The Asia Pacific region is taking the lead as the fastest-growing hub in the global Internet of Things (IoT) market, with an impressive projected CAGR of 30.1% during the forecast period. The global IoT market is set to soar from USD 544.38 billion in 2022 to an astonishing USD 3,352.97 billion by 2030.
This exponential growth is driven by rising digital transformation initiatives and emerging technological advancements within the region. Key players in the Asia Pacific are making significant investments in research and development to fuel market upgrades, innovations, and strategic collaborations.
For instance, in December 2022, Telkom and Cisco joined forces to establish a strategic alliance aimed at developing IoT control centers and software-defined networks in ASEAN countries. This partnership encompasses the growth of Cisco’s Platform Mobile IoT and the expansion of Telkom’s Data Center with network infrastructure and Software-Defined Networking (SDN). The collaboration is not only accelerating digital transformation but also fostering 5G adoption in Indonesia and ASEAN.
Several factors contribute to the Asia Pacific’s IoT market growth, including the increasing adoption of 5G technology, augmented reality/virtual reality (AR/VR), and other innovations across enterprises. 5G networks offer higher data processing speeds, significantly lower latency, and more reliability, making them a catalyst for autonomous and automated devices. This, in turn, drives the demand for 5G-enabled IoT devices in the region.
Moreover, communication providers in the Asia Pacific, such as Reliance in India, Samsung Electronics Co., Ltd., and Taiwan Mobile, are expanding their product portfolios to capitalize on the growing demand for smart devices. These expansions create opportunities for developing information collection systems and integrating advanced analytics capabilities into existing systems.
The Asia Pacific’s digital transformation journey is enhancing its position as a key player in the IoT market. Enterprises and organizations are rapidly adopting high-tech solutions, including automation, cloud computing, artificial intelligence (AI), IoT, and advanced network infrastructure, to digitally transform. A significant number of organizations in the region are investing in IT modernization and digital transformation, with more than 95% of Indian enterprises planning to maximize their digital transformation spending in 2023, according to an IDC report.