Internet of Things Market Size

ID: MRFR/ICT/0670-CR

412 Pages

Aarti Dhapte

May 2024

Internet of Things (IoT) Market Research Report By Application (Smart Home, Industrial Automation, Healthcare, Transportation, Wearables), By Component (Hardware, Software, Services), By End-use (Consumer Electronics, Manufacturing, Retail, Healthcare, Transportation), By Network Technology (Wireless, Wired), and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2035

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Internet Of Things Size

Internet of Things Market Growth Projections and Opportunities

The IoT market is changing quickly, affecting how devices and services that can connect with each other and work together in new ways. As we look at the IoT market right now, some important patterns appear. These are pushing change and affecting how people behave as consumers. A big change is the growth of edge computing in IoT environments. Edge computing is about doing calculations near where the data comes from. This cuts down on waiting time and makes real-time analysis better. This move is becoming more popular as companies try to improve the work of IoT devices by spreading out data handling. Edge computing not only makes things better, but also helps with privacy worries.

This is because you can deal with private information at home instead of sending it to big computers far away. Security is a top worry in the world of IoT. As the number of connected devices grows, so does the chances for cyber threats to attack. So, there is an increasing focus on putting strong safety controls all through the whole IoT system. Businesses are putting money into encryption, safe sign-in methods, and regular updates on security to keep secret information secure from possible break ins. Putting a big focus on safety is very important to make people believe in these devices and get many of them used. Another important trend in the Independent IoT market is called interoperability. As more and more IoT devices from different makers keep coming, the need for easy talking between them becomes very important. People are working to make things work well together.

They're creating common ways of talking and doing tasks so that devices from different companies can use them easily. This movement is important for creating a linked and united IoT system that can give better experiences to users. The mixing of AI and ML with IoT devices is driving improvements in guessing what will happen next and automated action. Using AI and ML, IoT devices can study big data to get useful details. Then they make smart choices. This trend is especially seen in smart homes, factory automation and health uses. Here predictive rules can make using energy better, speed up making stuff easier and improve patient care too.

Market Highlights

Author

Aarti Dhapte

Team Lead - Research

She holds an experience of about 6+ years in Market Research and Business Consulting, working under the spectrum of Information Communication Technology, Telecommunications and Semiconductor domains. Aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. Her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.

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FAQs

What is the projected market valuation of the Internet of Things (IoT) market by 2035?

The Internet of Things (IoT) market is projected to reach approximately 1430.22 USD Billion by 2035.

What was the overall market valuation of the IoT market in 2024?

In 2024, the overall market valuation of the IoT market was 158.16 USD Billion.

What is the expected CAGR for the IoT market during the forecast period 2025 - 2035?

The expected CAGR for the IoT market during the forecast period 2025 - 2035 is 22.16%.

Which companies are considered key players in the IoT market?

Key players in the IoT market include Amazon, Microsoft, IBM, Cisco, Google, Siemens, GE, Intel, Oracle, and Samsung.

What are the main application segments of the IoT market and their valuations?

The main application segments include Smart Home (300.0 USD Billion), Industrial Automation (400.0 USD Billion), Healthcare (250.0 USD Billion), Transportation (350.0 USD Billion), and Wearables (130.22 USD Billion).

How does the IoT market's hardware segment compare to its software and services segments?

The hardware segment is valued at 300.0 USD Billion, while the software segment is significantly larger at 600.0 USD Billion, and services reach 530.22 USD Billion.

What are the end-use segments of the IoT market and their respective valuations?

End-use segments include Consumer Electronics (300.0 USD Billion), Manufacturing (400.0 USD Billion), Retail (250.0 USD Billion), Healthcare (350.0 USD Billion), and Transportation (130.22 USD Billion).

What is the valuation of the wireless network technology segment in the IoT market?

The wireless network technology segment is valued at 1150.0 USD Billion, indicating a strong preference for wireless solutions.

What is the valuation of the wired network technology segment in the IoT market?

The wired network technology segment is valued at 280.22 USD Billion, reflecting its role in the IoT ecosystem.

How do the valuations of the IoT market segments reflect industry trends?

The valuations across segments suggest a robust growth trajectory, particularly in industrial automation and software, which may drive future innovations.

