Growth in the Internet of Things (IoT) market is expected on account of a rise in internet connectivity and the pervasiveness of technology. Additionally, the venture-capitalist investments of technology companies in industry startups have created new opportunities of growth in the market.

Industry growth is also set to be driven by the falling costs of internet enabled sensors, internet connectivity, and data processing. Additionally, futuristic concepts such as connected wearable devices, connected vehicles, connected homes, connected cities, and the Industrial Internet of Things (IIoT) are set to provide new markets over the next seven years.

Hindrances to growth over the period will come in the form of issues such as privacy and security along with the lack of universally accepted standards, according to Hexa. Additionally, increasing regulations by authorities in the US and Europe in support of privacy and data security for the consumers are expected to challenge the industry.

The devices segment covering modules and sensors played a major role in the worldwide IoT industry, comprising over 30% of the market share in 2014. The pervasiveness of IoT platforms such as Brillo by Google and HomeKit by Apple has caused competitors to formulate and offer substitutes, hence driving segment growth.

A previous report from Lux Research released earlier this month found that cost, efficiency and safety requirements are driving growth in the Industrial Internet of Things.