Internet of Things (IoT) Market

Internet of Things (IoT) Market Size

The global internet of things (IoT) market size reached US$ 887.6 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 3,174.2 Billion by 2032, exhibiting a growth rate (CAGR) of 15.21% during 2024-2032.The significant growth in the information technology (IT) industry, the growing need to enhance customer experience and the rising demand for seamless data collection and communication are some of the major factors propelling the Internet of Things (IoT) market growth.

The Internet of Things (IoT) is a modern technology that refers to the network of interconnected physical devices embedded with sensors, software, and connectivity capabilities, enabling them to collect and exchange data. Incorporating IoT devices into business operations offers a multitude of benefits, such as improved operational efficiency by automating processes and providing real-time data insights. This enhanced efficiency leads to cost savings, productivity gains, and streamlined workflows. Besides this, it enables businesses to gain valuable insights through data collection and analysis. The vast amount of data generated by IoT devices can be analyzed to identify patterns, trends, and correlations.

The continuous advancement of technology, including affordability of sensors and improved connectivity, has been a major driver for IoT adoption as these advancements have made it possible to embed sensors and connectivity capabilities into a wide range of devices, thus enabling seamless data collection and communication. Furthermore, the growing need to enhance customer experience is significantly supporting the demand for IoT as it enables businesses to deliver personalized and seamless customer experiences. Moreover, the proliferation of connectivity options, including wireless technologies like Wi-Fi, Bluetooth, and cellular networks, is driving the adoption of IoT as the availability of reliable and affordable connectivity allows for seamless communication between IoT devices, enabling the exchange of data and the creation of interconnected systems. Other factors, including rapid industrialization and urbanization, favorable initiatives undertaken by the government, such as the rising funding activities, introduction of regulatory frameworks, and smart city initiatives and extensive research and development (R&D) activities conducted by key players, are also positively influencing the market.

Internet of Things (IoT) Market Trends/Drivers:

Significant growth in the information technology (IT) industry

The IT industry plays a crucial role in providing the necessary connectivity infrastructure for IoT devices. Advancements in networking technologies, such as 5G and low-power wide-area networks (LPWAN), enable seamless and reliable communication between IoT devices, thus facilitating the expansion of the IoT market. Additionally, the IT industry plays a vital role in developing robust security measures, such as encryption protocols, authentication mechanisms, and intrusion detection systems, to protect IoT devices and data from cyber threats, which is providing an impetus to the market. The IT industry drives efforts to establish standards and protocols for seamless integration and interoperability among diverse IoT devices and systems. This facilitates the integration of IoT solutions into existing IT infrastructures, enabling organizations to leverage IoT data and insights alongside their existing IT applications.

Miniaturization of the IoT devices

Miniaturization enables IoT devices to become smaller and lightweight, thereby enhancing their portability and flexibility. Smaller IoT devices can be easily integrated into different environments and seamlessly embedded into various objects and systems. This portability opens up new possibilities for IoT applications in areas such as wearables, healthcare monitoring, asset tracking, and smart home devices. In line with this, miniaturization allows for IoT devices to be less intrusive and more user-friendly. Smaller devices can be discreetly integrated into everyday objects, minimizing the impact on aesthetics and user experience. Users can seamlessly interact with the IoT technology without feeling burdened by bulky or obtrusive devices.

Growing need for data-driven decision making

The massive amount of data generated by IoT devices provides valuable insights for businesses since real-time data collection and analysis enable better decision-making, predictive analytics, and the identification of patterns and trends, which empower businesses to optimize operations, enhance customer experiences, and identify new revenue streams. Additionally, the massive volume of data generated by IoT devices necessitates the availability of robust data storage and processing capabilities. The IoT market drives the demand for scalable and efficient storage solutions, such as cloud platforms and edge computing infrastructure. These technologies ensure that data can be securely stored, managed, and processed, supporting real-time analytics and enabling timely insights.

Internet of Things (IoT) Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global Internet of Things (IoT) market, along with forecasts at the global, regional, and country levels from 2024-2032. Our report has categorized the market based on component, application and vertical. 

Breakup by Component:

• Hardware
• Software
• Services
• Connectivity
   

Software is dominating the Internet of Things (IoT) market

The report has provided a detailed breakup and analysis of the Internet of Things (IoT) market based on the component. This includes hardware, software, services and connectivity. According to the report, software represented the largest segment. 

Software components facilitate seamless connectivity and communication between IoT devices, thereby propelling the growth of the segment. Also, they enable centralized device management, provisioning, and configuration, which will further boost the growth of the software segment in the Internet of Things (IoT) market. Moreover, they assist organizations in remotely monitoring, updating, and controlling a vast number of devices. Software components provide features like remote firmware updates, security patches, and device diagnostics, ensuring efficient device lifecycle management, which is acting as a growth-inducing factor.  

Furthermore, hardware enables real-time monitoring, data capture, and control of physical objects. Advancements in miniaturization, low-power technologies, and cost-effective manufacturing have led to the proliferation of IoT-enabled hardware devices. Additionally, the service product type offers consulting, planning, and deployment services to assist organizations in implementing IoT solutions. Moreover, IoT relies heavily on wireless connectivity technologies, such as Wi-Fi, cellular networks, Bluetooth, Zigbee, LoRaWAN, and NB-IoT. These networks provide reliable and ubiquitous connectivity for IoT devices across various environments.

