Internet of Things (IoT) Testing Market

[127 Pages Report]  The IoT testing market size is estimated to grow from USD 302.9 Million in 2016 to USD 1,378.5 Million by 2021, at a Compound Annual Growth Rate (CAGR) of 35.4% from 2016 to 2021.

The IoT testing market is gaining traction to show a significant increase in the overall growth rate of the market. The North American and European regions are in the growth phase, and the APAC region is in the early adoption stage. The MEA and Latin American regions are still in the introduction phase of the technology. The factors contributing to the high growth rate of the market in these regions are growing need for shift left testing of IoT applications and growing importance of microservices and DevOps. The need for IP testing of rising IoT devices is also driving the IoT testing market. However, dead apps and lack of consistency among standards for interconnectivity and interoperability are expected to restraint the market growth. The base year considered for the study is 2015, and the forecast has been provided for the period between 2016 and 2021.

IoT Testing Market Dynamics

Drivers

• Microservices driving the development of enhanced IoT applications
• Rising importance of DevOps
• Need for IP testing of rising IoT devices
• API monitoring is set to play a crucial role
• Need for shift left testing of IoT

Restraints

• Dead apps pose a formidable restraint to enterprises
• Lack of consistency among standards for interconnectivity and interoperability
• Shadow IT risk

Opportunities

•  Advent of software-defined application platform and controllers
•  Aligning management strategy with organizational strategic initiatives
•  Testing using service virtualization

Challenges

• Test every possible input for every possible variable
• Scalability of the IoT system and applications
• Operational challenges such as real-time complexity, dynamic environment, and lack of compatibility and connectivity
• Private data of individuals at risk

Microservices driving the development of enhanced IoT applications

Microservices is the emerging trends in enterprise applications, as they offer greater agility and operational efficiency for the enterprises in development and testing of IoT applications. Microservices provide a platform for developing enterprise applications including IoT, increase the productivity of applications at an astonishing rate, and help in the quick delivery of applications; thereby increasing the flexibility, reliability, availability, and scalability of the applications. Furthermore, it also helps to reduce time to market and shorten the SDLC of IoT applications. Microservices are majorly driven by the need for agility and speed and the re-composing of applications enabling experimentation and demands to support new delivery platforms such as the web, mobile web, native apps, and others. IoT applications supporting microservices are easier to deploy and offer distinct experiences for specific users, devices, or specialized use cases. So, testing of the microservices based on developed IoT applications is a crucial concern that needs to be addressed by the enterprises in order to boost the operational efficiency. In this scenario, IoT testing services play a vital role to address this concern, which helps to test and monitor complicated IoT applications. IoT testing service providers offers reliable and automated testing tools and solutions, in order to test the functionality, usability, performance, security, and compatibility of the IoT applications. The traditional monolithic applications are less reliable and scalable and are complex in nature. Therefore, many enterprises are adopting microservices for agile development of enterprise IoT applications to streamline their business operations.

The following are the major objectives of the study.

• To define, describe, and forecast the Internet of Things (IoT) testing market, on the basis of testing types, service types, application types, and regions
• To provide detailed information regarding major factors influencing the growth of the market (drivers, restraints, opportunities, industry-specific challenges, and burning issues)
• To strategically analyze micro markets1 with respect to individual growth trends, future prospects, and contributions to the overall market
• To analyze the opportunities in the market and details of the competitive landscape for stakeholders and market leaders
• To forecast the market size of segments with respect to five main regions, namely, North America, Europe, Asia-Pacific (APAC), Middle East and Africa (MEA), and Latin America
• To strategically profile key players and comprehensively analyze their market shares and core competencies2
• To analyze competitive developments such as mergers & acquisitions, new partnerships, and new product developments in the IoT testing market

During this research study, major players operating in the global market in various regions have been identified, and their offerings, regional presence, and distribution channels have been analyzed through in-depth discussions. Top-down and bottom-up approaches have been used to determine the overall IoT testing market size. Sizes of the other individual markets have been estimated using the percentage splits obtained through secondary sources such as Hoovers, Bloomberg BusinessWeek, and Factiva, along with primary respondents. The entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews with industry experts such as CEOs, VPs, directors, and marketing executives for key insights (both qualitative and quantitative) pertaining to the market. The figure below shows the breakdown of the primaries on the basis of the company type, designation, and region considered during the research study.

