IoT Infrastructure Market Size & Share 2017 - 2024
Market Size by Platform (Network Management, Device Management, Application Management), by Technology (Sensors, RFID, Connectivity Technology), by Component (Hardware, Software [Data Management, Streaming Analytics, Security, Remote Monitoring, Bandwidth Management]), by Service (Professional Service, Managed Service), by Application (Smart Cities, Smart Buildings, Smart Homes), Industry Analysis Report, Regional Outlook, Application Potential, Price Trends, & Forecast.
Report ID: GMI2104
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Published Date: September 2017
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Report Format: PDF
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Authors:
Suraj Gujar, Ankita Chavan
IoT Infrastructure Market Size
IoT Infrastructure Market size was valued at over USD 15 billion in 2016 and will grow at more than 25% CAGR estimation from 2017 to 2024.
Rising investments in smart city projects across the globe is anticipated to drive the IoT infrastructure market growth. Smart cities offer a wide range of connectivity and computing options that can be implemented to the existing setup in order to optimize the efficiency. Challenges within city transportation, energy management and infrastructure are addressed with the use of such technologies. Implementation of IoT solutions in cities allows them to make use of the technology and data to improvise the infrastructure as well as services. Increasing demand for efficient utilization of resources across the urban areas further escalates the industry adoption.
Privacy & security concerns related to these IoT network connections is predicted to restrain the market growth. Cyber-attacks can eliminate the efficiency gains and unguarded networks will make the smart cities, buildings and homes vulnerable to potential security threats. Also, lack of laws & regulations governing smart cities might pose a challenge to growth.
IoT Infrastructure Market Analysis
Increasing need for proper management of the vast IoT network in a smart city which include transportation, infrastructure & energy management is expected to boost the demand for network management platform segment in the IoT infrastructure market. These platforms are capable of providing real-time insights to the communication of smart devices in an IoT network enabling the operators to have control over the network and the devices. Access to the crucial information related to effective utilization of energy sources can be gathered with the implementation of such platforms.
Increasing demand for reliable and dedicated sensors for improving the quality of living in a smart city is expected to boost the demand for sensor technology in IoT infrastructure market. Sensors embedded in the devices allows seamless exchange and transfer of data in a network. These devices produce enormous volume of data which has to be collected and analyzed. Rising demand for requirement of communications technology for connecting these sensors lies huge growth potential for the market. Increasing deployment of connectivity technology solutions such as Wi-Fi, NFC and cellular technologies for knowing customer preference and communication between the devices further contributes to the connectivity technology growth.
Heavy investments on hardware components by various government organizations is anticipated to boost the demand for IoT infrastructure market. Increasing penetration of IoT enabled components across various regions further contributes to the strength growth of the hardware segment. The software segment is anticipated to witness high growth owing to the growing demand for software such as data management and streaming analytics.
Professional service segment observes a huge demand in the IoT infrastructure market in order to support companies in the business process transformation. The enormous size of the professional services market in the U.S. owing to the presence of large number of commercial establishments offering such services is expected to contribute to the industry growth. Moreover, increasing focus of government in smart initiatives is offering service providers to invest in markets such as India, China, Singapore and Malaysia.
Smart building segment is expected to witness substantial growth over the forecast timeframe. This is attributed to the increasing demand for automation in buildings to control operations such as air conditioning, lighting, ventilation and heating systems. Sensors, microcontrollers, actuators and various other technologies are implemented in smart buildings to collect & analyze data in order to streamline the processes. The usage of IoT solutions in buildings are advantageous for business owners owing to the benefits such as enhanced performance & asset reliability, optimized energy use thus reducing the environmental impact on buildings. For instance, MNCs such as IBM, Honeywell, Cisco are implementing such solutions in their office buildings to better respond to company’s energy efficiency policies.
Asia Pacific IoT infrastructure market is set to witness significant growth over the forecast timeline. The growth can be attributed to the rising investments in smart city infrastructure by various governments in the region. The smart city initiatives in countries such as India, South Korea and Singapore provides impetus to the growth. Government of India plans to make 100 smart cities with a proposed investment of multi-billion dollars is attracting many investors for a high ROI. The growing trend of urbanization coupled with the increasing demand for efficient utilization of energy sources across many European countries such as U.K, Germany is expected to fuel the demand for IoT infrastructure industry.
