The Asia Pacific IoT market is expected to reach $436.77 billion in revenue by 2026. Spending on smart cities accounts for almost one-third of the market.
Asia-Pacific’s Internet of Things (IoT) market is rapidly being transformed by megatrends, including the integration of edge-computing networks into IoT systems and new narrow-band (NB) IoT deployments. Driven by growing investments in 4G/LTE and 5G, reduced IoT sensor costs, and government support, the buoyant APAC IoT market is expected to reach $436.77 billion in revenue by 2026 from $96.92 billion in 2020, growing at a compound annual growth rate (CAGR) of 28.52%, according to new research from Frost & Sullivan.
China leads IoT spending, accounting for over half of the APAC market, followed by Japan and Australia. Government spending on smart cities accounts for almost one-third of the region’s combined spending, followed by transportation and logistics, then manufacturing. However, the COVID-19 pandemic has negatively impacted customers’ transformation journeys across several industry verticals, resulting in delays in projects such as integrating innovative technologies, including artificial intelligence (AI), blockchain, and cloud adoption.
“The APAC region accounts for about 40% of global Low Power Wide Area (LPWA) connections, with NB-IoT accounting for 97% of them,” said Hemangi Patel, Information and Communication Technology Research Analyst at Frost & Sullivan. “We forecast that the rise of NB-IoT technology will benefit low-resource IoT devices penetration. NB-IoT is expected to be an integral part of IoT connectivity, addressing requirements related to low-bandwidth, low-speed connections in utilities, industries, and households.”
Patel added, “On a macro level, increasing government focus on smart cities and Industry 4.0 initiatives is driving demand for digital IoT solutions in the region, such as eGovernment, public transportation, smart traffic management systems, and smart power grids. Given their portfolios ranging from business application solutions to data analytics and end-to-end platforms, telcos are set to become IoT one-stop solution providers.”
The following are growth opportunities identified by Frost in its latest report: