Internet of Things (IoT) Market

Global Internet of Things (IoT) Market Size (2024 to 2032)

The global Internet of Things (IoT) market size was at USD 419.5 billion in 2023. The global IoT market size is anticipated to be worth USD 3,579.72 billion by 2032 from USD 532.3 billion in 2024, growing at a CAGR of 26.9% from 2024 to 2032.

Current Scenario of the Global Internet of Things (IoT) Market

The IoT is a network of objects connected to the Internet that collect and exchange data using built-in sensors. The IoT has combined hardware and software with the Internet to create a more technical environment. The Internet of Things are smart, networked devices with electronic software sensors and network connectivity that can allow these objects to exchange information. The IoT allows the entity to be controlled only through the permanent network infrastructure. It creates opportunities for deeper direct integration of the physical world into IT structures, resulting in better productivity, better accuracy and cash support, as well as less human involvement. The Internet of Things is opening to expressive production, as consumers, industries and governments recognize the benefit of connecting inert devices to the Internet. The Internet of Things was the world's largest market in 2019, which is expected to record a whopping growth in the market for computers, smartphones, connected cars, and portable devices.

MARKET DRIVERS

The capacity of IoT to generate extensive data offers businesses a transformative opportunity.

As IoT devices proliferate, they produce a wealth of information that, when analyzed, yields invaluable insights. This data-driven approach empowers businesses to make informed decisions, anticipate trends, and enhance operational efficiency. By leveraging advanced analytics on the diverse datasets generated by IoT devices, companies gain a competitive edge. Predictive maintenance, real-time monitoring, and resource optimization become attainable goals, fostering a smarter, more interconnected future. As the demand for actionable insights intensifies across sectors, the IoT market stands as a pivotal force, facilitating a paradigm shift in how industries operate, innovate, and respond to evolving challenges. In this landscape, the convergence of IoT and data analytics emerges as a cornerstone, shaping the trajectory of businesses towards heightened productivity and strategic foresight.

The escalating demand for advanced security and surveillance solutions is fuelling the growth rate of the global IoT market.

In response to evolving safety concerns, businesses and municipalities are embracing IoT devices, including smart cameras, sensors, and access control systems. These interconnected technologies form a robust network, enhancing public safety measures and safeguarding valuable assets. The deployment of smart surveillance enables real-time monitoring, threat detection, and rapid response capabilities. As a result, organizations can proactively address security challenges, mitigate risks, and ensure a more resilient environment. The integration of IoT in security not only fortifies physical spaces but also provides a data-driven approach to threat analysis. In a world increasingly focused on safety and risk management, the IoT market's role in delivering innovative security solutions underscores its relevance as a transformative force in shaping the future of secure and smart environments.

The growing advancements in telecommunications and the increasing penetration of Internet and broadband services are driving the growth of the Internet of Things (IoT) market.

Also, the use of e-commerce platforms is increasing rapidly due to the ease of purchase and the growing penetration of smartphones in the market, which is likely to drive the market. The growing need for data analytics and analytics integration is expected to drive the Internet of Things market during the forecast period. IoT allows multiple smart devices to be connected to facilitate operation and data exchange between them. There are various smart devices, such as sensors, smartphones and wearable devices, which collect the necessary data from the devices used to improve the customer experience. The growing need for data analytics and analytics integration is expected to drive the usage of the Internet of Things during the forecast period.

The retail segment will experience strong growth in the IoT market in the future. IoT technology has enabled retailers around the world to connect with both businesses and individuals. This enables retailers to gain insight into product performance and find new ways to interact with new and existing customers. IoT is also expected to make a big transformation in several areas, such as re-delivery. Major electronics manufacturers such as Samsung and LG are introducing devices, like a connected refrigerator, that can automatically reorder milk, cheese, or any other low-level product.

MARKET RESTRIANTS

The Internet of Things (IoT) market encounters a significant restraint in the form of high implementation costs, acting as a deterrent, particularly for smaller enterprises.

The substantial upfront investments required for IoT infrastructure, encompassing hardware, software, and connectivity components, can strain the financial resources of businesses. This financial barrier impedes the widespread adoption of IoT solutions, limiting the transformative benefits that such technologies can offer. Small and medium-sized enterprises (SMEs) may find it challenging to justify and allocate resources for the initial setup costs, hindering their ability to leverage IoT for operational optimization.