1. Market Overview

2. Market Trends

3. Market Segment Insights

4. Key Players and Competitive Insights

5. Industry Developments

6. Market Segmentation

7. Report Scope

8. Market Highlights

9. FAQs

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Market Summary

As per MRFR analysis, the Internet of Things Market (IoT) Market Size was estimated at 158.16 USD Billion in 2024. The IoT industry is projected to grow from 193.22 USD Billion in 2025 to 1430.22 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 22.16 during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The Internet of Things Market (IoT) market is experiencing robust growth driven by technological advancements and increasing adoption across various sectors.

The North American region remains the largest market for IoT, characterized by significant investments in smart city initiatives.
Asia-Pacific is emerging as the fastest-growing region, propelled by rapid urbanization and a surge in IoT adoption across industries.
The smart home segment leads the market, while wearables are witnessing the fastest growth due to rising consumer interest in health and fitness tracking.
Key market drivers include the rising demand for smart home devices and advancements in connectivity technologies, which are shaping the future of IoT.

Internet of Things Market

CAGR

22.16%

Market Size & Forecast

2024 Market Size	158.16 (USD Billion)
2035 Market Size	1430.22 (USD Billion)
CAGR (2025 - 2035)	22.16%
Largest Regional Market Share in 2024	North America

Major Players

Amazon (US), Microsoft (US), IBM (US), Cisco (US), Google (US), Siemens (DE), GE (US), Intel (US), Oracle (US), Samsung (KR)

Market Trends

The Internet of Things Market (IoT) Market is currently experiencing a transformative phase characterized by rapid technological advancements and increasing adoption across various sectors. Organizations are increasingly recognizing the potential of interconnected devices to enhance operational efficiency, improve customer experiences, and drive innovation. This trend is evident in industries such as healthcare, manufacturing, and smart cities, where IoT solutions are being integrated to streamline processes and facilitate real-time data analysis. As businesses strive to remain competitive, the demand for IoT applications continues to grow, leading to a surge in investment and development in this domain. Moreover, the Internet of Things Market (IoT) Market is witnessing a shift towards enhanced security measures and data privacy protocols. With the proliferation of connected devices, concerns regarding cybersecurity have escalated, prompting organizations to prioritize the protection of sensitive information. This focus on security is likely to shape the future landscape of IoT solutions, as companies seek to build trust with consumers and comply with regulatory requirements. As the market evolves, it appears that the integration of artificial intelligence and machine learning will further augment the capabilities of IoT systems, enabling smarter decision-making and predictive analytics. Overall, the Internet of Things Market (IoT) Market is poised for substantial growth, driven by innovation and a commitment to addressing emerging challenges.

Increased Adoption in Smart Cities

The Internet of Things Market (IoT) Market is seeing a notable rise in the implementation of smart city initiatives. Urban areas are increasingly leveraging IoT technologies to enhance infrastructure, improve public services, and optimize resource management. This trend reflects a growing recognition of the benefits that interconnected systems can bring to urban living.

Focus on Cybersecurity

As the Internet of Things Market (IoT) Market expands, there is a heightened emphasis on cybersecurity measures. Organizations are prioritizing the protection of data and devices against potential threats. This focus on security is essential for fostering consumer trust and ensuring compliance with evolving regulations.

Integration of AI and Machine Learning

The convergence of artificial intelligence and machine learning with IoT technologies is becoming more pronounced. This integration is expected to enhance the functionality of IoT systems, enabling advanced analytics and smarter decision-making processes. Such developments may significantly impact various industries, driving further innovation.

Internet of Things Market Market Drivers

Rising Demand for Smart Home Devices

The Internet of Things Market (IoT) Market is experiencing a notable surge in demand for smart home devices. Consumers are increasingly seeking convenience, energy efficiency, and enhanced security through connected devices. According to recent data, the smart home segment is projected to grow at a compound annual growth rate of approximately 25% over the next five years. This growth is driven by advancements in technology, such as voice recognition and automation, which make these devices more user-friendly. As more households adopt smart appliances, the IoT ecosystem expands, creating opportunities for manufacturers and service providers. The integration of smart home devices into daily life not only enhances user experience but also contributes to energy savings, thereby appealing to environmentally conscious consumers. This trend indicates a robust future for the Internet of Things Market (IoT) Market.

Expansion of Industrial IoT Applications

The Internet of Things Market (IoT) Market is witnessing a significant expansion in industrial applications, often referred to as the Industrial Internet of Things Market (IIoT). Industries such as manufacturing, logistics, and energy are increasingly adopting IoT solutions to enhance operational efficiency and reduce costs. For instance, predictive maintenance powered by IoT sensors can lead to a reduction in downtime by up to 30%, thereby improving productivity. The IIoT market is expected to reach a valuation of over 100 billion dollars by 2026, driven by the need for real-time data analytics and automation. This shift towards smart factories and connected supply chains is indicative of a broader trend towards digital transformation across various sectors. As industries continue to embrace IoT technologies, the Internet of Things Market (IoT) Market is poised for substantial growth.

