Internet of Things (IoT) Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 1.17 Trillion |
| Market Size (2029) | USD 2.37 Trillion |
| CAGR (2024 - 2029) | 15.12 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
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*Disclaimer: Major Players sorted in no particular order |
Internet of Things (IoT) Market Analysis
The Internet Of Things Market size is estimated at USD 1.17 trillion in 2024, and is expected to reach USD 2.37 trillion by 2029, growing at a CAGR of 15.12% during the forecast period (2024-2029).
During the COVID-19 pandemic, the vendors in the market are collaborating with several organizations to offer emerging technology-enabled solutions to healthcare organizations to help them overcome the crisis effectively. For instance, at the end of January, the Shanghai Public Health Clinical Center (SPHCC) used the California-based connected health startup VivaLNK's continuous temperature measuring device to monitor COVID-19 patients, reducing the risks of caregivers being exposed to the virus.
- IoT technology is the keystone for various organizations to digitally transform, thus empowering them to upgrade the existing processes by creating and tracking new business models. Enterprises and service providers have considered IoT the key enabler to augment digital transformation and unlock operational efficiencies. The growing adoption of IoT technology across end-user industries, such as manufacturing, automotive, and healthcare, is positively driving the market's growth. With the traditional manufacturing sector amid a digital transformation, IoT is fueling the next industrial revolution of intelligent connectivity. This is changing how industries approach increasingly complex processes of systems and machines to improve efficiency and reduce downtime.
- Industry 4.0 and IoT are central to new technological approaches for developing, producing, and managing the entire logistics chain, otherwise known as smart factory automation. Massive shifts in manufacturing due to Industry 4.0 and the acceptance of IoT require enterprises to adopt agile, smarter, and innovative ways to advance production with technologies that complement and augment human labor with robotics and reduce industrial accidents caused by process failure. With the high rate of adoption of connected devices and sensors and the enabling of M2M communication, there has been a surge in data points generated in the manufacturing industry. These data points can be of various kinds, ranging from a metric describing the time taken for the material to pass through one process cycle to a more advanced one, such as calculating the material stress capability in the automotive industry.
- According to Zebra's Manufacturing Vision Study, smart asset tracking solutions based on IoT and RFID are expected to overtake traditional, spreadsheet-based methods by 2022. A study by the Industrial IoT (IIoT) company Microsoft Corporation found that 85% of companies have at least one IIoT use case project. This number may increase, as 94% of respondents claimed they would implement IIoT strategies in 2021.
- The advancements in field devices, sensors, and robots are expected to expand the scope of the market further. IoT technologies are overcoming the labor shortage in the manufacturing sector. For more and more organizations, using Industry 4.0 technologies, like robotization, is part of day-to-day operations. According to the International Federation of Robotics, the market for collaborative robots is expected to reach USD 12.3 billion in two years. Intelligent robots work alongside workers and can be programmed by most factory workers to take on the most routine, tedious tasks and deliver accurately.
- They are increasingly used in the manufacturing industry as they are easy to train and make workplace environments safer for humans by taking their place in potentially dangerous situations. Highly trainable and collaborative, robots also deliver safer working environments for humans by switching places with them in dangerous or unsuitable situations. For instance, autonomous dump trucks used at mining sites can be remotely controlled by operators, eliminating the need for human drivers.
Internet of Things (IoT) Market Trends
The Retail Segment to Witness a Significant Growth
- Both merchants and the end consumers it serves have boosted their use of connected devices in the retail industry. The use of e-commerce and the rise in disposable income support the growth of supermarkets and hypermarkets. The usage of software and digitalization, along with the required internet access, presents a market potential for IoT devices in the market category.
- IoT is also anticipated to transition significantly in several domains, including replenishing inventory in storage facilities. Major electronics producers are releasing products like connected refrigerators that can automatically reorder cheese, milk, or any other item that is running low, including Samsung and LG.
- Moreover, there is an increase in the use of e-commerce platforms owing to the growing smartphone penetration and the ease of online shopping. Due to the increasing need for data analysis and analytics integration, the market is expected to grow.
- The critical applications of IoT for retailers include the supply chain, connected consumers, and smart-store applications. Retailers are turning to IoT-enabled solutions, as they help them improve customer engagement while increasing revenues and reducing costs.
North America to Hold Significant Market Share
- The deployment of connected vehicles, projects utilizing smart energy, home automation, and a focus on smart manufacturing are driving the expanding role of IoT among the region's crucial revenue-generating end-user industries. North America is likely a significant market in this regard. The expansion of IoT in this area has also been aided by fast digitalization across industry sectors and technological breakthroughs.
- The convergence of AI and IoT, promoted by firms like SAS Software as the next wave of IoT-based AI, is among the future technologies that are anticipated to arise out of the present technologies that are altering manufacturing in the United States. The utility sector is currently under intense pressure in the US. The US Energy Information Administration predicted worldwide energy demand will increase by 48% in 17 years, even though domestic energy production from renewable resources has expanded dramatically.
- The area is a pioneer in adopting container-based cloud applications that give deployments more flexibility and performance. Any centralized or edge IoT deployment is becoming accustomed to container-based cloud deployments. For instance, VMware introduced VMware Tanzu, a cloud platform that controls Kubernetes' container distribution.
- Additionally, the region is home to many startups developing ground-breaking IoT chip solutions. For example, a US startup, Wiliot, creates IoT chips based on Bluetooth technology without needing batteries for manufacturing, material recycling, retail, and asset distribution. These Bluetooth tags incorporate sensors, a low-power processor, and radio wave-based energy harvesting circuitry. The battery-free technology used by the startup offers much lower prices.
Internet of Things (IoT) Industry Overview
The Internet of Things (IoT) market is highly competitive owing to many large and small players operating in the domestic and international markets. Due to the high presence of technology, the market seems to be fragmented. Product innovation and mergers and acquisitions are two important methods the leading market participants use. Oracle Corporation, Cisco Systems Inc., Google Inc., IBM Corporation, and Microsoft Corporation are a few of the market's main participants.
- In February 2024, Cisco and TELUS unveiled enhanced 5G features in North America. These features target IoT applications in diverse industries, with a strong focus on connected vehicles, notably for a leading North American automotive brand's 5G Connected Car.
Internet of Things (IoT) Market Leaders
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Cisco Systems, Inc.
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Google, Inc.
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IBM Corporation
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Microsoft Corporation
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Huawei Technologies Co. Ltd
*Disclaimer: Major Players sorted in no particular order
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Internet of Things (IoT) Market News
- March 2024 - XL Axiata, a leading Indonesian converged operator with a subscriber base of 57.5 million, has partnered with Cisco, a global technology giant. Their collaboration introduces the IoT Connectivity+ Product, an innovative IoT Connectivity Management Platform. This platform is designed to bolster Indonesian businesses and provide a secure foundation for their IoT initiatives.
- January 2024 - IBM and American Tower have forged a strategic alliance to advance the deployment of a cutting-edge hybrid, multi-cloud computing platform at the edge. American Tower, renowned for its global digital infrastructure services, is expanding its neutral-host, Access Edge Data Center ecosystem. This expansion integrates IBM's Hybrid Cloud capabilities and the well-regarded Red Hat OpenShift. Through this partnership, clients are better equipped to navigate the swiftly evolving digital realm. With a focus on technologies like IoT, 5G, AI, and network automation, these companies are set to revolutionize customer experiences.
Internet of Things (IoT) Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGTHS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Value Chain Analysis
4.4 Regulatory Framework
4.5 Assessment of the Impact of COVID-19 on the Industry
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increasing Adoption of Connected Devices and Technology Proliferation
