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Forecast of the Kazakhstan IoT market development until 2024

June 2020

Analytical Report (full version)

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Analytical Report (full version)

Forecast of the Kazakhstan IoT market development until 2024
Forecast of the Kazakhstan IoT market development until 2024
June 2020

Forecast of the Kazakhstan IoT market development until 2024

June 2020

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The IoT market in Kazakhstan, despite the negative consequences of the coronavirus pandemic, will continue to develop and grow at a high rate. The largest contribution to its growth will be made by utilities, smart home solutions, and the energy supply industry.   

 

The IoT market in Kazakhstan is to some extent the successor of M2M technology solutions, which have been actively developing in the country for more than a decade. IoT is not only about data transfer between inter-machine network active elements, it is also a complex of vertically integrated industry solutions, including sensors, data processing platforms, software and executive devices. 

 

As part of the Kazakhstan IoT market research, there was also conducted a PEST analysis of the market to assess the market development of qualitative factors. The results of this analysis are shown in the table below.        

 

Table_PEST Analysis of Kazakhstan IoT Market

 

The analysis results show that in the Republic of Kazakhstan there is a positive climate for the IoT market development. It is worth noting that the state makes purposeful efforts in order to develop the industry. Back in 2015-2016, they adopted 9 national IoT standards including the policy and basic principles for the development of this industry in the Republic. The "Digital Kazakhstan" program also pays significant attention to the Internet of Things. Besides, a number of state programs aiming at eliminating the “digital inequality” and development programs in the construction sector (including the "Nurly Zher" program and the "7-20-25" mortgage lending program) indirectly contribute to the development of the IoT industry.

 

In fact, targeted efforts of the state are the main driver of the country’s IoT market development. Together with the relatively high growth rates of the economy of Kazakhstan, these efforts (according to experts of J'son & Partners Consulting) will also ensure high growth rates of the market. In addition, the IoT industry high growth rates in the period up to 2024 will be supported by the low base effect (GDP of the Republic of Kazakhstan is 0.38% of the world GDP, while the number of IoT devices in Kazakhstan accounts for only 0.01% of the total number of such devices in the world).

 

On the other hand, the disunity of the IoT market players in Kazakhstan, as well as the absence of a unified IoT ecosystem and coordinated efforts by the market players to develop the industry, this way or another hinders its growth and development. Another obstacle to the market development is the potential smart technology users’ fear (typical for all markets of the former USSR) regarding the security of data transmitted via IoT networks.

 

The historical dynamics of the Internet of Things market in Kazakhstan between 2016 and 2019 and its forecast for the period up to 2024 are shown in the figure below.

 

Pic 1_Kazakhstan IoT market volume in money

 

According to J'son & Partners Consulting, in 2019—2024, the volume of the IoT market in the Republic of Kazakhstan will grow with a CAGR of 21.2% and by the end of 2024, it will grow threefold compared to 2019. In 2020, due to the negative effects that the pandemic had on the economy, the growth of the market will slow down, but will restore its pace in 2021, and will maintain it in the future. At the moment, about 85% of the IoT market in Kazakhstan is formed by housing and utilities, Smart city projects, Smart home solutions, and projects for intelligent management of engineering systems in public buildings (see the figure below).

 

Pic 2_Structure of the Kazakhstan IoT market

 

The growing penetration of automated systems for integrated energy accounting is the main driver of the housing and utilities segment development. Smart city projects are an integral part of comprehensive programs aiming at improving public safety and efficiency of urban and municipal economies, while the Smart home/building segment is growing mainly due to the penetration of smart home technologies into private households. The assessment of changes occurred in the Kazakhstan IoT market structure is shown in the figure below.

 

Pic 3_Changes in Structure of Kazakhstan IoT market

 

According to J'son & Partners Consulting, the total share of the three most widely represented market segments will decrease in relative terms due to the outpacing growth of other segments, such as energy supply to enterprises and organizations and due to the introduction of automated energy supply accounting systems, Smart Grid technologies, Smart agriculture and Industrial Internet of Things.

 

Despite the negative consequences for the market in 2020 caused by the coronavirus pandemic, the Internet of Things market in Kazakhstan will continue its dynamic growth in 2021, keeping its growth rate of at 25% per year. The market structure will change in favor of a more even distribution of its volume among the other market segments.

