Internet of Things (IoT) Market Overview
The Internet of Things (IoT) market had a valuation of USD 100.1 billion in 2022 and is estimated to rise at a CAGR of 25.7% during the forecast period (2024-2032), reaching USD 784.2 billion by 2032. Increased need for loT security and the use of loT technology in the healthcare sector are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Internet of Things (IoT) Market Trends
The increasing demand for IoT security is fueling market growth.
The IoT market is expanding due to faster internet speeds and widespread adoption. IoT technology automates and enhances efficiency in engineering applications. Yet, the dependence on network-controlled IoT devices raises security issues. Blockchain technology is recognized as a reliable solution to address security concerns in IoT. It ensures data integrity, prevents unauthorized access, and provides a trusted environment for secure IoT data exchange. The increasing demand for IoT security is expected to fuel the market CAGR of the IoT market in the forecast period.
Additionally, the Internet of Things (IoT) industry is witnessing a significant trend with the integration of Edge Computing, which enables efficient processing and storage between clients and traditional cloud data centers. Edge Computing devices can communicate with each other without external interference, and blockchain technology can facilitate communications between these devices and blockchain-enabled IoT devices. Smart contracts, implemented through self-executing code on a distributed blockchain network, ensure secure and trackable transactions. This increasing adoption of blockchain-based IoT solutions offers promising growth opportunities in the IoT market. Thus, driving the Internet of Things (IoT) market revenue.
Internet of Things (IoT) Market Segment Insights
Internet of Things (IoT) Component Insights
Based on components, the IoT market includes hardware, software, and services. The hardware segment dominates the Internet of Things (IoT) market. This is because hardware components such as sensors, devices, and gateways are essential for enabling connectivity and collecting data in IoT systems. These hardware components form the foundation of IoT infrastructure and are crucial for the successful implementation of IoT solutions.
Internet of Things (IoT) Organization Size Insights
Based on organization size, the Internet of Things (IoT) market segmentation includes large enterprises and SMEs. The large enterprise segment dominates the Internet of Things (IoT) market. Large enterprises have greater resources and capabilities to invest in IoT infrastructure, implement complex IoT solutions, and scale them across their operations. They also have larger budgets to allocate toward IoT projects.
Internet of Things (IoT) End-Use Insights
Based on End Use, the Internet of Things (IoT) market segmentation includes industry and consumer. The industry segment dominated the Internet of Things (IoT) market. Industries across various sectors, such as manufacturing, healthcare, transportation, and energy, are adopting IoT technologies to enhance operational efficiency, automate processes, and gain valuable insights from data. IoT industry applications include asset tracking, predictive maintenance, remote monitoring, and supply chain optimization.
Figure 1: Internet of Things (IoT) Market, by End Use, 2022&2032 (USD billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Internet of Things (IoT) Regional Insights
By Region, the study provides market insights into North America, Europe, Asia-Pacific, and Rest of the World. The North American Internet of Things (IoT) market will dominate this market, owing to an increase in the significant growth in the healthcare, industrial, and automotive sectors owing to a growing customer base for cloud-based platforms. This will boost the market growth in this Region.
Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: INTERNET OF THINGS (IOT) MARKET SHARE BY REGION 2022 (%)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Europe's Internet of Things (IoT) market accounts for the second-largest market share due to the industry becoming increasingly linked to big databases. Further, Germany leads the Internet of Things (IoT) market in market share, while the UK exhibits the highest growth rate among the European countries.
The Asia-Pacific Internet of Things (IoT) The market is estimated to experience the highest compound annual growth rate (CAGR) between 2023 and 2032. This is due to increasing smart city projects and rising initiatives, such as Smart Wellington (New Zealand), Intelligent Disease Prediction Project (China), and cloud spending in the Region. Moreover, China’s Internet of Things (IoT) market held the largest market share, and the Indian Internet of Things (IoT) market was the fastest-growing market in the Asia-Pacific region.
