New Delhi: Indian Internet of Things (IoT) market is set to grow to $15 billion by 2020 from the current $5.6 billion, according to a report by Nasscom released on Wednesday in Bengaluru, as part of its design and engineering summit.
The IoT sector is set to get major boost from industrial IoT, which currently accounts for 60% for the total market and includes integration of physical machinery with networked sensors and using the data for faster and more efficient operations.
Consumer IoT, which includes smarthome devices as well as wearables, account for the remaining 40% of the IoT market.
This is set to change, with consumer IoT’s share rising to 45% by 2020, the report said.
Owing to the e-commerce boom and regulatory changes such as GST, Transport & Logistics is set to increasingly utilize IoT for more efficient operations.
The rise of tech-savvy consumers and increasing smartphone & mobile internet penetration would also help in driving consumer IoT.
“In India, while the industry is at a nascent stage industrial applications of IoT primarily in manufacturing, automotive and transportation & logistics are expected to drive IoT revenues by 2020," said R. Chandrasekhar, president, Nasscom.
Major Indian IT companies are betting on new digital technologies such as IoT, analytics and artificial intelligence to diversify their revenue stream and fill in gaps for the slower growth in traditional IT business.
“IoT has started being incorporated into both consumer and industrial applications being utilized in critical verticals like Healthcare, Automotive and Manufacturing. The ecosystem is rapidly expanding, owing to demand for both Industrial and Consumer IoT applications and is set to be a critical part of the next level of growth for the IT industry" said Kevin Ashton, a British technology developer, who coined the world Internet of Things.