The global industrial IoT market is predicted to grow at a CAGR of 11.91% from 2024 to 2029, and its size is expected to be USD 659.6 billion by 2029, up from USD 375.7 billion in 2024.
Industrial IoT, known as the Industrial Internet of Things, involves linking devices, sensors, and machines in industrial settings to gather data, analyze processes, and automate operations. IIoT is being used in manufacturing, energy, and transportation to improve efficiency and predict maintenance needs. By using sensors and connected devices, it collects real-time data, offering insights into machinery performance, supply chains, and operational effectiveness. Industrial IoT aims to streamline operations, reduce downtime, and cut costs by harnessing interconnected devices and data analysis in various industrial sectors.
Software-defined production processes, robotics, and medical devices are majorly propelling the growth of the global industrial IoT market. Optimization, networking, maintenance, and automation are a few industrial departments where these IoT have been integrated to achieve improved productivity and reliability in business activities. As a result of high operational performance and efficiency, the market is expanding.
The rising consumption of electronic devices, demand for semiconductors, and technological advancements are further boosting the global industrial IoT market growth. The low cost of processors and low sensors for real-time data access is assisting in driving forward the global market. The emergence and instant popularity of artificial intelligence and IoT in the production sector are expanding the global industrial IoT market growth. Along with quality control, equipment failure prediction, emergency warnings, and other functions, AI and IoT aid in the optimization of industrial processes. It also allows smart manufacturing by providing robots with the ability to function independently and make decisions in response to real-time data. Moreover, inventory management can be improved by boosting the output and decreasing waste with the help of AI solutions.
The high cost of implementation is one of the obstacles to the growth of the global industrial IoT market. Its deployment frequently requires significant upfront costs and infrastructure changes, which only a few companies, apart from major players, invest in. Likewise, it is expensive, especially for smaller organizations, to invest in sensors, software platforms, networking equipment, and data analytics knowledge.
Connectivity outages are also derailing the growth of the global market. It isn't easy to have 100% availability of it even while employing Internet connectivity. There's always a chance of losing connectivity at a certain moment, whether due to maintenance or something else entirely. For instance, in the context of the IIoT, the Boeing 737 Max disaster serves as an upsetting reminder of how important continuous communication is. The airplane model that met a tragic end was plagued by poor data transmission and communication problems.
IIoT standardization and compliance, cybersecurity, deployment of 5G, and real-time processing with edge IIoT are predicted to provide the global industrial IoT market. There is a need for specialized device standardization, and companies should combine IIoT devices from different manufacturers to build specialized networks. Interoperability between IoT devices in smart homes is made possible by the matter of open-source standards. Moreover, cybersecurity is another area that holds huge opportunities for the global market. While designing the next-generation industrial IoT, security will be the key factor. They can be built with more access control protocols, firmware updates that happen automatically, and security features that guard data as it's transferred between hubs and other devices in the future.
Securing infrastructure is the biggest issue faced by both clients and companies in the global industrial IoT market. The attack surface has increased due to a large network of interconnected systems and devices in industries, so addressing security issues is essential to safeguarding data integrity and operating systems. According to a study, more than 95% of corporate executives recognized how urgently they must increase their investment in industrial security. But despite this acceptance and advancement, there are still many obstacles in the way of the adoption process, with basic cyber hygiene being one of the biggest obstacles. Furthermore, another obstacle to advancement for professionals is scaling IIoT deployments. 2022 research says that less than 60% of the planned initiatives of 80% of IIoT decision-makers are scaled.
COVID-19 had a significant impact on the global industrial IoT market. There was a significant reduction in investments by prominent companies towards industrial IoT due to a stoppage in production activities and other industrial operations. The demand for IoT saw a serious decline during COVID-19 in North America and Asian countries. After COVID-19, the adoption of smart cities has increased. The wide acceptance of IoT development in smart cities shows the evolving trend going beyond concentrating solely on individual IoT devices and towards networked IoT systems. The second largest market for IIoT growth is the human health sector. The pandemic has heightened the importance of the Internet of Medical Things, with medical clinics increasingly utilizing direct messaging software for patient communication, payment collection, and appointment scheduling.
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REPORT METRIC |
DETAILS |
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Market Size Available |
2023 to 2029 |
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Base Year |
2023 |
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Forecast Period |
2024 to 2029 |
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CAGR |
11.91% |
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Segments Covered |
By Devices and Technology, End-User, and Region |
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Various Analyses Covered |
Global, Regional, & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities |
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Regions Covered |
North America, Europe, APAC, Latin America, Middle East & Africa |
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Market Leaders Profiled |
Siemens AG, General Electric (GE), Cisco Systems, Inc., Rockwell Automation, ABB Ltd, IBM Corporation, Honeywell International Inc., Microsoft Corporation, Schneider Electric SE, Bosch.IO (Bosch IoT Suite), PTC Inc., Intel Corporation, Huawei Technologies Co., Ltd., Emerson Electric Co., Dell Technologies Inc., Hitachi Vantara, SAP SE, Oracle Corporation, Amazon Web Services (AWS), and others. |
Based on devices and technology, the networking technology segment dominated the market in 2023 and is expected to hold the most significant global industrial IoT market share during the forecast period. These technologies are used to connect many machines and sensor nodes to the Internet, enabling machine-to-machine communication. Large-scale data collection is another benefit of these technologies that helps with better decision-making. Based on connectivity range, power requirements, and data transmission speeds, a wide variety of wireless communication methods are available. Cellular technologies are becoming more important for inter-machine communication in the industrial sector.
