Internet of Things (IoT) Security Product Market to reach US$ 48 Bn by 2027

Internet of Things (IoT) Security Product Market to reach US$  48 Bn by 2027

Internet of Things (IoT) Security Product Market to reach US$  48 Bn by 2027

Increasing adoption of digital technologies including web-based services, online education, and online banking has accelerated adoption of smartphone among individuals, which in turn has necessitated security of such technologies against cyber-attacks.

Various governments across the globe have imposed stringent laws, in order to ensure secure environment and maintain privacy for connected devices. In addition, several enterprises are focusing on implementation of Internet of Things (IoT)-based solutions, encouraging employees in bringing their own devices for flexibility.

In its recent research, Future Market Insights (FMI) projects the global IoT security product market to register a staggering expansion at 14.9% CAGR through 2027.

In 2017, the market will account for revenues worth US$ 12,007.9 Mn, and it is further estimated to reach nearly US$ 50,000 Mn by 2027-end. This growth is primarily attributed to continuous launches of IoT security offerings by enterprises, soaring number of service providers, and emergence of niche players in the market.

FMI chart: IoT security product market value analysis

North America will Remain Dominant in the Global IoT Security Product Market

North America will remain dominant in the global IoT security product market, with sales estimated to reach nearly US$ 16,000 Mn in revenues by 2027-end. Government organisations of various North American countries have entered into partnership with major technology companies in order to implement IoT across urban cities. These organisations are also providing funds to technology vendors for development of IoT applications. In addition, increasing smart city projects in North America have led to a significant adoption of sensor applications. The aforementioned factors are anticipated to drive growth of IoT security product market in this region.

A number of government authorities have issued guidelines to be followed by IoT device manufacturers for protection against cyber-attacks on IoT devices and networks. However, several device manufacturers and users are not adhering to these guidelines, ignoring precautionary measures. This further has resulted into security lapses, incurring challenges for IoT security solutions providers, which is expected to restrain growth of the market in North America.

APEJ will Register Fastest Expansion in the Global IoT Security Products Market

Asia Pacific Excluding Japan (APEJ) will continue to be the fastest growing market for IoT security products, registering a high double-digit CAGR through 2027. Growing number of connected devices is leading towards expansion of IoT ecosystem in APEJ. This is further prompting the region’s leading companies for developing services and platforms, helping them in efficient management and analysis of real-time data streams gathered from multiple data sources. These companies are now focusing on IoT data analytics, and setting up strategies for procuring and deploying adequate tools in order to enable successful IoT adoption, and real-time analysis of operations. These factors are anticipated to drive demand for IoT security products in APEJ.

With rapidly changing technologies, enterprises are faced with difficulties in deploying technology-specific networks, which in turn is expected to impede market growth in this APEJ. In addition, rapid adoption of IoT among enterprises has led to a surge in cyber-attacks, owing to increasing internet exposure to a number of devices. This has further resulted into an increased chances of cyber-threats, which in turn is estimated to inhibit growth of the IoT security product market in APEJ.

Manufacturing to Remain the Largest Vertical for IoT Security Products

Manufacturing is estimated to remain the largest vertical for IoT security products in the global market. Revenues amassed from sales of IoT security products in manufacturing are expected to reach US$ 15,088.9 Mn by 2027-end. In addition, healthcare will be the fastest growing vertical in the global IoT security products market, followed by energy & utility, and transportation & logistics.

Although smart grid will remain sough-after among applications, home & building automation is expected to witness fastest expansion in the market through 2027. Revenues amassed from smart grid, and home & building automation applications of IoT security products will collectively account for revenues worth US$ 26,753.5 Mn by 2027-end.

Network security will remain preferred solution for IoT security products, with sales anticipated to account for nearly US$ 15,000 Mn by 2027-end. End-point/ device security will continue to be the second largest solution for IoT security products. In addition, vulnerability management solution for IoT security products will register fastest expansion through 2027.

By component, software will continue to retain its dominance in the global IoT security product market, with sales expanding at 15.2% CAGR through 2027. In addition, sales of hardware in the market is expected to surpass revenues worth US$ 20,000 Mn by 2027-end.

Key market players identified in FMI’s report include IBM Corporation, Cisco System Inc., Intel Corporation, Check Point Software Technologies Ltd., Trend Micro Inc., Infineon Technologies, Symantec Technologies, Sophos Group PLC, Palo Alto Networks, ARM Holding PLC.

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The installed base of fleet management systems in Russia/CIS and Eastern Europe will reach 9.1 million by 2021

The installed base of fleet management systems in Russia/CIS and Eastern Europe will reach 9.1 million by 2021

The installed base of fleet management systems in Russia/CIS and Eastern Europe will reach 9.1 million by 2021

According to a new research report from the M2M/IoT analyst firm Berg Insight, the number of active fleet management systems deployed in commercial vehicle fleets in Russia/CIS and Eastern Europe was 4.8 million in Q4-2016.

