Market Trends of Indonesia IoT Industry
Software segment to hold a significant market share
- The Internet of Things (IoT) software allows smart devices to interchange information across a network infrastructure. IoT software assists in integrating physical tasks into computer-based structures, resulting in better precision and reduced human engagement. IoT software is gaining widespread adoption among Indonesian consumers, industries, and governments to leverage the advantages of connecting devices across the Internet infrastructure. The growing proliferation of smartphones, connected cars, and wearable devices, among others, will likely propel the segment's growth.
- Indonesia has reflected higher smartphone adoption and digital skills in recent years. The availability of low-power wide area networks (LPWANs), including narrowband IoT (NB-IoT) networks, low-range wide area networks (LoRaWANs), and Sigfox networks, is driving the country's IoT deployments. Sigfox is the most developing of the LPWA technologies, which was recently launched in Indonesia.
- IoT deployments are underway across the utility sector in Indonesia. The rising number of device manufacturers supporting IoT deployments, such as smart meters, is propelling the segment growth in the country. Advanced IoT strategies adopted by the country's mobile operators accelerate IoT software deployments. The roll-out of LPWANs and the end-to-end solutions offered by mobile operators across multiple use cases further strengthen the country's IoT ecosystem.
- Organizations in Indonesia are strategically focusing on staying ahead of the competition regarding the quality of their IoT experience. IoT software enables the storage, processing, data collection, manipulation, and instruction, which is helping companies in the market to gain a competitive advantage. Indonesia's digital connectivity vendors are developing innovative digital platforms that open a world of opportunities for the nation. They are partnering with experts to provide customers with the best-in-class digital experiences and replace inefficient legacy platforms.
- In Indonesia, the adoption of 5G technology and 5G Fixed Wireless Access (FWA) is growing with the potential to drive incremental revenue opportunities for operators. The increase in 5G networks and the growing number of connected devices will propel Indonesia's Internet of Things (IoT) market growth. 5G technology is expected to reduce latency significantly faster than 4G. Therefore, IoT devices will be able to communicate in real time, allowing for faster decisions and more efficient operations.
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Industrial IoT to witness a significant growth
- Industrial IoT platform utilizes image recognition, extensive data analysis, and software-defined networking (SDN) to automate and optimize production lines and analyze collected data. In the Industrial Revolution era, technologies such as IoT are shifting production and reshaping the business model of manufacturing companies in Indonesia, creating greater efficiency. Industrial IoT is enabling manufacturing innovation and digital transformation for the manufacturing companies in the country. Indonesia has recorded rapid growth in GDP in recent years, which is supported by its growing start-up ecosystem.
- The Indonesian Stock Exchange includes notable listings of regional tech giants. The country is witnessing increasing innovation in areas like IoT to seek new opportunities. Government initiatives, such as the Making Indonesia 4.0 roadmap and the 100 Smart Cities Movement, also encourage IOT adoption in Indonesia.
- IoT technologies are being rapidly implemented across various industries in Indonesia. IoT solutions can ease the challenges related to coverage and reliability. According to Indosat Ooredoo Hutchison, an Internet service provider's recent findings about the state of digitalization by top industries in Indonesia, the majority of the players in the country's manufacturing sector showcase a moderate readiness for the fourth industrial revolution, with electronic manufacturers reaching the highest score on the Industry 4.0 Readiness Index.
- Government regulations aimed at reducing environmental issues are driving the deployment of wastewater IoT solutions in Indonesia. The Ministry of Environment and Forestry (MoEF) introduced a law for industries to implement IoT solutions to monitor the wastewater they generate in real-time. Data from the sites is fed directly to the MoEF's platform, providing immediate access to data to improve decision-making.
- Vendors in Indonesia deploy IoT networks and devices to make the manufacturing processes more efficient, optimize communications, and streamline asset management. IoT networks can combat ongoing supply chain issues and help achieve Indonesia's goal of becoming a leader in manufacturing. As one of the world's largest motorcycle markets, the government has set an ambitious plan to increase the number of electric motorbikes on the country's roads. IoT solutions for real-time monitoring and tracking are gaining rapid popularity in the e-bike-sharing market in Indonesia.