Based on end-use, the manufacturing segment led the market and is estimated to hold the major share of the global industrial IoT market during the forecast period. The widespread implementation of digital manufacturing technology and IoT solutions in various production facilities can be credited to segmental growth.
The logistics and transport segment is the fastest-growing segment in the global market during the forecast period due to rapid acceptance and a focus on asset management and smart transportation. Furthermore, segmental growth is further supported by the logistics industry's application of internet-connected trackers instead of RFID tags.
The North American region dominated the industrial IoT market in 2023 and is expected to continue to lead the market throughout the forecast period. The market in the North American region is expanding quickly owing to developments in automation and connectivity. The U.S. is projected to be the primary revenue generator of the North American regional market. The growing demand to increase productivity and efficiency is propelling the North American market. A survey found that about 35% of American manufacturers gather and utilize data from smart sensors to improve their manufacturing procedures. Furthermore, the shift towards smart manufacturing is also expanding the regional market.
Europe is expected to grow at a promising CAGR in the global market during the forecast period. The IoT solutions industry is growing all over Europe. The Nordic region and Eastern Europe are closely trailing behind Germany, the UK, and the Netherlands in terms of IoT adoption in Europe. The industries leading the way in IoT adoption include manufacturing, home, health, and finance, but the retail and agricultural sectors are witnessing significant development. Demand for outsourcing is being driven by both the need for more qualified professionals and the growing acceptance of outsourcing.
The Asia Pacific, industrial IoT market, is anticipated to flourish even further in the coming years. The supportive programs and initiatives have significantly assisted in regional market growth. To progress towards smart manufacturing, leading nations in the area are incorporating Industry 4.0 technologies such as IoT, AI, robotics, cloud and analytics into practice. Enhanced productivity, efficiency, and resource management are achieved by integrating industrial Internet of Things technology. To boost industrial automation, governments across the region are promoting the utilization of disruptive technology. Governments have implemented several measures to encourage the adoption of industrial IoT technology, including tax advantages, R&D investments, and the establishment of promotional ventures and platforms.
Latin America is still expected to grow during the forecast period, considering its current circumstance. The primary factors behind the market growth are the growing need for real-time streaming and remote monitoring solutions, the rising industrial deployment of modern technologies, the increasing urbanization of the region, and the improving state of the economy. To take advantage of the burgeoning e-commerce sector in developing nations in SAM and the expanding reach of 5G networks and the Internet, many startups have entered the IoT market in this region.
Middle East and Africa are expanding mainly due to the adoption of IoT across organizations. As a result, industrial IoT connections have surpassed consumer IoT connections. Smart meters are being installed by utility companies in the area to assist in balancing supply and demand by tracking customers’ energy usage in real time. The region has been focusing on the potential that these technologies make possible.
Companies playing a dominating role in the global industrial IoT market include Siemens AG, General Electric (GE), Cisco Systems, Inc., Rockwell Automation, ABB Ltd, IBM Corporation, Honeywell International Inc., Microsoft Corporation, Schneider Electric SE, Bosch.IO (Bosch IoT Suite), PTC Inc., Intel Corporation, Huawei Technologies Co., Ltd., Emerson Electric Co., Dell Technologies Inc., Hitachi Vantara, SAP SE, Oracle Corporation, Amazon Web Services (AWS), and others.
By Devices and Technology
By End-Use
By Region
Frequently Asked Questions
The global IIoT market is estimated to grow at a CAGR of 11.91% from 2024 to 2029.
Industries such as manufacturing, energy, healthcare, and transportation are among the major contributors to the global Industrial IoT market share, leveraging IoT solutions to enhance operational efficiency.
North America occupied the major share of the global IIoT market in 2023.
Siemens AG, General Electric (GE), Cisco Systems, Inc., Rockwell Automation, ABB Ltd, IBM Corporation, Honeywell International Inc., Microsoft Corporation, Schneider Electric SE, Bosch.IO (Bosch IoT Suite), PTC Inc., Intel Corporation, Huawei Technologies Co., Ltd., Emerson Electric Co., Dell Technologies Inc., Hitachi Vantara, SAP SE, Oracle Corporation and Amazon Web Services (AWS) are some of the major companies in the global IIoT market.
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