IoT Market

The global Internet of Things (IoT) Market size reached US$ 64.8 Billion in 2024. Looking forward, expect the market to reach US$ 153.2 Billion by 2029, exhibiting a growth rate (CAGR) of 18.8% during 2024-2029.

The progress of 5G technology, rise in the demand for automation, widespread use of smart devices and broad application across different sectors will positively affect the IoT market. Connectivity technologies such as 5G technology enhance data transmission speeds while reducing latency thereby making them necessary for streamlining IoT implementation within a firm setup. These advancements have turned the Internet of Things (IoT) into one of the most effective forces for change in modern business practices through facilitating digital transformation and raising operational efficiency using interconnected intelligent devices and systems. . The Internet of Things (IoT) has become one of the most important forces of change in business practices resulting from digital transformation and enhancing operational effectiveness using interconnected intelligent devices and systems. There is an increasing trend towards intelligent manufacturing and automation as shown by more industries adopting lot technology.  loT sector is prepared for continuous growth driven by technological developments and rising utilizations across different sectors.

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IoT Market Trends

Driver: 5G & edge computing

Industrial edge computing is critical for the development of the IoT market. It involves robots, motors, and some machines linking to central servers and having their data processing capabilities. These edge devices provide valuable information that can help improve performance by transferring operating conditions and cycle times data to the central server. The arrival of 5G networks is already expected to strengthen this pattern because relaxed restrictions on speed and bandwidth will improve connectivity and data transfer. The fusion of 5G technology with industrial edge computing is set to make a significant impact on the Industrial Internet of Things (IIoT), helping in achieving greater operational efficiency as well as flexibility.

Restraint: Security concerns

The security of the loT market continues to be a significant concern because of vulnerabilities that can be manipulated by malicious individuals. Due to the collection of sensitive data by IoT devices and their operation in various environments, the chances of cyberattacks, data breaches, and unauthorized access are increased. Dealing with these issues involves strong encryption, authentication processes, and frequent updates to reduce security threats and establish confidence with users and stakeholders.

Opportunity: New Business Models and Revenue Streams

As lot connectivity facilitates subscription-based services and product-as-a-service models, businesses are adopting this more. These enable clients to have a continual access to goods and services that foster long-term relationships while generating steady revenues. Furthermore, loT creates the room for outcome-based pricing where customers pay for performance or results from the loT enabled solutions. This method incentivizes both providers and customers to align, promoting the creation of value and innovation. Furthermore, businesses can generate extra revenue by utilizing analytics and insights services to monetize loT data, enabling them to offer actionable intelligence to other companies using their data assets.

Challenge:Interoperability

Many devices or platforms have their particular protocols as well as standards, they can’t work together well. It makes communication and integration difficult, especially between systems of different producers. This results in a fragmented approach that inhibits growth through its inability to support coherent functions across many platforms which are necessary for realizing all the potential of IoT.  One level where interoperability emerges is a devices and connectivity where the basic ‘sensing’ of information fuelling the IoT services is produced and transmitted to the cloud. While vendors start to converge towards using a limited numbers of standardised protocols (for example, 6LoWPAN, CoAP, 6TiSCH), interoperability is still low due to the variety of implementations and devices. A standard solution for IoT interoperability could result in many implementations, but its effectiveness needs to be verified and certified. Current practices for interoperability testing requires different vendors, developers and service providers to participate to physical events

ECOSYSTEM OF IOT MARKET

Based on focus area, smart manufacturing is expected to hold a higher growth rate during the forecast period.

Smart manufacturing is expected to see a rapid increase in growth in the upcoming period as a result of its significant effect on efficiency, productivity, and adaptability in production processes. Smart manufacturing utilizes lot technologies to improve operational efficiency through the integration of sensors, automation, and real-time data analysis. This leads to minimized upkeep, streamlined operations, lower costs, and enhanced product quality. Intelligent manufacturing systems are adopted owing to the high demand for customized and flexible products which can be changed instantly in relation to production and request requirements. Technologies such as Al, machine learning, and cutting-edge robotic devices promote smart making abilities through their features like preventive repair, tracking in real-time as well as guaranteeing good quality control. Additionally, regulatory compliance and sustainable growth bustles manufacturers into undertaking more efficient measures aimed at minimizing waste while simultaneously optimizing the use of resources so as to reduce harm onto the earth. The integration of supply chain management with increased stock management, shorter times from supply chain to inventory reinforcements has improved this aspect. Overall they have been driving towards rapid development of intelligent manufacturing within internet of things (IoT) systems.