Environmental impact also acts as another significant restraint to the global IoT market. The production and disposal of IoT devices contribute significantly to electronic waste, posing ecological challenges. As the proliferation of connected devices continues, there is a growing need for sustainable practices throughout the lifecycle of IoT products. From design and manufacturing to end-of-life disposal, responsible approaches are imperative to mitigate environmental harm. Encouraging the use of eco-friendly materials, promoting recycling initiatives, and adopting circular economy principles are vital steps in addressing the ecological footprint of IoT.

MARKET OPPORTUNITIES 

Edge computing algorithms for device and data processing present potential prospects for the Internet of Things (IoT) market. This technology is rapidly developing and the complexities of managing connected devices and live processing of its data without an appropriate IoT solution. Problems with delays in data management and analysis are keeping alongside the traditional methods of information processing when big volumes of sensor inputs are being gathered.

For instance, according to the May 2024 news by Autocar Professional, automotive suppliers, involving Tire 2,3 and 4 companies, in India are progressively accepting edge computing technologies as the 5G networks grow and the cost of IoT cameras and devices drops. Together edge computing and a cloud-neutral strategy enable access to a broad variety of connectivity choices, including Wi-Fi, Private 5G and SD-WAN. The Indian Industry suppliers are also shedding light on the important part of cost-effectiveness in elevating the return on investment (RoI) for the automotive components producers and original equipment manufacturers. At the same time in May 2024, Tata Communications introduced its automatic platform for computing. Therefore, the edge computing algorithms are believed to significantly boost the market growth.

MARKET CHALLENGES

Interoperability problems, security vulnerabilities and resource constraints are the primary challenges impeding the Internet of Things (IoT) Market. The resource-constrained edge devices require unique processes or strategies to manage resources and workload distribution because generally there is the absence of storage capacity and computational power needed for complicated analytics. In addition, the fragmented configuration of the edge environment exposes it to new security threats, requiring strong security steps to protect sensitive information and reduce cyberattacks. So, these problems make it hard to perform machine learning algorithms and complex analytics locally.

According to Kaspersky, between January 2021 and June 2021, around 1.5 billion breaches of IoT systems happened which in 2020 was 639 million. It discovered that IoT cyberattacks took advantage of the telnet protocol, which the majority of attackers used to get access to this network, were over 872 million and several were there to steal sensitive data, shut down distributed denial-of-service (DDoS), and cryptocurrency mining.

Hence, industry players must address these challenges to accelerate in this market.

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Internet of Things (IoT) Market Analysis By Software

The data management segment is the most prevalent category in the Internet of Things (IoT) market. It is important to utilise the full capabilities of IoT technologies. It allows companies to effectively process and analyze the giant amounts of information created by IoT systems, changing to actionable insights from raw data. Moreover, the segment’s market share is also growing due to the escalating adoption of a hybrid cloud database strategy. Hybrid and multi-cloud strategies are consistently gaining more traction. AI technologies are supported by large volumes of data that need advanced storage that exist on cloud-based frameworks to facilitate business continuity, enhanced performance, cost optimization and scalability.

Global Internet of Things (IoT) Market Analysis By Hardware

The sensors segment gained the maximum portion of the Internet of Things (IoT) Market. The segment’s market growth is driven by the technological advantages and extensive application in different end-user industries. Apart from this, the emergence of the interconnected Internet of Things (IoT) monitoring and sensing devices and systems also contributed to the expansion of the segment. This allows companies within the food retail, pharmaceutical and healthcare sectors to unveil streamlined solutions for complicated operational issues. Sensing-as-a-Service has introduced a large number of new prospectives to enhance workflows and revitalize consumer experiences for higher revenue at scale. Further, IoT Sensing-as-a-Service solutions remove the legacy boundaries of IoT adoption to close visibility differences and discover actionable insights on inventory performance.

Global Internet of Things (IoT) Market Analysis By Service

The management services segment is expected to lead the Internet of Things (IoT) market. The rising deployment of IoT solutions in different industries, ranging from manufacturing and medical to smart cities and farming. This substantial incorporation of this technology requires professional control to maximise networks, device operability, and data management. Furthermore, the increasing complications of IoT ecosystems and the rise in associated systems fuel the demand for specialized managed services.

