IoT Market Expected to Reach $5332.3 Billion by 2032

According to a new report published by Allied Market Research, titled, “IoT market, Component (Solution, Services) , by Deployment Mode (On-premise, Cloud) by Organization Size (Large Enterprises, Small and Medium-sized Enterprises) by Platform (Device Management, Application Management, Network Management) by Technology (Radiofrequency Identification, Pressure Sensors, Network Communications, Data Processing, Near-field Communications) by Industry Vertical (Retail, E-commerce & Consumer Electronics, Energy & Utility, Healthcare, Transportation & Logistics, IT & Telecom, Manufacturing, Others) : Global Opportunity Analysis and Industry Forecast, 2024-2032" was valued at $956.0 billion in 2023, and is projected to reach $5,332.3 billion by 2032, growing at a CAGR of 21.3% from 2024 to 2032.

The Internet of Things (IoT) is the network of interconnected devices and systems that communicate with each other over the internet. These devices range from everyday household items like refrigerators and thermostats to complex industrial machinery. It is further embedded with sensors, software, and other technologies that enable them to collect and exchange data. IoT facilitates real-time monitoring, control, and automation of processes, enhancing efficiency and decision-making across various sectors, including healthcare, transportation, manufacturing, and smart homes. By leveraging IoT, businesses and individuals can gain valuable insights, improve operational performance, and create new opportunities for innovation and growth. The seamless integration of IoT into the daily lives is transforming how we interact with technology, driving the development of smarter and more connected environments. 

Moreover, the proliferation of affordable digital devices has made smart solutions accessible to a broader demographic, thereby increasing the number of potential IoT solutions. The Google Play Store’s continuous enhancements in user experience, security measures, and developer tools further contribute to the growth of IoT solutions. Additionally, the rise in the trend of mobile gaming, subscription-based services, and digital content consumption on smartphone devices is expected to significantly boost the IoT market analysis. The combination of these factors ensures that the market will witness substantial growth in the forecast period. 

On the basis of the component, the solution segment is expected to grow at the highest growth rate during the forecast period. The growing need for solutions that support the functioning of IoT devices. The service providers deliver end-to-end software development solutions for consumer IoT, from project planning and testing to deployment. This in turn expected to propel the growth of this segment in the global market. However, the service segment is expected to exhibit the highest growth during the forecast period, driven by several factors. This growth can be attributed to the increasing demand for various services that support the implementation and maintenance of IoT platforms. 

On the basis of region, North America attained the highest growth in 2023. The presence of prominent players such as Google LLC, Hewlett Packard Enterprise, Cisco Systems, Inc., and others has influenced the growth of the IoT market forecast in North America. Moreover, the rise in government initiatives to strengthen smart infrastructure across the region is further expected to drive the demand for IoT solutions.  However, Asia-Pacific is projected to be the fastest-growing segment during the forecast period, owing to the availability of cost-effective digital solutions and the rise in the amount of data generation across organizations. In addition, the proliferation of advanced technologies escalates system safety and reduces delays in smart operations. 

Furthermore, the rise in the trend of cloud computing in several industries including the IoT industry is anticipated to create numerous opportunities for internet of things (IoT) market growth. As cloud-based solutions offer scalability, flexibility, and accessibility, that enhance business operations. For instance, in January 2024, Vodafone partnered with Microsoft, this collaboration aims to advance generative AI, digital enterprise, and cloud services for over 300 million businesses and consumers across Vodafone’s European and African markets. Therefore, numerous strategies adopted by businesses further help to accelerate the global IoT market growth. 

KEY FINDINGS OF THE STUDY 

• By component, the solution segment accounted for the largest internet of things (IoT) market share in 2023. 

• By deployment mode, the on-premise segment accounted for the largest IoT market share in 2023. 

• By organization size, the large enterprises segment accounted for the largest IoT market share in 2023. 

• By platform, the device management segment accounted for the largest IoT market share in 2023. 

• By technology, the network communication segment accounted for the largest IoT market size in 2023. 

• By industry vertical, the IT & telecom segment accounted for the largest IoT market share in 2023. 

• Region-wise, North America generated the highest revenue in 2023. 

The market players operating in the IoT market size are Google LLC, Hewlett Packard Enterprise, Cisco Systems, Inc., International Business Machine Corporation (IBM), SAP SE, Microsoft Corporation, Amazon Web Service., Oracle Corporation, Intel Corporation, and Bosch Software Innovation GMBH. These major players have adopted various key development strategies such as business expansion, new product launches, and partnerships, which help to drive the growth of the IoT market globally.