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IoT Technology Market Size - By Component (Hardware, Software, Services), By Industry Vertical (Manufacturing, Healthcare, Transportation and Logistics, Energy and Utilities, Agriculture), By Connectivity, By Deployment, By Application & Forecast, 2024 - 2032

  • Report ID: GMI9667
  • Published Date: May 2024
  • Report Format: PDF

IoT Technology Market Size 

IoT Technology Market size was valued at USD 900 million in 2023 and is estimated to grow at a CAGR of over 8% between 2024 and 2032. An important contributing aspect is the increasing adoption of IoT devices across multiple industries. Businesses are utilizing IoT to enhance customer experiences, reduce expenses, and boost operational effectiveness.

IoT Technology Market

Real-time monitoring and predictive maintenance are made possible by IoT-enabled sensors and intelligent equipment in the industrial sector, which streamlines production processes and lowers downtime. Wearable health monitors and smart medical equipment are examples of IoT-enabled healthcare goods that provide continuous patient monitoring and data collection, enhance patient outcomes, and expedite healthcare delivery.

Advancements in related technologies, such as artificial intelligence (AI) and 5G, are propelling the growth of IoT. AI enhances the capabilities of IoT devices by enabling data analytics, automation, and decision-making processes. This synergy allows for more intelligent and autonomous IoT systems that can adapt to various scenarios and provide valuable insights.

The rollout of 5G networks offers faster data transmission speeds, lower latency, and greater connectivity. This infrastructure improvement supports the proliferation of IoT devices and applications, facilitating seamless communication and more robust IoT ecosystems. As these technologies continue to evolve, they further drive the expansion and sophistication of the global IoT market.

Moreover, the growing emphasis on smart cities and smart homes is significantly contributing to the expansion of the IoT technology market. Governments and municipalities around the world are investing in smart city initiatives to improve urban infrastructure, enhance public services, and promote sustainability. IoT technologies are integral to these projects, providing solutions for traffic management, energy consumption, waste management, and public safety.

Similarly, the consumer market is witnessing a surge in the adoption of smart home devices, such as smart thermostats, security systems, and connected appliances, which offer convenience, energy efficiency, and enhanced security to homeowners. This widespread integration of IoT into everyday life, driven by both public and private sector investments, is accelerating the market's growth trajectory, making IoT an indispensable part of modern society.

Security and privacy concerns pose significant challenges in the IoT market. IoT devices collect and transmit large amounts of sensitive data, including personal health, financial details, and industrial information, making them prime targets for cyberattacks. These attacks can lead to data breaches, unauthorized access, and misuse of information. Ensuring robust security, such as encryption, secure authentication, and regular updates, is essential but difficult to implement consistently.

Interoperability issues are a major challenge in the IoT technology market. The diverse range of devices, manufacturers, and communication protocols often leads to compatibility problems, hindering effective communication and operation. Smart home devices from different brands may not integrate well, limiting market growth. In industrial settings, lack of standardization can reduce efficiency and scalability. Efforts to establish universal standards are ongoing, but the diversity and rapid technological advancement complicate these efforts, posing a significant barrier to fully realizing IoT's benefits.

IoT Technology Market Trends

There are several notable developments in the IoT technology sector that are influencing its future direction. Increasingly, AI and ML are being included into Internet of Things systems, which is a significant development. Through improved data analytics, predictive maintenance, and self-governing decision-making processes, AI and ML augment the capabilities of IoT devices. These kinds of IoT solutions—like smart manufacturing systems that anticipate equipment breakdowns before they happen or smart home devices that can pick up on user preferences and adjust accordingly—are made possible by this integration.

IoT, AI, and ML working together to drive innovation across industries is increasing the overall value of IoT investments and developing more advanced applications. In February 2024, Indian generative AI startup Sarvam AI has announced a collaboration with Microsoft to make its Indic voice large language model (LLM) available on Azure. This partnership underscores Microsoft’s dedication to fostering AI-driven growth and innovation in India. In May 2024, IBM unveiled the next chapter of watsonx with open source, product & ecosystem innovations to drive enterprise ai at scale. Also, IBM released a family of granite models into open source and launched InstructLab, a first-of-its-kind capability, in collaboration with Red Hat.