Global Internet of Things (IoT) Market Analysis By Organization Size

The small and medium-sized companies segment commands this category of the Internet of Things (IoT) market and is projected to continue this growth pattern. This strong progress of the segment can be credited to the rising availability of affordable IoT solutions, customised to the particular requirements and budget limitations of smaller companies. Furthermore, the surge in government projects and policies focused on encouraging the digital transformation of small and medium-sized enterprises is adding to the market's development. Governments worldwide are making significant investments in IoT space for unique projects throughout several sectors, including defence and infrastructure.

Global Internet of Things (IoT) Market Analysis By End User

The IT and Telecom sector holds a strong position in Internet of Things (IoT) Market adoption, leveraging connected devices for network management, data analytics, and infrastructure optimization. The sector benefits from the extensive use of IoT in enhancing operational efficiency, reducing downtime, and providing predictive maintenance.

REGIONAL ANALYSIS 

North America has emerged as a dominant force in the IoT market. The region is home to numerous technology giants and early IoT adopters across industries. Robust investment in research and development, a mature technology ecosystem, and favorable regulatory environments contribute to North America's leadership in IoT innovation. Europe showcases a growing influence in the IoT market, driven by increasing adoption in manufacturing, smart cities, and healthcare. Initiatives like Industry 4.0 have propelled IoT adoption in European manufacturing, making the region a significant player.

The Asia-Pacific region is also experiencing rapid expansion in the IoT market, propelled by a large population, rising urbanization, government initiatives, and a thriving technology industry that contributes to the region's dominance. Latin America is an emerging market for IoT, with growing adoption in agriculture and healthcare. However, increasing awareness, supportive policies, and evolving digital landscapes contribute to the region's potential for IoT growth. The Middle East and Africa are witnessing increasing IoT adoption, driven by investments in smart city initiatives, agriculture, and industrial applications. The region's focus on digital transformation and improving connectivity infrastructure contributes to the gradual expansion of IoT technologies.

KEY PLAYERS IN THE INTERNET OF THINGS (IoT) MARKET

Companies playing a dominating role in the global Internet of Things (IoT) market include Accenture PLC, Alcatel-Lucent, Amazon.com Inc., Atmel Corporation, Cisco Systems Inc., Google Inc., Hewlett-Packard, Huawei Technologies, IBM and Oracle.

RECENT HAPPENINGS IN THE GLOBAL INTERNET OF THINGS (IoT) MARKET

• In September 2024, Trasna Holdings, an IoT communication company headquartered in Ireland, bought Works, a Dubai-based company dealing in SIM hardware and software and eSIM. This procurement will considerably enhance their capabilities and position in the IoT space. Moreover, Workz’s certified cloud-based eSIM management service which was introduced in 2021 and presently has more than 150 network operators globally on this platform will benefit Trasna’s business
• In August 2024, Qualcomm Incorporated and Sequans Communications S.A. reported the signing of a definitive agreement for the sale of 4G IoT Technologies. Under this agreement, Qualcomm will purchase the 4G-based technologies for IoT and also licenses, assets and certain employees. The business deal is governed by standard closing conditions, containing French regulatory permissions.
• In August 2024, Kineis, a French company engaged in providing and operating connections for the Internet of Things (IoT), announced that it will display its unique solution, which has sensors positioned on trees linked to their group of 25 nanosatellites, for the timely identification of forest fire outbreaks. The company will present this at AFAC 2024 in Sydney (Australia).

DETAILED SEGMENTATION OF THE GLOBAL INTERNET OF THINGS (IoT) MARKET INCLUDED IN THIS REPORT

This research report on the global Internet of Things (IoT) market has been segmented and sub-segmented based on software, hardware, services, organization size, end-user, and region.

 By Software

• Data Management
• Remote Monitoring
• Network Management
• Security Solutions

By Hardware

• Sensors
• Cameras

 By Service

• Management Services
• Professional Services

 By Organization Size

• Small And Medium-Sized Companies
• Large Companies

 By End User

• IT and telecommunications industry
• Retail
• Healthcare
• Manufacturing
• Automotive
• Connected Logistics
• Others

 By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa