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IoT Communication Protocol Market: Influential Factors Determining the Trajectory of the Market

Global IoT Communication Protocol Market: Snapshot
The global IoT communication protocol market is expected to witness a healthy growth on account of the high demand from businesses and organizations. IoT will be in high demand and be used as a key model for organizations across various verticals in the years to come on account of the high operational efficiency it provides. In addition to this, IoT enables cost savings, which is a key requirement for most organizations.

Some of the factors boosting the global IoT communication protocol are increased adoption of wireless sensors and increasing popularity of cloud computing. Another factor aiding the growth of the global IoT communication protocol market is the support of the government. Across the globe, governments have been increasingly funding for the research and development of the IoT field. This support from the government has been a key factor for widening the scope of the IoT communication protocol market. Huge funding from governments across the globe has resulted in innovative cross-domain applications of IoT and has immensely benefitted the growth of this industry and therefore, IoT is now increasingly penetrating across industries. It is anticipated that the future will see higher adoption of IoT across verticals supported by the easy availability of high speed internet and increasing popularity of wearable devices.

The initiatives taken by emerging countries to brace up and join other nations in terms of being technologically advanced will make them key markets for IoT communication protocol in the future. Aggressive investments are being made by nations such as India, China, and Japan and leading towards an increased adoption of the Internet of Things. This is boosting the demand for IoT chip and driving the IoT communication protocol market in turn.

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In Internet of Things, the interconnected devices are usually of short range, low power, wireless devices with their own predefined set of operations. Moreover, these devices are not compatible to existing internet protocol due to which a new set of protocols are developed to cater the requirements of the IoT. Some of the most widely used protocols in IoT are Message Queuing Telemetry Transport (MQTT), Constrained Application Protocol (CoAP) etc. These protocols facilitates in power conservation making devices operate for a longer duration of time.

The IoT communication protocol market has been experiencing massive growth in the recent years due to growing popularity of Internet of Things and the increasing adoption of smart watches and activity trackers in consumer markets. Continuous growth in demand for smartphones and other connectivity devices and increasing demand for cloud computing is expected to drive the market in near term. Additionally, expansion in use of wireless sensors and low-power wide-area network is further expected to fuel the market growth. However, lack of communication standard across platforms and high power consumption by connected devices is hindering the market growth. Significant government funding across globe for Internet of Things and increasing adoption of wearable devices in multiple application areas such as healthcare, industrial, and military is expected to create huge opportunities for the companies operating in global IoT communication protocol market.

The global IoT communication protocol market is segmented on the basis of connectivity technology, end-use application and geography. Based on the connectivity technology, the market is broadly classified into Wi-Fi, Bluetooth, ZigBee, Near Field Communication (NFC), global navigation satellite system (GNSS), EnOcean, ANT+, cellular and others. Among these EnOcean, is expected to show sustainable market growth during the forecast period. The development of IoT needed for ultra-low power devices and sensors is expected to increase need for EnOcean protocol technology.

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In terms of end-use application, the market for IoT communication protocol is segmented into wearable devices, healthcare, automotive and transportation, building automation, industrial, consumer electronics, and precision farming. Among these, building automation segment is expected to dominate the market due to high demand for energy efficiency and security & safety required in buildings. Moreover, advancements in the wireless communication technologies and convergence of IoT and building automation is expected to further increase the growth of the building automation system market.

On the basis of geography, the global IoT communication protocol market is segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. Among these, Asia Pacific is expected to lead the IoT communication protocol market during the forecast period due to huge potential for the applications of Internet of Things in developing economies such as China and India. Moreover, Middle East & Africa (MEA) and Latin America is expected to tender growth opportunities owing to the increasing in consumer devices market.


Some of the leading companies operating in the global IoT communication protocol market with significant developments include Synopsys, Inc., Stmicroelectronics N.V., Mediatek Inc., Gainspan Corporation, Ceva, Inc., NXP Semiconductors N.V., Texas Instruments Inc., Enocean GmbH, Atmel Corporation and Mindtree Ltd.

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