data analytics, into these products, devices can collect and exchange data. It also helps them communicate with other devices or systems and offers advanced functionalities.
IoT products enable features such as remote control, real-time monitoring, automation, and data-driven insights. They enhance convenience, efficiency, and connectivity in various domains, transforming the way we interact with and experience technology in our everyday lives.
As per Comptia, in 2022, IoT revenue was valued at US$ 594 billion. By 2030, it is anticipated that connected IoT devices would generate US$ 15.9 billion.
With the increase in the demand for IoT products around the world, the demand for IoT in product development is also projected to increase. It will lead to the expansion of the market during the assessment period.
IoT in product development is instrumental in the realm of Industrial IoT (IIoT) and automation. By integrating IoT capabilities into industrial equipment and machinery, IIoT enables real-time monitoring, predictive maintenance, and optimized operations. IoT sensors, connectivity, and data analytics empower industries to enhance efficiency, productivity, and cost savings.
IIoT solutions facilitate remote monitoring and control of industrial processes, enabling automation and reducing human intervention. This results in improved process visibility, proactive maintenance, streamlined workflows, and data-driven decision-making.
IoT in product development for consumer electronics has enabled the integration of IoT capabilities into devices. It includes smart home devices, wearables, home entertainment systems, and connected appliances. Consumer electronics with IoT functionalities offer enhanced connectivity, remote control, and personalized experiences.
They can collect data, communicate with other devices or services, and provide seamless integration within the smart home ecosystem. IoT in consumer electronics enables features such as voice control, real-time monitoring, automated routines, energy optimization, and interactive user interfaces.
IoT features improve convenience, efficiency, and create a more immersive and personalized experience for consumers. These factors are anticipated to drive the evolution of the consumer electronics market and adoption of IoT in product development.
Principal Consultant
Asia Pacific had an IoT in product development industry size of US$ 18.2 billion in 2022. It is expected to have a market size of US$ 20.9 billion in 2023. Asia Pacific is projected to have an IoT in product development industry worth US$ 80.9 billion by 2033. The historical CAGR is 52% during 2018 to 2022. It is poised to exhibit a CAGR of 51.9% from 2023 to 2033.
IoT adoption in the Asia Pacific has been rapidly expanding. The region boasts extensive mobile connectivity, and growing technological infrastructure, making it conducive to IoT development.
As IoT in product development enables features such as remote monitoring and control, predictive maintenance, real-time data analysis, and personalized customization. It opens up opportunities for innovation, efficiency improvements, and new business models. With the increase in the adoption of IoT in the region, the market is projected to increase during the assessment period.
Rising Sales of Advanced Consumer Electronics Fuelling Market Growth in the Unted States
The United States IoT in product development industry is likely to cross a total of US$ 31.5 billion by 2033. It is projected to present an absolute growth opportunity of US$ 23.4 billion till 2033.
The IoT in product development industry in the United States has exhibited at 16.7 % CAGR from 2018 to 2022. It is expected to surpass at 14.5 % CAGR from 2023 to 2033.
IoT in product development is crucial for creating IoT devices with advanced capabilities. It involves integrating connectivity, sensors, and smart capabilities into these devices, enabling data collection, communication, and enhanced functionalities. Rise in the rate of IoT devices, the demand for IoT in product development is projected to rise during the assessment period.
Increased Coverage of High-speed Internet Connectivity Driving IoT Adoption in China
IoT in product development market in China is set to be worth US$ 39.5 billion by 2033. It is likely to enjoy an absolute dollar growth of US$ 29.5 billion till 2033. The IoT in product development industry in China has increased at 16.7% CAGR from 2018 to 2022. It is likely to propel at 14.7 % CAGR from 2023 to 2033.
According to Mercator Institute for China Studies, at the end of 2020, China accounted for 75% of all cellular IoT connections worldwide. According to Cisco, China will take the lead in 5G connections internationally by 2023.
As IoT in product development is crucial for creating IoT devices. It involves integrating connectivity, sensors, and smart capabilities into these devices. It also enables data collection, communication, and enhanced functionalities. With the increase in the demand for IoT devices around the world, the demand for IoT in product development is projected to increase during the assessment period.
