This report provides Transforma Insights’ view on IoT devices that we categorise as IT Infrastructure. This segment comprises Network Provision Devices like modems and routers and Network Equipment such as network switches and range extenders.
The high global penetration of internet access, reaching 5.35 billion at the end of 2023 (66.5% of the global population) by the end of 2023, has led to the widespread adoption of devices that support connectivity. However, growth has slowed in recent years, with the total number of internet users around the world increasing by just 97 million in 2023, equivalent to a 1.8% growth rate, with much of this growth occurring in developing nations. Consequently, the adoption of modems and routers is now close to saturation in developed nations for both domestic and commercial use.
Most of the devices considered in this report are used to connect various other devices to a network so that they can transfer data to central servers or between themselves. Some devices themselves are required to be connected to the internet in order to function properly and fulfil their necessary purposes. These are mostly smart modems and routers that are used in small offices or homes to provide and monitor the status of network connectivity to all other connected devices in real-time.
The report provides a detailed definition of the sector, analysis of market development and profiles of the key vendors in the space. It also provides a summary of the current status of adoption and Transforma Insights’ ten-year forecasts for the market. The forecasts include analysis of the number of IoT connections by geography, the technologies used and revenue. A full set of forecast data, including country-level forecasts, sector break-downs and public/private network splits, is available through the IoT Forecast tool.
This section of the report first talks about the rapidly increasing internet users across the globe and the estimated future trend. For instance, between 2000 and 2023, the global use of internet has increased by 1,355%. It also explains the scope of internet penetration in developing countries of Asia and Africa. For instance, Indian and Indonesian internet users grew by 211% and 181% between 2015 to 2021, and Africa witnessed the highest growth since 2000, when its internet users grew by 13,000%.
The report also examines key factors that are influencing the development of the IT Infrastructure market, including:
This subsection argues that the increasing dependency on internet is boosting the demand for devices that provide connectivity (although the adoption of modems and routers is close to saturation in developed countries – for both domestic and commercial uses). In home or commercial premises, these devices use Wi-Fi and Ethernet and for industrial usage, they typically depend on various LAN connection options like M-Bus, RS232, and RS485.
It then explains the kinds of routers (along with their features) required in different setups. For example, home setups routers are small and less powerful, and cost between USD20-USD50. On the other hand, routers meant for enterprises are faster, allow a greater number of devices, and have additional features like Access controls and Quality of Service (QoS) tools.
It then explains that few users prefer cellular FWA routers over broadband routers, which are designed for IoT or machine-to-machine (M2M) applications in outdoor environments. Many of them are being deployed instead of traditional landline setups as well. It also talks about the features of FWA routers, like switching between more convenient and economical networks, and discusses some of the manufacturers like Cisco and Phoenix Contact, who have started offering cellular routers as an alternative to traditional broadband routers, and the additional benefits of these routers, such as managing SIM cards and contracts and enabling support teams to remotely troubleshoot connectivity issues.
This section also provides a few examples of relevant products in this application, including D-Link Wireless N 300 ADSL2+ Modem Router and Cisco 880G and 890G Series Integrated Services Routers. It also talks about some of the relevant IoT deployments in this application, like Siemens offering 3G-enabled modems to provide communication between remote substations and control centres in northeastern Oman and Greenbox Farms using Teltonika routers to provide connectivity for its sustainable farming environments.
This section estimates that a large portion of devices used in the Network Equipment Application will be range extenders and then defines what a range extender is. It also talks about the communication technologies that many European domestic extenders will rely upon and the specific benefits and challenges of these technologies. For instance, powerline communication provides a new access point for devices to connect to, and wireless repeaters ensure that there are fewer devices to be used and more plug sockets are available (although they lack the consistency of a wired system).
It then shifts its focus to smart switches and talks about their features (like port prioritisation and individual speed settings) and advantages (such as autonomously adjusting their configurations to accommodate changing network demands).
This section then elucidates a few examples of relevant products in this application, including TP-Link RE605X, D-Link EaglePro AI, and Cisco 250 Series. It also talks about some of the relevant IoT deployments in this application, like New Brunswick School District 16 deploying D-Link managed smart switches to improve connectivity, and TP-Link enabling the provision of free Wi-Fi in Sim Lim Square.
In the market forecasts section, we provide a summary of the forecasts from the Transforma Insights IoT Forecast Database:
The report charts the growth in the number of devices, which will grow from 1.6 billion in 2023 to 2 billion in 2033.
Transforma Insights forecasts are compiled on a country-by-country basis. This report includes a regional summary, showing splits between Australasia, Greater China, North America, Europe, Japan, Latin America, MENA, Russia & Central Asia, South East Asia, South Korea, India & South Asia, and Sub-Saharan Africa.
Transforma Insights’ IoT forecasts include splits between the various connectivity technologies as follows: 2G, 3G, 4G, 5G mMTC, 5G non-mMTC, LPWA (non-mMTC), Satellite, Short Range, and Other.
This section discusses which technologies will be used in the IT infrastructure application group.
This part of the report discusses the market growth in terms of revenue (module revenue, service wrap revenue, and VAC revenue). Transforma Insights estimates that the revenue in the IT Infrastructure Application Group will grow at a CAGR of 3%.