Growing at a compound annual growth rate (CAGR) of 13.5 percent, this number is expected to reach 9.1 million by 2021.

The Russian market alone accounts for a significant share of the region’s total installed base and is forecasted to grow from 2.1 million active units at the end of 2016 to 3.5 million units by 2021. The top-15 providers of fleet management solutions for commercial vehicles across Russia, the rest of the CIS and Eastern Europe together have a combined installed base of over 2.6 million active units in the region and around half of the market is even represented by the top-10 players.

The leading fleet management solution providers in terms of installed base in the CIS and Eastern Europe include diverse players from a number of countries.
Rickard Andersson, Senior Analyst, Berg Insight, says:

“Belarus-based Gurtam is the leading fleet management software provider, having surpassed the milestone of 500,000 vehicles under management in the region.”

He adds that Gurtam is focused on software, providing a hardware-agnostic tracking platform offering compatibility with over 1,300 different device models from hundreds of third-party hardware manufacturers.

“Arvento Mobile Systems from Turkey and TechnoKom based in Russia are the first and second runners-up, followed by Turkish Mobiliz and the Russian players NIS, SCOUT and Navigator Group”, continues Mr. Andersson.

chart: installed base of fleet management units Russia-CIS Eastern EU 2016-2021Additional top-15 players include Russia-based Omnicomm which has around 100,000 active fleet management units, as well as Infotech in Turkey, Fort Telecom and SpaceTeam in Russia, the European market leader TomTom Telematics, Princip in the Czech Republic, the major truck OEM Scania and Secret Control which is based in Hungary.

“With the exception of TomTom Telematics and Scania, the major international solution providers based in Western Europe, North America or South Africa are yet to reach the top-15 list for this region”, concluded Mr. Andersson.

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Shipments of cellular M2M terminals to reach 13.7 million by 2022

Shipments of cellular M2M terminals to reach 13.7 million by 2022

Shipments of cellular M2M terminals to reach 13.7 million by 2022

Berg Insight today released new findings about the market for cellular M2M terminals. About 4.9 million cellular M2M terminals were shipped globally during 2016, an increase of 28.0 percent from the previous year.

Growing at a compound annual growth rate (CAGR) of 18.8 percent, this number is expected to reach 13.7 million in 2022.

Berg Insight defines cellular terminals as standalone devices intended for connecting M2M applications to a cellular network. These include primarily general-purpose cellular routers, gateways and modems that are enclosed in a chassis and have at least one input/output port. Trackers, telematics devices and other specialised devices are excluded from this report.

North American and Asian vendors dominate the global cellular M2M terminal market.
Cradlepoint, Sierra Wireless and Digi International are the largest vendors in North America, whilst SIMCom is the main manufacturer on the Asian market. Combined, these four vendors generated close to US$ 415 million in revenues from M2M terminal sales during 2016. This is equivalent to nearly 50 percent of the global market.

Other noteworthy vendors include CalAmp, Multitech Systems and Encore Networks in the US, Xiamen Four-Faith, Maestro Wireless and InHand Networks in Asia, Teltonika, HMS Networks, Advantech B+B SmartWorx, NetModule, Matrix Electrónica, Eurotech, Gemalto, Dr. Neuhaus and Option in Europe and NetComm Wireless in Australia. A large number of small and medium sized vendors are active on the European market, whilst the North American market is dominated by a handful of major vendors, largely due to barriers in the form of carrier certifications required for cellular devices in the region.

Fredrik Stålbrand, IoT Analyst, Berg Insight, said:

“Adoption of 4G LTE in cellular routers, gateways and modems have increased rapidly in recent time due to increased focus on product life cycle costs and decommissioning of 2G networks.”

chart: annual shipments of cellular M2M terminals World 2016-2022He adds that two thirds of the cellular M2M terminals sold globally during 2017 used 4G LTE as the main standard. “LPWA technologies such as LTE Cat M1 and NB-IoT are expected to ease the transition from 2G to LTE networks further”, continued Mr. Stålbrand.

In 2017, introductions of cellular M2M terminals featuring LTE Cat M1 and NB-IoT technologies were made by Encore Networks, Maestro Wireless and MultiTech Systems and several vendors plan to launch new products with LPWA connectivity during 2018.

Download report brochure: The Global M2M/IoT Terminal Market

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The installed base of construction equipment OEM telematics systems will reach 4.6 million units worldwide by 2021

The installed base of construction equipment OEM telematics systems will reach 4.6 million units worldwide by 2021

The installed base of construction equipment OEM telematics systems will reach 4.6 million units worldwide by 2021

Berg Insight estimates that the global installed base of active construction equipment (CE) OEM telematics systems reached almost 1.8 million units in 2016.

