IoT Technology Market by Node Component (Sensor, Memory Device, Connectivity IC, Processor, Logic Devices), Software Solution (Remote Monitoring, Data Management), Platform, Service, End-use Application, Geography - Global Forecast to 2030

The IoT technology market is projected to reach USD 1,148.62 billion by 2030 from USD 959.30 billion in 2025, at a CAGR of 3.7% during the forecast period.

The IoT technology market is driven by factors such as rapid adoption of connected devices, advancements in 5G, AI, and edge computing, and rising demand for smart homes, industrial automation, and smart city initiatives. Increasing internet penetration and government-backed digital transformation programs further accelerate its growth. However, challenges such as data security and privacy concerns, a lack of skilled professionals, and interoperability issues among diverse IoT systems act as major restraints. Balancing these drivers and restraints will be critical for sustaining large-scale IoT adoption in the coming years.

By offering, the software solutions segment is expected to have the highest CAGR during the forecast period.

Smart objects in the IoT ecosystem need to execute intelligent algorithms to interact with other ""things"" in an efficient way, discard irrelevant data, and make informed decisions and actions on behalf of end users to eliminate human efforts. The software solution segment includes real-time streaming analytics, network bandwidth management, remote monitoring systems, security solutions, and data management. Software solutions are designed to meet interoperability challenges arising from varied heterogeneous devices and to manage a large volume of data and its security and privacy. Cloud-based software intelligently connects the entire device to the cloud and stores data gathered from all devices and sensors. Moreover, cloud-based applications help manage and monitor wired and wirelessly connected products and assets. Software solutions help mitigate interoperability issues, thereby providing flexibility and helping with various business functions. Microsoft Corporation (US), IBM Corporation (US), AWS (US), Cisco Systems (US), and PTC (US) are some of the top software solution providers.

By service, the professional services segment is expected to have the largest market share during the forecast period.

Professional services held a larger share of the IoT technology market. Professional services are required during and after the implementation of IoT systems. These services include planning, designing, consulting, and upgrading. The increasing complexity of operations and the growing use of IoT solutions are driving the market for professional services. The proliferation of connected devices generates massive amounts of data. IoT professional services providers help organizations manage data, including data collection, storage, processing, and analysis. These services assist in developing data analytics strategies and implementing tools and technologies to derive actionable insights from IoT-generated data. Organizations can make informed decisions, optimize processes, and drive innovation by leveraging advanced analytics.

North America accounted for the largest market share in 2024.

The IoT technology market in North America has been studied in the US, Canada, and Mexico. This region is a key market as it is home to some of the largest multinational corporations, such as Intel Corporation (US), Texas Instruments Incorporated (US), Dell (US), and Cisco Systems (US), in the IoT ecosystem. North America accounted for a share of 30% of the overall IoT technology market in 2024. Increased R&D in the field of IoT, in terms of new and improved technologies, and the increasing demand for an improved lifestyle are the two crucial factors driving the growth of the market. Increasing R&D at both the academic and industry levels is broadening the application areas of IoT in different industries, such as consumer electronics, retail, automotive & transportation, and healthcare, especially in the US. This is the main factor driving the growth of IoT applications in North America.

In determining and verifying the market size for several segments and subsegments gathered through extensive secondary research, primary interviews have been conducted with key industry experts in the IoT technology market.

The breakup of primary participants for the report is shown below:

• By company type: Tier 1 - 38%, Tier 2 - 28%, and Tier 3 - 34%
• By designation: C-level Executives - 40%, Managers - 30%, and Others - 30%
• By region: North America - 35%, Europe - 20%, Asia Pacific - 35%, and Rest of the World - 10%

The report profiles key players in the IoT technology market with their respective market ranking analyses. Prominent players profiled in this report Intel Corporation (US), Qualcomm (US), Texas Instruments Incorporated (US), Cisco Systems, Inc. (US), Hewlett Packard Enterprise (US), IBM (US), STMicroelectronics (Switzerland), Microsoft(US), PTC Inc. (US), and Amazon Web Services (US), General Eletcric (US), Softeq Development Corp. (US), ScienceSoft USA Corporation (US), Oracle (US), Siemens AG (Germany), SAP SE (Germany), Robert Bosch GmbH (Germany), Huawei Technologies Co., Ltd. (China), Schneider Electric (France), Arm Limited (UK), NXP Semiconductors N.V. (Netherlands), TE Connectivity (Switzerland), Software AG (Germany), Microchip Technology Inc. (US), Vates (US), Cellhire PLC (UK), ClearBlade (US), SoluLab Inc. (US), Konstant Infosolutions (India), and Binariks (US).

Research Coverage

This research report categorizes the IoT technology market based on technology, end-user industry, and region. The report describes the major drivers, restraints, challenges, and opportunities pertaining to the IoT technology market and forecasts the same till 2029. The report also consists of leadership mapping and analysis of companies in the IoT technology ecosystem.

Reasons to buy this report

The report will help the market leaders/new entrants with information on the closest approximations of the revenue numbers for the overall IoT technology market and the subsegments. This report will help stakeholders understand the competitive landscape and gain more insights to position their businesses better and plan suitable go-to-market strategies. The report also helps stakeholders understand the market pulse and provides information on key market drivers, restraints, challenges, and opportunities.

The report provides insights into the following pointers:

• Analysis of key drivers (emergence of 5G communications technology, increasing necessity of data centers with rising adoption of cloud platforms, growing use of wireless smart sensors and networks, and higher adoption of IPv6), restraints (data security and privacy concerns), opportunities (cross-domain collaborations, government incentives and aids for development of IoT technologies, accelerated IoT adoption in healthcare sector, increased potential for incorporating IoT in electric and hybrid vehicles, and rise in development of smart cities), and challenges (interoperability challenges and lack of common standards, high power consumption by wireless sensor terminals/connected devices, lack of IoT-related skills and technical expertise) influencing the growth of the IoT technology market
• Product Development/Innovation: Detailed insights on upcoming technologies, research & development activities, and new product & service launches in the IoT technology market
• Market Development: Comprehensive information about lucrative markets – the report analyzes the IoT technology market across varied regions
• Market Diversification: Exhaustive information about new products & services, untapped geographies, recent developments, and investments in the IoT technology market
• Competitive Assessment: In-depth assessment of market shares, growth strategies, and product/service offerings of leading players like Intel Corporation (US), Qualcomm (US), Texas Instruments Incorporated (US), Cisco Systems, Inc. (US), Hewlett Packard Enterprise (US), IBM (US), STMicroelectronics (Switzerland), Microsoft (US), among others in the IoT technology market.

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