Increasing government focus on such initiatives is driving demand for digital IoT solutions in areas such as e-government, smart traffic management and smart power grids.
Smart cities spending is expected to propel growth of Asia-Pacific’s Internet of Things (IoT) market to reach nearly $437bn in revenue by 2026, new analysis finds.
This is up from just under $97bn in 2020, growing at a compound annual growth rate (CAGR) of 28.52 per cent and is being driven by growing investments in 4G/LTE and 5G, reduced IoT sensor costs, and government support.
According to Frost & Sullivan’s analysis, the IoT market is rapidly being transformed by megatrends, including the integration of edge-computing networks into IoT systems and new narrow-band (NB) IoT deployments.
The APAC region accounts for about 40 per cent of global low power wide area (LPWA) connections, with NB-IoT accounting for 97 per cent. of them.
China leads IoT spending, accounting for over half of the APAC market, followed by Japan and Australia. Government spending on smart cities accounts for almost one-third of the region’s combined spending, followed by transportation and logistics, then manufacturing.
“On a macro level, increasing government focus on smart cities and Industry 4.0 initiatives is driving demand for digital IoT solutions in the region”
However, the Covid-19 pandemic has negatively impacted customers’ transformation journeys across several industry verticals, resulting in delays in projects such as integrating innovative technologies, including artificial intelligence (AI), blockchain, and cloud adoption.
“We forecast that the rise of NB-IoT technology will benefit low-resource IoT devices penetration. NB-IoT is expected to be an integral part of IoT connectivity, addressing requirements related to low-bandwidth, low-speed connections in utilities, industries, and households,” said Hemangi Patel, information and communication technology research analyst at Frost & Sullivan.
“On a macro level, increasing government focus on smart cities and Industry 4.0 initiatives is driving demand for digital IoT solutions in the region, such as eGovernment, public transportation, smart traffic management systems, and smart power grids. Given their portfolios ranging from business application solutions to data analytics and end-to-end platforms, telcos are set to become IoT one-stop solution providers.”
For vendors to capitalise on the region’s lucrative IoT market, Frost & Sullivan’s recommends focusing on the following growth opportunities:
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