Breakup by Application: 

• Smart Home
• Smart Wearables
• Smart Cities
• Smart Grid
• IoT Industrial Internet
• IoT Connected Cars
• IoT Connected Healthcare
• Others
   

A detailed breakup and analysis of the Internet of Things (IoT) market based on the application has also been provided in the report. This includes smart homes, smart wearables, smart cities, smart grid, IoT industrial internet, IoT connected cars, IoT connected healthcare and others.

Rising investments by public and private agencies in the upgradation of smart grids and smart city development are a key factor driving the market growth in these segments. Additionally, smart home applications leverage IoT to connect and automate various devices within a home, such as thermostats, lighting systems, security cameras, appliances, and entertainment systems.

The expansion of IoT connected healthcare aids in the continuous monitoring of patient’s vital signs, such as heart rate, blood pressure, oxygen levels, and more. This real-time data enables healthcare professionals to track patients' health remotely and identify any anomalies or emergencies promptly that can improve the quality of healthcare delivery and enhance patient outcomes.

IoT connectivity allows vehicles to communicate with each other (V2V) and with the surrounding infrastructure (V2I), enabling real-time exchange of critical information. This information sharing can help prevent accidents, warn drivers of potential hazards, and improve overall road safety.

Breakup by Vertical:

• Healthcare
• Energy
• Public and Services
• Transportation
• Retail
• Individuals
• Others
   

 Healthcare holds the largest market share in the Internet of Things (IoT) market

The report has provided a detailed breakup and analysis of the Internet of Things (IoT) market based on the vertical. This includes healthcare, energy, public and services, transportation, retail, individuals and others. According to the report, healthcare exhibited a clear dominance in the market.

IoT devices can be used to track and manage medical equipment, ensuring their availability when needed. Additionally, IoT-enabled asset tracking can help prevent theft or misplacement of essential medical devices, medications, or other valuable equipment within hospital premises. In addition, IoT sensors can be deployed to monitor the utilization of hospital resources, such as beds, operating rooms, and medical supplies. This data helps optimize resource allocation, streamline operations, reduce waste, and improve overall efficiency.

The implementation of IoT plays a significant role in the quick adoption of digital manufacturing technologies by manufacturing industries, thereby boosting the market growth. Apart from this, IoT in the transportation sector offers numerous benefits and transformative opportunities, such as intelligent fleet management, enhanced passenger experience, traffic management and congestion reduction, intelligent parking solutions and efficient logistics and supply chain management.

  Breakup by Region: 

• North America 
  • United States 
  • Canada 
• Europe 
  • Germany 
  • France 
  • United Kingdom 
  • Italy 
  • Spain  
  • Others 
• Asia Pacific 
  • China 
  • Japan 
  • India 
  • South Korea 
  • Australia 
  • Indonesia 
  • Others 
• Latin America 
  • Brazil 
  • Mexico 
  • Others 
• Middle East and Africa  
   

North America exhibits a clear dominance in the market, accounting for the largest Internet of Things (IoT) market share 

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa.    

North America held the biggest market share since the region has a well-established IT infrastructure. Within the region, the United States has been driving the market growth on account of the extensive adoption and implementation of industrial IoT technology across the region. Other contributing factors include the strong government support and numerous initiatives for promoting digitalization in the industrial sector, the rising usage of industrial IoT devices, and the increasing adoption of cutting-edge technologies, such as artificial intelligence (AI) and cloud computing.

Asia Pacific is estimated to expand further in this domain during the forecast period. On account of the large population rate and urbanization, there has been a considerable increase in the demand for smart city solutions, connected infrastructure, and IoT-enabled services in sectors, such as transportation, healthcare, energy, and manufacturing.

Competitive Landscape:

Top companies are leveraging IoT solutions to collect and analyze vast amounts of data in order to make data-driven decisions, optimize operations, improve product design, enhance customer experiences, and identify new revenue streams. Additionally, leading players are deploying IoT systems to monitor and manage their assets, equipment, and supply chains more efficiently. Also, IoT provides new opportunities for product and service innovation. By incorporating IoT capabilities into their offerings, companies can provide enhanced features, personalized experiences, and value-added services, which is driving the market further. 

The report has provided a comprehensive analysis of the competitive landscape in the global Internet of Things (IoT) market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:  

• Amazon Web Services, Inc. (Amazon.com, Inc.) 
• Cisco Systems, Inc
• General Electric Company
• IBM Corporation
• Intel Corporation
• Microsoft Corporation
• Oracle Corporation
• PTC Inc
• SAP SE
• Siemens AG

Recent Developments:

• Amazon Web Services, Inc. (Amazon.com, Inc.) introduced AWS Well-Architected IoT Lens to provide simple and detailed guidance when building IoT workloads on AWS, such as the evaluation of IoT-based architectures, implementing scalable designs, and identifying and mitigating technical risks. 
• Cisco Systems, Inc., a networking solutions company has partnered with Newark, an Avnet Company, in order to utilize their industrial IoT network solutions across various infrastructure components, including industrial assets and devices. Despite the high competition in this market, companies are benefiting from technological advancements that enable them to save time and costs while enhancing efficiency and effectiveness.
• In collaboration with Verizon, IBM has announced the expansion of capabilities for the 5G Industry 4.0 testbed at IBM's Industry Solution Lab in Coppell, Texas. This expansion will enable enterprise customers visiting the lab to test and develop innovative use cases for Industry 4.0 applications using 5G technology.

Internet of Things (IoT) Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Internet of Things (IoT) market from 2018-2032.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global Internet of Things (IoT) market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• 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 Internet of Things (IoT) 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.