The rapid adoption and deployment of 5G networks is transforming the IoT technology market. 5G technology offers significantly faster data transmission speeds, reduced latency, and improved connectivity compared to previous mobile networks. This enhanced network capability supports a much larger number of IoT devices and enables real-time communication and processing. The impact of 5G on IoT is evident in areas such as autonomous vehicles, smart cities, and industrial IoT, where reliable and fast connectivity is crucial. As 5G networks expand globally, they are expected to accelerate the growth and development of IoT applications, making them more efficient, responsive, and widespread.

IoT Technology Market Analysis

IoT Technology Market, By Component, 2022-2032 (USD Million)

Based on components, the market is divided into hardware, software, and services. The software segment is expected to register a CAGR of over 9% during the forecast period.

  • Several variables are responsible for this peak. Initially, there is a growing need for specialist software solutions to handle, evaluate, and comprehend the enormous volumes of data produced by IoT devices as IoT ecosystems get more complex and varied. Through process optimization, decision-making, and actionable insights gleaned from IoT data, these software platforms help businesses innovate and operate more efficiently across a range of industries.
  • Flexible and adaptable software solutions are required due to the quick development of IoT use cases and applications. Businesses want software platforms that are flexible and scalable so they can easily integrate with their current infrastructure and keep up with emerging technologies. IoT software that provides adaptability, interoperability, and strong functionality to support a variety of IoT implementations is therefore in high demand. The capabilities of IoT software are also being further enhanced by developments in artificial intelligence, machine learning, and edge computing. These developments allow for autonomous decision-making, real-time analytics, and predictive maintenance, which is driving the growth of the software segment in the market.
IoT Technology Market Share, By Connectivity, 2023

Based on connectivity, the IoT technology market is divided into cellular, wi-fi, Bluetooth, and others. The cellular segment dominated the global market with a share of over 40% in 2023.

  • Connectivity is a key factor in determining the efficacy and reach of IoT deployments in the worldwide IoT technology industry. When it comes to connectivity possibilities, the cellular market is clearly the leading player. Due to several important benefits, this market segment has managed to acquire a sizeable portion of the market. In situations when alternative connectivity options may be limited, such as remote or difficult areas, cellular connectivity provides wide coverage and dependability, allowing Internet of Things devices to maintain connectivity. For Internet of Things applications in industries like transportation, agriculture, and utilities, where continuous connectivity is necessary for real-time tracking, monitoring, and control, this consistency is especially significant.
  • Cellular connectivity offers flexibility and scalability, supporting IoT deployments of various scales and complexity. Cellular connectivity is expected to grow even more widespread and potent with the rollout of 5G networks, which will provide lower latency, quicker data transmission speeds, and support for a huge number of connected devices. The cellular sector is positioned as a significant driver of growth in the global IoT technology market due to the advancement of cellular technology and the increasing demand for IoT solutions across industries. Cellular connection is expected to maintain its significance and play a key role in determining the future of IoT ecosystems globally as businesses continue to embrace IoT to drive efficiency, innovation, and digital transformation.
U.S. IoT Technology Market Size, 2022-2032 (USD Million)

North America IoT technology market accounted for 38% of the revenue share in 2023. The region's highly developed infrastructure, which includes advanced telecommunications networks and widespread internet access, offers a solid foundation for the adoption of IoT. North America is also home to a sizable number of startups, academic institutions, and technology companies that are actively involved in IoT innovation. These companies continuously enhance IoT hardware, software, and services to support several business verticals and drive market expansion.

