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IoT and Digital Transformation Market Research Report Information By Offering (Solutions and Services), by Technology (Cloud Computing, Big Data & Analytics, Blockchain, Cybersecurity, AI, and IoT), by Business Function (Accounting & Finance, Information Technology, Human Resources, and Marketing & Sales), by Vertical (BFSI, Retail & eCommerce, IT/ITES, Healthcare, Life Sciences & Pharmaceuticals, Government & Defense, Media & Entertainment, Manufacturing, Energy & Utilities, Telecommunications, Education, Agriculture, and Automotive, Trans


ID: MRFR/ICT/20265-HCR | 128 Pages | Author: Ankit Gupta| July 2024

IoT and Digital Transformation Market Overview


IoT and Digital Transformation Market Size was valued at USD 751.8 Billion in 2022. The IoT and Digital Transformation market industry is projected to grow from USD 926.6 Billion in 2023 to USD 4915.8 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 23.2% during the forecast period (2024 - 2032). The market driver of the IoT and Digital Transformation market is the need for enhanced efficacy and decision-making across diverse sectors through improved connectivity and real-time data analysis


FIGURE 1: IoT and Digital Transformation MARKET SIZE 2023-2032 (USD BILLION)

IoT and Digital Transformation Market

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

IoT and Digital Transformation Market Trends




  • Accelerated data processing is driving market growth




Market CAGR for the need for enhanced security and privacy, accelerated data processing, and decreased latency has propelled the emergence of edge computing as a significant trend in the IoT industry. Edge computing is an approach that leverages IoT devices or other data sources for processing, as opposed to exclusively depending on centralized cloud servers. As organizations strive to capitalize on the advantages of real-time data analysis and decision-making, this trend is acquiring traction.


An additional factor propelling the implementation of edge computing is the escalating need for real-time services and applications in a variety of industries. In the manufacturing industry, edge computing facilitates predictive maintenance through the real-time analysis of sensor data, which identifies impending equipment malfunctions. This results in reduced operational interruptions and enhanced production efficiency. Likewise, within the healthcare sector, edge computing enables the provision of personalized healthcare services and remote patient monitoring through the processing and analysis of medical sensor data at the location of treatment. In addition, edge computing provides an elevated level of data privacy and security through the reduction of the necessity to transmit sensitive data to centralized cloud servers over extensive distances. This is especially critical in industries like finance, where strict data privacy regulations exist, and the repercussions of any violation could be severe.


Emerging as a significant market trend, the integration of machine learning (ML) and artificial intelligence (AI) technologies with IoT systems is transforming the way in which organizations collect, process, and respond to data generated by connected devices. An important factor propelling this trend is the increasing intricacy and magnitude of IoT data. In an era where vast quantities of data are generated daily by billions of interconnected devices, organizations are increasingly relying on AI and ML algorithms to extricate significant insights, identify patterns, and forecast future developments. With the assistance of AI and ML technologies, IoT systems are capable of conducting real-time analyses of data streams, detecting anomalies or trends, and executing suitable actions without requiring human intervention. In smart cities, for instance, IoT platforms enabled by AI can optimize traffic flow through the prediction of congestion patterns and the adjustment of traffic signals based on sensor and camera data.


In addition, IoT systems powered by AI generate customized and situation-sensitive services in industries including healthcare and retail. Through the analysis of customer behavior and preferences obtained from IoT devices, businesses are able to provide customized recommendations and targeted marketing campaigns, thereby increasing customer loyalty and satisfaction. With the ongoing advancements and increased availability of AI, the integration of this technology with the Internet of Things will open up novel prospects for value generation and innovation in diverse sectors. Thus driving the IoT and Digital Transformation market revenue.


IoT and Digital Transformation Market Segment Insights


IoT and Digital Transformation Offering Insights


The IoT and Digital Transformation Market is segmented based on offerings, solutions, and services. Due to the rising demand for consulting, implementation, and support services that accompany IoT and digital transformation initiatives, the "Services" segment most likely holds the largest market share in the current industry.


On the contrary, the "Solutions" sector is anticipated to witness the most rapid expansion of its Compound Annual Growth Rate (CAGR) due to increased investments by businesses in sophisticated IoT hardware, software, and platforms that facilitate digital transformation, optimize processes, and elevate customer satisfaction.


IoT and Digital Transformation Technology Insights


The IoT and Digital Transformation Market segmentation, based on technology, includes cloud computing, big data & analytics, blockchain, cybersecurity, AI, and IoT. Undoubtedly, the "Cloud Computing" category holds the most substantial market share in the present industry due to its extensive implementation across diverse sectors to provide scalable software services, computing capabilities, and storage.


