The global Internet of Things (IoT) market is expected to grow from $170.6 billion this year to $561 billion by 2022 at a compound annual growth rate of nearly 27 percent, with Google, Hewlett Packard Enterprise (HPE) and Amazon Web Services (AWS) among the major vendors.

That’s according to a new report by MarketsandMarkets. Other leading vendors including Bosch Software Innovation, General Electronics, Intel, SAP SE, Cisco Systems, Microsoft, Oracle, IBM and PTC.

The vendors have adopted partnerships and collaborations as their key strategy to expand their market reach. This strategy accounted for the largest share of the total strategies adopted by the market players, the report says.

The major forces driving the IoT market include the adoption of cloud platform as a service (PaaS), and the advent of advanced data analytics and data processing, which are useful in deriving results from the high volumes of data collected using machine-to-machine communication, MarketsandMarkets said.

North America is expected to hold the largest market share during the forecast period. The countries in this region have established economies, which allows them to strongly invest in R&D. Rapid digitalization across industry verticals, increasing adoption of smart connected devices and technological advancements have further fueled the growth in this region.

Factors such as the increasing adoption of connected devices across organizations and the evolution of high-speed networking technologies have encouraged organizations in every industry sector to adopt IoT offerings, the report surmises.

Smart manufacturing applications are expected to hold the largest market share. The Industrial Internet of Things (IIoT) represents a unique opportunity of deploying the platform-based approach, a single flexible hardware architecture deployed across multiple heterogeneous applications, MarketsandMarkets notes.