IoT Sensors Market

Global IoT Sensors Market Size (2024 to 2029)

The global IoT sensors market is predicted to reach USD 17.53 billion in 2024 and USD 59.78 billion by 2029, growing at a CAGR of 27.8% during the forecast period.

The IoT and IIoT are bringing the use of sensors to a new level. Sensors are devices that detect and respond to changes in the environment and input to sensors arrives from various sources such as light, temperature, motion, temperature and others. The IoT or Internet of Things relates to the network of physical objects or things that are rooted with sensors, software and other technologies to connect and exchange data or information with other devices or systems over the Internet. An IoT system with sensors can “talk” to the cloud through connectivity, and once the data gets into the cloud, software processes it and then decides to perform action accordingly. For example, it can send an alert or automatically adjust the device without the help of the user. IoT sensors are used in various verticals and have various applications in different sectors.

The demand for IoT sensors has been growing significantly in the last few years. IoT sensors have changed the way consumers interact with technology. The application of IoT sensors can be seen in various sectors that range from smart homes and connected cars to industrial automation and healthcare and these sensors improve efficiency and convenience and offer insights across various sectors. The rapid adoption of IoT devices and technological advancements in sensors have promoted the ability of IoT sensors to enable seamless connectivity, real-time data collection, and intelligent decision-making.

In the coming years, the global IoT sensors market is anticipated to showcase promising growth owing to the ongoing digitization of industries. Consumers and businesses have been increasingly depending on IoT solutions in the current scenario for various reasons that include streamlining operations, enhancing productivity and improving quality of life and this trend is likely to fuel in the coming years and boost the global market growth.

Global IoT Sensors Market Drivers:

The growing deployment of IoT in various industries is primarily driving the growth of the IoT sensors market. The emergence of novel applications and innovative business models coupled with the costs of failing devices are fuelling the need for IoT sensors to monitor operational efficiency, which is further contributing to the growth of the IoT sensors market.  The rising number of connected devices such as connected cars, machines, smart meters, wearables and consumer electronics is propelling the need for IoT sensors and promoting the global market expansion. The number of connected devices is growing rapidly. According to studies, the number of connected devices is expected to reach 75 billion worldwide by 2025. IoT sensors are used in connected devices for data collection and analysis purposes, and the growing demand for connected devices is likely to result in the increased demand for IoT sensors.

Initiatives such as Industrial 4.0 across European countries, China and others are the major drivers of IoT deployments that subsequently fuel the demand for IoT sensors. Moreover, the decreasing cost of the IoT sensors is one of the key contributors to the growth of the IoT sensor market. Due to these lowering costs, more and more companies have been showing interest in deploying IoT solutions, which is resulting in the increased adoption of IoT solutions across various industries.

The rapid adoption of the smart cities concept in developing countries and developed countries is fuelling the need for IoT sensors and boosting global market growth. For instance, Singapore already implemented an IoT sensor-based Elderly Monitoring System that offers a facility to working family members to receive alerts when the health of their elderly family member deteriorates. The growing adoption of smart devices such as smartphones and tablets and increasing usage of 5G technology worldwide are favoring the growth of the IoT sensors market. For instance, according to Ericsson’s report, the number of 5G subscriptions is expected to hit 3.5 billion by 2026 globally, which is equivalent to almost 40% of all mobile subscriptions.

Global IoT Sensors Market Restraints:

Data privacy and security concerns are major restraints to the growth of the global IoT sensors market. People have concerns about data authenticity, security breaches, and device reliability when using IoT solutions. The IoT is completely data-driven, and IoT devices and sensors are used to generate a large extent of information per second. Therefore, it is important to ensure the authenticity of the data and the security, resilience, and reliability of the devices that accumulate data.

Impact of COVID-19 on the global IoT sensors market: 

The COVID-19 outbreak has majorly impacted the growth of the IoT sensor market. Due to the pandemic, new projects have stalled, which has declined the demand for IoT sensors. Also, the strict lockdown, social distancing, and other protocols have led to the unavailability of the workforce and have affected the production as well as the supply chain. However, the healthcare sector's demand for IoT sensors is increasing during the pandemic. Now that the economy is recovering and industrial activities have started booming, it is expected that the demand for IoT sensors is going to boost during the projected period.

REPORT COVERAGE:

This research report on the global IoT sensors market has been segmented and sub-segmented based on the type, network technology, verticals, and region.

Global IoT Sensors Market - By Type:

• Temperature
• Pressure
• Flow
• Humidity
• Chemical
• Motion/Proximity
• Other

Based on sensor type, the pressure sensor segment dominated the market in 2023 and accounted for 28.7% of the worldwide market share. The growth of the pressure sensor segment is majorly attributed to the increasing concerns around safety and comfort levels and harmful automobile emissions. The regulator bodies of several countries have imposed mandatory regulations regarding the installation of onboard diagnostics to reduce greenhouse emissions, further propelling the demand for pressure sensors in the IoT sensors market. The growing usage of pressure sensors in autonomous cars is further estimated to fuel the growth rate of the pressure sensor segment in the global market. In the automotive industry, pressure sensors are used for tire pressure monitoring systems and engine management systems.