Growing at a compound annual growth rate (CAGR) of 21.3 percent, the active installed base is estimated to reach 4.6 million units worldwide in 2021.

This includes all CE telematics systems marketed by construction equipment OEMs, either developed in-house or provided by the CE manufacturers in partnership with third-party telematics players.

Berg Insight estimates that the European market accounted for almost 0.4 million active construction equipment OEM telematics systems at the end of 2016. The North American market is estimated to be slightly larger than the European. The Rest of World represents more than half of the global installed base of CE telematics systems provided by construction equipment OEMs.

Most major construction equipment OEMs have introduced telematics offerings for its customers either independently or in collaboration with telematics partners. OEM telematics systems are today commonly factory-installed as standard at least for heavier machines.

Berg Insight ranks Caterpillar and Komatsu as the leading construction equipment OEMs in terms of the number of CE telematics systems deployed worldwide. “The leading construction equipment manufacturers by market share are unsurprisingly also by far the top players when it comes to the number of OEM telematics subscribers”, said Rickard Andersson, Senior Analyst, Berg Insight.
He adds that this is a natural development in an industry where telematics has increasingly been included as standard with the machine purchase for quite some time, gradually covering more models and equipment categories.

Mr. Andersson continued:

“Caterpillar and Komatsu together account for more than one million telematics units today.”

Berg Insight chart: installed base of active construction equipment OEM telematics units 2016-2021Other key players include Japan-based Hitachi Construction Machinery and South Korea-based Hyundai Construction Equipment as well as JCB, Volvo CE and Deere & Company which are based in the UK, Sweden and the US respectively. South Korea-based Doosan Infracore, Liebherr based in Switzerland and CNH Industrial which is headquartered in the UK all have global installed bases of construction equipment telematics units in the low tens of thousands. “Notably, half of the top-10 OEMs have surpassed the milestone of 100,000 telematics units globally”, concluded Mr. Andersson.

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Europe and North America will reach 65.2 million active insurance telematics policies in 2021

Europe and North America will reach 65.2 million active insurance telematics policies in 2021

Europe and North America will reach 65.2 million active insurance telematics policies in 2021

According to a new research report from the IoT analyst firm Berg Insight, the number of insurance telematics policies in force on the European market reached 6.8 million in Q4-2016.

Growing at a compound annual growth rate (CAGR) of 34.8 percent, this number is expected to reach 30.0 million by 2021.

In North America, the number of insurance telematics policies in force is expected to grow at a CAGR of 38.2 percent from 6.9 million in Q4-2016 to reach 35.2 million in 2021. The European insurance telematics market is largely dominated by hardwired aftermarket black boxes while self-install OBD devices represent the vast majority of the active policies in North America. Several major US insurers have however recently shifted to solutions based on smartphones. Berg Insight expects a rapid increase in the uptake of smartphone-based solutions in all markets in the upcoming years.

Martin Svegander M2M/IoT analyst at Berg Insight, said:

“The US, Italy, the UK and Canada are still the largest markets in terms of insurance telematics policies.”

In North America, the market is dominated by US-based Progressive, Allstate, Liberty Mutual and State Farm as well as Intact Financial Corporation and Desjardins in Canada. The Italian insurers UnipolSai and Generali together accounted for around 50 percent of the telematics-enabled policies in Europe. Insurers with a strong adoption of telematics-enabled policies in the UK moreover include Admiral Group, Insure The Box and Direct Line. Several insurers in the rest of Europe have also shown a substantial uptake of telematics in 2016–2017.

“Insurers are increasingly expected to embrace every aspect of telematics to reduce the cost of claims, improve the underwriting process and add services to increase the customer value through differentiated telematics offerings”, continued Mr. Svegander.

He added that several attempts to reduce distracted driving and increase consumer engagement using smartphone-based insurance telematics have been seen in both Europe and North America. “Consumer engagement is now the focus for most insurance telematics programmes and will continue to be an important topic in the near term”, concluded Mr. Svegander.

Berg Insight chart: insurance telematics policies in force Europe and North America 2016-2021The insurance telematics value chain spans multiple industries including a large ecosystem of companies extending far beyond the insurance industry players. Automotive OEMs are showing an increasing interest in insurance telematics. Examples include General Motors, Ford, BMW, Daimler, PSA Group and Fiat. The vehicle manufacturers are expected to drive the long-term development of insurance telematics by offering the possibility to utilise connected car OEM data in pay-how-you-drive offers.

Notable aftermarket telematics service providers with a focus on insurance telematics include Octo Telematics with over 5.3 million active devices in Q4-2017 and other end-to-end solution providers such as Vodafone Automotive and Viasat Group. LexisNexis Risk Solutions, Intelligent Mechatronic Systems, Cambridge Mobile Telematics, Modus, The Floow, Scope Technologies and TrueMotion are also important players on the insurance telematics market.

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