India IoT in Manufacturing Market Size, Share, Trends and Forecast by Software, Connectivity, Services, Application, End User, and Region, 2026-2034

India IoT in Manufacturing Market Overview:

The India IoT in Manufacturing market size reached USD 2,570.62 Million in 2025. The market is projected to reach USD 9,060.13 Million by 2034, exhibiting a growth rate (CAGR) of 5.02% during 2026-2034. The market is driven by government-led Production Linked Incentive schemes across fourteen strategic manufacturing sectors, providing financial incentives to enhance domestic manufacturing capabilities and attract large-scale investments in smart factory technologies. Furthermore, Indian manufacturing enterprises are rapidly integrating industrial IoT platforms to enable predictive maintenance, real-time monitoring, and data-driven decision-making, optimizing production processes and minimizing downtime. These factors are collectively expanding the India IoT in manufacturing market share.

India IoT in Manufacturing Market Trends:

Government-Led Production Linked Incentive Scheme Driving Smart Manufacturing Adoption

The Indian government has implemented the Production Linked Incentive scheme as a flagship initiative to transform domestic manufacturing capabilities and position India as a global manufacturing powerhouse. Launched across fourteen strategic sectors including automobile and auto components, electronics and IT hardware, telecom, pharmaceuticals, solar modules, metals and mining, textiles, white goods, drones, and advanced chemistry cell batteries, the scheme provides financial rewards to domestic and foreign organizations based on incremental sales over five years. The initiative aims to increase the manufacturing sector's contribution to GDP while creating employment opportunities and reducing import dependence. The scheme aligns with national priorities including the Atmanirbhar Bharat vision and the objective of establishing India as a trusted, cost-competitive manufacturing hub in global supply chains. As of August 2025, the Production Linked Incentive scheme had generated investments worth Rs 1.46 lakh crore across fourteen sectors, creating approximately 950,000 jobs and resulting in production and sales worth Rs 12.50 lakh crore. The scheme received 764 approved applications from companies including Apple supplier Foxconn, Indian conglomerate Reliance Industries, and automotive giant Mahindra and Mahindra, demonstrating strong industry confidence in India's manufacturing capabilities. The PLI framework specifically targets enhancing localization of critical components, encouraging research and development investments, and promoting technology transfer to build indigenous capabilities. For the manufacturing sector, this translates into substantial capital for upgrading production facilities with Industry 4.0 technologies including industrial IoT sensors, automated systems, and connected machinery. The government has significantly increased budget allocations for key sectors under the PLI scheme in 2025-26, reaffirming its commitment to strengthening domestic manufacturing infrastructure. The scheme's emphasis on incremental production and value addition incentivizes manufacturers to adopt advanced technologies that enhance productivity and quality, making industrial IoT deployments economically attractive through direct financial support and indirect benefits from improved operational metrics.

Rapid Integration of Industrial IoT Platforms for Predictive Maintenance and Real-Time Analytics

Manufacturing enterprises across India are undergoing fundamental operational transformation through deployment of industrial IoT platforms that enable predictive maintenance strategies, real-time equipment monitoring, and sophisticated data analytics capabilities. These platforms integrate networks of sensors installed on production machinery, assembly lines, and material handling systems to continuously collect operational parameters including temperature, vibration, pressure, energy consumption, and production output. The collected data streams to centralized or edge computing systems where advanced analytics algorithms identify patterns, detect anomalies, and generate actionable insights for maintenance teams and production managers. The business case for predictive maintenance is compelling, as manufacturers transition from reactive or scheduled maintenance approaches to condition-based interventions that prevent unexpected equipment failures while optimizing maintenance resource allocation. In May 2025, the faculty, students, and researchers at the Indian Institute of Technology commemorated the successful creation, production, and activation of India's inaugural commercial Reduced Instruction Set Computer V-based secure IoT system on chip by the startup Mindgrove. This indigenous development marked a significant milestone in establishing India's capability to design and manufacture advanced IoT hardware for industrial applications. The adoption of industrial IoT platforms is being driven by competitive pressures to enhance operational efficiency, reduce production costs, and improve product quality consistency. Real-time visibility into production processes enables manufacturers to identify bottlenecks, optimize equipment utilization, and respond rapidly to quality deviations before they result in significant scrap or rework. The platforms support integration with enterprise resource planning systems and manufacturing execution systems, creating comprehensive digital ecosystems that connect shop floor operations with business planning and customer delivery commitments. Indian manufacturers across sectors including automotive, electronics, chemicals, pharmaceuticals, and food processing are investing in industrial IoT solutions to modernize legacy facilities and establish greenfield smart factories that leverage connected technologies from inception.

