IoT Sensors Market Trends

Growth Drivers  

• Rising demand for industrial automation: There is a global push towards industry 4.0, which has heightened the adoption of automation in various sectors such as energy, manufacturing, logistics, etc. The market has been boosted by the demand for smart factories that need to integrate IoT sensors. These sensors enhance operational efficiency by optimizing production processes. Manufacturers are enhancing their IoT sensor products to meet the rising demands. For instance, in May 2023, STMicroelectronics launched a first-of-its-kind waterproof MEMS pressure sensor with a 10-year longevity for industrial IoT expansion.
• Growing focus on healthcare & wearable devices: There has been a significant rise in demands for IoT sensors in the healthcare sector after COVID-19 as IoT assisted in reaching patients remotely and monitoring them using interconnected networks. The demands for remote patient monitoring, wearables, and interconnected medical devices are fuelling the IoT sensors market growth. Additionally, smartwatches and other wearable devices that track individual health have soared in popularity boosting revenue growth. For instance, the India Brand Equity Foundation report in November 2023 stated sales of smartwatches surged by 21% in the Indian market.
• Rapid advancements in wireless technology: The emergence of faster and more reliable wireless technology such as 5G and Low Power Wide Area Networks (LPWAN) is boosting the IoT sensors market. IoT sensors can operate in remote or large-scale environments due to the seamless connectivity offered by advanced wireless technologies. This broadens the reach and allows IoT sensors to maintain real-time data transmission for various industries. In 2020, the World Economic Forum stated that 5G subscriptions are expected to reach 2.6 billion globally, accounting for 65% of the world population, and cellular IoT connections are expected to reach 5 billion worldwide by the end of 2025. Additionally, by 2030, 5G and IoT are expected to reduce global emissions by 15% helping fight climate change.

Challenges  

• Security and privacy concerns: The National Institute of Standards and Technology, U.S., identified three major risk mitigation goals related to IoT devices i.e., protecting device security, protecting data security, and protecting individual privacy. Since IoT sensors collect sensitive data such as health information, privacy and security concerns can impede market growth. In the U.S., a law was passed to create IoT security standards in December 2020.
• Lack of standardization and high costs: The lack of standardized protocols and communication standards creates restraints in integrating devices into complex IoT systems and hinders their functionality. Another impediment to market growth can be the high rate of initial investment in IoT sensors.