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Increasing Demand for User-friendly Interfaces driving Sales in Design & Engineering Segment
Based on service type, design & engineering division of IoT in product development market is set to monopolize sales during the forecast period. It is poised to expand at 16.5 % CAGR from 2018 to 2022. It is projected to soar at 14.1% CAGR from 2023 to 2033.
Design and engineering in IoT play a crucial role in product development. It enables the creation of innovative and connected devices that enhance our daily lives. Engineers collaborate with designers to translate conceptual ideas into tangible prototypes and final products.
Design in IoT focuses on creating user-friendly interfaces and seamless interactions between humans and connected devices. It involves considering factors such as aesthetics, ergonomics, and intuitive user experiences. Designers must also address the challenges posed by limited resources, power efficiency, and connectivity issues.
Engineering in IoT encompasses a wide range of disciplines, including electrical, mechanical, and software engineering. Engineers work together to design the hardware components, develop embedded systems, and design algorithms for data processing and analysis. They optimize the product's performance, ensure reliable connectivity, and prioritize security and privacy measures.
Effective collaboration between designers and engineers is essential in IoT product development. It requires a deep understanding of the IoT ecosystem, sensor technologies, wireless communication protocols, and cloud platforms. By integrating design thinking and engineering expertise. It can deliver seamless connectivity, compelling user experiences, and transformative solutions across several sectors.
Key players in the market are N-iX, CHI Software, DataArt, Syberry, iTechArt Group, Provectus, Transition Technologies PSC, Soft EQ, ITRex, Group, and Yalantis
Key player are focusing on building robust security measures into their products. These includes encryption, authentication, and secure communication protocol. They are also integrating cloud platforms into their products to handle data storage, processing, and analysis.
They are forming strategic alliances with technology providers, software companies, and other manufacturers to create integrated IoT solution.
Key manufacturers are also investing in analytics tools and algorithm to extract valuable insights from IoT data and improve product performance.
Recent developments:
| Attribute | Details |
|---|---|
| Estimated Market Size (2022) | US$ 35 billion |
| Projected Market Size (2033) | US$ 155.8 billion |
| Anticipated Growth Rate (2023 to 2033) | 14.5% CAGR |
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Market Analysis | US$ billion for Value and MT for Volume |
| Key Regions Covered | North America; Latin America; Europe; Asia Pacific; and the Middle East & Africa |
| Key Countries Covered | United States, Canada, Brazil, Mexico, Germany, United Kingdom, France, Italy, Spain, Nordic, Russia, Poland, China, India, Thailand, Indonesia, Australia and New Zealand, Japan, GCC countries, North Africa, South Africa, and others. |
| Key Segments Covered | Service Type and Region |
| Key Companies Profiled | N-Ix; CHI Software; DataArt; Syberry; iTechArt Group; Provectus; Transition Technologies PSC; Soft EQ; ITRex Group; Yalantis |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, Drivers Restraints Opportunity Trends Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
The projected revenue of the market by 2033 is US$ 155.8 billion.
The market CAGR for 2033 is projected to be 14.5%.
The market is valued at US$ 40.3 billion in 2023.
Asia Pacific holds the largest market share.
China is growing rapidly because of the large domestic market and government support.
