Investors are readying to put billions of dollars into Internet of Things (IoT) market, whose size is estimated to grow from $51.96 billion in 2015 to $147.51 bn by 2020 with at an estimated Compound Annual Growth Rate (CAGR) of 23.2 per cent.
According to a new research by Markets and Markets, IoT enabled Smart City market includes Solutions (Remote Monitoring, Data Management) Platform (Application & Device Management) and Application (Building Automation, Energy Management, Transportation).
Some analysts have reported that tech investors have been pouring money into IoT startups, hoping to speed up the development of this technology for Smart City applications.
The greatest growth driver is the increasing demand for intelligent cities on a global scale. There are currently over 200 Smart City projects worldwide, which provide huge opportunities for IoT vendors and consulting companies.
The recent advances in IoT technology and cloud-based platforms and services have led to a dramatic increase in IoT software and hardware, which in turn is pushing up investments in Smart Cities.
The development of smart devices such as smart meters, home gateways, smart appliances and smart plugs also act as an opportunity for IoT related investments.
It is pointed out that government policies, privacy and security issues, inadequate financial incentives for utilities and interoperability and standard interfaces are major restraints on the overall growth of this market.
Between 2016 and 2020, North America is expected to hold the largest share of the Smart Cities market due to increase in government grants. Both Asia-Pacific and Middle East & Africa offer potential growth opportunities due to large-scale infrastructure development and their growing number of Smart City projects.