IoT growth rate to accelerate after 2020: report
The IoT market in India is currently growing at 41% and will continue to grow at the same rate till 2020, says WATConsult report
New Delhi: Home automation is poised to become the next big thing in India with consumers increasingly opting for video door bells, voice-assisted technologies (like Alexa and Google Home), smart bulbs and surveillance systems.
This growth comes on the back of increasing adoption of the internet of things (IoT) by Indian consumers owing to increasing internet penetration, rising smartphone usage and expanding social networks, said a report published by social media agency WATConsult, a part of Dentsu Aegis Network.
IoT refers to a technology that connects sensors and devices to the Internet, collects their data and automates processes and decision-making.
The IoT market in India is currently growing at a compounded annual growth rate (CAGR) of 41% and will continue to grow at the same rate till 2020.
“With increased adoption, the growth rate will increase to around 54% CAGR between 2020 and 2025,” according to the report titled “Internet of Things: Adoption and Growth in India”. The report is based on extensive in-depth interviews with 10 industry stakeholders and 300 consumers across the metros, conducted by Recogn, the market research division of WATConsult.
“IoT is currently growing at a good rate of 41% and that will continue till 2020. Between 2020 and 2025 will be the period which will see a mass movement towards IoT,” said Rajiv Dingra, founder and chief executive officer at WATConsult.
According to the report, much of the IoT growth is currently driven by industrial automation, primarily in sectors like healthcare, housing, agriculture and engineering. However, the consumer IoT market is slowly evolving with increasing awareness among people.
“There are certain industry sectors where IoT can prove to be very beneficial like agriculture and healthcare. As for consumers, home automation usage will certainly rise with increasing awareness and internet penetration,” said Dingra.
According to the report, the adoption rate of IoT among consumers peaked with smart television sets, followed by health and fitness bands and VR head sets. 59.2% of the respondents said they use/own a smart TV to access their social networks and video-on-demand platforms, while 44% said that they use fitness bands.
“The intention to use latest IoT devices like streaming devices (22%), voice assistants (22%), smart trackers (21%), VR headsets (20%) and smart eyewear (19%) among others, is also seen increasing,” the report said.
Digital experts said that IoT is changing the way we live. “IoT is pervasive and fundamentally changing the way we live. Beyond our homes, connected technologies are improving lives, monitoring air pollution, making cities safer through advanced surveillance, and even helping you find a parking spot. The real value in IoT lies in real-time actionable insights from the data, to better solve problems,” said Mehul Patel, vice-president and chief technology officer at technology firm Honeywell Home and Building Technologies.
However, the IoT market currently suffers from a number of challenges in India, including lack of high-speed wireless data connectivity, poor consumer awareness and high manufacturing costs (unlike software companies, IoT companies require hardware facilities, physical sales channels and certifications).
“There are many new innovations coming up throughout the IoT value chain which will bring down the manufacturing costs. IoT growth is huge in manufacturing sector. Companies are increasingly adopting digital infrastructure by bringing in IoT. While the challenges exist today, it is a matter of time that devices will be optimised,” said Vijay Kannan, director, digital practice at consulting firm PwC.
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