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The Internet of Things market size is forecast to increase by USD 1,554.5 billion, at a CAGR of 18.52% between 2023 and 2028. The Internet of Things (IoT) is revolutionizing industries by enabling the connection and automation of various devices and systems. Key offerings of IoT include real-time data collection and analysis, remote monitoring and control, and predictive maintenance. Technological developments in IoT platforms facilitate seamless integration of various devices and systems, ensuring efficient and effective operations. The exponential growth of Internet-connected and operated devices, driven by advancements in sensors, wireless communication, and cloud computing, is fueling the rise in industrial automation. IoT solutions are transforming industries such as manufacturing, healthcare, transportation, and agriculture, leading to increased productivity, cost savings, and improved customer experiences.
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The industrial Segment holds the largest market share during the forecast period. The market share growth by the industrial segment will be significant during the forecast period. Globally, the industrial segment is reaping the benefits of IoT technology in terms of increasing business productivity and gaining a competitive advantage. The software connects machines and devices to the Internet.
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The industrial segment was valued at USD 188.70 billion in 2018. The data generated and the insights gained into the manufacturing process are used for predictive maintenance and performance optimization on the factory floor. This segment is confronted with a number of challenges, including the need for additional investments, the redesign of business models, security concerns, a lack of standardization, and interoperability issues. Favorable government policies and collaboration among various organizations operating in the IoT space should help to improve the level of expertise and, as a result, aid in overcoming these challenges.
APAC is estimated to contribute 37% to the growth of the global market during the forecast period. Government investments in infrastructure in India, China, and the Philippines, along with SME modernization efforts, are boosting IoT adoption. APAC governments are promoting embedded sensor usage in smart cities to enhance city management and public services. For example, Bangalore, India, uses IoT-connected streetlights that adjust light based on pedestrians, monitor pollution, recognize license plates, and enforce traffic rules. Increased IoT spending has driven the adoption of technologies like nanoscale devices and sensors. China leads in industrial IoT solutions in APAC, thanks to government initiatives such as Made in China Strategy 2025 and Internet Plus. Strong collaboration between mobile operators and the government has spurred rapid growth in the industrial IoT market.
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This Internet of Things market research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Aeris Communications Inc., Amazon.com Inc., AT and T Inc., Cisco Systems Inc., Fujitsu Ltd., General Electric Co., Hewlett Packard Enterprise Co., Honeywell International Inc., Intel Corp., International Business Machines Corp., Koninklijke Philips NV, Microsoft Corp., Oracle Corp., PTC Inc., Robert Bosch GmbH, SAP SE, Siemens AG, Wipro Ltd., and Thales Group
The Internet of Things market is rapidly expanding, driven by advancements in 5G technology and cloud adoption. As smart cities emerge, smart transportation, smart utilities, and smart connected devices are becoming integral to operational efficiency. Autonomous systems and NB-IoT networks are enhancing internet connectivity and real-time marketing analysis, offering revenue-generating opportunities. Consumer behavior is shifting with increased reliance on digitalization and smart citizen services. The energy sector and transportation sector are leveraging IoT software to optimize operations and infrastructure. Hardware vendors, network vendors, and software vendors are crucial in supporting these developments. Canadian companies are also contributing significantly to the market. Public safety applications, including firefighter services and emergency medical services, benefit from enhanced telecom infrastructure and networking infrastructure. Competitive edge and RoI are achieved through effective physical events and real-time data utilization.
The rise in industrial automation is notably driving the Internet of things (IoT) market growth during the forecast period. With the increasing automation of industrial processes, industries are undergoing revolutionary changes. The use of a combination of digital and physical systems to enable machine-to-machine (M2M) communication and improved human-machine interfaces (HMI) has grown significantly, with most developed regions already implementing such systems. Industry 4.0 refers to the entire product lifecycle, in which smart machines perform manufacturing processes on their own, smart robots collaborate with human workers on product assembly, and smart driverless transport vehicles perform logistics processes on their own. Further, the integration of physical and cyber systems in industrial manufacturing leads to increased efficiency, predictive machine maintenance, increased safety, and increased profitability.