By offering, platforms are estimated to have the largest market size during the forecast period.

IoT platforms are forecasted to lead the market because they play a crucial role in managing and integrating various IoT devices and applications in a centralized manner. These platforms are crucial for managing large IoT ecosystems by simplifying deployment, monitoring, and maintenance processes. Their ability to provide scalability and flexibility helps enterprises to manage the growing number of linked devices and adjusting for the dynamic needs. Additionally, platforms also facilitate handling and analysis of data through advanced instruments that aid digestion as well as extraction of meaningful insights from huge amounts of data produced. Furthermore, they find diverse applications in different sectors such as smart cities, healthcare and manufacturing which fosters greater acceptance. Pre-existing frameworks and rapid deployment functionalities are some of the cost-effective strategies which attract organizations with an aim at minimizing infrastructure costs. Apart from this, continuous evolution and fusion into technologies like AI and machine learning keep these platforms relevant in their usefulness yet again. These aspects contribute towards the IoT platform’s notable market size and remarkable growth rate.

Asia-Pacific is expected to register largest market share during the forecast period. 

The Asia-Pacific region is set to lead the market share of the loT sector during the expected time frame due to several factors that include rapid technological advancements and innovation particularly in China, Japan, and South Korea. There is significant internet usage in this region as well as an increase in smartphone uptake which allows for extensive connectivity required for proper integration of IoT. Chinese Government's 'Made In China 2025' and Japan's 'Society 5.0' are the more specific initiatives that promote the adoption of loT as well as digital transformation across nations. Alongside, the rise of certain industries especially in developing countries such as India or Southeast Asia is raising a higher need for IoT solutions mainly in the manufacturing or logistics sectors. The market growth has also been fueled by the rising number of smart city projects including intelligent transportation systems and smart infrastructure constructions across both public and private sectors. Other factors influencing the increasing utilization of loT technologies are strong economic growth within the region coupled with substantial investments into digital infrastructure development as well as soaring consumer electronics sales. All these factors point to a strong position occupied by Asia-Pacific within the global IoT industry.

Market Players:

The major players in the IoT market are AWS (US), Microsoft (US), Oracle (US), Cisco Systems Inc. (US), SAP (Germany), Avnet Inc. (US), IBM (US), Google (US), PTC (US), Software AG (Germany), Hitachi Ltd. (Japan), Telit Cinterion (UK), STC (Saudi Arabia), Alibaba Cloud (China), Braincube (France), Datadog (US), Bosch (Germany), Particle Industries Inc. (US), HQSoftware (Estonia), Clearblade (US), Ayla Networks Inc. (US), Losant IoT (US), IoT Factory (Belgium), Oxagile (US), Portainer.IO (New Zealand), Emnify (Germany), Sumatosoft (US). These players have adopted various growth strategies, such as partnerships, agreements and collaborations, new product launches and enhancements, and acquisitions to expand their passenger information system market footprint.

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Scope of the Report

This research report categorizes the IoT market to forecast revenues and analyze trends in each of the following submarkets:

Based on offering:

• Platforms
  • Device Management
  • Application Enablement
  • Connectivity Management
  • IoT Cloud
  • IoT Advanced Analytics
• Services
  • Professional Services
  • Managed Services

Based on application:

• Asset management
• Supply chain management
• Business process optimization
• Workforce management
• Emergency & incident management
• Other applications

Based on focus area:

• Smart manufacturing
• Smart transportation/mobility
• Smart healthcare
• Smart retail
• Smart cities
• Smart building
• Smart energy & utilities
• Smart agriculture
• Other focus areas

By Region:

• North America
  • United States (US)
  • Canada
• Europe
  • United Kingdom (UK)
  • Germany
  • France
  • Italy
  • Spain
  • Nordics
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia & New Zealand
  • South Korea      
  • Rest of Asia Pacific
• Middle East & Africa
  • GCC Countries
  • Kingdom of Saudi Arabia (KSA)
  • United Arab Emirates (UAE)
  • Rest of GCC Countries
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America

Recent Development

• In April 2024, ROSHN partnered with Cisco to explore use of IoT technology for smart buildings.
• In March 2023, BT Group further expanded its partnership with Amazon Web Services (AWS) to collaborate on IoT industry solutions, cloud networking propositions, and 5G edge computing services for UK enterprise customers.

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