Learn How Pandemic is Impacting the IoT Technology
- BY Jaspreet Kaur
Feature Writer, BusinessEx
- Sep 03,2021
- 223 Mins Read
The nexus of internet-enabled devices has rapidly grown. Alongside it, various other technologies have emerged, in turn, shoring up the internet of things (IoT). IoT app essentially facilitates in real-time decision making to autonomous operations to human-led operations. Therefore, it is versatile and 'general-purpose' digital tech holding various prospects.
With the emergence of the epidemic, IoT has been impacted and thus, changed. According to Nasscom’s report “State of IoT – The Post Pandemic Resurgence”, the coronavirus has impacted countries and communities in immeasurable ways. Like all the other sectors, the IoT set to technologies also took a dip globally during the COVID-19 pandemic. Majorly, the Asia-Pacific and European IoT markets were immensely impacted.
Some of the major impacts on the IoT sector are:
- Consumer services, transportation, and manufacturing sectors were impacted the most
- Enterprises started engaging in proof of concepts and accelerating their IoT-related technology investments to improve efficiencies/reduce downtime.
Surge in IoT Spending
Due to the pandemic phase, an increase in digitization arose, in turn, resulting in IoT spending in several sectors. Organizations and government bodies began infusing in IoT technologies to create a seamless virtual working experience.
Healthcare, transportation, smart homes, and industrial are key drivers of IOT technology. In the healthcare sector, prime spending drivers were wearable devices, IoT for test and trace, regulations and procedures. While, in smart homes, spending is projected on lifestyle and consumer behaviour, new features or sensors, new energy savings feature, and new features to assist xFH. In the transportation industry, smart logistics and in-cabin sensing and analytics were spending drivers. Remote monitoring and machine health, and smart manufacturing and inventory management were key drivers for the industrial niche.
IoT Turning into an Opportunity
According to the cited-report’s findings, the IoT market was immensely impacted owing to the pandemic. Sectors such as consumer services, transportation, and manufacturing were the most impacted sectors. The global spending pattern also saw a shift– from devices and sensors to cloud, data and analytics, and software in the work-from-anywhere scenario.
However, in the present year, the IoT market is recovering and is expected to follow the same trends after 2021 also. While focusing on sectors, IoT spending has turned from industrials and services to connected devices. A significant increase in IoT spending in sectors including healthcare, manufacturing and supply chain, education, and smart homes is also witnessed.
The global IoT spending is estimated to be $1.1 trillion in 2023 as compared to nearly $730 billion in 2019. Global IoT health market size is calibrated to be the highest in 2024 with $590 billion followed by smart city spend with $327 billion and smart homes consumers spend with $300 million (in 2021).
IoT M&A market remained red hot during the epidemic and the continuation of this strong activity in the IoT space is expected in 2021 as well. Improved COVID-19 situation and multiple federal relief packages being rolled out globally helped improve the pandemic scenario. Acquisition activity around the IoT healthcare market has increased and is expected to continue as companies increasingly see the importance of such solutions. Consumers increase their spending through the OTT/online retail platforms. Smart building technologies will be critical as businesses reopen and IoT use cases, such as remote temperature checks, occupancy detectors, and air filtration sensors, among others, help buildings reopen safely.
More from Jaspreet Kaur
- April 20, 20203 Min Read
- April 21, 20203 Min Read
- May 04, 20203 Min Read
- May 05, 20203 Min Read
- May 14, 20203 Min Read
- May 30, 20203 Min Read
- June 16, 20203 Min Read
- June 17, 20203 Min Read
- June 29, 20203 Min Read
- June 29, 20203 Min Read
- July 01, 20203 Min Read
- July 02, 20203 Min Read
Recommended for you
- June 09, 2021
- July 29, 2020
- November 30, 2020