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IoT Landscape – IoT applications and impact of COVID-19 on IoT
IoT Landscape – IoT applications and impact of COVID-19 on IoT

September 15, 2021

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IoT is viewed as an ecosystem that includes smart objects with sensors, networks, and processing technologies that integrate and work together to provide an environment that provides smart services to end-users. IoT brings many benefits to human life through an environment where smart services are provided to use any activity anytime and anywhere. All of these facilities and services are communicated through various applications running in the IoT environment.

 

The most important utility achieved by IoT applications is monitoring and, consequently, rapid decision-making for client management. In this article, we will explore the diverse IoT application domain to understand the various approaches of IoT applications and the impact of the COVID-19 pandemic on IoT.

 

IoT applications and use cases

IoT applications span the spectrum from need-based to real-time decision making, single-condition to multi-condition reporting, and human-controlled to autonomous operation triggers. Experts are increasingly taking advantage of the benefits of these technologies to cater to the need of society. Based on where one is on the spectrum, IoT tech can be fine-tuned to deliver the desired functionality. Hence, it makes for a versatile and general-purpose digital technology with immense future possibilities. IoT has many applications which are very useful for the people living in this world. The major application areas across various sectors are:

GCCs

IoT is a promising platform where the existing technology transforms into a new level. The various applications of IoT clearly define the significant importance of technology in our conventional life. It will change our lives and organizations dramatically – just as cloud computing and big data have been a major shift, the Internet and mobile devices revolutionized the world, robots and AI impact and will impact our lives deeply, blockchain is a major game-changer and Industry 4.0 will significantly alter the face of manufacturing and industrial markets.

 

Impact of COVID-19 on IoT – a global view

The COVID-19 pandemic provided a much-needed sanity check for IoT-inspired frameworks and solutions. The pandemic has impacted countries and communities in immeasurable ways. Like all the other sectors, IoT set to technologies also took a dip globally during the COVID-19 pandemic. Majorly, the Asia-Pacific and European IoT markets were immensely impacted. If we talk about the sectors, Consumer services, transportation, and manufacturing sectors that were impacted the most. Enterprises started engaging in proof of concepts and accelerating their IoT-related technology investments to improve efficiencies/reduce downtime.

                                                           

Globally, as organizations and governments have struggled to address COVID-19 related impacts, a trend of implementing different technologies was seen, including IoT. As a result, COVID-19 has unknowingly acted as the catalyst of accelerated IoT adoption across multiple sectors. Consequently, in the latter part of 2020, some positive market trends started to emerge including:

  • The IoT worldwide spending readjusted for 2021; to return to double-digit growth rates and achieve a CAGR of 11.3% over the 2020-2024 forecast period
  • Healthcare, insurance, and education sectors to deliver the strongest industry gains in IoT spending in 2021

 

Global IoT market – pre and post-pandemic snapshot

The tale of how the IoT market was booming during the pre-pandemic period, to how it almost took a hit, dipped down, and came back rebounding in 2021 will always fascinate the coming generations. The IoT market was immensely impacted owing to the pandemic. Sectors such as consumer services, transportation, and manufacturing were the most impacted sectors. The global spending pattern also saw a shift– from devices and sensors to cloud, data & analytics, and software in the work-from-anywhere scenario.

 

However, the IoT market is showing signs of positive recovery in 2021 and is expected to follow the same trends beyond 2021 as well. In terms of sectors, the IoT spending focus has shifted – from Industrials & services to connected devices. A significant increase in IoT spending in sectors including healthcare, manufacturing and supply chain, education, and smart homes is also witnessed. We expect this trend of sector-wise IoT adoption to further accelerate in the future as well.

 

A brief pre- and post-pandemic IoT market snapshot explaining how the future IoT opportunity is likely to shape and the vertical IoT implementation areas are explained below:

IoT-before and afterIoT-before and after

Concluding remarks

COVID-19 is proving to be a catalyst for technology adoption and innovation. IoT has provided improved healthcare services and empowered improved clinical decisions during the pandemic. Similar to the healthcare domain, IoT presents a massive opportunity to change our lives for the better, with the potential to make an impact right across society, especially during the new normal created by the COVID-19.

In the next blog, we will cover a detailed analysis of the global IoT vendor landscape, IoT spending by sectors, and spending trends from the 2020 Vs 2021 viewpoint.

Read our previous blog on IoT, “IoT Landscape – Context, Evolution, and the IoT Stack

To know more, refer to our State of IoT – The Post Pandemic Resurgence report that provides a snapshot of the IoT technology from a global and Indian viewpoint, highlighting key IoT use cases, trends, drivers, and challenges in the space. 


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