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

US IoT Digital Transformation Market Overview

As per MRFR analysis, the US IoT Digital Transformation Market Size was estimated at 279.24 (USD Billion) in 2023. The US IoT Digital Transformation Market is expected to grow from 344.08 (USD Billion) in 2024 to 3,456.95 (USD Billion) by 2035. The US IoT Digital Transformation Market CAGR (growth rate) is expected to be around 23.337% during the forecast period (2025 - 2035)

Key US IoT Digital Transformation Market Trends Highlighted

Technology breakthroughs and the growing integration of IoT devices across industries are driving the US IoT Digital Transformation Market's notable expansion. The growing need for automation in sectors including manufacturing, healthcare, and transportation is one of the main market drivers. IoT solutions are being used by these industries to boost data-driven decision-making and operational efficiency.

Organizations are using IoT more and more for predictive maintenance and improved asset management as the US economy moves toward greater digitization. This enables them to minimize downtime and maximize resource utilization. There are many opportunities to investigate in this sector, especially as SMEs seek to gain a competitive edge by using IoT solutions.

Implementing IoT technology is made easier by the federal government's initiatives to encourage digital transformation, which place a strong emphasis on infrastructure development and cybersecurity. Additionally, there are a lot of opportunities for IoT innovation and investment due to the demand for connected infrastructures and smart cities.

Current trends also emphasize the importance of energy efficiency and sustainability. In order to match their operations with more general environmental aims, businesses are increasingly using IoT technology to assess environmental consequences and monitor energy use.

As businesses recognize the value of real-time data access, the pandemic has sped up the transition to telehealth services and remote monitoring. The trend of incorporating advanced analytics to extract more meaningful insights from gathered data is further supported by the increasing focus on AI and machine learning in IoT frameworks.

Overall, with ongoing innovation and strategic alignments across several industries, the US IoT Digital Transformation Market is heading towards a more connected and efficient future.

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

US IoT Digital Transformation Market Drivers

Increasing Adoption of Smart Devices

The demand for smart devices in the United States is a significant driver for the US IoT Digital Transformation Market. According to the Consumer Technology Association, as of 2022, 69% of American households own at least one smart home device, which is a 10% increase from previous years.This surge indicates a growing consumer reliance on interconnected devices to improve lifestyle efficiencies, such as energy savings, security, and convenience.

Established organizations like Amazon and Google are heavily investing in smart device solutions, from smart speakers to security cameras, fueling further growth in the market. The availability and integration of these devices into everyday life bolster the overall digital transformation framework, promoting a cohesive IoT ecosystem across various sectors in the US.

Government Initiatives and Funding

The US government has been a key player in driving digital transformation initiatives across various sectors. Policies like the American Rescue Plan and bipartisan infrastructure investments aim to enhance digital infrastructure, supporting IoT integrations.The National Telecommunications and Information 

Administration reported that the government allocated nearly $65 billion towards broadband expansion and digital inclusion initiatives in 2021.This funding directly facilitates the growth of the US IoT Digital Transformation Market by improving connectivity, thereby enabling more devices to be interconnected and fostering a conducive environment for IoT advancements.

Growing Demand for Advanced Analytics

The increasing reliance on data analytics for business optimization is another critical driver of the US IoT Digital Transformation Market. Businesses across the United States are leveraging data collected from IoT devices to enhance operational efficiencies and improve decision-making.

According to a Gartner report, around 75% of organizations in the US have started implementing advanced analytics in their operations. Established companies like IBM and Microsoft are investing heavily in analytics platforms that utilize IoT data, thus propelling the demand for IoT solutions and enabling organizations to gain insights that were previously out of reach.

US IoT Digital Transformation Market Segment Insights

IoT Digital Transformation Market Offering Insights

The US IoT Digital Transformation Market is experiencing significant growth, driven by the rising demand for improved operational efficiency and enhanced user experiences across various sectors. Within the Offering segment, the market can be categorized into two main components: Solutions and Services.

Solutions play a pivotal role in the digital transformation landscape, facilitating real-time data analytics, automation, and robust connectivity among devices. These offerings empower businesses to optimize their processes and make informed decisions based on accurate data insights.

Moreover, the importance of Service offerings cannot be understated, as they encompass critical elements such as consulting, deployment, and continuous support. Effective service delivery ensures that organizations can harness the full potential of IoT solutions, enhancing their ability to innovate and adapt to market changes.

The growing trend of smart cities and industrial automation significantly contributes to the market's expansion, with municipalities and industries leveraging IoT technologies to streamline operations and improve public services.

Additionally, regulatory frameworks and government initiatives supporting digital transformation bolster the growth of this market segment. However, challenges such as data privacy concerns and the need for standardized protocols may hinder the widespread adoption of these offerings.

