Internet of Things (IoT) Market | Growth Industry Analysis

Global Internet of Things (IoT) Market Overview

Global Internet of Things (IoT) Market size was valued at USD 245.83 Billion in 2023, and is projected to reach USD 1871.52 Billion by 2032, growing at a CAGR of 25.3% from 2024 to 2032.

The Internet of Things (IoT) is quickly becoming the next big thing all over the world. The idea is small devices that are attached to software electronics sensors are connected through a network which helps to share information easily between those linked objects. The Internet of Things (IoT) is the next big thing for the future; it allows proper monitoring of individuals through the use of a stable and supportive network infrastructure. The addition of computer-based systems provides a good chance for digital and physical worlds to work together as one. Various end-users, including industries, businesses, customers, groups, and governments, are becoming aware of the Internet of Things also in many commercial and industrial places, it increases and amplifies the counter-productivity which supports the growth of the market. For instance, retailers use the internet of things to gain insights to make products successful and discover new ways to reach out to new consumers and regain old customers. According to Statista, as of 2020, 749 billion U.S. dollars were expected to be spent on the Internet of Things (IoT) technology worldwide.

Market Dynamics And Factors For Internet of Things (IoT) Market

Drivers:

Increased Use of IoT Technology in the Healthcare Sector

• The IoT technology provides many benefits to enhance health care services and to predict health issues, diagnose disease, treat and monitor patients inside as well as outside of the hospital. All over the world governments, leaders, and decision-makers are developing and implementing policies to deliver health care services using technology. The Internet of Things is powering intelligent communication and brings digital transformation in healthcare sectors. This help to change the pattern of handling increasingly complex systems and devices to increase productivity and lower the risk and time consumption. For instance, sensors are used to track the real-time location of medical equipment like wheelchairs, oxygen pumps, and other monitoring equipment. Monitoring devices developed are wearable and these solutions monitor things such as the occurrence of strokes or diabetic comas. These advantages help to increase the use of IoT technology in the healthcare sector which also supports the growth of the market.

Restraints:

Limitations Associated with Security, Integrity, and Privacy of Data in Connected Devices

• The security, Integrity, and privacy are major issues in IoT. Authentication, Identification, and device heterogeneity are major security and privacy concerns in IoT. Major challenges include integration, scalability, ethical communication mechanism, business models, and surveillance. Additionally, most of the devices may be operated on battery, due to less processing power security is a major issue generated in IoT. IoT devices are used in sensitive industries, such as finance and healthcare where the data is more important and it is at high risk these factors are restraining the growth of the internet of things (IoT) market.

Opportunity:

Growing Adoption of E-Commerce Platform

• Companies and people can connect due to the Internet of Things (IoT). It allows companies to gain insights into product success and also provides options to reach new and old consumers. Internet of Things is also expected to have a significant impact on an e-commerce platform due to the ease of shopping and the growing mobile penetration allows the high adoption of e-commerce platforms which propels the growth of the IoT industry. IoT technology offers benefits to both eCommerce retailers and customers. Retailers can track customer orders, inventory, traffic status, location, and other things which provide better tracking, and logistics and also deliver a more personalized experience to the customer. According to Statista, in 2020, over 2 billion people purchased goods; services online and e-retail sales surpassed 4.2 trillion U.S. dollars worldwide. This shows the lucrative opportunities for the growth of the Internet of Things (IoT) market.