 

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This information note was prepared by the J'son & Partners Consulting. We work hard to provide factual and prognostic data that fully reflect the situation and available at the time of release. J'son & Partners Consulting reserves the right to revise the data after publication of new official information by individual players. 

 

Copyright © 2019, J'son & Partners Consulting. The media can use the text, graphics, and data contained in this market review only using a link to the source of information - J'son & Partners Consulting or with an active link to the JSON.TV portal

 

™ J'son & Partners [registered trademark] 

 

 

Detailed contents of the study presented below:

 

ANALYSIS OF THE GLOBAL AND KAZAKHSTAN INTERNET OF THINGS MARKETS, 2016—2024.

 

Terms and definitions (glossary)

  1.     ANALYSIS OF THE GLOBAL IOT MARKET.

1.1. Key trends in the global IoT market.

1.2. Segment-by-segment analysis of trends in the global IoT market. Drivers and barriers to development, growth rates and structure by product.

1.2.1. Housing and utilities.

1.2.2. Transport and logistics.

1.2.3. Energy supply.

1.2.4. Industrial Internet.

1.2.5. Smart home/building.

1.2.6. Smart city.

1.2.7. Smart agriculture.

1.3. Major players in the global market.  IoT service provider business model specifics basing on foreign experience.

1.4. Examples of implementing a comprehensive approach to building partnerships.

  1.     Analysis of the IoT market in the Republic of Kazakhstan

2.1. Market volume in 2016—2018. Development forecast for the period until 2024.

2.2. Competitive situation in the Kazakhstan IoT market.

2.3. PEST analysis of the Kazakhstan IoT market.

2.4. Analysis of the technological structure of the market.

2.5. Regulations in the field of the Internet of things in Kazakhstan.

2.6. State programs aimed at the development of the IoT segment in Kazakhstan.

2.7. Main drivers and barriers to the Kazakhstan IoT market development.

2.8. The Kazakhstan IoT market development by segments.

2.8.1. Housing and utilities.

2.8.2. Transport and logistics.

2.8.3. Energy supply.

2.8.4. Industrial Internet.

2.8.5. Smart home/building.

2.8.6. Smart city.

2.8.7. Smart agriculture.

2.9. Competitive situation in the Kazakhstan IoT market.

2.10. Profiles of the main market players. Development directions. Business model. Market positioning. Strategic initiatives.

Figures and Tables:

Fig. 1. Comparison of technologies by range and power consumption

Fig. 2. Forecast of the global IoT market structure for 2020, billion dollars.

Fig. 3. IoT solutions with the highest implementation potential, CAGR % 2017—2022

Fig. 4. IoT Value chain worldwide 2016—2025, billion dollars

Fig. 5. Dynamics of the Kazakhstan IoT market in 2016—2024, million tenge

Fig. 6. Forecast of the Kazakhstan IoT market structure in 2019

Fig. 7. Forecast of changes in the Kazakhstan IoT market structure by segments

Fig. 8. Forecast of the IoT solutions market dynamics in the housing and utilities segment in 2016—2024, million tenge

Fig. 9. Forecast of the IoT solutions market dynamics in the transport and logistics segment in 2016—2024, million tenge

Fig. 10. Forecast of the IoT solutions market dynamics in the energy supply segment in 2016—2024, million tenge

Fig. 11. Forecast of the IoT solutions market dynamics in the Industrial Internet segment in 2016—2024, million tenge

Fig. 12. Forecast of the IoT solutions market dynamics in the Smart home/building segment in 2016—2024, million tenge

Fig. 13. Forecast of the IoT solutions market dynamics in the Smart city segment in 2016—2024, million tenge

Fig. 14. Forecast of the IoT solutions market dynamics in the Smart agriculture segment in 2016—2024, million tenge

Fig. 15. Forecast of the global IoT sensor market structure until the end of 2022

Fig. 16. Forecast of the global IoT transport segment development by type of transport

Fig. 17. Structure of Smart city IoT projects by application areas

Table 1. PEST analysis of global factors impacting the Kazakhstan IoT market development

Table 2. National standards of the Republic of Kazakhstan in the field of IoT

Table 3. Legislative and bylaws of the Republic of Kazakhstan regarding the Internet of things

Table 4. Comparative analysis of the Kazakhstan market key players’ positions