In the United States, specifically, the IoT technology market benefits from a vibrant ecosystem of technology companies, startups, and research institutions driving innovation and entrepreneurship. The U.S. government's initiatives to accelerate the deployment of IoT technologies in various sectors, including healthcare, manufacturing, and agriculture, further bolster market growth. With a strong focus on digital transformation and a culture of innovation, the U.S. remains at the forefront of IoT development, driving adoption and shaping the global IoT landscape.

IoT Technology Market Share

IBM Corporation and Microsoft Corporation, Intel Corporation hold a significant share of over 35% in the IoT technology industry. IBM Corporation, with its extensive portfolio of IoT solutions and services, leverages its expertise in data analytics, cloud computing, and artificial intelligence to deliver end-to-end IoT solutions for businesses across various sectors. Its Watson IoT platform provides organizations with robust tools for device management, data analysis, and predictive maintenance, enabling them to derive actionable insights and drive operational efficiencies.

 Microsoft Corporation, known for its Azure IoT platform, offers a comprehensive suite of tools and services for IoT application development, deployment, and management. Azure IoT provides scalable and secure infrastructure, integrated analytics, and seamless integration with other Microsoft services, empowering businesses to build innovative IoT solutions and accelerate digital transformation initiatives. Intel Corporation, a leader in semiconductor technology, provides essential components for IoT devices, including processors, sensors, and connectivity solutions. Its expertise in edge computing and hardware optimization enables Intel to deliver high-performance, energy-efficient solutions for IoT deployments, catering to diverse industry needs such as smart manufacturing, automotive, and healthcare.

IoT Technology Market Companies

Major companies operating in the IoT technology industry are:

  • Cisco Systems, Inc.      
  • IBM Corporation         
  • Microsoft Corporation             
  • Intel Corporation        
  • Google LLC      
  • Amazon Web Services, Inc. (AWS)      
  • Siemens AG   

IoT Technology Industry News

  • In May 2024 – Intel validated and optimized its AI product portfolio across client, edge and data center for several of Microsoft’s Phi-3 family of open models. The Phi-3 family of small, open models can run on lower-computer hardware, be more easily fine-tuned to meet specific requirement, and enable developers to build applications that run locally.
  • In May 2024- Brightcove, the world’s most trusted streaming technology company, implemented Amazon Q Business, a new generative AI assistant on Amazon Web Services (AWS).  

The IoT technology market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Million) from 2021 to 2032, for the following segments:

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Market, By Component

  • Hardware
  • Software
  • Services

Market, By Connectivity

  • Cellular
  • Wi-Fi
  • Bluetooth
  • Others

 Market, By Deployment

  • On-premises
  • Cloud

Market, By Application

  • Smart home
  • Industrial IoT
  • Connected health
  • Smart cities
  • Automotive
  • Consumer electronics
  • Retail
  • Others

Market, By Industry Vertical

  • Manufacturing
  • Healthcare
  • Transportation and logistics
  • Energy and utilities
  • Agriculture
  • Others

The above information is provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • UK
    • France
    • Italy
    • Spain
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • ANZ
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • MEA
    • UAE
    • Saudi Arabia
    • South Africa
    • Rest of MEA


Authors: Suraj Gujar, Sayali Pawar

Frequently Asked Questions (FAQ) :

The market size of IoT technology reached USD 900 million in 2023 and is set to witness 8% CAGR from 2024 to 2032, due to the increasing adoption of IoT devices across multiple sectors.

The software component segment is estimated to register over 9% CAGR between 2024 and 2032, owing to the increasing need for specialist software solutions to handle, evaluate, and comprehend the enormous volumes of data produced by IoT devices.

The cellular connectivity segment in the IoT technology industry recorded over 40% share in 2023, as it provides wide coverage and dependability, allowing IoT devices to maintain connectivity.

North America market is anticipated to record more than 38% share in 2023, attributed to the highly developed infrastructure, such as advanced telecommunications networks and widespread internet access.

IoT Technology Market Scope

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Premium Report Details

  • Base Year: 2023
  • Companies covered: 15
  • Tables & Figures: 285
  • Countries covered: 22
  • Pages: 210
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