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Frost & Sullivan: Smart Cities to Fuel Growth of Asia-Pacific’s Internet of Things Market by 2026

04/05/2021
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Frost & Sullivan: Smart Cities to Fuel Growth of Asia-Pacific’s Internet of Things Market by 2026
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APAC IoT market is expected to reach $436.77 billion in revenue by 2026; spending on smart cities accounts for almost one-third of the market

Frost & Sullivan’s recent analysis finds that Asia-Pacific’s Internet of Things (IoT) market is rapidly being transformed by Mega Trends, including the integration of edge-computing networks into IoT systems and new narrow-band (NB) IoT deployments. Driven by growing investments in 4G/LTE and 5G, reduced IoT sensor costs, and government support, the buoyant APAC IoT market is expected to reach $436.77 billion in revenue by 2026 from $96.92 billion in 2020, growing at a compound annual growth rate (CAGR) of 28.52%.

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. 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.

“The APAC region accounts for about 40% of global Low Power Wide Area (LPWA) connections, with NB-IoT accounting for 97% of them,” said Hemangi Patel, Information and Communication Technology Research Analyst at Frost & Sullivan. “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.”

Patel added: “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.”

Capitalize on the region’s lucrative IoT market by focusing on the following growth opportunities:

Telecom Operators Can Monetize IoT Deployments Further: Vendors should extend their services portfolios by including various other services management features, like connectivity management, data security, and data routing.

Multi-cloud as the Future of IoT: Cloud providers should include collaborative tools that enable customers to share knowledge on a common platform. Vendors should move beyond offering cloud computation capabilities and provide additional value-added services, such as automation capabilities that enhance computation power.

Manufacturing and Smart City Initiatives: Vendors must offer integrated IoT solutions and develop horizontal capabilities. In manufacturing, emerging application areas include predictive maintenance, remote monitoring, and connected operational intelligence. Smart lighting, security and surveillance, and waste management are critical for smart cities.

Mega Trends Transforming the Internet-of-Things Market in Asia-Pacific is the latest addition to Frost & Sullivan’s Information and Communication Technology research and analyses available through the Frost & Sullivan Leadership Council, which helps organizations identify a continuous flow of growth opportunities to succeed in an unpredictable future.

For further information on this analysis, Mega Trends Transforming the Internet-of-Things (IoT) Market in Asia-Pacific, please visit: http://frost.ly/5mp

Frost & Sullivan

Tags: IoTFrost & SullivanSmart Cities
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