loT Middleware Market

[221 Pages Report] The IoT middleware market is expected to expand from USD 18.5 billion in 2024 to USD 41.7 billion in 2029, at a CAGR of 17.6%.

Owing to the escalating IoT system, IoT middleware is quickly assuming the role of a vital software layer that oversees the relay of messages between the IoT devices and networks, besides powering the IoT applications. The ongoing trends reveal a significant focus on using cloud and edge computing for data processing in real-time and increased capacity. The development of more advanced IoT applications is supported by the increase in bandwidth and low latency due to the advent of 5G technology, thus favoring IoT middleware. Also, emphasis is placed on security and compatibility. In this context, middleware products have become more competent, using artificial intelligence and machine learning to control large amounts of information more effectively. This means there will be continuous growth in the need for IoT middleware platforms as organizations in different industries forge ahead with digitizing their activities.

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IMPACT OF AI/GEN AI ON THE IOT MIDDLEWARE MARKET

The middleware for IoT systems will be revolutionized by generative AI (Gen AI), thereby increasing system sophistication and innovation. Gen AI helps perform elaborate work, enhance data management, predict and maintain IoT devices and systems, and make decisions. It produces advanced models and algorithms to improve the analysis of connected systems in a real-time fashion and increase accuracy. IoT adoption across industries will help integrate Gen AI into IoT middleware, enhancing more intelligent, secure, and scalable solutions, leading to the growth of the IoT middleware market.

IoT Middleware Market Dynamics

Driver: Blockchain-enabled IoT

loT systems that have previously been implemented have used databases as their core, where data collected from users can be easily hacked or manipulated. Blockchain solves these issues by providing an environment with its decentralized ledger that is resistant to alterations and offers secure cryptography to generate a record of the transactions and interactions on a peer-to-peer network. This decentralization also decreases the effects of points of failure, tampering, and fraud since information is not favored in one familiar spot. For instance, IBM and Maersk’s TradeLens leverage blockchain to handle a constantly growing record of every supply chain transaction, consequently enhancing accountability. Moreover, the capability of blockchain to maintain secure device identities, besides using smart contracts to configure the processes of the loT middleware, is another improvement since it entails fewer administrative processes.>

Restraint: Integration with legacy systems

The devices in each organization are usually kept for many years because their parts are easily accessible. They have remained in the business environment for quite some time because replacing them would be very costly. Connecting mainframe systems with new systems requires a lot of effort and time, and it also leads to an increase in the operating costs of business entities. The integration process results in significant problems if systems are well-designed and coordinated, business rules are understood, or data need to be standardized. The main concern of the integration process is the proper completion of the implementation process within a definite time and the exclusion of the risks connected with it: most integration projects face the problem of implementation delay. Another consideration is the accuracy of data, which is vital in data migration and integration with legacy systems; therefore, significant planning is done before attempting the integration of legacy systems.

Opportunity: Increasing shift toward outcome and pull economies

The outcome economy is based on the development of pay-per-outcome, which means that the customer is offered to pay for the worth of the product depending on the quality and time of delivery of services. Organizations must move from sequential and single-organization supply chains to value-based digital ecosystems to achieve competitiveness. Interconnectivity of gadgets and software systems within the loT environment may help pool info and facilitate inter-industrial cooperation, improving business relations and knowledge.

The pull economy is centered on three significant elements. The first aspect is PDCA’s continuing demand sensing, using modern methods of analysis to generate a market need forecast and all the certainties of the supply chain. The second area is complex automation at the end-to-end, which links devices with every other business process for optimized business performance. The third is where business defines such issues as resource utilization and minimizing wasteful processes.

Challenge: Data security and privacy issues related to IoT devices

Mature verticals are attempting to advance their business and manufacturing processes and analyze and predict the performance of the machines by using new-generation technologies like loT, Al, and cloud. One of the significant challenges while integrating the system is the need for a qualified and experienced workforce to optimally deploy technologies of the loT process. Due to changes in the economy, companies are experiencing a need for digital skills in their workers, affecting their operations and productivity. For instance, a survey conducted by The British Chambers of Commerce (BCC) revealed that more than three-fourths of companies need help finding the right digital talent in the marketplace. Also, the absence of protocol standards challenges some organizations in integrating the devices they connect into the legacy system. As the loT technology has successfully proceeded with operational integration within the industries, it is still in the initial stage.