To know about the assumptions considered for the study, download the pdf brochure

The IoT testing ecosystem comprises vendors providing IoT testing services and solutions to their commercial clients across globe. Companies such Cognizant (U.S.), Infosys (India), HCL Technologies (India), Capgemini (France), TCS (India), Happiest Minds Technologies (India), AFour Technologies (U.S.), SmartBear Software (U.S.), Rapid Value Solutions (U.S.), and Rapid7 (U.S.), and many others have adopted new partnerships, agreements, and collaborations as their key strategy to enhance their market reach. This strategy accounted for the largest share of the total strategies adopted by the market players. 

IoT Testing Market Developments

• In January 2017, Rapid7 partnered with Coalfire, an industry-leading cyber risk management and compliance solution provider. This partnership enabled Rapid7 to deliver its PCI Approved Scanning Vendor (ASV) services. This partnership benefitted customers with the combined power of top-rated vulnerability management and compliance expertise.
• In May 2016, Capgemini also launched a digital manufacturing services to cater to its manufacturing clients for helping them with a reduction in the turnaround time and productivity gains by building smart connected plants & products, thereby enabling them to adopt new business models for the digital age.
• In December 2016, SmartBear Software partnered with Wipro, a global information technology, consulting, and outsourcing company. This partnership enabled SmartBear to provide a test readiness platform to its znterprise customers, expanding its addressable market.

Key Target Audience of IoT Testing Market

• IoT testing providers
• Quality assurance providers
• IoT platform providers
• IoT service providers
• Application providers
• Communication service providers
• Third-party system integrators
• Managed service providers
• Hardware vendors
• Regulatory agencies
• Governments

 “Study answers several questions for the stakeholders, primarily which market segments to focus in next two to five years for prioritizing the efforts and investments”.

Scope of the IoT Testing Market Research Report

The research report segments the global market into the following submarkets:

By Testing Type

• Functional Testing
• Performance Testing
• Network Testing
• Security Testing
• Compatibility Testing
• Usability Testing

IoT Testing Market Service Type

• Managed Services
• Professional Services

By Application Type:

• Smart Building and Home Automation
• Capillary Networks Management
• Smart Utilities
• Vehicle Telematics
• Smart Manufacturing
• Smart Healthcare

By Region:

• North America
• Europe
• APAC
• MEA
• Latin America

Available Customizations

With the given market data, MarketsandMarkets offers customizations as per the company’s specific needs. The following customization options are available for the report:

Geographic Analysis

• Further breakdown of the North America market into the U.S. and Canada
• Further breakdown of the European market into U.K, Germany, and France

Company Information

• Detailed analysis and profiling of additional market players

MarketsandMarkets forecasts the Internet of IoT testing market size to grow from USD 302.9 Million in 2016 to USD 1,378.5 Million by 2021, at a Compound Annual Growth Rate (CAGR) of 35.4%.

The IoT testing market is segmented on the basis of testing types, service types, and application types markets. The testing type segment is categorized into functional testing, performance testing, network testing, security testing, compatibility testing, and usability testing. Network testing holds the largest market share in the testing type segment, as network testing in IoT verifies the working and behavior of IoT applications with heterogeneous network connections and ensures synchronization of application with all different networking protocols to ensure seamless connectivity across the IoT platform. The service type segment is categorized into professional and managed services. The professional service type segment includes business consulting services, platform testing services, device field testing services, mobile application testing services, device & application management services, and training & support services. The application type segment is categorized into smart building & home automation, capillary networks management, smart utilities, vehicle telematics, smart manufacturing, and smart healthcare.

IoT is being adopted by different industries as a result of increasing daily business operations, new functionality for customers, and reduction in the expenses. The complex architecture of IoT systems and their unique characteristics make it mandatory to perform various types of testing across all system components. In order to ensure the scalability, performance, and security of IoT applications, the following types of testing are conducted: functional testing, performance testing, network testing, security testing, compatibility testing, and usability testing.

Functional testing of IoT devices includes the testing of interaction between devices, valid calculation, error handling, and basic device testing required for the performance of IoT application. Performance testing in IoT is carried out for performance validation of IoT devices and application performance, data transmit frequency between IoT device and application, multiple request handling carried out by smart devices, interrupt testing, and synchronization between IoT device & application. Network testing in IoT verifies the working and behavior of IoT applications with heterogeneous network connections and ensures synchronization of application with all different networking protocols to ensure seamless connectivity across the IoT platform. Security testing delivers comprehensive insights into security weaknesses present in infrastructures and IoT applications, which help to protect the IoT ecosystem from advanced persistent threats, zero-day attacks, and other cyber threats. In the IoT space, compatibility testing involves a comprehensive test of the various combinations of the sensors, applications, devices, platforms, and protocols. Usability testing refers to evaluating an IoT application with the respective user to identify any usability problem, collect the qualitative & quantitative data, and determine the user satisfaction of the application.

