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Internet of Things (IoT) Market Research Report - Segmentation By Component (Hardware, Software/Platform, Solution and Services); By Application (Consumer IoT, Industrial IoT, Commercial IoT); By Deployment (On-premise, Cloud); By End-use (Manufacturing, Healthcare, Logistics, Government, Agriculture, Others); and Region - Size, Share, Growth Analysis | Forecast (2023 – 2030)

Internet of Things (IoT) Market Size (2023-2030)

The Global Internet of Things (IoT) Market was valued at USD 485.6 billion in 2022 and is projected to reach a market size of USD 2969.3 billion by the end of 2030. Over the forecast period of 2023-2030, the market is anticipated to grow at a CAGR of 25.4%.

Internet of Things (IoT) Market

The Internet of Things (IoT) market has evolved significantly, becoming a crucial component in the fields of connectivity and technology. It has witnessed substantial growth driven by data-driven decision-making and seamless connectivity across various industries. As technology continues to advance, the market is poised for continued expansion, with a focus on enhancing efficiency and precision. In the future, we can anticipate even more innovative gadgets and solutions that will further shape and optimize the IoT market.

Key Market Insights:

The global Internet of Things (IoT) market has witnessed remarkable growth in recent years. The IoT market has experienced rapid growth in recent years, driven by increasing internet penetration, advancements in sensor technologies, and rising demand for connected devices across various industries. Various industries, including healthcare, manufacturing, automotive, agriculture, and smart homes, have widely adopted IoT solutions to enhance operational efficiency, reduce costs, and improve overall productivity. For instance, according to the CBI Ministry of Foreign Affairs, over 10 billion IoT devices were operational around the world in 2021. This number is expected to reach 25.4 billion in 2030. Around 23% of the devices will be located in Europe by 2030  compared to 24% in North America and 26% in China.

The proliferation of IoT devices has led to an unprecedented amount of data generation. Companies are leveraging this data to gain valuable insights, make data-driven decisions, and enhance customer experiences. The rollout of 5G networks is set to further boost the IoT market. 5G technology offers faster and more reliable connections, enabling seamless communication between IoT devices and supporting applications that require real-time data processing.

 

Internet of Things (IoT) Market Drivers:

Technological Advancements and Industry 4.0 Initiatives Propel Growth in the Global IoT Market

The relentless pace of technological advancements, coupled with the widespread adoption of Industry 4.0 initiatives, serves as a driving force behind the exponential growth witnessed in the global Industrial Internet of Things (IIoT) market. As industries increasingly integrate smart sensors, connected devices, and data analytics into their operations, the resulting improvements in efficiency, predictive maintenance, and overall productivity are fuelling the demand for innovative IIoT solutions. This surge is further amplified by the growing realization among businesses of the transformative potential of IIoT technologies in optimizing processes, reducing operational costs, and gaining valuable insights through real-time data analytics

Cost Efficiency and Resource Optimization Driving the Industrial (IIoT) Adoption Across Industries

In the realm of the Industrial Internet of Things (IIoT), the pivotal role of cost efficiency and resource optimization cannot be overstated. IIoT solutions serve as a transformative force, empowering businesses to streamline their operations, maximize the utilization of resources, and markedly curtail operational expenditures. This fundamental advantage has not only fostered the widespread adoption of IIoT technologies but has also become a cornerstone driving industries toward a more efficient and economical future. By harnessing the power of real-time data, predictive analytics, and automation, businesses can make informed decisions, minimize wastage, enhance productivity, and ultimately, achieve substantial savings, making IIoT a game-changer across diverse sectors.

Remote Monitoring and Control are impacting on the Adoption of IoT Solutions

The escalating demand for remote monitoring and control of industrial processes and equipment, notably prevalent in sectors such as manufacturing, energy, and utilities, stands as a driving force propelling the widespread adoption of Industrial Internet of Things (IIoT) solutions. This need, born out of a necessity for heightened efficiency and proactive management, has spurred industries to embrace IIoT technologies. By enabling real-time monitoring, IIoT not only enhances operational efficiency but also imbues businesses with unparalleled responsiveness, revolutionizing traditional industrial practices and ensuring a competitive edge in an increasingly fast-paced and interconnected world.

