The IoT market on a global scale is continuing to gain momentum. There is more demand for connected devices and smart environments than ever before.
People are simply getting used to IoT devices being part of their everyday lives while companies utilize these devices for the purpose of collecting and analyzing big data. That being said, the IoT market in the UK is experiencing exceptional growth.
In fact, the UK IoT market is projected to grow by 21.81 billion USD from 2021 to 2026 at the accelerated momentum of 11.80% CAGR (Compound Annual Growth Rate). There are many IoT vendors in the UK who hold significant market share and leverage value in IoT which is driving market growth across the country.
Moreover, the market is segmented by technological solutions like RFID (Radio Frequency Identification), cloud computing, NFC (Near-Field Communication), sensors and many more, as well as end-user solutions, such as healthcare, industrial, retail and so on.
The necessity for solutions ranging from B2C smart home solutions to B2B logistic and finance solutions are one of the main reasons why IoT revenue in the UK is expected to reach $976.90m in 2022. With that in mind, let’s have a look at the state of the IoT market in the UK for 2022.
What’s driving the market growth?
The most obvious factor that drives IoT market growth in the UK is Industry 4.0 or the fourth industrial revolution. Nowadays, the next stage of the organization and control of the industrial value chain consists of solutions like cybersecurity, augmented reality (AR), autonomous robotics, cloud computing, IoT, big data and so on.
IoT devices play a pivotal role in industry 4.0, which is why more solutions are being developed and more vendors are focusing on IoT development. This has created a whole new cyber-physical system that thrives upon smart machines and smart devices.
That being said, the IoT market in the UK is still experiencing post-COVID–19 implications but despite setbacks during the pandemic, the market seems to be recovering quite efficiently and quickly. The main reason is that vendors are reevaluating their growth strategies. Here are some of the largest IoT vendors in the UK.
Adaptive Wireless Solutions Ltd.
Altiux Innovations Pvt. Ltd.
AT and T Inc.
These vendors all hold a significant share of the UK market and are, therefore, considered to be leaders in the IoT development and growth. The Internet of things market is highly competitive, globalized and have several niches in each stage of the value chain. For example The Swedish company Telenor who’s speciality lies in the late stages of the value chain is active in the UK market. They work primarily with the connectivity issues and not the hardware side of IoT.
The significance of Industry 4.0
As you may already know, technology continues to evolve each year and now we’ve reached the point where technology has revolutionized entire industries as we know them. That’s why the industrial environment has evolved thanks to automation and enhanced industrial processes.
This is all due to the combination of digital and physical systems that has led to HMI (Human-Machine Interfaces) and improved M2M (Machine-to-Machine) communication.
Therefore, Industry 4.0 is a completely new lifecycle of products that are created by smart machines while humans and smart robots coordinate the manufacturing and assembly processes.
Moreover, we now have driverless transportation vehicles that can operate logistics on their own. The new cyber-physical integration has improved industrial efficiency, performance and safety more than ever before.
Furthermore, the smart environment created by IoT devices allows machines to communicate with each other. This results in predictive maintenance where machines can alert humans about possible errors or issues.
As you might imagine, this process alone can save a lot of money on repairs and equipment replacements by allowing people to remedy issues before they become serious problems.
Industry 4.0 is, therefore, of major significance to all but it relies on effective control systems and IoT devices. And that’s why such devices and systems are highly sought-after in the UK.
What are the major IoT challenges in the UK?
With every market growth come challenges that hinder future developments and revenue-generating strategies created by major vendors in the UK. The biggest challenge so far is the lack of awareness for IoT devices and solutions.
Most consumers and even the majority of enterprises in the UK are simply not aware of the benefits that IoT devices and solutions can provide them with.
Even though large companies like Samsung, Apple, LG and Motorola are leveraging marketing strategies and campaigns to bridge the awareness gap and help consumers familiarize themselves with IoT and other connected devices, the consumer response is still unfavorable.
The main reason is that even the consumers who are aware of the IoT and its advantages are pretty much reluctant to purchase these products or opt-in for their services. That being said, here are some of the major challenges IoT vendors face in the UK.
1. Low value offers
IoT devices and solutions available to consumers are simply lacking the value, which makes consumers reluctant to purchase these products in the first place.
IoT devices are commonly part of the smart home environment but implementation, maintenance and the cost of devices themselves are too high compared to the value they offer.
2. Lack of standardization between vendors
Another reason why consumers are hesitant to opt-in for IoT devices and solutions is because of the lack of standardization between IoT vendors. When a consumer buys a smart thermostat or a smart appliance from one vendor, they’re basically in a stage of vendor-lock in.
The main reason is that devices from one vendor are simply not compatible with devices manufactured by other vendors. This limits the choice consumers have, forcing them to choose one vendor over another.
If there’s anything consumers dislike it is not having the flexibility to choose. That’s why they avoid the whole concept of smart homes, to begin with. A similar situation is plaguing industrial solutions as companies want to avoid vendor-lock in if possible.
3. Lack of understanding
A significant market gap has been created by vendors and developers of IoT devices and systems due to the lack of understanding of basic consumer needs and preferences.
And due to the lack of awareness, consumers have difficulties making a decision because they’re unaware of what these devices will offer them. That’s why major companies have begun to re-evaluate and create new growth strategies that will help them overcome these challenges.
What are the major revenue-generating IoT solutions in the UK?
So far, the most highly sought-after IoT solutions in the UK are RFID solutions. This is also one of the largest revenue-generating technologies in the UK in 2022.
The main reason is that RFID devices and solutions are in high-demand in the healthcare and e-commerce industries especially. These devices can be integrated into numerous systems thus providing a new level of automation.
Here are some of the potential implications of RFID systems in the healthcare and e-commerce industries.
RFID technology can be integrated into smart cabinets to reduce manual entries in the healthcare sector.
RFID-based asset tracking can be used to track real-time data of ventilators, hospital beds, and other important equipment in the healthcare sector.
RFID devices can be used for inventory management in warehouses.
RFID solutions can be used to automate storage, labeling, packaging and placement of goods in warehouses.
RFID solutions can help with fleet tracking and route optimization alongside GPS devices.
Another revenue-generating technology that’s gaining momentum in the UK market is cloud computing. As you may already know, IoT devices can’t do much on their own.
In fact, they require cloud data storage and information processing, so that valuable insights can be extracted from the data they collect. That’s why cloud-based services are an integral part of every IoT solution.
Other technologies like sensors and NFCs also have significant revenue-generating potential as they all contribute to the efficiency and reliability of IoT devices and solutions.
The global IoT market is expanding at a tremendous rate and the UK market is no exception. With Industry 4.0 right at our doorstep, the need for more advanced and more reliable IoT devices and solutions is at an all-time high.
IoT devices are at the core of the fourth industrial revolution and entire industries depend on their advancements and developments. The UK is ready to do its part on the global scale and contribute to the future development of IoT devices and systems. What exactly does the future hold remains to be seen.