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The Internet of things (IoT) is a network of integrated physical objects, such as mechanical or digital devices, which can communicate with other technologies by the internet or other communication systems. Each will have the ability to transfer data via a network without the need for direct human-to-human or human-to computer interaction. Examples of IoT can range widely from home appliances, smart home security systems and wearable health monitors, to the digital monitoring of agriculture, pet tracking and augmented reality gaming.
The European IoT market has advanced rapidly in recent years, with Germany, the UK, France, Italy, Spain and the Netherlands emerging as leaders in the European market. The Alliance for IoT Innovation (AIOTI) was previously launched back in 2015 by the European Commission, in order to drive innovation and industry within the European IoT ecosystem. Since then, the IoT European market generated over €151bn in 2021, with the Smart Home Technology sub-sector in particular generating over €4.2bn. This European IoT market is rapidly accelerating and is predicted to generated over €241bn by 2026.
Cybersecurity is another sub-industry of IoT which has gained significant traction in recent years. The European IoT cybersecurity and security market is expected to reach a CAGR of over 12.5% between 2022-2026, largely due to the increasing number of IoT security devices emerging from the European region.
Whist the onset of the COVID-19 pandemic in early 2020 disrupted many industries, the industrial IoT industry largely experienced an increase in demand, a sector which incorporates non-consumer devices utilised by organisations such as companies or governments to ultimately enhance operations. A huge increase in the European IoT industry was observed during the pandemic, with an aim to increase productivity, efficient and safety at a time where many employees were not able to work in person. Specifically, increases in manufacturing equipment, robotics and 3D printing has driven the IoT market in Europe recent years.
The IoT is undoubtably a globally growing market, with over 7.6bn active IoT devices developed in 2019 alone. By 2030, over 23% of these devices are predicted to be developed out of Europe, firming placing this region as a global leader in the IoT industrial market.