As a result, industries all over the world are implementing Industry 4.0 to optimize material flows and detect errors early in a product's lifecycle. Germany is running a strategic program called Industrie 4.0 and has announced a USD 565 million investment in developing a new factory standard to enable end-to-end automation. In the United States, the Smart Manufacturing Leadership Coalition (SMLC), founded in July 2012, is launching initiatives to promote the widespread adoption of smart manufacturing systems. The primary goal of this coalition is to create global standards and systems for intelligent factories. Thus, the rising automation of the Industry 4.0 process will drive the demand for IoT during the forecast period.
The use of wearables to monitor human health and the environment is a new trend in the global IoT market. In today's world, smartphones and tablets have become the epicentres of mobile computing and communication. Mobile phones, when combined with various inbuilt sensors, provide enhanced features and developments that are expected to revolutionise a variety of social and economic areas. Examples include social networking, environmental and surveillance monitoring, healthcare and well-being monitoring, and transportation. GPS, microphones, accelerometers, cameras, ambient light sensors, gyroscopes, and digital compasses are all built into today's smartphones. Furthermore, most smartphones have WIFI, 3G/4G/5G, and Bluetooth radios.
Moreover, IoT wearables assist consumers in understanding their own healthcare needs and enable doctors to remotely monitor patients. This technology also enables companies to track their employees' health and safety, which is especially useful for people who work in hazardous environments. Wearable devices have shown a lot of promise in terms of assisting in the control of the COVID-19 pandemic in 2020. Wearable devices, such as smartwatches, smart bracelets, and patches, can detect, monitor, recover from, and manage COVID-19 symptoms and disease progression. Thus, increasing demand for health wearable devices will increase the demand for IoT solutions, which, in turn, will boost the growth of the market in focus during the forecast period.
The lack of awareness of efficient management of IoT initiatives and investments is a major challenge that may hinder the global IoT platform market growth during the forecast period. Though industrial IoT adoption is increasing, enterprises continue to face significant challenges in managing, securing, and optimizing their IoT investments. One of the primary tasks that industries undertake is the implementation of IoT in industrial facilities. The next step is to train employees on how to use the IoT platform so that workers can adapt to IoT better and faster.
Further, the lack of skilled employees to handle the complexities of IoT systems is a major issue faced by end-user industries. The capabilities of IoT can only be partially exploited without proper training and knowledge of IoT systems. Employee training in IoT systems necessitates the presence of skilled professionals as well as higher end-user investments.
The market growth and trends research and growth report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion " for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The market is experiencing significant growth as enterprises and service providers increasingly adopt IoT technology to enhance efficiency, productivity, and connectivity across various industries. According to recent reports by market research firms, the global IoT market is expected to reach new heights in the coming years, with manufacturing, healthcare, logistics chain, energy grid management and e-commerce sectors leading the charge. IoT technology enables devices to collect and exchange data, leading to smart factory automation, intelligent disease diagnosis, and improved supply chain management. Key players in the market include Taiwan Mobile, VivaLNK, and SPHCC, among others. The World Economic Forum estimates that the IoT will contribute up to USD 15 trillion to the global economy by 2030.
Further, the revenue forecast for the IoT market is expected to be driven by the increasing adoption of cloud technology, Bluetooth technology, and AI, with SAS Software, VMware, and VMware Tanzu being major contributors. The integration of IoT in ATMs is revolutionizing banking by enhancing real-time monitoring, predictive maintenance, and security features, ensuring smoother and more efficient operations. Furthermore, the integration of blockchain technology in IoT systems is expected to add an extra layer of security and transparency to data processing. Overall, the IoT market is poised for continued growth, offering numerous opportunities for businesses to innovate and stay competitive.
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Industry Scope |
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Report Coverage |
Details |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 18.52% |
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Market growth 2024-2028 |
USD 1,554.5 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
15.18 |
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Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
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Performing market contribution |
APAC at 37% |
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Key countries |
US, China, Germany, Norway, and France |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Aeris Communications Inc., Alphabet Inc., Amazon.com Inc., AT and T Inc., Cisco Systems Inc., Fujitsu Ltd., General Electric Co., Hewlett Packard Enterprise Co., Honeywell International Inc., Intel Corp., International Business Machines Corp., Koninklijke Philips N.V., Microsoft Corp., Oracle Corp., PTC Inc., Robert Bosch GmbH, SAP SE, Siemens AG, Thales Group, and Wipro Ltd. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the market forecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Technology
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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