Home / Information & Technology / Technology / Internet of Things (IoT) Market

Internet of Things (IoT) Market Size, Share & Industry Analysis, By Component (Platform and Solution & Services), By End-use Industry (BFSI, Retail, Government, Healthcare, Manufacturing, Agriculture, Sustainable Energy, Transportation, IT & Telecom, and Others), and Regional Forecast, 2024-2032

Report Format: PDF | Published Date: Mar, 2024 | Report ID: FBI100307 | Status : Published

The global Internet of Things (IoT) market size was valued at USD 595.73 billion in 2023 and is projected to grow from USD 714.48 billion in 2024 to USD 4,062.34 billion by 2032, exhibiting a CAGR of 24.3% during the forecast period (2024-2032). North America accounted for a market value of USD 195.48 billion in 2023. The Internet of Things refers to the network of physical objects that are inserted with software, sensors, and other mechanisms for exchanging and connecting data with other systems and devices over the Internet.

The Internet of Things technology operates as a global infrastructure for the information society, empowering modernized services to connect and communicate things based on prevailing and evolving communication mechanisms. Also, it delivers interoperable data and the capability to communicate self-sufficiently without human intervention.

As a result, the technology is anticipated to generate new revenue streams, enhance business efficiencies, aid new business models, and progress the way current services are delivered across various sectors. For instance,

  • In November 2023, IDEMIA and TEAL announced a strategic partnership to enable unified connectivity for upcoming IoT applications. This alliance focuses on the recent GSMA SGP.32 model, which places the groundwork for a more streamlined and efficient deployment model desired in this market.

The IoT market created a significant opportunity to enhance the quality of life, with the probability of having a wide-reaching impact on society, predominantly during COVID-19's new normal. The pandemic encouraged enterprises and governments to reconsider their business actions and objectives. Moreover, these adjustments proved to be a driving factor for innovation and technology.


Different Applications of Generative AI within IoT Devices to Fuel Market Growth

With the rising importance of IoT applications, the necessity to analyze and process huge amounts of data also increases. Generative AI involves the usage of machine learning mechanisms to generate new data and, thus, has emerged as an encouraging technology that can help resolve various challenges.

Generative AI can be implemented in Internet of Things solutions to enhance projecting maintenance. IoT sensors can collect massive amounts of data regarding machine health and performance that can be used to train generative AI models to generate synthetic data for upkeep predictive analysis. Other prominent applications of generative AI include anomaly detection, synthetic data modeling, fraud detection, personalized recommendations and customizations, energy optimization, and many more. Such applications of generative AI, along with IoT, can be used across different industries, such as manufacturing, automotive, healthcare, and others. For instance,

  • In December 2023, Microsoft and TomTom unveiled generative AI for linked vehicles. The partnership has resulted in the improvement of a wholly incorporated AI-driven conversational assistant that improves voice communication with infotainment, vehicle command systems, and location search.

Thus, generative AI has the potential to transform the process and collection of data from different Internet of Things devices. Producing new data that is comparable to the input data (synthetic data) can aid in overcoming the limits of traditional data-gathering procedures and increase the precision of ML models.

Internet of Things (IoT) Market Trends

Adoption of Blockchain Technologies to Upsurge the Progress of the IoT Market

Internet-linked devices collect an enormous amount of information and data for processing. However, the internet of things standard security access increases numerous privacy and security complications. The blockchain-based architecture provides linked devices with minimal and decentralized security solutions.

Moving freight is a complex process comprising several parties with variable priorities in freight transportation applications. An IoT-driven blockchain can record the arrival times, the status of shipping containers, temperatures, and position when in a movable state.

Similarly, in the component tracking and compliance application, the Internet of Things data kept in shared blockchain ledgers permits all parties to track component provenance throughout the product life cycle. Hence, the technology is being used across different sectors. For instance,

  • In December 2023, Vodafone and Deloitte collaborated to introduce blockchain IoT services to simplify operations in supply chains. The alliance with Nexxiot, a Zurich-based DAB platform and Deloitte makes use of blockchain to validate transactions over IoT devices automatically. It is being pitched to the energy, automotive, supply chain, and manufacturing sectors.

