The internet of things (IoT) has become popular in recent years. Since billions of the world’s physical devices are connected to the internet, the internet of things helps in collecting all the data and sharing them.
Due to the wireless networks and computer chips, you can transform anything as a part of the internet of things. In a nutshell, IoT helps merge the physical and digital universes allowing the world to become responsive and smart. One example is using an application in the smartphone to switch on the light bulb.
When it comes to IoT market size, various factors are considered. Before you read that, get to know their advantages for your business.
What are the advantages of IoT?
The internet of things is a smart device that offers undeniable benefits. Keep reading to learn the advantages.
1. Reduced human labor and improved productivity of staff: Due to the mundane tasks, you might have to maximize human labor. But thanks to IoT, you can allow your employees to work on tasks that require out-of-the-box thinking. Due to this reason, you will require a minimum number of workers, which will reduce the cost of operation.
2. Improved customer service and retention: IoT has facilitated customer service and retention by reminding the customers about the maintenance of the product, the ending of warranty periods, and so on.
3. Better business opportunities: With the help of IoT solutions, many organizations are increasing the quality of a wide variety of products or services in comparison with their competitors. Plus, they make sure the price is similar to that of the competitor’s products. Basically, utilizing smart solutions allows companies to be competitive and attractive.
4. More trustworthy image of the organization: Employing IoT solutions enables investors, consumers, and business partners to have a positive impression of the company. After all, they are well aware of the benefits provided by IoT. You will easily find experienced staff in the company if the smart devices ensure a safe working environment.
5. Better use of resources and assets: You can efficiently use your resources to improve water consumption and power management by automated scheduling with interconnected sensors. For instance, installing motion sensors can help you save on water bills and electricity bills. In this manner, your small and large businesses will be eco-friendly and productive.
How can you estimate the market size of IoT?
When you determine the market size, it will serve as a quick understanding of the levels of investment, profitable growth targets, and potential business opportunities. Hence, it is essential for decision-making and business strategy. Read further to know how to estimate the market size of the internet of things.
1. Defining the market: The first step of estimating the IoT market size is defining the target market. For that, you must determine who the target customer is and create a profile of the expected customers. You will require to analyze the first step properly.
2. Estimate the number of target customers: You will have to estimate the number of target customers. You can utilize industry databases to quantify your market.
3. Determine your penetration rate: To refine the market size, you can assume a penetration rate for a product category. The penetration rate is the percentage of the population that has purchased a product category or brand at least once.
A high penetration rate can mean that the target market is small, and you must expand them with new brands, products, and distribution channels. A low penetration rate indicates a broad target market, which allows the firm to successfully target high yield customers.
4. Calculate the potential market size: You can calculate the potential market size like the market volume and the value. If you want to calculate the potential market volume, you have to multiply the number of target customers with the penetration rate.
The growth in the Industrial IoT market is due to the high rate of demand for Industrial IoT applications in smart industries. Additionally, low sensor costs and innovative sensor technology are further expected to drive market growth in the coming future.