The temperature sensors segment is another notable segment and accounted for 26.4% of the worldwide market share in 2023. The temperature segment is predicted to be the fastest growing segment among all in the global market and registers a CAGR of 8.22% during the forecast period. The growing usage of temperature sensors in the healthcare industry for remote patient monitoring and temperature-sensitive medication storage is majorly driving the segmental expansion in the global market. The rapid adoption of IoT platforms for smart agriculture worldwide is promoting the growth rate of the temperature sensors segment. Temperature sensors are used in smart agriculture for the monitoring of soil and crop temperatures.

Global IoT Sensors Market - By Network Technology:

• Wired
• Wireless
• Zigbee
• Z-Wave
• Wireless Hartz
• RFID
• Others

Based on network technology, the wireless segment accounted for 40.6% of the global IoT sensors market in 2023 and is expected to hold the dominating position in the global market throughout the forecast period. The growth of the wireless segment is primarily driven by the rising demand for wireless data through mobile devices, connected cars, smart grids and others. In addition, factors such as the growing usage of smartphones, the rapidly increasing bring-your-own-device concept, and the rising deployment of IoT in enterprises are further contributing to the growth of the wireless segment in the global market. The demand for wireless IoT sensor networks in applications such as smart agriculture, environmental monitoring, and smart home applications is on the rise worldwide and is predicted to witness double-digit growth during the forecast period and promote segmental expansion.

Global IoT Sensors Market - By Verticals:

• Consumer
• Commercial
• Industrial
  • Energy
  • Manufacturing
  • Industrial Automation
  • Transportation
  • Healthcare
  • Smart Agriculture

Based on vertical, the industrial segment held the largest share of the global market in 2023 and the lead of the industrial segment is estimated to continue throughout the forecast period. Due to the emerging smart city concept across multiple countries, Car2Car connectivity and innovative fleet management are expected to evolve and boost the usage of IoT sensors. The industrial segment is responsible for almost 70% of the IoT sensor deployments worldwide, and the majority of them can be seen happening in industries such as manufacturing, energy, and transportation. The growing emphasis on predictive maintenance by companies that operate in various industries is promoting the expansion of the industrial segment. For instance, IoT-powered predictive maintenance solutions have been shown to cut down maintenance costs by up to 30% and unplanned downtime by 70% in industrial settings.

Global IoT Sensors Market - By Region:

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

North America held 34.8% of the global market share in 2023 and stood as the leader in the worldwide market. The domination of the North American region is likely to seen in the worldwide market during the forecast period. Factors such as growing investments in smart infrastructure, rising demand for connected devices in industrial applications, and initiatives from the governments of North American countries in favor of IoT are propelling the North American market growth. The U.S. occupied the major share of the North American market in 2023 and is predicted to hold its position throughout the forecast period. The growing large-scale IoT deployments in sectors such as healthcare, manufacturing, and automotive and smart city initiatives in major urban centers such as New York City and San Francisco to improve public services and infrastructure are contributing to the U.S. market growth.

The IoT sensors market in Asia-Pacific is anticipated to be the fastest-growing regional segment in the worldwide market during the forecast period. The growing investments in infrastructure projects, rising demand for connected devices in consumer electronics and automotive sectors and the emergence of IoT ecosystems in countries such as China, Japan and South Korea are majorly propelling the growth of the IoT sensors market in the Asia-Pacific region. China is the largest market for IoT sensors in the Asia-Pacific region and is estimated to grow at a healthy CAGR during the forecast period owing to the supportive initiatives by the Chinese government such as Made in China 2025 and the development of smart cities.

Europe is expected to witness a prominent CAGR during the forecast period due to stringent regulations regarding emission of automobiles in Europe. Germany, France, and the United Kingdom are the leading markets for IoT sensors in Europe. The adoption of IoT sensors in agriculture for precision farming applications is on the rise in countries such as the Netherlands and Denmark, which is contributing to the expansion of the European market.

KEY MARKET PARTICIPANTS:

Bosch Sensortec, Texas Instruments, Honeywell International Inc., TDK Corp., TE Connectivity, Broadcom Inc., NXP Semiconductors, STMicroelectronics, Infineon Technology, and Analog Devices Inc. are some of the companies that play a significant role in the global IoT sensors market.

RECENT HAPPENINGS IN THE MARKET:

• In September 2020, Texas Instruments introduced the industry’s first C/DC buck-boost convertor, “TPS63900.” This converter combines a programmable input current limit with integrated dynamic voltage scaling, which might extend the battery life by 50%.
• In March 2020, TE Connectivity Limited acquired First Sensor AG and holds 71.8% of the share. This acquisition allows TE to offer an even broader product base, including innovation, market-leading sensors, connectors, and systems, plus best–in–class capabilities that will support the growth strategy of the TE sensors business and TE connectivity. TE now holds a 71.8% share of First Sensor AG.