Thus, blockchain could help improve connected technology's scalability and security concerns.

Internet of Things (IoT) Market Growth Factors

Growing Adoption of Smart Cities to Strengthen the Progress of the Market

With rising population and urbanization, several countries globally are introducing smart city projects and implementing smart city solutions to accomplish resources. Connected devices, such as sensors, smart meters, and smart lights, help advance the functions and proficiency of set-up and related services.

The rising number of smart homes and buildings, Industry 4.0, smart manufacturing, and smart infrastructure developments are projected to generate a vast transformation in business areas, thereby driving the internet of things market growth. For instance,

  • According to the World Economic Forum, 1.3 million individuals move to metropolises each week, and by 2040, an overwhelming 65% of the global population will live in cities. Thus, more of the population is moving toward urbanization and the usage of smart devices.

  • As per the World Economic Forum 2022 report, 131.4 million households were using smart speakers in 2022, and 335.3 million are predicted to use smart speakers by 2027. Similarly, 73.1 million households were using smart big appliances in 2022, and 177.6 million households are predicted to use these smart devices by 2027.

Moreover, smart city solutions, such as smart utility meters, smart transportation, smart waste management, smart grids, and smart air quality controllers, are being implemented by consumers, thereby elevating the market potential of connected devices worldwide.


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

Internet of Things technology has various applications, ranging from gathering biometric data through wearable devices to monitoring connected equipment via cloud platforms and communication networks. These devices have exclusive IP addresses that enable them to exchange information and communicate with other devices.

However, as the number of devices connected, mobile devices, smart devices, and platforms grows, so does the necessity for data protection and privacy. These devices and networks could comprise personal and sensitive data that attackers could use. Data misuse may emerge as a result of the rising dependence on connected devices, replicating design flows and the susceptibilities of connected devices.

Such limitations over the security and privacy of customer’s personal data can hamper market development.

Internet of Things (IoT) Market Segmentation Analysis

By Component Analysis

Integration of Emerging Technologies Drives Growth in IoT Platforms

On the basis of component, the market is bifurcated into platforms and solutions & services.

The platform is sub-segmented into network management, cloud platform, and device management. The solution is categorized into real-time streaming analytics, security, data management, remote monitoring, and network band management.

The platform is expected to grow at the highest CAGR owing to the rising demand for effective platforms for downstream data servers and enterprise application connectivity. Also, various market players are enhancing IoT platforms by integrating them with new emerging technologies. For instance,

  • In June 2023, Ayla collaborated with Etisalat to offer an IoT Platform for a new smart home solution from Etisalat by e&, the brand, demonstrating the telecoms of UAE. The partnership with Ayla added further value to smart home services and solutions with its streamlined cloud infrastructure and capability to aid a variety of devices.

However, solutions & services are expected to dominate the market with the highest market share. Several industries are implementing intelligent solutions to improve their present systems. For instance, healthcare facilities deploy connected devices to improve medical outcomes.

Further, network management is expected to hold a significant market share during the forecast period due to businesses' growing demand for remote monitoring systems and internet-ready devices. The network management solution is device-independent and provides an easy approach to integrating cross-vendor hardware models and data structures into the workflow.

By End-use Industry Analysis

Agriculture Industry to Grow With Fastest Growth Rate Due to Growing Demand for Field-Based Equipment and Sensors

Based on the end-use industry, the market has been segmented into agriculture, BFSI, healthcare, government, retail, manufacturing, sustainable energy, transportation, IT & telecom, and others.

The agriculture industry is anticipated to grow at the leading CAGR owing to the growing demand for field-based equipment and sensors. Some key applications of the high-tech in the agricultural sector are smart greenhouses, smart farming, precision farming, smart agriculture, smart drones, and many other applications. The implementation of IoT in agriculture includes various benefits, such as reducing expenses while multiplying yields and improving the decision-making of farmers with accurate data. Such factors create numerous opportunities for the market’s progress. For instance,

  • In January 2024, Morse Micro and Zetifi collaborated to announce modernized distant-area connectivity for smart IoT Farming at CES 2024. The inventive technology allows farmers and rural populations to access, expand, and improve coverage from existing cellular, radio, and satellite networks.


