The global IoT middleware market is growing at a significant CAGR of around 7.0% during the forecast period (2020-2026). IoT middleware is software that acts as a bridge between physical world (IoT devices) and virtual world (applications). It is particularly responsible for setting up interaction with devices and information management system. The software deals with the format, structure, and encoding of the information that are switched between IoT devices and sensors, and different layers. The demand for IoT middleware is expected to increase with the continuous growth in the sales of IoT devices. The world is moving towards the connective technology, with which, a number of manual equipment is being transformed to connected devices. In fact, the IoT technology is implemented in a range of equipment and devices across every sector, such as manufacturing, automotive, and others. Such evolution of IoT devices in every sector is offering growth to the IoT middleware market across the globe.

Moreover, there are several other pivotal factors that are driving the global IoT middleware market, which includes growing demand for centralized monitoring and evolution of high-speed network coverage, such as 5G and upcoming 6G. In addition, the increasing adoption of cloud for data storage along with its increasing demand in SMEs is further expected to propel the market growth during the forecast period. However, the concerns over data privacy and security and absence of IoT standards will affect the market growth during the forecast period. Moreover, the outbreak of COVID-19 pandemic will affect the CAGR of IoT middleware market during the forecast period. There is a risk that current IoT initiatives are impacted as movement of specialists is restricted, and the operational sites are closed down, leading to the decline in the market value in 2020.

Segmental Outlook  

The IoT middleware market is classified on the basis of platform and vertical. Based on platform, the market is segmented into device management, application management, and connectivity management. Based on vertical, the market is segregated into energy & utilities, manufacturing, automotive, retail, healthcare, and others. 

Global IoT Middleware Market Share by Vertical, 2019 (%)

Global IoT Middleware Market is Driven by its Application in Manufacturing

Manufacturing sector is one of the major end-users of IoT middleware. The IoT middleware for manufacturing market is estimated to project a considerable CAGR during the forecast period. Industrial IoT technology offers far more intricate details to the managers, apart from the tracking progress of the plant. As per SAP SE, one of the key players in IoT industry, around 31% of production processes and equipment and nearly 30% non-production processes and equipment have already incorporated smart device/embedded intelligence in manufacturing industry. Major applications of IoT in manufacturing further include connected factory and inventory management, which are expected to offer growth opportunity to the IoT middleware market during the forecast period.

Regional Outlook 

The global IoT middleware market is classified on the basis of geography, which includes North America, Europe, Asia-Pacific, and Rest of the World. North America holds a significant share in the global IoT middleware market. The US plays the critical role in geographic contribution of North America in global IoT middleware market, attributing to the well-developed information communication technology (ICT) infrastructure and the increased adoption of connected devices across various industry verticals. In addition, the regional business growth of the market is backed by the presence of several key players such as IBM Corp., Intel Corp., Cisco Systems Inc., and others in the major economies of the region. Furthermore, ample opportunities for new entrants in the region are being promised by growing venture capitalists in the market.

Global IoT Middleware Market Growth, by Region 2020-2026

Asia-Pacific is expected to propel with a considerable growth rate in the global market

Asia-Pacific is estimated to project a considerable CAGR in the global IoT middleware market. Countries in Asia-Pacific that are contributing to the market growth include China, India, and Japan. The high internet penetration rate and rising government initiatives for smart cities results in the significant market value in the region. The growth of the internet in Asia Pacific region is attributed to the growing trend of connected devices. Australia is among the leading countries, in terms of internet penetration, in the region. All the major countries in region have implemented strategies to enable digitalization and smart cities concept in their cities. Moreover, increasing interest of multinational players in the region and rising demand from developing economies such as India and China are also estimated to drive the growth of the market.

Market Players Outlook

The key players in the IoT middleware market are contributing significantly by providing advanced technology-based products and through expanding their geographical presence across the globe. The key players operating in the global IoT middleware market include Cisco Systems, Inc., Microsoft Corp., Oracle Corp., IBM Corp., SAP SE, Google Inc., Schneider Electric SE, Siemens AG, and Amazon Web Services, Inc. These market players adopt various strategies such as product launch, partnerships, collaborations, merger, and acquisitions to sustain a strong position in the market.

The Report Covers

• Market value data analysis of 2019 and forecast to 2026.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global IoT middleware market. Based on the availability of data, information related to pipeline products, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.