Internet of Things (IoT) Key Market Players& Competitive Insights
Leading market players are investing heavily in research and development to expand their product lines; the Internet of Things (IoT) market is poised for further growth, supported by strategic initiatives from market participants. These include new product launches, partnerships, mergers and acquisitions, increased investments, and collaborations with other organizations. These activities aim to expand reach and drive innovation in the IoT market, fostering continuous development and advancement. To thrive in an increasingly competitive and growing market, the Internet of Things (IoT) industry must prioritize cost-effective solutions. One key strategy manufacturers adopt is local production, aimed at reducing operational expenses and benefiting clients. This approach has mutually benefited manufacturers and customers, leading to notable industry advancements in recent years. Major players in the Internet of Things (IoT) market, including amazon Web Services (US), AT&T Inc. (US), Cisco System Inc. (US), Google Inc. (US), Oracle Corporation (US), Dell Inc. (US), Microsoft Corporation (US), Hitachi Data Systems (U.S.) Huawei Technologies Co. Ltd. (China), International Business Machines Corporation (IBM). Some companies are focusing on research and development investments to boost market demand.
The industrial manufacturing giant Siemens Smart Infrastructure acquired the French startup Wattsense. Wattsense specializes in providing plug-and-play IoT management systems for small and mid-size buildings. This acquisition will enhance Siemens' building products portfolio, enabling them to offer innovative solutions for smart building management.
Microsoft Corporation, the renowned technology company based in Redmond, Washington, acquired ReFirm Labs. This strategic acquisition aims to enhance Microsoft's firmware analysis and security capabilities for devices forming the Intelligent Edge. It enables Microsoft to strengthen security across various devices, from servers to IoT, ensuring a more robust and protected ecosystem.
Key Companies in the Internet of Things (IoT) Market Include
Internet of Things (IoT) Industry Developments
June 2021:Dell Technologies and Microsoft have partnered to create an integrated IoT solution, simplifying IoT management and strengthening security between the Edge and the cloud. Their collaboration aims to deliver a comprehensive and secure IoT solution tailored to customers' evolving needs across industries.
February 2021: Google Cloud and Sigfox have announced a strategic partnership to enhance their Internet of Things (IoT) capabilities. By leveraging Google Cloud's robust infrastructure and expertise, Sigfox aims to scale its IoT services and efficiently process massive data from connected objects. This collaboration will enable Sigfox to accelerate its "Massive IoT" agenda, empowering businesses to leverage IoT's power and cloud-based data storage and processing for their IoT initiatives.
Internet of Things (IoT) Market Segmentation
Internet of Things (IoT) Component Outlook
-
Hardware
-
Software
-
Services
Internet of Things (IoT) By Organization Size Outlook
Internet of Things (IoT) By End Use Outlook
Internet of Things (IoT) Regional Outlook
-
Germany
-
France
-
UK
-
Italy
-
Spain
-
Rest of Europe
-
Asia-Pacific
-
China
-
Japan
-
India
-
Australia
-
South Korea
-
Australia
-
Rest of Asia-Pacific
-
Rest of the World
-
Middle East
-
Africa
-
Latin America
Report Attribute/Metric |
Details |
Market Size2022 |
USD 100.1 billion |
Market Size 2023 |
USD 125.8257 billion |
Market Size 2032 |
USD 784.2446716 billion |
Compound Annual Growth Rate (CAGR) |
25.70% (2023-2032) |
Base Year |
2023 |
Market Forecast Period |
2024-2032 |
Historical Data |
2018- 2022 |
Market Forecast Units |
Value (USD Billion) |
Report Coverage |
Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
Segments Covered |
Component, Organization Size, End Use, and Region |
Geographies Covered |
North America, Europe, AsiaPacific, and the Rest of the World |
Countries Covered |
The U.S., Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
Key Companies Profiled |
Amazon Web Services (US), AT&T Inc. (US), Cisco System Inc. (US), Google Inc. (US), Oracle Corporation (US), Dell Inc. (US), Microsoft Corporation (US), Hitachi Data Systems (U.S.) Huawei Technologies Co. Ltd. (China) |
Key Market Opportunities |
Increase adoption by industries, governments, associations, and individuals due to its remarkable capacity to improve integration and productivity. |
Key Market Dynamics |
The Internet of Things (IoT) industry is experiencing a significant technological boom, with enterprises worldwide increasing their investments. |
Internet of Things Market Highlights:
Frequently Asked Questions (FAQ) :
The Internet of Things (IoT) market size was valued at USD 100.1 Billion in 2022.
The market is estimated to rise at a CAGR of 25.70% during the forecast period 2024-2032.
North America witness the largest share of the market.
The major players in the market are Amazon Web Services (US), AT&T Inc. (US), Cisco System Inc. (US), Google Inc. (US), Oracle Corporation (US) Dell Inc. (US).
The Hardware Internet of Things (IoT) category dominated the market in 2022.
Large Enterprises had the largest share of the market.