1. Executive Summary 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. Product Life Cycle Analysis 3.5. Investment Feasibility Matrix 3.6. PESTLE and Porter’s Analysis 3.7. Regulatory Landscape 3.7.1. By Key Regions 3.7.2. By Key Countries 3.8. Regional Parent Market Outlook 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 4.1. Historical Market Size Value (US$ Million) Analysis, 2018 to 2022 4.2. Current and Future Market Size Value (US$ Million) Projections, 2023 to 2033 4.2.1. Y-o-Y Growth Trend Analysis 4.2.2. Absolute $ Opportunity Analysis 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Services Type 5.1. Introduction / Key Findings 5.2. Historical Market Size Value (US$ Million) Analysis By Services Type, 2018 to 2022 5.3. Current and Future Market Size Value (US$ Million) Analysis and Forecast By Services Type, 2023 to 2033 5.3.1. Design & Engineering 5.3.2. Connected Hardware & Firmware Development 5.3.3. Prototyping 5.3.4. Manufacturing Support 5.4. Y-o-Y Growth Trend Analysis By Services Type, 2018 to 2022 5.5. Absolute $ Opportunity Analysis By Services Type, 2023 to 2033 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 6.1. Introduction 6.2. Historical Market Size Value (US$ Million) Analysis By Region, 2018 to 2022 6.3. Current Market Size Value (US$ Million) Analysis and Forecast By Region, 2023 to 2033 6.3.1. North America 6.3.2. Latin America 6.3.3. Europe 6.3.4. Asia Pacific 6.3.5. Middle East and Africa 6.4. Market Attractiveness Analysis By Region 7. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 7.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2018 to 2022 7.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2023 to 2033 7.2.1. By Country 7.2.1.1. United States 7.2.1.2. Canada 7.2.2. By Services Type 7.3. Market Attractiveness Analysis 7.3.1. By Country 7.3.2. By Services Type 7.4. Key Takeaways 8. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 8.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2018 to 2022 8.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2023 to 2033 8.2.1. By Country 8.2.1.1. Brazil 8.2.1.2. Mexico 8.2.1.3. Rest of Latin America 8.2.2. By Services Type 8.3. Market Attractiveness Analysis 8.3.1. By Country 8.3.2. By Services Type 8.4. Key Takeaways 9. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 9.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2018 to 2022 9.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2023 to 2033 9.2.1. By Country 9.2.1.1. Germany 9.2.1.2. United Kingdom 9.2.1.3. France 9.2.1.4. Spain 9.2.1.5. Italy 9.2.1.6. Russia 9.2.1.7. Rest of Europe 9.2.2. By Services Type 9.3. Market Attractiveness Analysis 9.3.1. By Country 9.3.2. By Services Type 9.4. Key Takeaways 10. Asia Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 10.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2018 to 2022 10.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2023 to 2033 10.2.1. By Country 10.2.1.1. China 10.2.1.2. Japan 10.2.1.3. India 10.2.1.4. South Korea 10.2.1.5. Australia 10.2.1.6. Rest of Asia Pacific 10.2.2. By Services Type 10.3. Market Attractiveness Analysis 10.3.1. By Country 10.3.2. By Services Type 10.4. Key Takeaways 11. Middle East and Africa Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2018 to 2022 11.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2023 to 2033 11.2.1. By Country 11.2.1.1. South Africa 11.2.1.2. Saudi Arabia 11.2.1.3. United Arab Emirates 11.2.1.4. Israel 11.2.1.5. Rest of Middle East and Africa 11.2.2. By Services Type 11.3. Market Attractiveness Analysis 11.3.1. By Country 11.3.2. By Services Type 11.4. Key Takeaways 12. Key Countries Market Analysis 12.1. United States 12.1.1. Pricing Analysis 12.1.2. Market Share Analysis, 2022 12.1.2.1. By Services Type 12.2. Canada 12.2.1. Pricing Analysis 12.2.2. Market Share Analysis, 2022 12.2.2.1. By Services Type 12.3. Brazil 12.3.1. Pricing Analysis 12.3.2. Market Share Analysis, 2022 12.3.2.1. By Services Type 12.4. Mexico 