GE forecasts IoT growth in India
October 18, 2016
The Indian IoT market is expected to grow to US$15bn with 2.7bn connected devices by 2020, according to a study by GE launched at this month’s Nasscom Design & Engineering Summit in Bengaluru.
The study – 'IoT: A Revolution in the Making' – was put together by General Electric India Technology Centre (GE ITC), the National Association of Software & Services Companies (Nasscom) and Deloitte.
The study aims to provide an understanding of the global and domestic market opportunity and recommends to players in the value chain, including start-ups, the major markets, segments and key success factors expected to shape the IoT space. Given the importance of the IoT to the domestic market and its relevance to service providers in India, this report could provide a roadmap for the industry.
It highlights the growth of the IoT market at present and looks into the future of the industry, the challenges impeding global IoT growth, key IoT case studies in India and the role of start-ups in driving growth. It also brings out the IoT opportunities in India across industries such as utilities, manufacturing, automotive, transport, logistics, healthcare and retail.
According to the report, the IoT is poised for exponential growth globally, with the number of connected devices expected to grow 5.5x to 20.8bn and revenue expected to triple to US$3trn by 2020. Consumer units are expected to form a significant share – 13.5bn, about 65% – of the total IoT installed base by 2020.
"IoT is a disruptive technology with a global opportunity of $3tn,” said KS Viswanathan, VP of industry initiatives at Nasscom, pictured in the centre at the report launch. “Through this report, we seek to answer the questions: Where does India stand in the IoT value chain and what differentiator does it have to offer to the world? It provides a roadmap to enable IoT adoption and growth and evaluates the opportunity across sectors. Today, the IoT market in India is in a nascent stage but we see that changing over the next few years with start-ups playing a key role."
Major factors driving the worldwide adoption of the IoT are device proliferation, availability of low-cost sensors, increase in computing speeds and deployment of IPv6.
Among the challenges that the industry faces are a lack of uniform security standards, privacy of consumer data, scalability and unreliable network connectivity.
The IoT market in India stands at US$5.6bn with 200 million connected devices in 2016. This is expected to grow to $15bn with 2.7bn devices by 2020.
The Indian IoT ecosystem has a diverse set of players including hardware vendors, application vendors, network operators and system integrators, with application vendors expected to garner around half the share of the India IoT market by 2020.
In India, demand for industrial applications will drive IoT growth going forward. Consumer IoT adoption is expected to be slower due to the cost of IoT devices and security as well as privacy concerns of consumers.
Start-ups comprise the majority (60 to 65%) of the 120 organisations that form the Indian IoT ecosystem and are expected to drive growth going forward.
IoT adoption in India is expected to grow across industries, with utilities, manufacturing, automotive and healthcare seeing greater opportunity than other sectors.
"This report comes at a time when the industrial internet of things is poised for exponential growth, both globally and in India,” said Munesh Makhija, far right in the picture, CTO of GE South Asia. “As the world's premier digital industrial company, GE is at the front and centre of this revolution. We believe India has an important role to play in shaping the IoT landscape and players in the Indian IoT ecosystem must collaborate to capitalise on the market opportunity."
Nasscom is the premier trade body and the chamber of commerce of the IT and business process management industries in India. It is a global trade body with more than 2100 members, which include both Indian and multinational companies that have a presence in India. Its member and associate member companies are broadly in the business of software development, software services, software products, consulting services, business outsourcing, e-commerce, web services, engineering, and animation and gaming.