Advancements in Connectivity Technologies

The Internet of Things Market (IoT) Market is significantly influenced by advancements in connectivity technologies. The rollout of 5G networks is expected to revolutionize IoT applications by providing faster data transfer rates and lower latency. This enhanced connectivity enables a greater number of devices to communicate seamlessly, facilitating the development of more complex IoT ecosystems. As of October 2025, it is estimated that 5G will support up to 1 million devices per square kilometer, which could lead to unprecedented growth in IoT deployments across various sectors. Furthermore, the integration of technologies such as LPWAN (Low Power Wide Area Network) is enhancing the capabilities of IoT devices, particularly in remote monitoring and smart city applications. These advancements suggest a promising trajectory for the Internet of Things Market (IoT) Market.

Growing Focus on Data Analytics and Insights

The Internet of Things Market (IoT) Market is increasingly characterized by a growing focus on data analytics and insights. As IoT devices proliferate, they generate vast amounts of data that can be harnessed for actionable insights. Organizations are leveraging advanced analytics to improve decision-making processes, optimize operations, and enhance customer experiences. The global market for IoT analytics is projected to reach approximately 30 billion dollars by 2027, reflecting the rising importance of data-driven strategies. Companies are investing in analytics platforms that can process and analyze data in real-time, enabling them to respond swiftly to market changes. This trend underscores the critical role of data in shaping the future of the Internet of Things Market (IoT) Market.

Increased Regulatory Support for IoT Innovations

The Internet of Things Market (IoT) Market is benefiting from increased regulatory support aimed at fostering innovation and ensuring security. Governments are recognizing the potential of IoT technologies to drive economic growth and improve public services. As a result, various initiatives and frameworks are being established to promote the development and deployment of IoT solutions. For instance, regulations that encourage interoperability and standardization are likely to enhance market confidence and stimulate investment. Additionally, policies focused on data privacy and cybersecurity are becoming more prevalent, addressing consumer concerns and fostering trust in IoT applications. This supportive regulatory environment is expected to catalyze further advancements in the Internet of Things Market (IoT) Market.

Market Segment Insights

Internet of Things Market (IoT) Market Application Insights

The Internet of Things Market (IoT) Market segmentation within the application category reflected a robust growth trajectory. A diverse array of applications is shaping this market, notably including Smart Home, Industrial Automation, Healthcare, Transportation, and Wearables.

The <a href="https://www.marketresearchfuture.com/reports/smart-home-market-974">Smart Home</a> segment commanded a significant share, valued at 75.0 USD Billion in 2024, and projected to expand to 300.0 USD Billion by 2035, as increasing consumer demand for smart appliances and connected home devices drives innovation and adoption.

<a href="https://www.marketresearchfuture.com/reports/industrial-automation-market-2212">Industrial Automation</a> followed closely, with a valuation of 100.0 USD Billion in 2024, boosting operational efficiency and enhancing productivity through IoT solutions, ultimately expected to reach 400.0 USD Billion in 2035.

Internet of Things Market (IoT) Market Component Insights

The Component segment plays a pivotal role in this ecosystem, encompassing vital areas such as Hardware, Software, and Services, which together contribute to the expanding market landscape. Hardware components, including sensors and connectivity devices, are essential as they form the backbone of IoT solutions, enabling devices to communicate effectively.

On the other hand, Software in the IoT domain facilitates data analytics, network management, and application development, thus driving efficiency and innovation. Services, which encompass installation, maintenance, and consulting, are crucial for the deployment and optimization of IoT systems, ensuring that technologies operate seamlessly.

The interplay among these elements is vital in addressing market trends driven by increasing connectivity, the proliferation of smart devices, and demand for automation across various industries.

Internet of Things Market (IoT) Market End-use Insights

The End-use segment of this market encompasses various critical areas, including Consumer Electronics, Manufacturing, Retail, Healthcare, and Transportation, each contributing significantly to market growth.

In Consumer Electronics, the integration of IoT devices enhances user experience and convenience, driving widespread adoption. The Manufacturing sector leverages IoT technologies for automation and efficiency, resulting in reduced operational costs.

