IoT in Banking and Financial Services Market Size Booming almost 20X to Cross USD 17 Billion by 2029
IoT in banking and financial services market is gaining traction because of the increasing adoption of digitalization and IoT technologies and advancements in AI and analytics technologies enabling more effective use of IoT data.
BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, estimated the global IoT in banking and financial services market size at USD 869.62 million in 2022. During the forecast period between 2023 and 2029, the global IoT in banking and financial services market size is projected to grow at an impressive CAGR of 53.16% reaching a value of USD 17,090.26 million by 2029. The main driver of Internet of Things (IoT) in banking industry trends is the increase in demand for IoT applications, which is boosting the market's expansion globally. Additionally, it is expected that the growing use of IoT-enabled smartphones and smart wearables will support the development of the Internet of Things (IoT) in the banking industry. However, the growth of the IoT in the banking and financial services market may be hampered by higher installation costs and complicated infrastructure requirements.
Global IoT in Banking and Financial Services Market – Overview
IoT in banking refers to the linked networks of IoT devices that gather data, transfer it, and enable its processing on a cloud or on-premises server to enhance the banking experience for customers and bankers. As many more devices are being connected in the future, IoT is going to play an even greater role in banking. Banks will be able to gather more information on their clients as a result and provide even more specialized services.
Global IoT in Banking and Financial Services Market – By Application
Based on application, the global IoT in banking and financial services market is segmented into smart ATMs, customer management & support, security & authentication, and others. The security & authentication segment accounts for the highest market share. When compared with other businesses, the financial industry faces about three times as many cyberattacks. Cost increases occur exponentially as a result of data breaches, both internal through fraud and external through hackers. The crucial developments in the cybersecurity applications market, which are expected to improve the market, are the use of Multi-Factor Authentication (MFA), typically for physical access control, virtual private networks, and chip assembly integrators' protection of counterfeiting.
Impact of COVID-19 on Global IoT in Banking and Financial Services Market
The COVID-19 pandemic offered immense growth opportunities to the global IoT in the banking and financial services market. The vast majority of bank staff worldwide have been advised to work remotely to slow the development of COVID-19. The World Health Organization (WHO) suggested that consumers adopt contactless payment technology and services and limit their handling of banknotes, as COVID-19 has the potential to survive on a note for days, which would hasten the disease's transmission. Banks can ensure that regular activities will likely be carried out with little disturbance by using digital and remote customer transactions. Such changes in the banking and financial industry are significantly fueling the growth of IoT in the market.
Major players operating in the global IoT in banking and financial services market include IBM Corporation, Microsoft Corporation, SAP SE, Oracle Corporation, Infosys Limited, Cisco Systems, Inc., Accenture plc, Intel Corporation, Huawei Technologies Co., Ltd., Bosch Software Innovations GmbH, Vodafone Group Plc, Capgemini SE, Cognizant Technology Solutions Corporation, HCL Technologies Limited, and Tata Consultancy Services Limited.
To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.
The in-depth analysis of the report provides information about growth potential, upcoming trends, and the global IoT in Banking and Financial Services Market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in the global IoT in Banking and Financial Services Market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.
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