Market Ecosystem

The IoT middleware market is highly competitive and comprises many vendors who offer solutions to a specific or niche market segment. In recent years, several changes have occurred in the IoT middleware market. Currently, vendors are involved in various partnerships and collaborations to develop comprehensive solutions that address a wide range of requirements. Microsoft(US), IBM (US), PTC (US), AWS (US), SAP (Germany), Cisco (US), Google (US), Hitachi (Japan), HPE (US), Bosch (Germany), Oracle (US), etc. are some of the major players operating in this ecosystem.

The device management platform type will contribute the largest market share in the IoT middleware market during the forecast period.

With the growing number of IoT ecosystems that interconnect a vast array of devices, including low-power sensors and simple microcontrollers, as well as other complex systems that connect devices to server gateways, it is imperative to employ a single platform in handling information and applications across these chains. Configuration and control, monitoring and diagnostics, as well as updates and software maintenance, are some of the major capabilities that device management platforms include, including related capabilities like provisioning and authentication. These platforms also feature superior capabilities such as activation certification, device configuration, monitoring, problem-solving, and service enablers. With device management platforms, all connected devices within organizations may be controlled, monitored, and protected. These platforms allow active and distant management of connected objects and their concomitant hardware and software as soon as objects and operations are incorporated.

Based on region, North America is expected to contribute the second-largest share in the IoT middleware market.

North America holds the second-largest share of the IoT middleware market. The IoT middleware market in North America is explicitly influenced by the high usage of IoT in the manufacturing and service industries in the US and Canada. These nations boast of stable and developed economies in which they can invest significantly in research and innovation, leading to the development of such great technologies. Major players such as IBM, Cisco, and Microsoft take the front row and provide IoT solutions from one or more industries. In particular, recent partnerships with the Canadian government and Quebec are critical for developing IoT, improving the region’s ICT environment, and growth of innovations.

List Top IoT Middleware Market Companies:

The major Companies in the IoT middleware market are Microsoft (US), IBM (US), PTC (US), AWS (US), SAP (Germany), Cisco (US), HPE (US), Bosch (Germany), Oracle (US), etc. These players have adopted various growth strategies such as partnerships, agreements, product launches, and enhancements to expand their footprint in the IoT middleware market.  

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Scope of the Report

This research report categorizes the IoT middleware market to forecast revenues and analyze trends in each of the following submarkets:

Based on Platform Type:

• Device Management
• Application Management
• Connectivity Management
• Data Management
• Security Management

Based on Vertical:

• Government & Defense
• Manufacturing
• BFSI
• Transportation & Logistics
• Energy & Utilities
• Healthcare
• Retail
• Other Vertical (Agriculture, Tourism And Hospitality, IT and Telecom, And Education)

By Region:

• North America
  • United States (US)
  • Canada
• Europe
  • United Kingdom (UK)
  • Germany
  • France
  • Italy
  • Spain
  • Nordics
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia & New Zealand
  • Southeast Asia
  • Rest of Asia Pacific
• Middle East and Africa
  • GCC Countries
    • UAE
    • KSA
    • Rest of GCC Countries
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America

Recent Developments

• In May 2024, Hitachi and Google Cloud announced a multi-year partnership to accelerate enterprise innovation and productivity with generative AI. Through this partnership, Hitachi will further accelerate the growth of Lumada, its core digital business, and advance operational efficiencies for the Hitachi Group.
• In April 2024, Cloud Software Group and Microsoft signed an eight-year strategic partnership agreement. This agreement will strengthen the go-to-market collaboration for the Citrix virtual application and desktop platform and support the development of new cloud and AI solutions with an integrated product roadmap.
• In September 2023, AWS collaborated with InterVision, fueling InterVision’s strategy and vision to expand and accelerate cloud adoption and modernization across its public sector and commercial customer base.
• In June 2023, PTC and Rockwell Automation announced an extension of their partnership, focused on adopting Internet of Things (IoT) and augmented reality (AR) software.

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