Proving the Business Case for the Internet of Things

Edge computing drives IoT test market, says F&S

Steve Rogerson
August 18, 2020

The proliferation of edge computing and M2M test products will drive the IoT test and measurement market by 2025, according to Frost & Sullivan. But because of Covid-19, the proliferation of M2M devices will decrease during 2020.
This drop will have a significant impact on the demand for testing equipment that validates performance, with the exception of equipment for connected health applications. The market watcher expects growth to rebound by 2021, with revenue expanding at a compound annual growth rate (CAGR) of 5.1% to reach $3.25bn by 2025, up from $2.40bn in 2019.
“5G development for IoT use cases will continue to be important during the pandemic,” said Rohan Joy Thomas, industry analyst at Frost & Sullivan. “Given the complex nature of its deployment, there would be a requirement for software-based testing that can test virtualised 5G network slices as well as test broad frequency spectrums. Going forward, understanding the performance of proprietary applications on connected devices outside the enterprise secure network infrastructure is a key challenge that test and measurement companies need to resolve.”
Of all the IoT applications, test and measurement products that are used to test M2M applications in the connected home environment are the most dominant, representing 45.7% of all IoT test applications. As the healthcare sector plays a crucial role in combating Covid-19, test and measurement used for connected health applications will experience the highest CAGR of all applications over the forecast period.
The proliferation of IoT across industries has presented immense growth opportunities for market participants involved in the IoT test and measurement space, says the report.
F&S recommends companies develop products that can test high-speed Ethernet interfaces as well as physical entities. They should provide over-the-air testing for sub-6HHz as well as higher millimetre wave applications.
The analyst also believes they should introduce enhanced software testing capabilities along with artificial intelligence, machine learning and cyber security to enhance the portfolio. And they should look at products that can regulate the consumption of energy from connected devices operating at narrowband frequencies and low energy levels, thereby increasing the device’s longevity.