IoT Market By 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
IoT Market
The IoT market was valued at $956.0 billion in 2023 and is projected to reach $5332.3 billion by 2032, growing at a CAGR of 21.3% from 2024 to 2032.
The Internet of Things (IoT) is a term that signifies the interconnectedness of different physical equipment integrated with sensors, software, and communicative technologies. IoT devices are also known as smart devices that range from simple home devices to complex industrial machinery. The use of IoT technology offers multiple benefits such as enhanced efficiency, improved equipment utilization, process automation, remote monitoring, and elevated decision-making.
Integration of digital technology across diverse sectors has boosted the requirement for connectivity to ensure efficient operations. This requirement acts as a key driver of the IoT market. In addition, the need for automation and predictive analysis across different industries is boosting the adoption of IoT and augmenting the market development. Furthermore, surge in the adoption of smart devices in residential settings, along with increase in the popularity of connected wearables is propelling the market growth. With the ongoing advancements, the deployment of IoT capabilities into digital twin technology is poised to trend in the future. IoT exhibits the potential to enhance the efficacy of twin models by the integration of real-world data accuracy. This integration is poised to amplify the applicability of digital twins.
However, the widespread connectivity of IoT renders sensitive data vulnerable to data breaches and cyberattacks. This deters several individuals and industries from adopting smart devices, thereby limiting the expansion of the market. The management consulting firm, McKinsey states that IoT ecosystem comprises of millions to tens of millions of vulnerable end points that are highly prone to cyberattacks. Moreover, lack of standardization across different devices leads to compatibility issues in the IoT ecosystem, which restrains the growth of the market. Contrarily, the expansion of smart cities and Industrial IoT is poised to present lucrative opportunities for the IoT market.
Segment ReviewThe IoT market is segmented into component, deployment mode, organization size, platform, technology, industry vertical, and region. On the basis of component, the market is bifurcated into solution and services. Depending on deployment mode, it is divided into on-premise and cloud. As per organization size, it is classified into large enterprises and small & medium-sized enterprises. By platform, it is divided into device management, application management, and network management. According to technology, it is categorized into radiofrequency identification, pressure sensors, network communications, data processing, and near-field communications. By industry vertical, it is divided into retail, e-commerce & consumer electronics, energy & utility, healthcare, transportation & logistics, IT & telecom, manufacturing, others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, Latin America, and MEA.
Key FindingsOn the basis of component, the solution segment accounted for the highest market share in 2023.
Depending on deployment mode, the on-premise segment was the highest shareholder in 2023.
As per organization size, the large enterprises segment acquired a high stake in the market in 2023.
By platform, the device management segment dominated the market in 2023.According to technology, the network communications segment held a high market share in 2023.
By industry vertical, the IT & telecom segment garnered a significant share of the market in 2023.Region wise, North America was the highest revenue generator in 2023.
Competition AnalysisThe major players of the global IoT market include 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, to strengthen their foothold in the competitive market.
Key Market SegmentsBy ComponentSolution
Services
By Deployment ModeOn-premise
Cloud
By Organization SizeLarge Enterprises
Small and Medium-sized Enterprises
By PlatformDevice Management
Application Management
Network Management
By TechnologyRadiofrequency Identification
Pressure Sensors
Network Communications
Data Processing
Near-field Communications
By Industry VerticalRetail
E-commerce Consumer Electronics
Energy Utility
Healthcare
Transportation Logistics
IT Telecom
Manufacturing
Others
By RegionNorth America
U.S.
Canada
Europe
France
Germany
Italy
Spain
UK
Rest of Europe
Asia-Pacific
China
Japan
India
South Korea
Australia
Rest of Asia-Pacific
Latin America
Brazil
Colombia
Argentina
Rest of Latin America
MEA
Saudi Arabia
South Africa
UAE
Rest of MEA
Key Market PlayersGoogle LLC
Hewlett Packard Enterprise
Cisco Systems, Inc.
International Business Machine Corporation (IBM)
SAP SE
Microsoft Corporation
Amazon Web Service
Oracle Corporation
Intel Corporation
Bosch Software Innovation GMBH