Internet of Things (IoT) Market Restraints and Challenges:

There is an increasing need for skilled developers and specialists as IoT continues to evolve.

The evolution of the Internet of Things (IoT) has sparked a growing demand for skilled developers and specialists. IoT systems are becoming increasingly sophisticated, integrating various hardware components, sensors, and communication protocols. Skilled developers are required to design and program these systems effectively, ensuring seamless communication between devices and platforms. They must possess expertise in programming languages, embedded systems, and networking protocols to create IoT solutions that function optimally. Furthermore, as IoT applications expand across various sectors such as healthcare, manufacturing, transportation, and smart cities, domain-specific knowledge becomes vital. Developers and specialists need to understand the unique requirements and challenges of each industry to create tailored IoT solutions that address specific needs effectively. According to a survey conducted by sourcing company Randstad in 2021, The nine most in-demand IT skills include robotic process automation, data science, IoT, augmented reality and virtual reality, cloud computing, cybersecurity, blockchain, and user interface/experience design.

Internet of Things (IoT) Market Opportunities:

Smart Healthcare Solutions Presents Promising Opportunities for the Manufacturers in the Internet of Things (IoT) Market

IoT technology in healthcare presents a significant opportunity, enabling remote patient monitoring, efficient management of medical equipment, and predictive analytics for disease prevention. It can include IoT-enabled devices such as wearable sensors and smart medical equipment that allow healthcare providers to remotely monitor patients' vital signs and health conditions in real-time and IoT sensors embedded in medical devices to gather valuable data regarding their usage, performance, and maintenance requirements.

IoT-Powered Precision Farming can help in Maximizing Crop Yields and Sustainability Through Smart Sensors and Data Analytics in Real Time

In agriculture, IoT-powered precision farming techniques offer immense opportunities. Smart sensors and data analytics enable farmers to monitor soil health, optimize irrigation, and manage crop conditions in real-time. This data-driven approach enhances crop yield, reduces resource wastage, and promotes sustainable agricultural practices, addressing the increasing demand for food production while conserving resources. According to research conducted by Meticulous, the agriculture IoT market is anticipated to grow at a Compound Annual Growth Rate (CAGR) of 10.8% from 2021 to 2028, surpassing €20.4 billion market revenue.

INTERNET OF THINGS (IOT) MARKET REPORT COVERAGE:

REPORT METRIC

DETAILS

Market Size Available

2022 - 2030

Base Year

2022

Forecast Period

2023 - 2030

CAGR

5.7%

Segments Covered

By Component, Application, Deployment, End Use, and Region

Various Analyses Covered

Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities

Regional Scope

North America, Europe, APAC, Latin America, Middle East & Africa

Key Companies Profiled

IBM Corporation, Amazon Web Services, Inc., Intel Corporation , PTC Inc., Microsoft Corporation , Cisco Systems, Inc., Oracle Corporation , Siemens AG, NEC Corporation , SAP SE

Internet of Things (IoT) Market Segmentation: 

Internet of Things (IoT)  Market Segmentation: By Component

  • Hardware
  • Software/Platform
  • Solution and Services

In 2022, the software segment registered the fastest CAGR in the global Internet of Things (IoT) market. Businesses increasingly turned to IoT software applications to leverage the vast volumes of data generated by connected devices. This software-driven approach enabled seamless integration, data analysis, and actionable insights, empowering companies to make informed decisions in real-time. In 2019, approximately 16% of IoT market value was generated from software.

While the hardware segment accounts for the largest revenue share in the global market. Companies invested substantially in IoT hardware, ranging from sensors and actuators to smart devices and gateways, to enable seamless connectivity and data collection. This surge in demand for IoT hardware was particularly notable across various sectors, including manufacturing, healthcare, and transportation. For instance, In 2019, approximately 35% of the IoT market value was generated from the hardware segment of the Internet of Things (IoT) Market.

