Internet of Things (IoT) Market

Internet of Things (IoT) Market Outlook

The global Internet of Things (IoT) market size will expand from US$ 1,90,180.8 million in 2024 to US$ 8,83,156.2 million by 2034. The global IoT market is expected to steadily evolve at a 16.6% CAGR from 2024 to 2034.

IoT transforms businesses, improves productivity, and opens sophisticated analytics with enhanced connectivity and data interchange. Some primary motivators are the ever-increasing need for automation, better decision-making, and the continuous advancement of 5G technology. The increased integration of smart devices across numerous industries propels the Internet of Things market.

As more industries adopt IoT solutions for process optimization and cutting-edge service delivery, the Internet of Things (IoT) market is anticipated to rise rapidly. Persistent challenges, such as security concerns and interoperability issues, must be addressed to maintain the acceleration of IoT adoption globally.

Catalysts Powering the Growth of the Internet of Things (IoT) Market

The adoption of the Internet of Things in manufacturing, commonly known as Industry 4.0, results in smart factories that have seamless communication between equipment, sensors, and systems. The outcomes are increased productivity overall, decreased downtime, and enhanced production efficiency. The demand for robust IoT security solutions is driven by the growth of connected devices, which poses security issues. Building secure methods and safeguards to safeguard sensitive data is a concurrent focus of the IoT ecosystem's expansion.

IoT applications support efforts to reduce energy use and promote sustainability. IoT-enabled smart energy management solutions aid in the optimization and monitoring of energy use in homes, businesses, and other buildings.

IoT enables effective healthcare delivery, tailored treatment, and remote patient monitoring in the healthcare industry. IoT adoption in healthcare improves patient outcomes and streamlines the use of medical resources.

By offering a framework for interoperability and guaranteeing the security and dependability of IoT solutions, regulatory actions and the creation of industry standards aid in the Internet of Things (IoT) market expansion.

Report Attributes	Details
Estimated Market Value (2024E)	US$ 1,90,180.8 million
Forecasted Market Value (2034F)	US$ 8,83,156.2 million
Global Market Growth Rate (2024 to 2034)	16.6%
IoT Analytics Segment Growth Rate (2024 to 2034)	16.8%
Smart Grid Segment Growth Rate (2024 to 2034)	17.2%
North America Market Share (2024)	15.7%
East Asia Market Share (2024)	17.2%
Key Companies Profiled	Amazon Web Services AT & T Inc Cisco System Google Inc. Oracle Corporation Dell Inc. Microsoft Corporation

Limiting Factors Impacting the Expansion of IoT Technologies

Ensuring strong security for networks and linked devices is a constant task that is one of the main impediments to the Internet of Things (IoT) market. Connected devices increase potential exposure to cyberattacks, data breaches, and illegal access.

The proficient execution and administration of Internet of Things systems necessitate a workforce skilled in device management, cybersecurity, and data analytics. A lack of experts with these abilities can constrain the IoT market's potential growth.

IoT solution deployment frequently entails high upfront infrastructure, software, and hardware expenditures. Smaller Internet of Things vendors and organizations can discover it challenging to embrace and incorporate IoT technologies into their daily operations as a result of this.

Country-wise Analysis

The internet of things market in North America is to develop at a CAGR of 15.7% through 2034. Rising demand for the Internet of Things (IoT) in key countries, especially the United States and Canada, is the primary catalyst behind the spike. The United States tops the IoT industry with an estimated share of 79.5% by 2034.

The internet of things market in East Asia is to advance at a 17.2% CAGR through 2034. China has emerged as the dominant force, with a 58.2% share in the Internet of Things (IoT) market in East Asia by 2034.

What Does the Future Hold for the Internet of Things (IoT) Market in North America?

“Smart Cities Initiatives Propel IoT Integration for Efficient Urban Management and Sustainability”

Due to its developed technology sector and widespread adoption of digital technology, the United States leads the North America IoT market. Robust government programs and partnerships between large IT companies and startups support the ongoing expansion of the IoT sector in the United States. The IoT industry in the United States is expected to acquire 81.5% of the market share in 2024.

Attributes	Details
United States Market CAGR	15.4%
United States Market Size (2024)	US$ 44,329.2 million
Canada Market CAGR	15.9%
Canada Market Size (2024)	US$ 6,472.6 million

With a focus on distinct geographic limitations, the Canada IoT market is gradually growing into remote monitoring applications, especially in the transportation and natural resource extraction industries. In 2024, Canada internet of things market is expected to contribute 11.9% of the market share.

What Trends are Shaping the Asia Pacific Internet of Things (IoT) Market?

“Increased Focus on Cybersecurity as IoT Adoption Expands in The Asia Pacific”

China's vibrant startup scene and the country's heavy concentration of tech giants encourage innovation and variety in the IoT space, which supports long-term market growth. China leads the Asia-Pacific IoT market because of its large population, fueling widespread adoption through solid investment and government initiatives. China is expected to gain 59.2% of the share in 2024.

