Internet of Things (IoT) market

Global Internet of Things (IoT) Market Size (2024 to 2029)

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 1751.8 billion by 2029 from USD 532.3 billion in 2024, growing at a CAGR of 26.9% from 2024 to 2029.

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.

Impact of COVID-19 on the Internet of Things (IoT) market

Due to the recent Covid-19 outbreak, IoT investments and deployments are slowing dramatically. However, due to major disruptions in global healthcare and supply chains, governments, hospitals, insurers and logistics service providers must respond quickly for a more connected world that could help cope better with the current crisis and mitigate future ones. However, providers are seizing the opportunity of the COVID-19 pandemic situation by offering emerging technological solutions to healthcare establishments. For example, at the end of January, the Shanghai Public Health Clinical Center (SPHCC) used the continuous temperature measurement device from California-based connected health start-up VivaLNK to monitor COVID-19 patients, reducing the risk of COVID-19 exposure of caregivers to the virus.

The COVID-19 pandemic has brought both challenges and opportunities to the Internet of Things (IoT) market. As the disruptions in global supply chains have led to delays in the manufacturing and deployment of IoT devices, hindering project timelines. Economic uncertainties have compelled some businesses to reconsider their IoT investments, particularly in non-essential areas. Additionally, concerns about data security and privacy have intensified as remote work and virtual collaborations became more prevalent, raising barriers to IoT adoption. However, the pandemic has also accelerated certain aspects of the IoT market. The increased need for remote monitoring and automation in response to social distancing measures has driven demand for IoT solutions in healthcare, manufacturing, and smart cities. As businesses prioritize digital transformation, the IoT's role in creating resilient and adaptive systems has become more pronounced, presenting new avenues for growth amid the challenges posed by the global health crisis.

REPORT COVERAGE

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

Collaborations/Partnerships:

• In March 2020, Microsoft and Cisco Systems announced a partnership to enable seamless orchestration of data from Cisco IoT Edge to Azure IoT Cloud. One of the outcomes of this collaboration would be to provide customers with a pre-integrated Edge-to-Cloud IoT application solution.

• In April 2019, IBM Corporation announced a collaboration with Sund & Bælt, which owns and operates some of the world's largest infrastructures, to help IBM develop an AI-based IoT solution designed to extend the life of useful life of old bridges and tunnels, roads and railways.

Product Launches:

• In January 2020, Cisco introduced an IoT security architecture that provides improved visibility into IT and IOT environments and protects processes. New Cisco solutions enable data collection and extraction from the IoT edge so businesses can increase efficiency to make better business decisions and accelerate digitization projects.

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

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.

 By Region:

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