The Internet of Things (IoT) is a rapidly growing technology that has the potential to revolutionise the way we live, work and interact with our surroundings. This rings especially true in India.
India, being one of the world’s fastest-growing economies with a massive population and increasing urbanisation rates, is well-positioned to leverage IoT for its development. The Indian government has recognised the potential of IoT and has taken steps to foster its growth in the country.
This research article aims to explore the current state of IoT in India, its potential impact on various sectors and the challenges that lie ahead.
How Much is the India Internet of Things Market Worth?
In 2024, India’s IoT market is valued at US$23.16 billion, with approximately 2 billion IoT devices expected to be connected by the same year. The strong tech presence in India’s automotive sector plays a key role in the country’s IoT market growth, being valued at US$6.08 billion.
What’s more, the introduction of government initiatives such as ‘Digital India’ and ‘Smart Cities Mission’ have also contributed to the growth of IoT in India. These initiatives aim to improve infrastructure, connectivity, and digital literacy across the country, providing a strong foundation for IoT adoption.
Going forward, India is expected to experience a Compound Annual Growth Rate (CAGR) of 16.56% from 2024 to 2029, with the country’s IoT sector expected to be valued at US$49.82 billion by 2029.
Ways IoT in India is Evolving
From government initiatives to the increased digitisation of businesses and industries, IoT in India is constantly evolving. Below are three government initiatives implemented by the Government of India to drive the growth of IoT in the country:
Make in India Program
Introduced by the Government of India in 2014, the Make in India program is a major driver for IoT growth in the country. This initiative aims to create a new wave of tech start-ups in India that would transform India into the world’s most preferred global manufacturing destination.
As a result, there has been an increase in the number of IoT devices being manufactured locally, reducing dependence on imports and promoting domestic innovation.
Within the first two years of the program, India received up to US$230 billion in investments in foreign investments, surpassing China and the USA as the top destination for FDI (Foreign Direct Investment).
The government initiative’s success has led to the creation of over 7,700 tech startups in India since 2014, with several of them focusing on developing IoT solutions.
Smart Cities Mission
The Smart Cities Mission is an initiative launched by the Government of India in 2015 to develop 100 smart cities across the country. These smart cities aim to leverage technology and IoT to improve infrastructure, connectivity, and overall quality of life for their citizens.
Under this mission, the Government of India aimed to develop over 100 countries across the country by 2023, with a total investment of US$240 billion allocated for the Smart Cities Mission.
The mission aims to develop these areas with smart city solutions that have been divided into six categories:
- E-Governance and Citizen Services
- Waste Management
- Water Management
- Energy Management
- Urban Mobility
- Others (telemedicine, skill development, etc)
Several Indian cities such as Pune, Jaipur, and Bhubaneswar have already made significant progress in implementing IoT solutions under this mission, opening up thousands of new jobs in the process. As of July 2024, 7202 out of total 8018 tendered projects have been completed.
Digital India Campaign
The Digital India Campaign is a flagship program launched by the Government of India in 2015 to transform India into a digitally empowered society and knowledge economy. This campaign aims to bridge the digital divide between rural and urban areas, promote e-governance and increase digital literacy across the country.
As part of this campaign, industry leaders have collaborated on the creation of policies and standards that will enable the growth of IoT and other emerging technologies in India. This has led to increased investments in developing digital infrastructure and promoting the adoption of IoT solutions by businesses, further driving the growth of the IoT market in India.
Through the campaign, several initiatives have been implemented such as BharatNet which aims to connect over 250,000 Gram Panchayats (local government units) with high-speed broadband. This has opened up opportunities for IoT solutions in rural areas, providing access to technology and improving the quality of healthcare, education, and agriculture in these regions.
Considering that India’s IoT infrastructure is still developing, there is still a demand for the development of IoT devices specific to India and the Digital India Campaign aims to encourage domestic innovation to meet this demand.
Challenges of Adopting IoT in India
While the adoption of IoT in India has shown significant growth, there are still challenges that need to be addressed in order for India to fully leverage the potential of IoT.
In a recent study speaking to 300 business leaders across 25 sectors, it has been revealed that 83% of Indian businesses are facing issues with digital transformation.
These business leaders cite concerns around data privacy, security vulnerabilities, and regulatory compliance as major risk factors for their digital transformation – all of which can apply to the adoption of IoT.
These challenges highlight the need for stronger regulations and standards to be put in place by the Indian government to protect businesses and consumers as IoT adoption continues to grow.
In addition, other challenges such as the lack of skilled workforce and high costs of implementing IoT solutions can hinder the growth of IoT in India. However, with the government initiatives in place and the continuous development of digital infrastructure, the potential for IoT in India remains promising.
Solutions to IoT Adoption Challenges in India
To address the challenges faced in adopting IoT in India, strategic interventions are necessary.
As a leader in telecommunications solutions, Caburn Telecom offers a range of services that can significantly ease the IoT transition for Indian businesses:
- Enhancing Data Privacy and Security: Caburn Telecom employs robust security protocols to safeguard IoT networks, ensuring data privacy and integrity. With our cutting-edge encryption technologies and real-time monitoring systems, we can mitigate security vulnerabilities, instilling confidence in businesses to adopt IoT solutions without compromising the safety of their data.
- Regulatory Compliance: Navigating the regulatory landscape in India can be complex, but Caburn Telecom provides compliance consultancy to help businesses adhere to local and international regulations. Our expertise ensures that IoT deployments meet all legal and industry standards, thus reducing the risk of operational disruptions.
- Cost-Efficient IoT Solutions: Recognising the financial constraints of implementing new technologies, Caburn Telecom can provide scalable IoT solutions centred around a business’s budget. To learn more about how we can help your business, contact us.
By leveraging Caburn Telecom’s comprehensive approach to these challenges, Indian businesses can effectively overcome the obstacles hindering IoT adoption, thereby unlocking the full potential of IoT to transform industries and boost economic growth.
What Next for the Internet of Things in India?
In conclusion, the IoT landscape in India is at a pivotal stage, with immense opportunities yet to be unlocked.
The initiatives under the Smart Cities Mission and Digital India Campaign have laid a strong foundation by promoting digital literacy, enhancing infrastructure, and fostering domestic innovation. However, without the correct support from experienced companies, the challenges of data privacy, regulatory compliance, and implementation costs remain critical barriers to full adoption.
Looking ahead, the Indian IoT market is positioned for transformative growth, potentially revolutionising sectors like healthcare, agriculture, and urban mobility with smart, connected solutions.
At Caburn Telecom, we stand ready to support and navigate this journey with our exceptional connectivity solutions, empowering Indian businesses to confidently integrate IoT technologies and ensure seamless global communication.
By leveraging our expertise, Indian enterprises can confidently face the future of IoT, unlocking new possibilities and driving significant economic growth. Get in touch with our specialist team to learn more.