Attributes	Details
China Market CAGR	17%
China Market Size (2024)	US$ 41,094.3 million
Japan Market CAGR	17.7%
Japan Market Size (2024)	US$ 19,089.4million

Japan's dedication to Internet of Things security and privacy regulations builds customer confidence. It creates a favorable atmosphere for developing IoT applications, particularly in linked devices and smart homes. The adoption of IoT solutions in the manufacturing, healthcare, and transportation sectors demonstrates Japan's IoT market's systematic approach, which emphasizes quality and precision. In 2024, the Japan IoT industry is scheduled to account for 27.5% of the market share.

Category-wise Outlook

Based on the components, the IoT sensor segment is estimated to hold a 31.8% market share by 2034. Simultaneously, the IoT platform segment is anticipated to secure a 24.3% share by 2034, contributing significantly to the market's stability. Based on application, the smart grid segment marks its dominance, with a share of 22.1% by 2034.

What Makes the IoT Sensor Segment the Market Leader Among IoT Components?

“IoT Sensors Lead as They Serve as the Primary Data Source, Crucial for Real-time Insights”

IoT Sensor	Details
Market Size (2024)	US$ 61,238.2 million
Market Share (2024)	32.2%

IoT Platform	Details
Market Size (2024)	US$ 45,072.8 million
Market Share (2024)	23.7%

Sensor technologies are essential to the growth of IoT ecosystems because of their scalability and adaptability, cementing their dominance in the IoT market. IoT sensors are necessary because of their capacity to deliver accurate and fast information, which improves decision-making processes.

From 2024 to 2034, the IoT sensor segment in the component category is expected to accelerate at a CAGR of 16.3%. In 2024, the component category's IoT sensor segment is expected to account for 32.2% of the share.

Does the Smart Grid Segment Reign Supreme in the IoT Market by Application?

“Smart Grids Optimize Vital Infrastructure, Making Them Essential for IoT Applications”

Smart Grid	Details
Market Size (2024)	US$ 43,171.0 million
Market Share (2024)	22.7%

Others	Details
Market Size (2024)	US$ 39,747.8 million
Market Share (2024)	20.9%

The smart grid segment is leading due to the growing demand for sophisticated and dependable energy infrastructure. A vital component of the smart Grid's dominance in the IoT market is its concentration on grid upgrading and smart energy solutions. As a significant force behind the IoT sector, smart grid automation lowers losses and increases reliability.

Through 2034, the application category's smart grid segment is expected to flourish at a CAGR of 17.2%. In 2024, the application category's smart grid segment is expected to account for 22.7% of the share.

Competitive Analysis

With many Internet of Things (IoT) vendors fighting for supremacy in several industries, the market is highly competitive. It is a dynamic landscape that startups, established tech giants, and specialized IoT providers shape. IoT vendors should form partnerships, strategically align with industry norms, and invest in research and development to remain on the cutting edge.

An increase in applications across industries is a defining feature of the evolution of the Internet of Things market, escalating competition. The manufacturers in this quickly growing and revolutionary sector are concentrating on innovation, scalability, and interoperability as the demand for IoT solutions keeps rising.

Notable Innovations

• Texas Instruments created the SimpleLink series of Wi-Fi 6 companion integrated circuits in April 2023 to help designers create highly dependable, secure, and efficient Wi-Fi connections at an affordable price so that applications can run in high-density or high-temperature environments up to 105 oC. When paired with a microcontroller or CPU, the CC33xx devices enable a secure Internet of Things connection with dependable radio frequency (RF) performance across a variety of industrial areas, including building automation, medical, and grid infrastructure.
• Qualcomm unveiled state-of-the-art IoT solutions in April 2023 to enable new industrial applications and assist in the IoT ecosystem's scaling. For a variety of IoT use cases, including smart buildings, businesses, retail, and industrial automation, the recent IoT solutions offer more performance, cutting-edge connectivity, and next-generation processing.
• Qualcomm increased the scope of its service in February 2023 to streamline and expedite IoT across various industries. Qualcomm Aware combines industry-leading silicon, a significant cloud architecture that is developer-friendly, an ecosystem of hardware and software partners, and exceptional services for managing assets that require critical, accurate, and time-sensitive decision-making. Qualcomm Aware aims to set a new benchmark for the Internet of Things and help companies become more efficient by providing a worldwide connection, optimizing smartly, and fusing location technologies with sensor alerts and critical device management and control features.

Segmentation of Internet of Things Market Research

• By Component :

  • IoT Platform
  • IoT Data Transport
  • IoT Security
  • IoT Analytics
  • IoT Sensor

• By Application :

  • Smart Grid
  • M2M Communication
  • Home and Building Automation
  • Wearable Computing Devices
  • V2V Communication
  • Others

• By Region :

  • North America
  • East Asia
  • East Asia
  • South Asia and Pacific
  • Western Europe
  • Eastern Europe
  • The Middle East and Africa