Despite these obstacles, the market presents numerous opportunities, particularly for Service providers that can offer tailored solutions to meet specific industry needs.Overall, the Offering segment within the US IoT Digital Transformation Market remains a crucial area of focus, characterized by rapid advancements and an increasing emphasis on leveraging IoT technologies for sustained growth in various sectors.

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

IoT Digital Transformation Market Technology Insights

The US IoT Digital Transformation Market, particularly in the Technology segment, is experiencing substantial growth due to the increasing need for efficient data management and security protocols in a connected world. Cloud Computing plays a crucial role in providing scalable resources, making it easier for businesses to adapt and innovate.

Big Data and Analytics are essential for deriving actionable insights from vast amounts of data generated by IoT devices, allowing companies to optimize operations and enhance customer experiences. Blockchain technology is gaining traction as a means to ensure secure transactions and improve transparency in data sharing across IoT networks, addressing rising concerns over data security.

Cybersecurity remains a significant focus, as vulnerabilities in IoT devices can lead to major breaches, making robust security solutions imperative for maintaining trust. Artificial Intelligence is becoming increasingly integrated with IoT, driving automation and predictive analytics, which enable businesses to respond dynamically to market changes.

The integration of these technologies not only enhances efficiency but also paves the way for innovative applications across various industries, further stimulating growth in the US IoT Digital Transformation Market. As these technologies advance, they will continue to redefine operational frameworks and business models, providing numerous opportunities and challenges for market participants.

IoT Digital Transformation Market Business Function Insights

The US IoT Digital Transformation Market, particularly in the Business Function segment, is experiencing notable growth and transformation driven by technological advancements. Key functions such as Accounting and Finance are increasingly leveraging IoT technologies to enhance operational efficiency and automate routine processes, which is critical for precise financial management.Information Technology plays a pivotal role as it allows for seamless integration and performance tracking of IoT devices, significantly improving data analytics and cybersecurity measures within organizations.

Human Resources is transforming through IoT by utilizing smart devices for employee engagement and performance tracking, thus streamlining recruitment and management processes. Moreover, Marketing and Sales are adopting IoT solutions to gather real-time customer insights, personalize marketing strategies, and optimize supply chain management, making these functions more agile.As organizations across the US continue to invest in digital transformation initiatives, the significance of these business functions becomes even more apparent, highlighting their dominance in shaping the future landscape of the US IoT Digital Transformation Market.

IoT Digital Transformation Market Vertical Insights 

The US IoT Digital Transformation Market has seen substantial engagement across various verticals, demonstrating a significant shift in how industries operate and deliver value.The Banking, Financial Services, and Insurance (BFSI) sector is experiencing a transformation through enhanced security measures and real-time data analytics, enabling financial institutions to improve customer experience and risk management.

In Retail and eCommerce, IoT solutions streamline inventory management, optimize supply chains, and personalize customer experiences, enhancing operational efficiency. The IT/ITES segment benefits from cloud connectivity and data automation, which are critical in meeting the demand for innovative technology solutions.

Healthcare, Life Sciences, and Pharmaceuticals are investing heavily in IoT for patient monitoring and efficient drug delivery systems, showcasing a commitment to improving patient care. Government and Defense sectors utilize IoT for enhancing security protocols and infrastructure management.

The Media and Entertainment segment leverages IoT to offer immersive experiences through connected devices. Manufacturing is undergoing a major overhaul with IoT-driven automation, which significantly increases production efficiency and reduces downtime.Energy and Utilities are utilizing smart grids for better resource management, while Telecommunications are expanding network capabilities through connected devices.

Additionally, Education integrates IoT for improved learning environments, Agriculture utilizes IoT solutions to enhance productivity and sustainability, Automotive focuses on connected vehicles for improved safety, and Transportation and Logistics optimize route management and logistics operations through real-time data.

Overall, these verticals demonstrate the versatility and economic significance of the US IoT Digital Transformation Market, highlighting its role in driving innovation and efficiency across industries.

US IoT Digital Transformation Market Key Players and Competitive Insights

The competitive landscape of the US IoT Digital Transformation Market is dynamic and rapidly evolving, driven by advancements in technology and increasing demand for connectivity in various sectors. Businesses across industries are adopting IoT solutions to enhance operational efficiency, improve decision-making processes, and deliver personalized customer experiences.

This market is characterized by a diverse range of players including tech giants, startups, and established enterprises, all vying for market share through innovative offerings and strategic partnerships. Key trends include the increasing adoption of cloud-based services, advances in artificial intelligence, and the integration of edge computing into IoT systems.

Companies are focused on leveraging data analytics to unlock insights and drive smarter business operations, positioning themselves competitively in this fast-paced environment.