The market has been analyzed across five major regions: North America, Asia Pacific, Europe, the Middle East & Africa, and South America.

North America dominated the global market with a share of 32.81% in 2023. The region has witnessed noteworthy growth in the healthcare, industrial, and automotive sectors owing to a growing customer base for cloud-based platforms. Also, the rising adoption of 5G technology contributes majorly to the region’s market progress. Additionally, cloud platforms are experiencing extensive adoption in the region due to the expansion of IoT-enabled devices, rising R&D investments in advanced technology, and the prominence of key market players, such as Amazon Web Services (AWS), Google, Cisco, Microsoft, and IBM.

  • According to the GSMA Intelligence Report 2023 in North America, cellular IoT connections are estimated to reach 535 million by 2030. The U.S. accounts for the highest number of IoT connections in the region, accounting for over 90% of overall connections.

Europe is expected to dominate the market in the coming future by crossing North America with the largest Internet of Things market share. As healthcare is forecasted to hold a considerable market share in Europe, the industry is becoming progressively linked to big databases. Connected devices combined with big data are expected to gain traction in Europe.

Moreover, the demand for this technology is rising among enterprises and organizations in Germany, France, the U.K., Spain, Italy, and the Netherlands, thus driving the region's market growth. Similarly, Nordic and Eastern European countries show a substantial adoption rate of such advanced technologies.

  • According to industry experts, European organizations are estimated to spend USD 345 billion by 2027 on IoT-related technology. Thereby contributing to the region’s market progress.

Asia Pacific is anticipated to showcase the highest CAGR during the forecasted period owing to rising smart city plans and initiatives, such as the Intelligent Disease Prediction Project (China), Smart Wellington (New Zealand), and cloud spending in the region.

Also, the region's communication service providers and producers, such as Taiwan Mobile and Samsung Electronics Co., Ltd., are intensifying their portfolios to exploit smart device opportunities by adopting advanced analytics capabilities into existing systems. Also, various market players are investing in the region to fortify their business position there. For instance,

  • In October 2023, SoftBank Corp. expanded its IoT business in the Asia Pacific region. The company expanded its sales within 19 countries and regions, including Japan. SoftBank would emphasize the marketing of IoT services.

The Middle East & Africa and South America are expected to witness significant growth during the forecast period due to growing internet access services and regional users. Middle Eastern countries, such as Saudi Arabia and UAE, have been actively engaged in building smart cities, preferring to build and create them from scratch rather than integrating technology into existing ecosystems.

List of Key Companies in Internet of Things (IoT) Market

Established Players Invest in Core Technologies and Startups to Stay Competitive in the Market

Major key players such as Intel Corporation, Microsoft Corporation, Cisco Systems, Inc., Amazon Web Services, Inc., Siemens AG, PTC Inc., and others, are making substantial investments in advanced technologies such as AI, cloud computing, and others. Established market players are making substantial investments in startups and midscale companies to offer efficient solutions to the end-use verticals such as healthcare, manufacturing, retail, and others.

List of Key Companies Profiled:


  • November 2023: AWS and Siemens expanded their alliance to connect physical devices with the cloud more effortlessly. With the extended collaboration, AWS's IoT SiteWise Edge software can be installed directly from Siemens' Industrial Edge Marketplace.

  • June 2023: Rockwell and PTC extended their partnership to emphasize sales of IoT and AR (augmented reality) Software of PTC. Rockwell Automation continues to resell PTC's ThingWorx IoT software, comprising the DPM (Digital Performance Management) manufacturing solution, to new and present customers across process and discrete manufacturing sectors.

  • March 2023: Siemens announced the launch of Connect Box, a smart IoT solution to handle small-sized buildings. The Connect Box enables users to achieve crucial daily building management jobs from one place through a cloud-driven interface with no extra software.

