IoT Platforms and Software Market to Reach $9.4 Billion by 2026

Global IoT

by | Jan 6, 2023

Global IoT

IoT solutions are becoming increasingly complicated, necessitating the use of middleware and communication platforms that enable seamless device, network, and application interaction.

A new report from Research and Markets examines the most recent changes in the marketplace for platforms that allow applications and manage IoT connections. According to the analysis, overall third-party IoT platform sales will increase from $4.2 billion in 2021 to $9.4 billion in 2026 at a compound annual growth rate (CAGR) of 17.5%.

Three Categories

IoT platforms give programmers the resources they need to interface and control devices, as well as to incorporate the data they collect into a variety of programs and services. These platforms offer standardized components that businesses may build atop in order to decrease the cost and time of developing IoT solutions. The majority of IoT platforms may be broadly classified into one of the following three groups: platforms for managing connections, platforms for managing devices, and platforms for enabling applications.

Leading connectivity management platforms, Huawei with close ties to the domestic operator’s China Mobile and China Telecom managed over 900 million IoT SIMs in Q2-2021. Connectivity management platforms allow mobile operators to support their enterprise customers by providing functionality for provisioning, subscription management, cost monitoring and event management.

With investments from the main cloud service providers Microsoft, AWS, Google, and Alibaba, the market for IoT device management and application enablement platforms is rapidly transforming. Vendors who have developed IoT platforms using public cloud infrastructure are frequently evolving to provide higher-level building blocks that may be utilized as a foundation for developing solutions, including end-to-end solutions for certain use cases.

Current Needs

Building and deploying an IoT solution still need varying degrees of system integration. Small and medium-sized businesses utilize system integrators to purchase IoT solutions because they lack the internal resources that big companies often have to incorporate devices into their system architecture. In order to fill this market vacuum, some companies have created full-stack IoT platforms that include hardware, embedded operating systems, platform services, and applications. These solutions are intended to offer a comprehensive collection of customizable building blocks to accelerate the process from prototype to implementation.

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