On the contrary, the Compound Annual Growth Rate (CAGR) for the "AI" (Artificial Intelligence) segment is anticipated to be the most rapid, owing to the increasing adoption of AI technologies by businesses for automation, predictive analytics, and improved decision-making across a wide range of industries and applications.


IoT and Digital Transformation Business Function Insights


The IoT and Digital Transformation Market segmentation, based on Business Function, includes accounting & finance, information technology, human resources, and marketing & sales providers. At present, the "Information Technology" category is presumed to hold the most substantial portion of the market owing to its critical function in facilitating software solutions, digital infrastructure, and industry-wide technical support.


On the contrary, the Compound Annual Growth Rate (CAGR) of the "Marketing & Sales" sector is anticipated to be the most rapid, owing to organizations' increasing adoption of data-driven marketing tactics, customer relationship management (CRM) systems, and digital sales platforms in an effort to augment revenue expansion and improve customer interaction.


Figure 2: IoT and Digital Transformation Market, by Business Function, 2023 & 2032 (USD Billion)

 IoT and Digital Transformation Market, by Business Function, 2023 & 2032

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

IoT and Digital Transformation Vertical Insights


The IoT and Digital Transformation Market segmentation, based on Vertical, includes BFSI, retail & e-commerce, IT/ITES, healthcare, life sciences & pharmaceuticals, government & defense, media & entertainment, manufacturing, energy & utilities, telecommunications, education, agriculture, and automotive, transportation, & logistics. At present, the "IT/ITES" category is presumed to hold the most substantial portion of the market owing to its extensive sector-wide utility in software development, outsourcing, and IT consulting.


On the contrary, the Compound Annual Growth Rate (CAGR) for the "Healthcare, Life Sciences & Pharmaceuticals" sector is anticipated to be the highest due to the implementation of telehealth solutions, personalized medication, and technological advancements that facilitate digital transformation in order to address the ever-changing healthcare demands on a global scale.


IoT and Digital Transformation Regional Insights


The study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World by region. Due to its strong technological infrastructure, substantial investments in emerging technologies across diverse industries, and rapid adoption rates of digital transformation initiatives, North America is positioned to emerge as the preeminent region in terms of market share.


Further, the major countries studied in the market report are the US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.


Figure 3: IOT AND DIGITAL TRANSFORMATION MARKET SHARE BY REGION 2023 (USD Billion)

 IOT AND DIGITAL TRANSFORMATION MARKET SHARE BY REGION 2023

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe's IoT and Digital Transformation market accounts for the second-largest market share due to being the second-largest region renowned for its robust higher education systems. These regions are technological innovation centers, robust regulatory frameworks, and a developed market for IoT, AI, and cloud computing solutions. Further, the German IoT and Digital Transformation market held the largest market share, and the UK IoT and Digital Transformation market was the fastest-growing market in the European region.


The Asia-Pacific IoT and Digital Transformation Market is expected to grow at the fastest CAGR from 2024 to 2032: rapid urbanization, industrialization, and digitalization initiatives in nations such as Japan, China, and India. The elements, in conjunction with favorable governmental regulations and an expanding startup ecosystem, are propelling significant prospects for expansion in the region's IoT, cybersecurity, and digital transformation sectors. Moreover, China’s IoT and Digital Transformation market held the largest market share, and the Indian IoT and Digital Transformation market was the fastest-growing market in the Asia-Pacific region.


IoT and Digital Transformation Key Market Players & Competitive Insights


Leading market players are investing heavily in research and development in order to expand their product lines, which will help the weight loss products market grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the IoT and Digital Transformation industry must offer cost-effective items.


Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global IoT and Digital Transformation industry to benefit clients and increase the market sector. In recent years, the IoT and Digital Transformation industry has offered some of the most significant advantages to medicine. Major players in the IoT and Digital Transformation market, including Microsoft, SAP, Baidu, Adobe Systems, Alibaba, and others, are attempting to increase market demand by investing in research and development operations.