5.1.2 Rapid Growth and Technological Advancements in Data Analytics
5.2 Market Restraints
5.2.1 Issues Related to Security and Privacy of Data and Connectivity of Devices and Interoperability
6. USE CASES OF IoT
7. MARKET SEGMENTATION
7.1 By Component
7.1.1 Hardware
7.1.2 Software/Platform
7.1.3 Connectivity
7.1.4 Services
7.2 By End-user Industry
7.2.1 Manufacturing
7.2.2 Transportation
7.2.3 Healthcare
7.2.4 Retail
7.2.5 Energy and Utilities
7.2.6 Residential
7.2.7 Other End-user Industries
7.3 By Geography***
7.3.1 North America
7.3.2 Europe
7.3.3 Asia
7.3.4 Australia and New Zealand
7.3.5 Latin America
7.3.6 Middle East and Africa
8. COMPETITIVE LANDSCAPE
8.1 Company Profiles*
8.1.1 Huawei Technologies Co. Ltd
8.1.2 Robert Bosch GmbH
8.1.3 Google Inc.
8.1.4 Cisco Systems Inc.
8.1.5 PTC Inc.
8.1.6 Siemens AG
8.1.7 Honeywell International Inc.
8.1.8 Koninklijke Philips NV
8.1.9 Aeris Communications Inc.
8.1.10 Amazon Web Services Inc.
8.1.11 IBM Corporation
8.1.12 Microsoft Corporation
8.1.13 General Electric Company
8.1.14 Fujitsu Ltd
8.1.15 Oracle Corporation
8.1.16 SAP SE
8.1.17 AT&T Inc.
8.1.18 Wipro Ltd
9. INVESTMENT ANALYSIS
10. FUTURE OF THE MARKET
Internet of Things (IoT) Industry Segmentation
IoT is a network of internet-connected objects. These objects collect and exchange data using sensors embedded within them. IoT has combined hardware and software with the internet to create a more technically driven environment. The scope of study on the IoT market is structured to track the spending on hardware, platforms, and services across end-user industries, such as manufacturing, transportation, retail, healthcare, energy, and utilities.
The Internet of Things (IoT) Market is segmented by component (hardware, software/platform, connectivity, and services), end-user industry (manufacturing, transportation, healthcare, retail, energy and utilities, residential, government, and insurance), and geography (North America, Europe, Asia-Pacific, Latin America, Middle-East and Africa).
The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Component | |
| Hardware | |
| Software/Platform | |
| Connectivity | |
| Services |
| By End-user Industry | |
| Manufacturing | |
| Transportation | |
| Healthcare | |
| Retail | |
| Energy and Utilities | |
| Residential | |
| Other End-user Industries |
| By Geography*** | |
| North America | |
| Europe | |
| Asia | |
| Australia and New Zealand | |
| Latin America | |
| Middle East and Africa |
Internet of Things (IoT) Market Research FAQs
How big is the Internet Of Things (IoT) Market?
The Internet Of Things (IoT) Market size is expected to reach USD 1.17 trillion in 2024 and grow at a CAGR of 15.12% to reach USD 2.37 trillion by 2029.
What is the current Internet Of Things (IoT) Market size?
In 2024, the Internet Of Things (IoT) Market size is expected to reach USD 1.17 trillion.
Who are the key players in Internet Of Things (IoT) Market?
Cisco Systems, Inc., Google, Inc., IBM Corporation, Microsoft Corporation and Huawei Technologies Co. Ltd are the major companies operating in the Internet Of Things (IoT) Market.
Which is the fastest growing region in Internet Of Things (IoT) Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Internet Of Things (IoT) Market?
In 2024, the North America accounts for the largest market share in Internet Of Things (IoT) Market.
What years does this Internet Of Things (IoT) Market cover, and what was the market size in 2023?
In 2023, the Internet Of Things (IoT) Market size was estimated at USD 0.99 trillion. The report covers the Internet Of Things (IoT) Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Internet Of Things (IoT) Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the latest trends in IoT Technology?
The latest trends in the IoT Technology Market are: a) Rise of edge computing b) Integration of AI and machine learning for smarter IoT devices, and c) Development of more energy-efficient and secure IoT solutions
IoT Industry Report
The global Internet of Things (IoT) market is experiencing significant market growth, driven by the integration of low-cost sensors, high-speed connectivity, cloud adoption, and data analytics. This market overview highlights the transformative potential across various sectors such as healthcare, manufacturing, transportation, and retail. The market segmentation includes components like hardware, software/platform, connectivity, and services, catering to diverse end-user industries including manufacturing, transportation, healthcare, retail, energy and utilities, residential, government, and insurance.
The industry trends indicate that software solutions are expected to lead the market, enhancing operational efficiencies and customer experiences. North America is set to dominate the market due to its technological advancements, while the Asia Pacific region is predicted to see the highest growth, driven by urbanization and smart city projects. The industry outlook remains promising despite challenges such as communication technology advancements in developing economies and a lack of IoT awareness.
The report pdf provides detailed insights and forecasts, offering valuable market data and market statistics. The industry analysis reveals that the IoT market's growth rate is supported by the proliferation of connected devices and emerging technologies like 5G. Market leaders are capitalizing on these opportunities, contributing to the overall market value.
For a comprehensive understanding of the market structure, market forecast, and market predictions, the report example offers an in-depth industry report. This includes market review and market segmentation, providing a clear market overview and market outlook. The industry size and industry information are crucial for research companies and those interested in industry research.
In conclusion, the IoT market's market growth is bolstered by various factors, and the industry reports available in the report pdf offer a detailed market analysis. The industry statistics and market data are essential for understanding the market's potential and the opportunities for market leaders. The market forecast and market predictions indicate a positive trajectory for the IoT market, making it a key area of focus for industry research and market review.