Cloud Computing and 5G Network Expansion Enabling Scalable IoT Infrastructure

The simultaneous expansion of cloud computing services and 5G telecommunications networks across India is establishing the foundational infrastructure required for large-scale industrial IoT deployments in manufacturing facilities. Cloud platforms provide elastically scalable computing resources and storage capacity that eliminate the need for manufacturers to invest heavily in on-premises data centers while offering sophisticated analytics tools, machine learning capabilities, and application programming interfaces that accelerate IoT solution development and deployment. The cloud architecture enables manufacturers to start with pilot implementations and scale progressively as they demonstrate value and build organizational capabilities in managing connected systems. By October 2025, India achieved nationwide 5G rollout with services available in 779 out of 783 districts, supported by the deployment of over 460,000 5G base transceiver stations across the country. According to industry reports, cloud technology is projected to represent 8 percent of India's GDP by 2026, potentially adding USD 310-380 billion to the nation's GDP and creating 14 million jobs while providing the infrastructure backbone for industrial IoT applications. The ultra-low latency characteristics of 5G networks, with response times measured in milliseconds, enable time-critical industrial applications including autonomous mobile robots, collaborative robotics, augmented reality-assisted maintenance, and closed-loop quality control systems that require instantaneous data transmission between sensors, control systems, and actuators. The high bandwidth capacity of 5G supports transmission of high-definition video streams from inspection cameras, large dataset transfers for digital twin applications, and simultaneous connectivity for thousands of IoT devices within manufacturing facilities without network congestion. Indian telecommunications operators including Reliance Jio and Bharti Airtel are actively deploying private 5G networks for manufacturing enterprises, providing dedicated wireless infrastructure with guaranteed performance characteristics and enhanced security compared to public networks. The convergence of affordable cloud services, ubiquitous high-speed connectivity, and declining costs of IoT sensors and edge computing devices is democratizing access to industrial IoT technologies, enabling small and medium manufacturing enterprises to implement solutions that were previously accessible only to large corporations with substantial capital budgets.

India IoT in Manufacturing Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country and regional levels for 2026-2034. Our report has categorized the market based on software, connectivity, services, application, and end user.

Software Insights:

• Application Security
• Data Management and Analytics
• Monitoring
• Network Management
• Others

The report has provided a detailed breakup and analysis of the market based on the software. This includes application security, data management and analytics, monitoring, network management, and others.

Connectivity Insights:

• Satellite Network
• Cellular Network
• RFID
• NFC
• Wi-Fi
• Others

A detailed breakup and analysis of the market based on the connectivity have also been provided in the report. This includes satellite network, cellular network, RFID, NFC, Wi-Fi, and others.

Services Insights:

• Professional
• System Integration and Deployment
• Managed
• Others

The report has provided a detailed breakup and analysis of the market based on the services. This includes professional, system integration and deployment, managed, and others.

Application Insights:

• Process Optimization
• Predictive Maintenance
• Asset Management
• Workforce Management
• Emergency and Incident Management
• Logistics and Supply Chain Management
• Inventory Management

A detailed breakup and analysis of the market based on the application have also been provided in the report. This includes process optimization, predictive maintenance, asset management, workforce management, emergency and incident management, logistics and supply chain management, and inventory management.

End User Insights:

• Automotive
• Food and Agriculture Equipment
• Industrial Equipment
• Electronics and Communication Equipment
• Chemicals and Materials Equipment
• Others

The report has provided a detailed breakup and analysis of the market based on the end user. This includes automotive, food and agriculture equipment, industrial equipment, electronics and communication equipment, chemicals and materials equipment, and others.

Regional Insights:

• North India
• South India
• East India
• West India

The report has also provided a comprehensive analysis of all the major regional markets, which include North India, South India, East India, and West India.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

India IoT in Manufacturing Market News:

• March 2025: Ennoconn, a subsidiary of Foxconn, commenced operations in its newly established industrial automation facility in Tamil Nadu, intending to introduce its products to the Indian market. The firm provides top-tier industrial IoT and embedded technology, design, and manufacturing solutions, as well as IT and system integration services targeting high-growth markets including Smart City, Smart Manufacturing, Smart Retail, Financial Services, and Media & Entertainment sectors.
• September 2025: Zoho, the prominent tech firm based in Chennai, entered the ONDC network with Vikra, a seller app operating in India, alongside Zoho IoT solutions. The firm unveiled Zoho IoT, a platform aimed at assisting businesses in real-time management of industrial IoT device data, facilitating process automation and decisions based on data analytics.

India IoT in Manufacturing Market Report Coverage:

Key Questions Answered in This Report:

• How has the India IoT in Manufacturing market performed so far and how will it perform in the coming years?
• What is the breakup of the India IoT in manufacturing market on the basis of software?
• What is the breakup of the India IoT in manufacturing market on the basis of connectivity?
• What is the breakup of the India IoT in manufacturing market on the basis of services?
• What is the breakup of the India IoT in manufacturing market on the basis of application?
• What is the breakup of the India IoT in manufacturing market on the basis of end user?
• What is the breakup of the India IoT in manufacturing market on the basis of region?
• What are the various stages in the value chain of the India IoT in manufacturing market?
• What are the key driving factors and challenges in the India IoT in manufacturing market?
• What is the structure of the India IoT in manufacturing market and who are the key players?
• What is the degree of competition in the India IoT in manufacturing market?

Key Benefits for Stakeholders:

• IMARC's industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the India IoT in manufacturing market from 2020-2034.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the India IoT in manufacturing market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the India IoT in manufacturing industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.