IoT Market Share, Share, and Forecast by 2031

The IoT market size is projected to reach US$ 3967.99 billion by 2030 from US$ 611.0 billion in 2023. The market is expected to register a CAGR of 30.6% during 2023–2030. The fusion of Artificial Intelligence (AI) with IoT is likely to remain a key trend in the market.

IoT Market Analysis

The IoT market includes growth prospects owing to the current market trends and their foreseeable impact during the forecast period. The IoT market is growing owing to factors such as the increasing adoption of IoT devices, increasing resilience in smart manufacturing, and rapid digitization across various industries. The development of smart cities and the progressive deployment of 5G networks are some of the factors anticipated to provide lucrative opportunities for the IoT market growth.

IoT Market Overview

The Internet of Things, or IoT, is a network of interrelated devices that connect and exchange data with each other and the cloud. IoT devices are typically embedded with technology such as sensors and software. Organizations across various industries are using IoT to operate more efficiently, deliver enhanced customer service, improve decision-making and increase the value of the business.

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IoT Market: Strategic Insights

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IoT Market Drivers and Opportunities

Increasing Adoption of IoT Devices to Favor Market

The Internet of Things (IoT) describes An extensively broad network of interconnected devices along with technologies that enable communications between these devices and the cloud. Recently, there has been a huge surge in the adoption of IoT technologies due to advancements in mobile and wireless connectivity technologies, and a gradual drop in the cost of sensors and other components. Several industries are using IoT to improve efficiency and reduce the costs of their operations. According to Finance Online, there were approximately 14.76 billion connected IoT devices as of November 2023, and this figure is expected to rise to ~25.44 billion by 2030. As per a forecast by IoT Analytics, 75% of the total devices in use would be IoT by 2030. Furthermore, FinleyUSA estimated the global IoT spending at US$ 1.1 trillion in 2023. Such increasing adoption of IoT devices drives market growth.

Development of Smart Cities

The reliance on technology for a more comfortable living is increasing with the evolving lifestyles of consumers and communities worldwide. Smart cities have gained huge traction in the last few decades. According to TWI Ltd., 54% of the world’s population lives in cities, and the number is expected to rise to 66% by 2050. According to the Indian Ministry of Housing and Urban Affairs (MoHUA), 100 smart cities had issued work orders for 7,978 projects as of July 2023, of which 5,909 projects were completed. As per the SmartAmerica Challenge, city governments in the US announced plans to invest ~US$ 41 trillion over the next 20 years to upgrade their infrastructure and benefit from the network of connected devices. In December 2023, a Chinese property development consortium announced an investment of approximately US$ 1.85 trillion in a new smart city in Brazil. IoT devices are being increasingly used in smart cities, thereby providing growth opportunities for the market.

IoT Market Report Segmentation Analysis

Key segments that contributed to the derivation of the IoT market analysis are component, enterprise size, and application.

• Based on the component, the IoT market is divided into hardware, software, and services. The hardware segment will hold a significant market share in 2022.
• By enterprise size, the market is segmented into large enterprises and SMEs. The large enterprises segment held the largest market share in 2022.
• In terms of application, the market is segmented into building & automation, smart energy & utilities, smart manufacturing, connected logistics, banking & financial services, aerospace & defense, and others. The smart manufacturing segment held the largest market share in 2022.

IoT Market Share Analysis by Geography

The geographic scope of the IoT market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South & Central America.

The IoT market in Asia Pacific is experiencing rapid growth, propelled by various factors such as huge digitization of various industries, high growth of the smart manufacturing sector and favorable government support.

IoT Market Regional Insights

The regional trends and factors influencing the IoT Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses IoT Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

IoT Market Report Scope

IoT Market Players Density: Understanding Its Impact on Business Dynamics

The IoT Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.

Major Companies operating in the IoT Market are:

1. Microsoft Corporation
2. Hewlett Packard Enterprise Development LP
3. SAS Institute Inc.
4. VMware, Inc.
5. Google, LLC
6. Oracle Corporation

Disclaimer: The companies listed above are not ranked in any particular order.

IoT Market News and Recent Developments

The IoT market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the IoT market are listed below:

• Vodafone has entered a major strategic partnership with Microsoft that will significantly expand Vodafone’s IoT capabilities. This 10-year agreement aims to leverage both companies’ strengths to transform digital platforms for over 300 million businesses, public sector organizations, and consumers in Europe and Africa. (Source: Vodafone, Press Release, January 2024)
• Soracom, Inc., a global provider of advanced Internet of Things (IoT) connectivity, and Suzuki Motor Corporation, which offers products in multiple mobility categories, including automobiles, motorcycles, and outboard motors, announced that they had signed an agreement to pursue applications of advanced IoT technologies in the field of mobility services. (Source: Suzuki Motor Corporation, Press Release, February 2024)

IoT Market Report Coverage and Deliverables

The “IoT Market Size and Forecast (2020–2030)” report provides a detailed analysis of the market covering below areas:

• IoT market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
• IoT market trends, as well as market dynamics such as drivers, restraints, and key opportunities
• Detailed PEST/Porter’s Five Forces and SWOT analysis
• IoT market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the IoT market
• Detailed company profiles