  • January 2023: Intel launched the Intel Core 13th Gen. mobile processor. The hybrid architecture of Intel powers the advancement and has thirty-two mobile processors. Intel's Core P-, H-, and U- -range mobile processors are driven by thin and light laptops and Internet of Things devices. 

  • December 2022: Deloitte launched Olympus with AWS (Amazon Web Services). Olympus is an investment fund for building industry cloud solutions globally, along with progressive technologies such as IoT, AI, machine learning, 5G, quantum computing, AR/VR, and everything on the cloud. The initiative's purpose is to resolve the issues associated with food waste, financial product access, clean energy, and many other problems.


The market research study highlights leading regions around the world to provide the consumer with a better insight. Additionally, the research focuses on the most recent market growth patterns and examines technologies that are being deployed at a quick speed on a global scale. It also provides some drivers and restraints, allowing the reader to obtain a thorough understanding of the market.




Study Period


Base Year


Estimated Year


Forecast Period


Historical Period


Growth Rate

CAGR of 24.3% from 2024 to 2032


Value (USD Billion)


By Component

  • Platform

    • Device Management 

    • Cloud Platform

    • Network Management

  • Solution & Services

    • Real-Time Streaming Analytics

    • Security

    • Data Management

    • Remote Monitoring

    • Network Band Management

    • Solution

    • Services          

By End-use Industry

  • Banking, Financial Services and Insurance (BFSI)

  • Retail

  • Government

  • Healthcare

  • Manufacturing

  • Agriculture

  • Sustainable Energy

  • Transportation

  • IT & Telecom

  • Others

By Region

  • North America (By Component, End-use Industry, and Country)

    • U.S. (By End-use Industry)

    • Canada (By End-use Industry)

    • Mexico (By End-use Industry)

  • Europe (By Component, End-use Industry, and Country)

    • Germany (By End-use Industry)

    • France (By End-use Industry)

    • U.K. (By End-use Industry)

    • Italy (By End-use Industry)

    • Spain (By End-use Industry)

    • Russia (By End-use Industry)

    • Benelux (By End-use Industry)

    • Nordics (By End-use Industry)

    • Rest of Europe

  • Asia Pacific (By Component, End-use Industry, and Country)

    • China (By End-use Industry)

    • Japan (By End-use Industry)

    • India (By End-use Industry)

    • South Korea (By End-use Industry)

    • ASEAN (By End-use Industry)

    • Oceania (By End-use Industry)

    • Rest of Asia Pacific

  • Middle East & Africa (By Component, End-use Industry, and Country)

    • Turkey (By End-use Industry)

    • Israel (By End-use Industry)

    • GCC (By End-use Industry)

    • North Africa (By End-use Industry)

    • South Africa (By End-use Industry)

    • Rest of the Middle East & Africa

  • South America (By Component, End-use Industry, and Country)

    • Brazil (By End-use Industry)

    • Argentina (By End-use Industry)

    • Rest of South America

Frequently Asked Questions

How much will the Internet of Things (IoT) Market be worth in 2032?

According to Fortune Business Insights, the global market size is expected to reach USD 4,062.34 billion by 2032.

What was the value of the global Internet of Things (IoT) Market in 2023?

In 2023, the market value stood at USD 595.73 billion.

At what CAGR is the market projected to grow in the forecast period (2024-2032)?

The market is projected to grow at a CAGR of 24.3% during the forecast period.

Which segment among components is expected to lead?

The solution and services segment is expected to dominate the market.

Which is the key factor driving market growth?

The growing adoption of smart cities is expected to drive market growth.

Which region held the highest market share?

North America held the highest market share.

Which region is expected to grow at the highest CAGR?

Asia Pacific is expected to grow at the highest CAGR.

Which end-use industry segment is expected to grow at the leading CAGR over the study period?

By end-use industry, agriculture is expected to grow with a leading CAGR during the studied period.

  • Global
  • 2023
  • 2019-2022
  • 130
  • $ 4850
    $ 5850
    $ 6850
    Buy Now

Information & Technology Clients