12.4.1. Pricing Analysis 12.4.2. Market Share Analysis, 2022 12.4.2.1. By Services Type 12.5. Germany 12.5.1. Pricing Analysis 12.5.2. Market Share Analysis, 2022 12.5.2.1. By Services Type 12.6. United Kingdom 12.6.1. Pricing Analysis 12.6.2. Market Share Analysis, 2022 12.6.2.1. By Services Type 12.7. France 12.7.1. Pricing Analysis 12.7.2. Market Share Analysis, 2022 12.7.2.1. By Services Type 12.8. Spain 12.8.1. Pricing Analysis 12.8.2. Market Share Analysis, 2022 12.8.2.1. By Services Type 12.9. Italy 12.9.1. Pricing Analysis 12.9.2. Market Share Analysis, 2022 12.9.2.1. By Services Type 12.10. Russia 12.10.1. Pricing Analysis 12.10.2. Market Share Analysis, 2022 12.10.2.1. By Services Type 12.11. China 12.11.1. Pricing Analysis 12.11.2. Market Share Analysis, 2022 12.11.2.1. By Services Type 12.12. Japan 12.12.1. Pricing Analysis 12.12.2. Market Share Analysis, 2022 12.12.2.1. By Services Type 12.13. India 12.13.1. Pricing Analysis 12.13.2. Market Share Analysis, 2022 12.13.2.1. By Services Type 12.14. South Korea 12.14.1. Pricing Analysis 12.14.2. Market Share Analysis, 2022 12.14.2.1. By Services Type 12.15. Australia 12.15.1. Pricing Analysis 12.15.2. Market Share Analysis, 2022 12.15.2.1. By Services Type 12.16. South Africa 12.16.1. Pricing Analysis 12.16.2. Market Share Analysis, 2022 12.16.2.1. By Services Type 12.17. Saudi Arabia 12.17.1. Pricing Analysis 12.17.2. Market Share Analysis, 2022 12.17.2.1. By Services Type 12.18. United Arab Emirates 12.18.1. Pricing Analysis 12.18.2. Market Share Analysis, 2022 12.18.2.1. By Services Type 12.19. Israel 12.19.1. Pricing Analysis 12.19.2. Market Share Analysis, 2022 12.19.2.1. By Services Type 13. Market Structure Analysis 13.1. Competition Dashboard 13.2. Competition Benchmarking 13.3. Market Share Analysis of Top Players 13.3.1. By Regional 13.3.2. By Services Type 14. Competition Analysis 14.1. Competition Deep Dive 14.1.1. N-iX 14.1.1.1. Overview 14.1.1.2. Product Portfolio 14.1.1.3. Profitability by Market Segments 14.1.1.4. Sales Footprint 14.1.1.5. Strategy Overview 14.1.1.5.1. Marketing Strategy 14.1.2. CHI Software 14.1.2.1. Overview 14.1.2.2. Product Portfolio 14.1.2.3. Profitability by Market Segments 14.1.2.4. Sales Footprint 14.1.2.5. Strategy Overview 14.1.2.5.1. Marketing Strategy 14.1.3. DataArt 14.1.3.1. Overview 14.1.3.2. Product Portfolio 14.1.3.3. Profitability by Market Segments 14.1.3.4. Sales Footprint 14.1.3.5. Strategy Overview 14.1.3.5.1. Marketing Strategy 14.1.4. Syberry 14.1.4.1. Overview 14.1.4.2. Product Portfolio 14.1.4.3. Profitability by Market Segments 14.1.4.4. Sales Footprint 14.1.4.5. Strategy Overview 14.1.4.5.1. Marketing Strategy 14.1.5. iTechArt Group 14.1.5.1. Overview 14.1.5.2. Product Portfolio 14.1.5.3. Profitability by Market Segments 14.1.5.4. Sales Footprint 14.1.5.5. Strategy Overview 14.1.5.5.1. Marketing Strategy 14.1.6. Provectus 14.1.6.1. Overview 14.1.6.2. Product Portfolio 14.1.6.3. Profitability by Market Segments 14.1.6.4. Sales Footprint 14.1.6.5. Strategy Overview 14.1.6.5.1. Marketing Strategy 14.1.7. Transition Technologies PSC 14.1.7.1. Overview 14.1.7.2. Product Portfolio 14.1.7.3. Profitability by Market Segments 14.1.7.4. Sales Footprint 14.1.7.5. Strategy Overview 14.1.7.5.1. Marketing Strategy 14.1.8. Softeq 14.1.8.1. Overview 14.1.8.2. Product Portfolio 14.1.8.3. Profitability by Market Segments 14.1.8.4. Sales Footprint 14.1.8.5. Strategy Overview 14.1.8.5.1. Marketing Strategy 14.1.9. ITRex Group 14.1.9.1. Overview 14.1.9.2. Product Portfolio 14.1.9.3. Profitability by Market Segments 14.1.9.4. Sales Footprint 14.1.9.5. Strategy Overview 14.1.9.5.1. Marketing Strategy 14.1.10. Yalantis 14.1.10.1. Overview 14.1.10.2. Product Portfolio 14.1.10.3. Profitability by Market Segments 14.1.10.4. Sales Footprint 14.1.10.5. Strategy Overview 14.1.10.5.1. Marketing Strategy 15. Assumptions & Acronyms Used 16. Research Methodology
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IoT in Product Development Market
