Analysts of “Rosatom Infrastructure Solutions” (RIR, part of “Rosatom” State Corporation) studied the state and growth prospects of the Internet of Things (IoT) market in Russia; According to research, the scope of IoT technology application is currently 30% higher than in 2021, experts note a surge in demand for IoT technologies in almost all sectors of the economy, Rosatom reported on Wednesday.
In October 2024, RIR experts collected and analyzed data from various sources and noted that the volume of the Russian IoT market, taking into account data transmission, equipment, software and related services, amounted to 172 billion rubles. The average annual growth rate is 8%.
The software segment is growing at the fastest rate, 12% per year: IoT platforms, industrial gateways, drivers and other related software.
RIR analysts predict that by 2030, the IoT market in Russia may grow by more than 60% – up to 276 billion rubles, while the IoT software market may account for up to 80 billion rubles. This is possible if current growth rates are maintained and taking into account general economic forecasts. About 31% of all IoT spending across all industry segments is CAPEX (projects in the field of capital construction, laying engineering networks, modernization of facilities).
As noted in the study, IoT technologies are increasingly being used to manage the process activities of organizations. In particular, for tracking transport, optimizing energy consumption, automating production and logistics, monitoring customer activity, remote monitoring, control and management of the state of remote objects, gathering information about the state of the environment.
The main results of the study
IoT market size in monetary terms:
- According to the results of 2023, the total volume of the Russian IoT market (taking into account the transfer of data, equipment, software and related services) amounted to 172 billion rubles.
- The IoT software market (includes IoT platforms, industrial gateways, drivers and other related software) accounted for 26% of the total market, or 45 billion rubles.
- In the period from 2020 to 2023. the IoT market grew at an average of 8% per year. It is noteworthy that during the same period of time, the average growth rate of the software segment significantly prevailed, amounting to 12% per year (CAGR).
Quantified IoT market size:
- The interest of Russian organizations in IoT technologies continues to grow. So, according to Rosstat, in 2023, 35 thousand organizations registered in Russia used IoT technologies, which is almost 30% more than in 2021.
- Regional distribution: slightly less than 1/3 of all customers are concentrated in the central part of Russia, another 20% are in the Volga Federal District.
Average cost of one IoT project:
- In 2023, the average cost of one IoT project was about 5.2 million rubles.
Historically, the highest demand for IoT solutions is in the Trade and Warehousing sector. With the help of IoT, companies analyze sales data, control inventory, optimize routes, and much more.
The demand for IoT projects for social infrastructure objects (medicine, culture, sports) is growing rapidly: in two years, the number of customers in this sector has almost doubled (from 2.8 to 4.1 thousand organizations). IoT is primarily used to reduce operating costs in buildings (HVAC, security systems), grounds (security systems, visitor comfort systems) and generally to reduce labor in favor of automated systems.
A special growth of IoT projects (more than 40%) occurred in the following sectors:
- Security (military and civilian, including as part of the development of the “Smart City” concept): the most “explosive” growth – by 79% in 2 years.
- Objects of social infrastructure (medicine, culture, sports facilities, educational institutions): growth by 48% – up to 4.1 thousand organizations.
- Construction services, real estate transactions: 46% growth.
- Resource supply (RSO), energy, housing: growth by 41%.