The Global Internet of Things IoT Market size was valued at USD 414.58 billion in 2023 and is projected to reach USD 1716.41 billion by 2032, growing at a CAGR of 17.1% during the forecast period.
The adoption of automobile solutions and the penetration of smart cities will be beneficial for the future of the world. Blockchain technologies have prominently set the trend, and end users are more interested in IoT. Investments in cutting-edge technology will improve company models and simplify processes. IoT manufacturers will benefit financially from a rise in innovative city projects worldwide, increased connected devices to fuel IoT growth, and future 5G technology to support IoT adoption globally.
Market Segmentation:
The Global Internet of Things Market is segmented based on Component (Hardware, Software Solutions, and Services), Organization Size (Large Enterprises and SMEs), and Application (Smart Manufacturing, Smart Transportation/Mobility, Smart Energy and Utilities, Smart Retail, Connected Healthcare, Smart Agriculture, Smart Buildings, Other Applications).
By component, the Software Solutions segment is anticipated to mention the largest market share during the forecast period
The Software Solutions segment is predicted to have the market’s most significant growth during the forecast period. IoT software solutions provide business applications that improve operational effectiveness, improve the customer experience, and create new chances for generating income. Internet-connected IoT devices interact with other IoT devices, applications, and things conveniently to exchange data and provide the user with reliable data decisions. Software solutions offer a variety of technologies that assist businesses in achieving their goals and preserving a critical competitive edge.
By organization size, the SME segment is expected to occupy the maximum market growth over the projected period
The SME segment is anticipated to witness the maximum growth of the IoT market during the forecast period. This is because SMEs are moving to a digital platform for their operations and utilizing IoT solutions, which is assisting them in becoming more productive, intelligent, and efficient.
Market Dynamics:
Drivers:
Consistent Growth Drives the Market
IoT technologies have been aided by advanced primary technologies and an abundance of devices. It is anticipated that until 2023, investments in IoT technology will increase by 13.6 percent annually. New sensors, increased computer power, and reliable mobile communication will make further development in the upcoming years conceivable. In addition, sensor technology integrated into IoT devices will continue to get increasingly affordable, sophisticated, and accessible. New sensor applications, such as extensive monitoring and detection, will be available for this accessibility and affordability. In contrast, over the previous 15 years, processing power has increased nearly 100 times. Thus, activities can be shifted away from local devices and toward cloud and edge computing solutions using applications like real-time analytics and artificial intelligence. 4 Additionally, the introduction of 5G will enhance mobile connectivity and open up new applications for experiences like augmented and virtual reality.
Access to Low-Cost, Low-Power Sensor Technology
The most crucial IoT device components are sensors. They aid in gathering data regarding a physical occurrence or condition. The environment around them can be measured by sensors, including orientation, motion, light, sound, humidity, temperature, and biometrics like blood pressure and heart rate. Thanks to these sensors, the IoT will become more practicable across industry verticals and for various application areas. Additionally, it is anticipated that ongoing sensor technology innovation will increase the possibilities of the IoT. Moreover, the IoT technology was first only partially adopted by companies due to the comparatively expensive cost of the sensors used in IoT devices. However, IoT adoption rates inside enterprises have increased significantly due to the quick decline in the price of these sensors. Over the past ten years, there has been a dramatic decline in the price of some low-frequency passive RFID tags and sensors. Additionally, from USD 1.30 per unit in 2004 to USD 0.38 per unit in 2020, the average cost of sensors has fallen. As a result, the widely used and inexpensive sensors and devices are less likely to be considered technological advances as the IoT market matures.
Regional Analysis:
North America Dominates the Market Growth
North America held a significant share in the IoT technology market in 2023. Due to its technical advancement, this region is one of the essential contributors to the global Internet of Things market. In addition, the US and Canada have developed economies, enabling them to invest significantly in R&D projects. The North American IoT market has grown due to rapid digitization across industry focus areas, rising usage of intelligent connected devices, and technological breakthroughs. The increased use of connected devices and associated network infrastructure, as well as the increased cooperation of hardware, network, and software providers, are the main factors contributing to the growth of the IoT market in the North American area. In addition, smart transportation is widely used in the region, assisting commuters in safely reaching their destinations.
Key Market Players and Competitive Landscape
Some of the major key players operating in the market are Siemens (Germany), Microsoft (US), AWS (US), Oracle (US), Cisco (US), Qualcomm (UK), SAP (Germany), IBM (US), Google (US), Intel (US), Hitachi (Japan), GE Digital (US), PTC (US), ARM (UK), Software AG (Germany), Particle (US), HQ Software (Estonia), Telit (UK), ClearBlade (US), Ayla Networks (US), Hologram (US), Losant (US), Samsara (US), Litmus Automation (US), Confidex (Finland), and among others.
This report categorizes the Internet of Things Market as follows,
Based on Component:
- Hardware
- Software Solutions
- Services
Based on Organization Size:
- Large Enterprises
- SMEs
Based on Application:
- Smart Manufacturing
- Smart Transportation/Mobility
- Smart Energy and Utilities
- Smart Retail
- Connected Healthcare
- Smart Agriculture
- Smart Buildings
- Other Applications
Based on Component:
- Hardware
- Software Solutions
- Services
Based on Organization Size:
- Large Enterprises
- SMEs
Based on Application:
- Smart Manufacturing
- Smart Transportation/Mobility
- Smart Energy and Utilities
- Smart Retail
- Connected Healthcare
- Smart Agriculture
- Smart Buildings
- Other Applications