Retail is witnessing transformation through smart inventory management and personalized shopping experiences enabled by IoT data. Healthcare benefits from IoT through improved patient monitoring and <a href="https://www.marketresearchfuture.com/reports/telemedicine-market-2216">telemedicine solutions</a>, enhancing healthcare delivery systems.

Internet of Things Market (IoT) Market Network Technology Insights

The Internet of Things Market (IoT) Market, specifically within the Network Technology segment, plays a crucial role in the connectivity and communication of devices across various industries. The Network Technology segment can be broadly categorized into Wireless and Wired technologies.

Wireless technologies, such as Wi-Fi and cellular networks, dominate the landscape, making remote connectivity seamless and enhancing mobility across smart devices. Wired technologies, while having a smaller footprint, offer reliable connections vital for infrastructure in industrial and critical applications where secure and steady connections are paramount.

The Internet of Things Market (IoT) Market data indicates strong growth drivers, such as the increasing adoption of smart devices and the need for automation in various sectors like healthcare and transportation. However, challenges such as security concerns and infrastructure limitations remain prevalent.

Get more detailed insights about Internet of Things (IoT) Market Research Report - Global Forecast to 2035

Regional Insights

North America : Innovation and Leadership Hub

North America is the largest market for the Internet of Things Market (IoT), holding approximately 40% of the global market share. The region's growth is driven by rapid technological advancements, increased adoption of smart devices, and supportive government regulations. The demand for IoT solutions in sectors like healthcare, manufacturing, and smart cities is propelling market expansion, with significant investments in infrastructure and innovation. The United States leads the North American market, with major players like Amazon, Microsoft, and IBM driving competition. The presence of advanced technology firms and a robust startup ecosystem fosters innovation. Canada also plays a significant role, focusing on IoT applications in energy management and smart transportation. The competitive landscape is characterized by strategic partnerships and collaborations among key players to enhance service offerings and market reach.

Europe : Emerging IoT Powerhouse

Europe is rapidly emerging as a significant player in the IoT market, holding around 30% of the global share. The region's growth is fueled by stringent regulations promoting data privacy and security, alongside increasing investments in smart infrastructure. The European Union's initiatives, such as the Digital Single Market strategy, are pivotal in driving IoT adoption across various sectors, including automotive, healthcare, and agriculture. Leading countries like Germany, the UK, and France are at the forefront of IoT innovation, with a strong presence of key players such as Siemens and Bosch. The competitive landscape is marked by collaborations between tech companies and traditional industries to develop IoT solutions. The region's focus on sustainability and smart city initiatives further enhances its market potential, positioning Europe as a leader in IoT advancements.

Asia-Pacific : Rapid Growth and Adoption

Asia-Pacific is witnessing rapid growth in the IoT market, accounting for approximately 25% of the global share. The region's expansion is driven by increasing smartphone penetration, urbanization, and government initiatives promoting smart cities and digital transformation. Countries like China and India are leading the charge, with significant investments in IoT infrastructure and applications across various sectors, including manufacturing and agriculture. China is the largest market in the region, with a strong focus on smart manufacturing and IoT-enabled devices. India follows closely, emphasizing IoT solutions in healthcare and smart homes. The competitive landscape is characterized by a mix of local startups and global players like Samsung and Intel, fostering innovation and collaboration. The region's diverse market needs and rapid technological advancements present significant opportunities for growth in the IoT sector.

Middle East and Africa : Emerging Market Potential

The Middle East and Africa (MEA) region is gradually emerging in the IoT market, holding about 5% of the global share. The growth is driven by increasing investments in smart technologies, urbanization, and government initiatives aimed at digital transformation. Countries like the UAE and South Africa are leading the way, focusing on smart city projects and IoT applications in sectors such as energy and transportation. The UAE is particularly notable for its ambitious plans to become a global leader in IoT, with significant investments in infrastructure and technology. South Africa is also making strides, with a growing number of startups focusing on IoT solutions. The competitive landscape is evolving, with both local and international players vying for market share, creating a dynamic environment for innovation and growth in the IoT sector.

Key Players and Competitive Insights

The competitive insights of the Internet of Things Market (IoT) Market reveal a dynamic landscape characterized by rapid technological advancement and a surge in adoption across various sectors.

As IoT continues to grow, marked by the integration of devices, services, and applications, it fosters an ecosystem where diverse industries can optimize operations, enhance customer experiences, and implement data-driven strategies.