Internet of Things (IoT)  Market Segmentation: By Application

  • Consumer IoT
  • Industrial IoT
  • Commercial IoT

In 2022, The Consumer IoT sector command the largest market share in the Internet of Things (IoT) market. Consumer IoT devices accounted for 63% of all  IoT devices in 2020. This notable trend can be attributed to the increasing integration of smart devices into everyday lives. Consumer IoT encompasses a wide array of products, including smart home appliances, wearable devices, and connected entertainment systems, catering directly to individual consumers. The growing demand for convenience, personalized experiences, and enhanced connectivity fueled the sector's prominence.

Moreover, the Industrial IoT sector is the fastest-growing segment in the Internet of Things (IoT) market. Industries are increasingly embracing IoT technologies to optimize manufacturing operations, monitor equipment in real-time, and collect valuable data for predictive maintenance. The Industrial IoT sector's growth is further accelerated by the integration of IoT devices into supply chain management, enabling seamless tracking and improved logistics.

Internet of Things (IoT)  Market Segmentation: By Deployment

  • On-premise
  • Cloud

In 2022, the On-premise segment dominated the Internet of Things (IoT) market, holding the largest market share. On-premise IoT refers to the deployment of IoT infrastructure and devices within the physical boundaries of an organization, typically within its own data centers or facilities. All data processing, storage, and analysis occur locally, and the organization has full control and responsibility for managing the IoT ecosystem.

Moreover, The Cloud segment is the fastest-growing segment with a CAGR in the Internet of Things (IoT) market. Cloud IoT involves deploying IoT infrastructure, data storage, and processing capabilities on cloud platforms provided by third-party service providers. IoT devices send data to the cloud over the internet, where it is processed, stored, and analyzed. Cloud IoT offers scalability, flexibility, and accessibility, allowing organizations to leverage cloud resources without managing physical hardware.

Internet of Things (IoT)  Market Segmentation: By End-use

  • Manufacturing
  • Healthcare
  • Logistics
  • Government
  • Agriculture
  • Others

In 2022, the manufacturing segment held the largest market share in the Internet of Things (IoT) market. Manufacturing companies globally embraced IoT solutions to optimize production processes, monitor machinery in real-time, and enhance overall operational productivity. The integration of IoT devices, such as sensors and connected machinery, allowed manufacturers to collect vast amounts of data, enabling predictive maintenance and reducing downtime. Additionally, IoT-enabled supply chain management streamlined logistics, ensuring timely delivery of raw materials and finished products.

Moreover, the Healthcare segment is the fastest growing. According to both customers and healthcare professionals IoT solutions have been more valuable in the healthcare industry over the past five years. IoT solutions are used by a wide range of customers. Additionally, they are offered by insurance firms and governments to enhance health and simplify the procedures that patients have to go through.  According to research, healthcare is the second largest industry, representing around 10 to 14% of the estimated IoT value in 2030.

Internet of Things (IoT)  Market Segmentation: Regional Analysis

  • Asia-Pacific
  • North America
  • Europe
  • South America
  • Middle East and Africa

In 2022, Asia-Pacific held the largest market share of 32.7% in the Internet of Things (IoT) market. This regional dominance was a result of extensive IoT adoption across diverse sectors, driven by technological advancements and robust economic growth. Countries like China, Japan, and South Korea played pivotal roles, fostering IoT innovation and implementation through supportive government policies and substantial investments. The manufacturing sector in these countries, in particular, witnessed widespread IoT integration, enhancing production efficiency and supply chain management.

Moreover, North America held the second largest market share of 27.3% in the Internet of Things (IoT) market with a Total IoT Spending Share of 27%. The United States and Canada, in particular, led the charge in IoT adoption, with industries such as healthcare, manufacturing, and smart home technologies embracing IoT solutions.

COVID-19 Impact Analysis on the Global Internet of Things (IoT) Market:

The global Internet of Things (IoT) market experienced a significant impact from the COVID-19 pandemic. In the initial phases, as businesses faced uncertainties, there was a temporary dip in the adoption of IoT devices/services. Manufacturers and industries have encountered several challenges as a result of COVID-19, and investments in research and the development of IoT were gradually dropping. However, industries such as healthcare rapidly embraced IoT-enabled telemedicine platforms, remote patient monitoring devices, and smart healthcare infrastructure to ensure uninterrupted medical services while minimizing physical contact.