IntelligentStream Technologies is an international provider of financial technology that offers cutting-edge solutions for regulatory compliance, post-trade processing, and reconciliation. SmartStream provides advanced software and managed services to optimize operations, reduce risks, and increase efficiency for its global clientele of more than 1,500, which includes principal investment banks, asset managers, and corporations. Advanced AI and machine learning algorithms are utilized by the organization's flagship products, including TLM (Transaction Lifecycle Management) and Corona, to ensure data integrity, automate complex procedures, and reduce the need for manual intervention. SmartStream, which has been relied upon by financial institutions for more than two decades, maintains its industry-leading position through its steadfast dedication to providing scalable, cost-effective solutions that are specifically designed to address the ever-changing demands of the market.


eMudhra, a market leader in digital identity and transaction management solutions, enables organizations to conduct business in the digital realm in a secure manner. Deploying its operations in more than seventy countries worldwide, eMudhra provides an extensive array of services encompassing identity management solutions, digital signatures, authentication, and encryption. eMudhra, a dependable solution favored by governments, enterprises, and individuals alike, facilitates smooth digital exchanges while guaranteeing adherence to industry norms and regulatory obligations. The organization's advanced technological systems and resilient infrastructure furnish a safe and dependable basis for digital transformation endeavors in various industries, including healthcare, government, banking, and finance. As a result of its dedication to both customer satisfaction and innovation, eMudhra has established itself as a reliable collaborator for businesses grappling with the intricacies of the digital environment.


Key Companies in the IoT and Digital Transformation market Include




  • Microsoft




  • SAP




  • Baidu




  • Adobe Systems




  • Alibaba




  • IBM




  • Google




  • Marlabs




  • Salesforce




  • Broadcom




  • Equinix




  • Oracle




  • Hewlett Packard Enterprise




  • Cognizant




  • Accenture




  • Tibco Software




  • eMudhra




  • Process Street




IoT and Digital Transformation Industry Developments


April 2023: Through a collaborative effort with Oracle, the Norwegian Institute of Bioeconomy Research chose the Autonomous Database and AI functionalities on the Oracle Cloud Infrastructure (OCI). The objective was to acquire a more profound understanding of the forest value chain and improve practices that ensure long-term sustainability.


April 2023: Google unveiled a novel artificial intelligence (AI) system that empowers the Claims Acceleration Suite to optimize health insurance prior to authorization and claims processing. By implementing the recently created Claims Data Activator, this solution endeavors to mitigate administrative complexities and decrease expenditures for health plans and providers.


IoT and Digital Transformation Market Segmentation


IoT and Digital Transformation Offering Outlook (USD Billion, 2019-2032)




  • Solutions




  • Services




IoT and Digital Transformation Technology Outlook (USD Billion, 2019-2032)



  • Cloud Computing

  • Big Data & Analytics

  • Blockchain

  • Cybersecurity

  • AI

  • IoT


IoT and Digital Transformation Business Function Outlook (USD Billion, 2019-2032)



  • Accounting & Finance

  • Information Technology

  • Human Resources

  • Marketing & Sales


IoT and Digital Transformation Vertical Outlook (USD Billion, 2019-2032)



  • BFSI

  • Retail & eCommerce

  • IT/IS

  • Healthcare, Life Sciences & Pharmaceuticals

  • Government & Defense

  • Media & Entertainment

  • Manufacturing

  • Energy & Utilities

  • Telecommunications

  • Education

  • Agriculture

  • Automotive, Transportation, & Logistics


IoT and Digital Transformation Regional Outlook (USD Billion, 2019-2032)



  • North America

    • US

    • Canada



  • Europe

    • 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 Size 2022 USD 751.8 Billion
Market Size 2023 USD 926.6 Billion
Market Size 2032 USD 4915.8 Billion
Compound Annual Growth Rate (CAGR) 23.2% (2024-2032)
Base Year 2023
Market Forecast Period 2024-2032
Historical Data 2019- 2022
Market Forecast Units Value (USD Billion)
Report Coverage Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends
Segments Covered Offering, Technology, Business Function, Vertical, and Region
Geographies Covered North America, Europe, Asia-Pacific, and the Rest of the World
Countries Covered The US, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil
Key Companies Profiled Microsoft, SAP, Baidu, Adobe Systems, Alibaba, IBM, Google, Marlabs, Salesforce, Broadcom, Equinix, Oracle, Hewlett Packard Enterprise, Cognizant, Accenture, Tibco Software, eMudhra, and Process Street
Key Market Opportunities ·       Expansion of IoT applications in healthcare for remote patient monitoring. ·       Adoption of blockchain technology for secure supply chain management.
Key Market Dynamics ·       Increasing demand for cloud computing services for scalable and cost-effective IT infrastructure. ·       Growing regulatory requirements driving investment in cybersecurity solutions.


Frequently Asked Questions (FAQ) :

The IoT and Digital Transformation Market size was valued at USD 926.6 Billion in 2023.

The global market is projected to grow at a CAGR of 23.2% from 2024 to 2032.

North America had the largest share of the global market.

The key players in the market are Microsoft, SAP, Baidu, Adobe Systems, Alibaba, IBM, Google, and others.

The services category dominated the market in 2023.

Cloud computing had the largest share of the global market.

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