Companies vying for market leadership strive to innovate and differentiate their offerings, thereby catering to the increasing demand for connected solutions. The competitive interplay among key players is underscored by significant investment in research and development, strategic partnerships, and an emphasis on scalability and security.

The holistic view of the competitive landscape provides insights into emerging trends, capabilities, and strategies that delineate the strengths and weaknesses of various market participants.

Huawei is strategically positioned in the Internet of Things Market (IoT) Market, boasting a comprehensive portfolio that emphasizes connectivity, infrastructure, and integrated solutions. The company's strengths lie in its robust research and development capabilities, which empower it to produce cutting-edge IoT technologies and solutions.

Huawei leverages its extensive experience in telecommunications to provide reliable IoT frameworks, facilitating seamless connectivity between devices and platforms. With a focus on scalability, the company's solutions are tailored to industries such as manufacturing, smart cities, and automotive, establishing a formidable presence across global markets.

Moreover, Huawei's commitment to innovation is evident in its partnerships and collaborations, which further solidify its reputation as a leader in the IoT space.

General Electric holds a prominent position in the Internet of Things Market (IoT) Market, characterized by its pioneering advancements in industrial IoT solutions. The company's strengths are particularly visible through its key products and services, which focus on enhancing operational efficiency, predictive maintenance, and data analytics.

General Electric's IoT platform, coupled with its robust analytics capabilities, allows industries to move towards digitization and smart factory implementations.

The company's global presence is bolstered by strategic mergers and acquisitions that expand its technological capabilities and market reach, enabling it to provide comprehensive solutions tailored to different sectors, including energy, healthcare, and transportation.

General Electric's emphasis on innovation, data-driven insights, and industry partnerships highlights its unwavering commitment to lead in the IoT domain, driving transformational change across the global landscape.

Key Companies in the Internet of Things Market market include

Industry Developments

AWS simplified gateway upgrades and fleet management in December 2024 by introducing IPv6 support and improved firmware-over-the-air (FUOTA) capabilities for AWS IoT Core for LoRaWAN. For IoT Core fleet provisioning, AWS introduced self-managed client certificate signing in November 2023, enabling interaction with external PKIs.At MWC 2025 in March 2025, Huawei unveiled its 5G-Advanced "all-scenario IoT" strategy, working with carriers to hasten the convergence of 5G and AI for smart sectors.

Azure IoT Operations and adaptive cloud accelerators were demonstrated by Microsoft at Hannover Messe 2024 in April 2024, emphasizing edge-to-cloud interaction and real-time OT analytics using open standards. AWS launched its generative AI-powered IoT SiteWise Assistant in June 2024, providing plant-floor customers with an interactive assistant for insights and equipment diagnostics.

IBM's January 2023 upgrade for IoT Connected Vehicle Insights improved speed, OS compatibility, and security with its Dynamic Map Manager. In order to achieve interoperability in smart buildings by the end of 2025, Siemens and Microsoft partnered in June 2025 to integrate Siemens' Building X platform with Azure IoT Operations.

Future Outlook

Internet of Things Market Future Outlook

The Internet of Things Market (IoT) Market is projected to grow at a 22.16% CAGR from 2024 to 2035, driven by advancements in connectivity, data analytics, and automation.

New opportunities lie in:

Development of smart home automation systems for energy efficiency
Integration of IoT in supply chain management for real-time tracking
Creation of predictive maintenance solutions for industrial equipment

By 2035, the IoT market is expected to be a cornerstone of global digital transformation.

Market Segmentation

Internet of Things Market End-use Outlook

Consumer Electronics
Manufacturing
Retail
Healthcare
Transportation

Internet of Things Market Component Outlook

Hardware
Software
Services

Internet of Things Market Application Outlook

Smart Home
Industrial Automation
Healthcare
Transportation
Wearables

Internet of Things Market Network Technology Outlook

Wireless
Wired

Report Scope

MARKET SIZE 2024	158.16(USD Billion)
MARKET SIZE 2025	193.22(USD Billion)
MARKET SIZE 2035	1430.22(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)	22.16% (2024 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
Market Forecast Period	2025 - 2035
Historical Data	2019 - 2024
Market Forecast Units	USD Billion
Key Companies Profiled	Market analysis in progress
Segments Covered	Market segmentation analysis in progress
Key Market Opportunities	Integration of artificial intelligence in Internet of Things (IoT) devices enhances automation and data analytics capabilities.
Key Market Dynamics	Rising demand for smart devices drives innovation and competition in the Internet of Things market.
Countries Covered	North America, Europe, APAC, South America, MEA