Latest Trends/Developments:

The official launch of Olympus with AWS (Amazon Web Services) was announced by Deloitte in December 2022. Olympus is a global investment fund for developing cloud-based business solutions that integrate cutting-edge technologies including 5G, loT, AL, machine learning, and AR/VR. Additionally, in November 2022, AWS IoT Core launched a new location service in partnership with LoRa Edge. The collaboration streamlines asset-tracking software development and connects LoRa Edge devices to AWS. The low-power, scalable, and economical technology is appropriate for use in a variety of industries, including the construction, industrial, residential, agricultural, transportation, and logistics sectors.

Key Players:

  1. IBM Corporation
  2. Amazon Web Services, Inc.
  3. Intel Corporation
  4. PTC Inc.
  5. Microsoft Corporation
  6. Cisco Systems, Inc.
  7. Oracle Corporation
  8. Siemens AG
  9. NEC Corporation
  10. SAP SE

In October 2020, Cognizant acquired Bright Wolf to set the foundation for a new Cognizant IoT innovation lab. Cognizant's expertise in the foundational industrial Internet of Things technologies combined with Bright Wolf's experience in the production-class industrial Internet of Things installations has improved the company's operational effectiveness, competitive advantage, and client resilience.

In December 2022, AWS and Slalom strengthened their strategic partnership to deliver cutting-edge, high-tech, and precise industry solutions to the expanded customer base. Both companies will work together to develop AWS | Shalom Launch Centres, which will aid businesses in modernizing IT services and accelerating business improvements.

Chapter 1. Global Internet of Things (IoT) Market– Scope & Methodology

   1.1. Market Segmentation

   1.2. Scope, Assumptions & Limitations

   1.3. Research Methodology

   1.4. Primary Sources

   1.5. Secondary Sources

 Chapter 2. Global Internet of Things (IoT) Market – Executive Summary

   2.1. Market Size & Forecast – (2023 – 2030) ($M/$Bn)

   2.2. Key Trends & Insights

   2.2.1. Demand Side

   2.2.2. Supply Side

   2.4. Attractive Investment Propositions

   2.5. COVID-19 Impact Analysis

 Chapter 3. Global Internet of Things (IoT) Market– Competition Scenario

   3.1. Market Share Analysis & Company Benchmarking

   3.2. Competitive Strategy & Development Scenario

   3.3. Competitive Pricing Analysis

   3.4. Supplier-Distributor Analysis

 Chapter 4. Global Internet of Things (IoT) Market - Entry Scenario

    4.1. Regulatory Scenario

    4.2. Case Studies – Key Start-ups

    4.3. Customer Analysis

    4.5. PESTLE Analysis

    4.4. Porters Five Force Model

               4.4.1. Bargaining Power of Suppliers

               4.4.2. Bargaining Powers of Customers

               4.4.3. Threat of New Entrants

               4.4.4. Rivalry among Existing Players

                4.4.5. Threat of Substitutes

 Chapter 5. Global Internet of Things (IoT) Market- Landscape

   5.1. Value Chain Analysis – Key Stakeholders Impact Analysis

   5.2. Market Drivers

   5.3. Market Restraints/Challenges

   5.4. Market Opportunities

 Chapter 6. Global Internet of Things (IoT) Market– By Component

 

 6.1.  Introduction/Key Findings   

6.2. Hardware

6.3. Software/Platform

6.4. Solution and Services

6.5. Y-O-Y Growth trend Analysis By Component

 6.6. Absolute $ Opportunity Analysis By Component , 2023-2030

Chapter 7. Global Internet of Things (IoT) Market– By Application

7.1. Introduction/Key Findings   

7.2. Consumer IoT

7.3. Industrial IoT

7.4. Commercial IoT

7.5. Y-O-Y Growth trend Analysis By Application

7.6. Absolute $ Opportunity Analysis By Application , 2023-2030

Chapter 8. Global Internet of Things (IoT) Market– By Deployment

8.1. Introduction/Key Findings   

8.2. On-premise

8.3. Cloud

8.4. Y-O-Y Growth trend Analysis Deployment

8.5. Absolute $ Opportunity Analysis Deployment , 2023-2030

Chapter 9. Global Internet of Things (IoT) Market– By End-use

9.1. Introduction/Key Findings 

9.2. Manufacturing

9.3. Healthcare

9.4. Logistics

9.5. Government

9.6. Agriculture

9.7. Others

9.8. Y-O-Y Growth trend Analysis End-use

9.9. Absolute $ Opportunity Analysis End-use , 2023-2030

 