IoT Infrastructure Market Share
Industry participants in the IoT infrastructure market include:
It is a fragmented industry with the entry of new players coming with sophisticated technologies and innovative solutions. The industry players are increasingly focusing on ensuring the operational excellence in infrastructure project delivery, allowing sustainability through maintenance.
IoT Infrastructure Industry Background
Every city across the globe are exploring the extent of using technologies in order to enhance the quality of living. The players operating in the industry are concentrating mainly on development of advanced solutions to meet the customer demand. With the depleting energy resources across the globe, increasing demand to manage the resources efficiently is attracting the industry players to invest more in R&D to develop such technologies. Growing need to sustain improvised services for businesses as well as citizens while enhancing the efficiency is creating significant opportunities for industry players. Furthermore, companies are focusing are providing a range of governance, management and infrastructure solutions to address citywide operations as well as individual needs.
Research methodology, data sources & validation process
This report draws on a structured research process built around direct industry conversations, proprietary modelling, and rigorous cross-validation and not just desk research.
Our 6-step research process
1. Research design & analyst oversight
At GMI, our research methodology is built on a foundation of human expertise, rigorous validation, and complete transparency. Every insight, trend analysis, and forecast in our reports is developed by experienced analysts who understand the nuances of your market.
Our approach integrates extensive primary research through direct engagement with industry participants and experts, complemented by comprehensive secondary research from verified global sources. We apply quantified impact analysis to deliver dependable forecasts, while maintaining complete traceability from original data sources to final insights.
2. Primary research
Primary research forms the backbone of our methodology, contributing nearly 80% to overall insights. It involves direct engagement with industry participants to ensure accuracy and depth in analysis. Our structured interview program covers regional and global markets, with inputs from C-suite executives, directors, and subject matter experts. These interactions provide strategic, operational, and technical perspectives, enabling well-rounded insights and reliable market forecasts.
3. Data mining & market analysis
Data mining is a key part of our research process, contributing nearly 20% to the overall methodology. It involves analysing market structure, identifying industry trends, and assessing macroeconomic factors through revenue share analysis of major players. Relevant data is collected from both paid and unpaid sources to build a reliable database. This information is then integrated to support primary research and market sizing, with validation from key stakeholders such as distributors, manufacturers, and associations.
4. Market sizing
Our market sizing is built on a bottom-up approach, starting with company revenue data gathered directly through primary interviews, alongside production volume figures from manufacturers and installation or deployment statistics. These inputs are then pieced together across regional markets to arrive at a global estimate that stays grounded in actual industry activity.
5. Forecast model & key assumptions
Every forecast includes explicit documentation of:
✓ Key growth drivers and their assumed impact
✓ Restraining factors and mitigation scenarios
✓ Regulatory assumptions and policy change risk
✓ Technology adoption curve parameter
✓ Macroeconomic assumptions (GDP growth, inflation, currency)
✓ Competitive dynamics and market entry/exit expectations
6. Validation & quality assurance
The final stages involve human validation, where domain experts manually review filtered data to identify nuances and contextual errors that automated systems might miss. This expert review adds a critical layer of quality assurance, ensuring data aligns with research objectives and domain-specific standards.
Our triple-layer validation process ensures maximum data reliability:
✓ Statistical Validation
✓ Expert Validation
✓ Market Reality Check
Trust & credibility
Verified data sources
Trade publications
Security & defense sector journals and trade press
Industry databases
Proprietary and third-party market databases
Regulatory filings
Government procurement records and policy documents
Academic research
University studies and specialist institution reports
Company reports
Annual reports, investor presentations, and filings
Expert interviews
C-suite, procurement leads, and technical specialists
GMI archive
13,000+ published studies across 30+ industry verticals
Trade data
Import/export volumes, HS codes, and customs records
Parameters studied & evaluated
Every data point in this report is validated through primary interviews, true bottom-up modelling, and rigorous cross-checks. Read about our research process →