The Internet of Things market in India is expected to grow to USD 15 billion with 2.7 billion devices by 2020 with Startups, which comprise majority (60-65%) of the 120 organizations that form the Indian IoT ecosystem, expected to drive growth going forward as per a report by Nasscom, General Electric, and Deloitte.
At present, the India IoT market stands at USD 5.6 billion with 200 million connected devices in 2016.
As per the report titled ‘IoT: A Revolution in the Making’, IoT is poised for exponential growth globally, with the number of connected devices expected to grow 5.5X to 20.8 billion and revenue expected to grow over 3X to USD 3 trillion by 2020. Consumer units are expected to form a significant share (13.5 billion, about 65%) of the total IoT installed base by 2020.
The increased adoption of IoT are mainly driven by device proliferation, availability of low cost sensors, increase in computing speeds, and deployment of IPv6.
However, this industry is facing challenges in terms of lack of uniform security standards, privacy of consumer data, scalability challenges, unreliable network connectivity, etc.
The Indian IoT ecosystem has a diverse set of players including hardware vendors, application vendors, network operators and system integrators, with application vendors expected to garner ~50% share of the India IoT market by 2020.
The report further state that in India, demand for Industrial applications will drive IoT growth going forward. Consumer IoT adoption is expected to be slower due to cost of IoT devices and security as well as privacy concerns of consumers
IoT adoption in India is expected to grow across industries, with utilities, manufacturing, automotive and healthcare seeing greater opportunity than other sectors.
Expressing his thoughts on the launch of ‘IoT: A Revolution in the Making’, Munesh Makhija, CTO-GE South Asia & VP-GE India Technology Centre stated, “This report comes at a time when the Industrial Internet of Things is poised for exponential growth, both globally and in India. As the world’s premier digital industrial company, GE is at the front and centre of this revolution. We believe India has an important role to play in shaping the IoT landscape and players in the Indian IoT ecosystem must collaborate to capitalize on the market opportunity.”
KS Viswanathan, VP-Industry Initiatives, NASSCOM, said, “IoT is a disruptive technology with a global opportunity of USD 3 trillion. Through this report, we seek to answer the question, where does India stand in the IoT value chain and what differentiator does it have to offer to the world. It provides a roadmap to enable IoT adoption and growth and evaluates the opportunity across sectors. Today, the IoT market in India is in a nascent stage but we see that changing over the next few years with start-ups playing a key role.”