The Indian IoT market is expected to grow to $15 billion with 2.7 billion connected devices by 2020, according to a study released Thursday by the National Association of Software and Services Companies (NASSCOM) and Deloitte in partnership with General Electric India Technology Centre (GE ITC).
The report, IoT: A Revolution in the Making, highlights the growth of the IoT market at present and looks into the future of the industry, the challenges impeding global IoT growth, key IoT case studies in India and the role of start-ups in driving growth. It also brings out the IoT opportunities in India across industries like utilities, manufacturing, automotive, transport & logistics, healthcare and retail.
On a global level, the report says that IoT is poised for exponential growth globally, with the number of connected devices expected to grow 5.5x to 20.8 billion, and revenue expected to grow over 3x to $3 trillion by 2020. Consumer units are expected to form a significant share (13.5 billion, about 65%) of the total IoT installed base by 2020.
Major factors driving the worldwide adoption of IoT are device proliferation, availability of low cost sensors, increase in computing speeds, and deployment of IPv6.
A few of the challenges that the industry faces are: lack of uniform security standards, privacy of consumer data, scalability challenges, unreliable network connectivity, etc.
The IoT market in India stands at $5.6 billion with 200 million connected devices in 2016. This is expected to grow to $15 billion with 2.7 billion devices by 2020.
The Indian IoT ecosystem has a diverse set of players including hardware vendors, application vendors, network operators and system integrators, with application vendors expected to garner ~50% share of the India IoT market by 2020.
In India, demand for Industrial applications will drive IoT growth going forward. Consumer IoT adoption is expected to be slower due to cost of IoT devices and security as well as privacy concerns of consumers.
Startups comprise majority (60-65%) of the 120 organizations that form the Indian IoT ecosystem and are expected to drive growth going forward.
IoT adoption in India is expected to grow across industries, with utilities, manufacturing, automotive and healthcare seeing greater opportunity than other sectors.
“This report comes at a time when the Industrial Internet of Things is poised for exponential growth, both globally and in India,” said Munesh Makhija, CTO-GE South Asia & VP-GE India Technology Centre. “We believe India has an important role to play in shaping the IoT landscape and players in the Indian IoT ecosystem must collaborate to capitalize on the market opportunity.”
KS Viswanathan, VP-Industry Initiatives at NASSCOM, said, “IoT is a disruptive technology with a global opportunity of $3 trillion. Through this report, we seek to answer the question, where does India stand in the IoT value chain and what differentiator does it have to offer to the world. It provides a roadmap to enable IoT adoption and growth and evaluates the opportunity across sectors. Today, the IoT market in India is in a nascent stage but we see that changing over the next few years with start-ups playing a key role.”