The Indian IoT market is expected to reach US$9.28 billion by 2025 from US$4.98 billion in 2020, driven mostly by changes in enterprise behaviour triggered by the COVID-19 pandemic and verticals' focus on automation are driving the market.
According to latest analysis by Frost & Sullivan, the growth of IoT adoption in the country is backed by strong connectivity and coverage, rising internet penetration, a surge in smart applications adoption, new business models, and government initiatives such as smart city projects.
"IoT solution deployment for manufacturing industries, including automotive, energy and utilities, smart cities (government), retail, and other industries such as logistics, will drive investments for enterprise IoT products and services," said Apalak Ghosh, associate director, Information & Communications Technologies, Frost & Sullivan. "Enterprises are becoming more technology-focused and increasing investments in cellular IoT to generate value from their digital transformation."
Ghosh added: "Use cases such as industrial automation, building automation, security, and surveillance account for the majority of the market revenue. Telcos may benefit from a share of this revenue, depending on their strategic partnerships with hardware providers and their roles in the IoT value chain."
India offers multiple opportunities for IoT providers, and the country's IoT ecosystem is expected to continue growing to offer entire new streams of revenue. Market participants should focus on:
- Private long-term evolution (P-LTE) for enhanced security: Indian telcos should focus on marketing the benefits of P-LTE to create awareness and approach enterprises with vertical-specific P-LTE solutions.
- Real-time operational intelligence for heightened risk and compliance management: IoT providers must develop hardware and applications that are interoperable and pre-integrated to offer brand-agnostic IoT solutions.
- Visual matrix solutions for improved CX: IoT providers should establish partnerships with visual surveillance system original equipment manufacturers (OEMs) to jointly offer in-store, live consumer analytics along with core security solutions.
- IoT as a Service for Smart Diagnostics Laboratories: Starting with open source-based IoT solutions can reduce costs substantially and encourage the adoption of smart laboratories as a service.