Qualcomm has established a strong presence in the US IoT Digital Transformation Market, focusing on providing cutting-edge semiconductor and telecommunications technologies. Known for its robust portfolio, the company has a competitive edge with its advanced chipsets that enable a wide range of IoT applications.

Qualcomm's strengths lie in its extensive research and development capabilities, allowing the company to stay at the forefront of technological advancements. Furthermore, the company has forged strategic partnerships with various industry leaders to expand its ecosystem and enhance integration capabilities across different platforms.With a commitment to fostering innovation, Qualcomm continues to optimize its product offerings to cater to the specific needs of IoT solutions in various sectors, positioning itself as a leading player in the market.

SAP has a significant footprint in the US IoT Digital Transformation Market, offering a suite of solutions designed to help organizations leverage connected devices for operational excellence. Known for its enterprise resource planning solutions, SAP enables businesses to integrate IoT data into their existing systems, enhancing visibility and control.

The company has taken substantial steps to strengthen its position through key partnerships and acquisitions, allowing it to broaden its product offerings and provide comprehensive IoT services. SAP's strengths lie in its established brand reputation and its ability to deliver tailored solutions that address specific industry needs.

Key products such as SAP Leonardo and SAP IoT services have made considerable impacts in various sectors, empowering companies to innovate their processes and improve customer engagement. Through continuous investment in technology and a customer-centric approach, SAP maintains a competitive edge and solidifies its role as a driving force in the digital transformation landscape within the US.

Key Companies in the US IoT Digital Transformation Market Include

• Qualcomm


• SAP


• Cisco


• Intel


• Honeywell


• General Electric


• Accenture


• Dell Technologies


• Siemens


• Amazon


• Google


• Microsoft


• AT&T


• Oracle


• IBM

US IoT Digital Transformation Market Developments

Qualcomm purchased Edge Impulse, a Boston-based AI/IoT firm, in March 2023 in order to include its developer tools and promote the use of edge AI in North American retail and industrial IoT systems. Targeting mid-tier IoT applications like wearables and AR/VR sensors, AT&T debuted its nationwide 5G RedCap network in the US on July 17, 2025.

This network offers superior performance over its previous NB-IoT, which is expected to be decommissioned by early 2025. Oracle and AT&T teamed together in August 2024 to integrate 5G network APIs and IoT connectivity into Oracle's Cloud ECP platform, allowing enterprise and industrial clients to manage devices in real time.

To improve remote analytics and predictive maintenance, Honeywell implemented its Forge IIoT platform in April 2024 at several critical infrastructure locations in the United States, such as refineries and smart grids. With the integration of AI-driven asset monitoring, GE Digital introduced its Predix APM SaaS solution for US industrial facilities in January 2025.

Siemens launched its Xcelerator Industrial Edge platform with Azure integration in US aerospace and automotive operations in May 2024. SAP launched new AI-powered Asset Intelligence Network features in its IoT package at the same time. Intel unveiled its 12th Gen Xeon edge processing modules for IoT analytics, while Cisco improved its IoT edge routing infrastructure with new industrial Meraki MX deployments.

IoT Digital Transformation Market Segmentation Insights

IoT Digital Transformation Market Offering Outlook

• Solutions


• Services

IoT Digital Transformation Market Technology Outlook

• Cloud Computing


• Big Data & Analytics


• Blockchain


• Cybersecurity


• AI


• IoT

IoT Digital Transformation Market Business Function Outlook

• Accounting & Finance


• Information Technology


• Human Resources


• Marketing & Sales

IoT Digital Transformation Market Vertical Outlook

• BFSI


• Retail & eCommerce


• IT/ITES


• Healthcare


• Life Sciences & Pharmaceuticals


• Government & Defense


• Media & Entertainment


• Manufacturing


• Energy & Utilities


• Telecommunications


• Education


• Agriculture


• Automotive


• Transportation & Logistics

Report Attribute/Metric	Details
Market Size 2023	279.24(USD Billion)
Market Size 2024	344.08(USD Billion)
Market Size 2035	3456.95(USD Billion)
Compound Annual Growth Rate (CAGR)	23.337% (2025 - 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	Qualcomm, SAP, Cisco, Intel, Honeywell, General Electric, Accenture, Dell Technologies, Siemens, Amazon, Google, Microsoft, AT&T, Oracle, IBM
Segments Covered	Offering, Technology, Business Function, Vertical
Key Market Opportunities	Smart city infrastructure enhancement, Industrial IoT applications growth, Healthcare monitoring solutions expansion, Real-time data analytics adoption, Supply chain optimization innovations
Key Market Dynamics	increased connectivity demands, growing data analytics needs, enhanced automation trends, rising security concerns, regulatory compliance requirements
Countries Covered	US