North America is expected to hold the largest market share and would dominate the IoT testing market from 2016 to 2021. This region has major dominance with sustainable and well-established economies, empowering them to strongly invest in research and development activities, thereby contributing to the development of new technologies such as IoT, big data, DevOps, and mobility. This adoption impacted the growth of testing services market extensively. Organizations are also keen to integrate IoT technologies in their processes, which boosted the growth of the IoT testing market significantly. Asia-Pacific (APAC) has witnessed advanced and dynamic adoption of new technologies and has always been a lucrative market.

                                                                            IOT TESTING MARKET, BY REGION, 2021

IoT Testing Market : Application Type

Smart Building and Home Automation

Smart buildings comprise energy-saving equipment for the efficient functioning of all components and systems of a building, including lighting, monitoring, safety & security, emergency systems, heating, ventilation & air conditioning systems, and car parking. In smart buildings, connectivity testing is needed for testing communication between the infrastructure and the device, compatibility testing for the product & protocol versions, and security testing to tackle the data privacy and security concerns. Home automation is defined as the process of controlling and managing home appliances using IoT. Home automation systems use control systems and smart devices to control and manage basic home functions automatically over the internet, irrespective of any location.

Capillary network management

The capillary network management process involves management of a local network that uses short-range, radio-access technology to offer enhanced and reliable local internet connectivity to various things and smart devices. Capillary network is a smart way to get connectivity between things over the internet, by leveraging IoT services and solutions. It leverages key competences of cellular networks, including security, ubiquity, network management & automation, and backhaul connectivity to the global network communication infrastructure using capillary gateways. Capillary network management comprises tools and services for smart automatic configuration and management of capillary networks.

Smart Utilities

IoT is empowering the utility vertical by offering smart services such as smart grid for energy consumption, smart gas metering, and smart water metering. The smart utilities application manages the infrastructure that offers vital services to communities such as water, electricity, and gas. IoT components deployed in this system require reliable testing of smart sensors, components, and applications used for interconnection and communication. In this scenario, IoT testing services play a vital role in testing smart components and IoT applications, to offer superior quality experience and services to end users. Smart water metering gives consumers the capability to monitor their water consumption and other useful information. The smart water sensors track temperature, track water quality, and consumption. It is done with the help of software which analyzes the data and then returns to the consumer.

Vehicle Telematics

Vehicle telematics provides usage-based insurance services to the connected vehicles, which collects data from an IoT driver-installed sensor device to monitor the driver’s performance and to set insurance policy charges based on the collected data from the device. Vehicle telematics is the technology of sending, receiving, and storing information related to vehicles via telecommunication objects. Vehicle telematics serves the purpose of providing safety related value added services such as remote vehicle tracking, recovery, and diagnostics, emergency services, and smart traffic management for reducing accidents. In vehicle telematics, fleet telematics helps to monitor the location, movement, status, and behavior of the vehicle within a fleet. This is achieved by GPS receiver and electronic GSM device installed in the vehicle, which communicates with the application.

Critical questions the report answers:

• Where will all these application areas take the industry in the mid to long term?
• What are the upcoming industry applications for IoT testing?

The IoT testing market is gaining traction due to the increasing adoption of smart devices & technologies; revolution & transformation of electronic products that are connected through the internet and adopted by different industries; increasing daily business operations; new functionality for customers; and reduction in the expenses. With increased outlook of demand side towards connecting their devices to obtain unified view of all the metrics involved to all stakeholders; making it a priority to perform in an efficient and cost effective way. The complex architecture of IoT systems and their unique characteristics makes it mandatory to perform various types of the test across all system components.

Key players in the IoT testing market include Cognizant (US), Infosys(India), Capgemini (France), TCS (India), Rapid7(US), Smartbear software (US), HCL (India), Happiest Minds Technologies (India), Rapidvalue solutions (US), Saksoft (India), Apica system (Sweden), Novacost (US) these players are increasingly undertaking mergers and acquisitions, and product launches to develop and introduce new technologies and products in the market.

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