Segmentation Analysis Of Internet of Things (IoT) Market

• By Deployment Type, the On-Premise segment is expected to account largest market share during the forecasted period. On-premise provides various advantages like a high level of data safety and security. On-premise deployment can be operated in a controlled, and completely internet-independent which provides higher system visibility and Quality-of-Service. Additionally, on-premises is very customizable due to this many industries prefer this to modify things like Server hardware, security protocols, and application codes for specific requirements due to this most the customer prefer on-premises deployment type which also propels the growth of the Internet of Things (IoT) market during the projected period.
• By Platform, the Device Management segment is expected to dominate the Internet of Things (IoT) market during the forecasted period. IoT device management allows remotely accessing, diagnosing and managing the functionality of IoT devices, applying security patches, and providing device-centric reports. Additionally, the increasing requirement for access and control of IoT devices is also supporting the growth of IoT device management which also propels the growth of the Internet of Things (IoT) market during the projected period.
• By Application, the Manufacturing segment is expected to account for the largest market share during the projected period. Internet of Things (IoT) in the manufacturing industry provides insights and visibility of their operation to the manufacturer. This technology improves processes; enhances the efficiency and quality of products that help to introduce greater flexibility into the business. IoT provides a clear picture of the strengths and weaknesses of the manufacturer of their businesses and identifies the areas for improvement and generates a positive and expected return on the investment. Additionally, this technology helps to build the relationship between manufacturer and consumer.

Regional Analysis Of Internet of Things (IoT) Market

• North America is expected to dominate the Internet of Things (IoT) market during the projected period. Owing to the continuous increasing presence of the Internet of Things in the region due to the implementation of connected vehicles, smart energy initiatives, home automation, and smart manufacturing industries it also generates significant revenue in this region. In addition to this, North America is one of the largest in the world due to the presence of companies such as Google, Cisco, and IBM are leading names in the field which also supports the growth of the market in this region. According to Statista, In 2020, the number of IoT devices is forecast to reach 8.74 billion, which surpasses the number of people on earth, this shows the high growth of the Internet of Things (IoT) market during the projected period.
• Asia Pacific region is expected to grab the significant market share in the Internet of Things (IoT) market during the forecasted period. Rapid digitalization along with high technological advancement in various industry verticals such as Manufacturing, Retail, Healthcare, and BFSI drives the growth of the Internet of Things market. Along with this, there are some of the most popular consumer smart devices like smartphones, portable wireless speakers, and internet-enabled TVs which are highly used and adopted in this region and help to boost the growth of the Internet of Things (IoT) market during the projected period. Additionally, Japan already declared completion of its smart city projects and other countries in the region are still in the developing phase this can provide growth to the Internet of Things (IoT) market. Moreover, According to Statista, in 2022, China generated most of the revenue in the Internet of Things (IoT) USD 4,517.00m.
• Europe is the region that has the potential to grow in the Internet of Things (IoT) market during the analysis period. The first IoT device is a smart vending machine and from there the phenomenon spread in scope from general smart devices to smart homes, smart buildings, and even smart cities in the European region. In Addition to this, in past few years, smart homes get popular due to the penetration of smart speakers such as the Google Assistant and Amazon Alexa have provided valuable additions to European households. Moreover, IoT devices are used in businesses across the region to streamline processes and increase the efficiency of work. Around 29% of European organizations currently use IoT technology within their business operations which shows the high growth of the Internet of Things (IoT) market in this region during the forecasted period.

Top Key Players Covered In Internet of Things (IoT) Market

• Intel (US)
• Microsoft (US)
• Cisco (US)
• Google (US)
• IBM (US)
• Samsung (South Korea)
• Apple (US)
• SAP (Germany)
• Gartner (US)
• Oracle (US)
• ARM (UK)
• General Electric (US)
• Accenture (Ireland)
• Amazon (US)
• HP (US)
• Arduino (US)
• IDC (US)
• Blackberry (Canada)
• PTC (US)
• Verizon (US), and other major players

Key Industry Development In The Internet of Things (IoT) Market

• In July 2024, ASMPT and IBM announced a renewed agreement to extend their collaboration on the joint development of the next advancement in chiplet packaging technologies. Through the agreement, the two companies worked together to advance thermocompression and hybrid bonding technology for chiplet packages, using ASMPT's next generation of Firebird TCB and Lithobolt hybrid bonding tools.
• In June 2024, Cisco Investments, the global corporate venture investment arm of Cisco launched a $1 billion AI investment fund to bolster the startup ecosystem and expand the development of secure and reliable AI solutions. As part of the new AI fund, Cisco made strategic investments in Cohere, Mistral AI, and Scale AI, among others, to advance customers' AI readiness and complement Cisco's AI innovation strategy. Cisco had already committed nearly $200 million of the $1 billion investment fund to date.