The global impact of COVID-19 on Internet Of Things (IoT) market size is expected to grow from USD 150 billion in 2019 to USD 243 billion by 2021, at a Compound Annual Growth Rate (CAGR) of 13.7% during the forecast period. The major factors driving the market growth include increasing focus on remote monitoring for the work from home initiative, growing adoption of smart payment technologies to minimize human contact involved in cash payments, and rising demand for wearable devices.
According to Flightradar24, there has been an unprecedented decline in air traffic, and the number of daily flights has reduced by 60-70%. The focus of governments has shifted toward adopting measures for safeguarding citizens, and several innovation projects are taking a hit.
The application of IoT is still opening new revenue streams by facilitating real-time tracking of vehicles and providing monitoring feeds of passengers. The monitoring feeds of passengers help in the checking of passenger travel histories to identify if the passenger needs to be quarantined.
Also, companies are using drones as another mode of transportation to ensure essential supplies and food deliveries. Shenzhen-based startup Pudu Technology aimed to reduce cross-infection by implementing home delivery of drugs and meals via drones and robots
IoT in healthcare offers significant life conforming benefits and has become a major adopter of technology. With the rising number of chronic ailments, IoT has already found its way in the healthcare sector, with numerous applications, such as telemedicine, connected imaging, inpatient monitoring, medication management, connected health, connected worker, connected ambulance, along with many others.
The recent outbreak of the COVID-19 has led IoT healthcare solution providers to quickly render solutions for combatting the rising demand for high-quality services for protection against the virus. The fast-spreading COVID-19 has taken over the entire healthcare ecosystem from pharmaceutical companies, drug makers, COVID-19 vaccine developers, to health insurers and hospitals. Applications such as telemedicine include remote patient monitoring, and interactive medicine, along with inpatient monitoring, is expected to gain traction during this time.
Based on the technology, the software solution segment of the market is projected to hold a larger market size during the forecast period. With the rise in the cases of COVID-19, IoT software solutions are facing substantial hit. There are a lot of verticals of IoT, such as manufacturing, transportation, travel hospitality, etc., where all the operations are put on hold. But organizations have changed their priorities, such as organizations want to monitor the health and wellness of employees as they are working from home. Such use cases are evolved in this COVID-19 pandemic. Some new use cases have been generated along with the application areas where demand for IoT software solutions has witnessed a huge increase. The growth of software solutions will be profoundly impacted in verticals, such as transportation, logistics, and manufacturing. Since these are the major contributing areas for the adoption of IoT software solutions, the disruption due to COVID-19 will have a heavy impact and will reduce the software solution market growth to a large extent..
The increasing demand for IoT in the major Asia Pacific (APAC) countries, such as China, India, and Australia, is predicted to showcase a huge base amidst the COVID-19 outbreak. The COVID-19 outbreak has slowed down the majority of the economies, such as China, India, Japan, and Australia. However, technological advancements and digitization in countries such as China and India will keep up the demand for IoT in major verticals, such as healthcare and utilities. For Instance, APAC accounted for 42% of the total installed smart meters in 2018, which is expected to increase in the future for remote monitoring and accessibility of the infrastructure during times of such pandemic.