Global IoT Middleware Market: COVID-19 pandemic is hitting corporations across the globe.

Published Date: 05/05/2021

The global market size of IoT middleware is projected to rise from USD 10.1 billion in 2020 to USD 28.0 billion by 2027, at a 20.1% Compound Annual Growth Rate (CAGR) during the forecast period. Also projected to fuel business development is the advancement of high-speed network infrastructure, and growing cloud adoption. Implementation and protection issues, however, are among the factors that obstruct the development of the industry.

Internet of Things middleware is software that acts as an interface between IoT modules, allowing connectivity between entities that would otherwise not be capable of doing so. Middleware integrates various systems that were not initially programmed to communicate, often complicated and already existing. The concept of the Internet of Things makes it possible to connect to just about anything (any Thing) and to exchange data over a network. Middleware is part of the infrastructure that enables access to large quantities of various objects by offering a networking layer for sensors as well as device layers that offer resources to enable efficient communication.
The COVID-19 epidemic has impacted businesses and consumer behaviour in a brief amount of time, and is having a major effect on economies and communities. With factories, educational schools, and industrial plants closing down for an indefinite period; postponing big sports and events; and in general working-from-home and social distancing programmes, companies are constantly searching at technology to help them navigate through these tough times. The COVID-19 pandemic is hitting corporations across the globe. Given the COVID-19's contagiousness, the emphasis is on remote control of the patients impacted.

IoT networks have a dynamic architecture, linking multiple computers to a network that transfers data to the cloud. Additionally, convergence with existing systems is creating difficulties in integrating the IoT platform.An analysis performed by Cisco, for example, reveals that about 60 percent of IoT ventures do not make it through the proof-of - concept process and only 26 percent of organisations will actually adopt the IoT software.

The IoT middleware market is dominated by a few globally established players such as IBM (US), Microsoft(US), AWS (US), SAP (Germany), PTC (US), Cisco (US), Google (US), Hitachi (Japan), HPE (US), Bosch (Germany), Oracle (US).

The IoT middleware business segments are categorised by region (North America , Europe, APAC, MEA and Latin America), network type (device management, software management and contact management), organisational size (SMEs and big enterprises) and vertical (manufacturing, BFSI, government and defence , automotive and transportation , energy and utilities, healthcare , retail).
The demand for IoT middleware is split by country into North America, Europe, APAC, MEA and Latin America. During the projected era Asia Pacific is predicted to have the fastest demand growth rate. With the increasing understanding of growing business competitiveness, augmented by competently developed IoT middleware platforms provided by vendors present in this area, Asia Pacific is becoming a highly potential market. In addition, comprehensive facilities to install and maintain computer applications at economic cost are fuelling development in this area. The growth is also due to the emergence of fast-growing economies like China, Japan, and India.

Analyst Commentary

Rising cloud penetration and the development of high-speed network technology would contribute to a wider base of people interested in buying IoT products. Growing need for unified control could also fuel market development. But lack of IoT specifications and lack of interoperability is one of the reasons that hinder market development. The report's goal is to identify, explain, and forecast the market size of IoT middleware based on platform type, company size, vertical, and location.

Organizations have major needs for facilities, and their systems are intertwined and interdependent. IoT sensors and control systems are commonly used to track properties and manage various operations, and to provide information in real time. Many companies are producing vast amounts of organisational data from mobile devices, computers, facilities, and other remote devices connected to the IoT network. The data for their networks and asset control can be collected and used by organisations for structured tracking. Centralized reporting incorporates in-depth performance tracking for real-time, consistent, and structured task level data. In addition, companies are looking to incorporate integrated control and obtain sufficient production line information and data and manage the different operations of organisations. In fact, it will bode well for the demand for IoT middleware.

If the IoT technology begins to evolve, numerous threats will grow. Hardware is evolving and developing. Technology will prove to be even more sophisticated. New specifications, protocols and networking solutions are increasingly becoming prevalent. There are several obstacles that a company has to address in order to make IoT facilities accessible at low cost for a vast number of connected devices that communicate safely with one another. One of these problems is the control of a large number of IoT nodes that need flexible security solutions. Another difficulty in IoT networking is to connect various devices with different capabilities in a safe manner.


The IoT middleware has been segmented as follows:

Centred on area (North America, Europe, APAC, MEA and Latin America), on the basis platform (device management, technology management and communication management), organisational structure (SMEs and major enterprises), and vertical (manufacturing, BFSI, government and defence, automobile and transportation , energy and infrastructure, retail , healthcare, BFSI, among others).

Connectivity management is the fastest growing segment of the market for IoT middleware, by type of interface. The software-based IoT middleware market includes system management, configuration management, and connexion management. The connexion management model offers a common interface for controlling an organisation's whole network together with applications, while also maintaining communications security. These systems measure distributed data over a network and route it dynamically to prevent interference that can lead to network crashes. This tool also includes unified control, helping companies boost their organisational performance.

Manufacturing stands out asthe IoT middleware market's fastest rising vertical segment. The industrial industries are heading into Industry 4.0, where digital devices and robotics will work in a whole new way together. In Industry 4.0, robotics is remotely linked to computer systems equipped with algorithms for ML and Artificial Intelligence (AI) which can train and monitor robots with very little feedback. IoT is at the forefront of Industry 4.0 and Factory Automation which lets companies streamline corporate procedures which maximise activities. IoT systems allow interconnectivity between separate layers and the application layer. IoT systems are helping producers simplify operations and control supply chains.

Regional Analysis
The IoT middleware market is divided by area into North America, Europe, APAC, MEA and Latin America. Asia Pacific is expected to have highest market growth rate during the forecast period. With the rising awareness about the increase in business productivity, supplemented with competently designed IoT middleware platforms offered by vendors present in this region, is leading to Asia Pacific becoming a highly potential market. Additionally, extensive facilities for the deployment and management of data applications at economical costs are enhancing growth in this region. Moreover, the growth is attributed to the presence of rapidly growing economies, such as China, Japan, and India. These countries have undertaken significant adoption of IoT middleware platforms to cater to the needs of data quality and governance in large enterprises and SMEs of the region. Rapid economic development, globalization, and the increased adoption of data regulatory practices are expected to drive the growth of the IoT middleware market in the region.

Major implementation of IoT middleware systems has been adopted by these countries to fulfil the data quality and governance needs of the region's big companies and SMEs. It is expected that rapid economic progress, globalisation, and expanded acceptance of data regulatory practices would fuel growth in the region's IoT middleware sector.