The IOT Market is anticipated to expand fueled by a new wave of digital transformation in the post-Covid world. It is more likely that businesses and organizations will quickly recover from the pandemic if they begin early IoT adoption.
GlobalData identified the key macroeconomic trends that have an effect on the IoT theme, which are outlined below.
Covid-19 The Covid-19 pandemic has compelled companies to increase their technology investments. Particularly, IoT technology helped with tasks like contact tracing, remote work, and social distance. The Internet of Things (IoT) is seen as one of the enablers for digitalization in the post-Covid world, where many businesses prioritize it. Business process automation and remote asset access will be prominent features in the workplace and factory of the future. Telemedicine, smart offices, remote asset monitoring, and location tracking services will drive the demand for new IoT applications in 2021.
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China vs. the United States The United States and China are locked in a technology war over 5G, AI, quantum computing, autonomous vehicles, and other next-generation technologies. Various goods have been subject to tariffs or export bans as a result of the subsequent trade war. It has also had an effect on technology transfers for semiconductors, industrial robots and machinery, computer storage devices, electrical components, imaging systems, networking equipment, and other products.
Previously supporting a globalized supply chain, the US and China's IoT ecosystems are decoupling. From a supply chain perspective, the trade war is affecting many IoT technology leaders, including Amazon, Apple, Cisco, Dell, Google, HPE, Huawei, Hikvision, IBM, Inspur, Intel, Microsoft, and ZTE.
IoT was the fifth most important theme driving initial public offering (IPO) activity in the technology, media, and telecom (TMT) sector, as measured by IPO proceeds raised, between January 1, 2018 and December 31, 2020. E-commerce, mobile, fintech, and cloud were the first four. During the period, 35 IPOs with IoT as the primary thematic driver were recorded, accounting for 5% of global IPO proceeds. Six of these deals were hosted by the United States and 28 by China.
According to transaction value, IoT was the seventh-largest theme driving mergers and acquisitions (MA) activity in the TMT sector in 2020. Connectivity, big data, cloud, fintech, digital media, and gaming were the first six thematic drivers.
Sustainability Despite the fact that the production of connected devices generates its own environmental issues, IoT solutions can address a variety of sustainability objectives. First of all, a lot of electronic waste is produced. Apple, HPE, and Samsung Electronics are just a few of the technology companies launching green initiatives for sustainable e-waste management. However, there are more and more calls for regulators to make environmental audits more transparent to cut down on greenwashing.
