M2M and IoT market to drive growth for sensors, says Compass Intelligence
March 11, 2105
Automotive, smart homes, smart cities and wearable devices will drive growth for sensors in M2M and IoT over the next five years, according to a report from Compass Intelligence.
The report covers different types of sensors that are used in various vertical markets including automotive, medical, connected home, smart cities, smart grid, environmental, agriculture and industrial. It includes energy, oil and gas, and semiconductors, as well as process industries such as food, pharmaceuticals, chemicals and HVAC.
The market for sensors in M2M and IoT is estimated at $5.2bn in 2014 and expected to triple in size to $15.7bn in 2019 at a CAGR of 24.7 per cent. Currently, automotive and smart homes are the largest markets for sensors. In the future, smart city and industrial are expected to join them.
“There are few established market participants that possess vertical domain knowledge and comprehensive product portfolio,” said Lavanya Rammohan, senior analyst at Compass. “Going forward, software will play a key role in boosting sensor penetration into niche applications and create a market for smaller vendors.”
The study provides insight into the growth opportunities and market size for sensors in the M2M and IoT market, namely wireless, cellular and satellite. The study does not cover sensors used in non M2M and IoT markets or wired applications. It also sheds light on trends by type of sensors and takes an objective view of the significant challenges yet to be overcome for participants to enjoy the profits in the M2M and IoT sensors market. The study also addresses and offers a sneak peek into the wired sensors M2M potential and untapped market opportunity.
Automotive is the largest vertical market for sensors in M2M and IoT. In 2019, automotive will continue to remain the largest but will be followed closely by connected home, industrial and smart city. Emerging and wireless sensors are a small portion of the market today. However, with falling prices in sensors and increasing numbers of M2M and IoT connections over wireless networks, emerging and wireless sensor share will grow rapidly.
Emerging opportunities for M2M and IoT will take shape over the next couple of years. These include geological mapping, precision agriculture and medical.
Market leaders such as GE, Honeywell and Emerson, will continue to dominate the industry. However, niche players will emerge for different vertical markets or applications that will challenge industry dynamics.