Chapter 10. Global Internet of Things (IoT) Market, By Geography – Market Size, Forecast, Trends & Insights

10.1. North America

                                10.1.1. By Country

                                                10.1.1.1. U.S.A.

                                                10.1.1.2. Canada

                                                10.1.1.3. Mexico

                                10.1.2. By Component

                                10.1.3. By Application

                     10.1.4. By End-use

                        10.1.5. Deployment

                     10.1.6. Countries & Segments - Market Attractiveness Analysis

   10.2. Europe

                                10.2.1. By Country

                                                10.2.1.1. U.K.                         

                                                10.2.1.2. Germany

                                                10.2.1.3. France

                                                10.2.1.4. Italy

                                                10.2.1.5. Spain

                                                10.2.1.6. Rest of Europe

                                10.2.2. By Component

                                10.2.3. By Application

                     10.2.4. By End-use

                        10.2.5. Deployment

 

10.2.6. Countries & Segments - Market Attractiveness Analysis

10.3. Asia Pacific

                                10.3.2. By Country

                                                10.3.2.2. China

                                                10.3.2.2. Japan

                                                10.3.2.3. South Korea

                                                10.3.2.4. India      

                                                10.3.2.5. Australia & New Zealand

                                                10.3.2.6. Rest of Asia-Pacific

10.3.2. By Component

                                10.3.3. By Application

                     10.3.4. By End-use

                     10.3.5. Deployment

 

10.3.6. Countries & Segments - Market Attractiveness Analysis

10.4. South America

                                10.4.3. By Country

                                                10.4.3.3. Brazil

                                                10.4.3.2. Argentina

                                                10.4.3.3. Colombia

                                                10.4.3.4. Chile

                                                10.4.3.5. Rest of South America

                                10.4.2. By Component

                                10.4.3. By Application

                     10.4.4. By End-use

                        10.4.5. Deployment

 

10.4.6. Countries & Segments - Market Attractiveness Analysis

10.5. Middle East & Africa

                                10.5.4. By Country

                                                10.5.4.4. United Arab Emirates (UAE)

                                                10.5.4.2. Saudi Arabia

                                                10.5.4.3. Qatar

                                                10.5.4.4. Israel

                                                10.5.4.5. South Africa

                                                10.5.4.6. Nigeria

                                                10.5.4.7. Kenya

                                                10.5.4.10. Egypt

                                                10.5.4.10. Rest of MEA

                               10.5.2. By Component

                                10.5.3. By Application

                     10.5.4. By End-use

                        10.6.5. Deployment

 

10.5.6. Countries & Segments - Market Attractiveness Analysis

Chapter 11. Global Internet of Things (IoT) Market– Company Profiles – (Overview, Product Portfolio, Financials, Strategies & Developments)

11.1 IBM Corporation

11.2. Amazon Web Services, Inc.

11.3. Intel Corporation

11.4. PTC Inc.

11.5. Microsoft Corporation

11.6. Cisco Systems, Inc.

11.7. Oracle Corporation

11.8. Siemens AG

11.9. NEC Corporation

11.10. SAP SE

 

 

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Frequently Asked Questions

The Global Internet of Things (IoT) Market was valued at USD 485.6 billion in 2022 and is projected to reach a market size of USD 2969.3 billion by the end of 2030 with a CAGR of 25.4%.

The primary drivers include technological advancements and industry 4.0 initiatives, cost-effectiveness, resource optimization, and the ability of remote monitoring and control

In 2022, the Hardware segment held the largest market share in the Internet of Things (IoT) segment.

Asia-Pacific dominated the Internet of Things (IoT) market. The region is a manufacturing hub, with China and India leading in terms of the adoption of the Industrial Internet of Things (IIoT)

Google Ads, AppNexus, Rubicon Project Exchange, OpenX, Smaato, and Right Media Exchange, are some of the key players in the Internet of Things (IoT) market

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