IoT Sensors Market Size, Share & Industry Analysis, By Sensor Type (Temperature and Humidity Sensors, Touch Sensors, Pressure and Flow Sensors, Biosensors, Magnetometers, Image Sensors, Accelerometers, Motion Sensors, and Others), By Connectivity Type (Wired (Ethernet, Modbus, and CAN) and Wireless (Wi-Fi, Bluetooth, Zigbee/Z-Wave, RFID, and Others)), By End-Use (Consumer Electronics Automotive & Transportation, Retail, Smart Cities, Healthcare, and Others), and Regional Forecast, 2025 – 2032

The global IoT sensors market size was valued at USD 16.41 billion in 2024. The market is projected to grow from USD 20.42 billion in 2025 to USD 101.65 billion by 2032, exhibiting a CAGR of 25.8% during the forecast period.

IoT sensors are devices of perception that note changes in the environment and collect information, acting as a connecting medium between the real world and cyberspace. They can sense parameters such as temperature, pressure, motion, etc., and transmit data over networks so that the devices may communicate with each other and respond appropriately.

The growth of IoT sensors is attributed to the rising adoption of smart devices & connected ecosystems and advancements in connectivity. According to IoT Analytics, with around 14 billion active IoT connections, this indicates that over 50 billion connected devices with sensors have been installed. The other driver is rising smart cities & infrastructure development. In addition, the growing need for energy efficiency and sustainability pushes, which in turn fuels market growth.

The major market players included in this industry are Texas Instruments, TE Connectivity, Broadcom, NXP Semiconductors, STMicroelectronics, Infineon Technologies, Bosch Sensortec, Honeywell International, Analog Devices, Inc., and Sensirion.

IMPACT OF GENERATIVE AI

Generative AI to Make Improvements in Maintenance Forecasting and Anomaly Detection

Generative AI transforms the data interpretation that comes from IoT sensors, minimizing their false alarms and steadily moving toward pre-emptive insight through digital twins. It creates synthetic data to train those models in instances where real-world data is unavailable, so anomaly detection and maintenance forecasting can be improved. At the edge, Gen AI allows sensors to become adaptive and self-optimizing, and it increases privacy plus security even while allowing for personalization of experience in consumer IoT.

IMPACT OF RECIPROCAL TARRIFFS

Reciprocal tariffs increase the cost of raw materials, semiconductors, and components used in IoT sensors, raising overall production expenses. This can disrupt global supply chains, leading to delays and higher end-user prices. Market adoption in cost-sensitive sectors (such as consumer IoT and smart cities) may slow, while manufacturers may shift sourcing or production to tariff-free regions to remain competitive.

MARKET DYNAMICS

Market Drivers

Rising Demand for Real-time Data Monitoring for Predictive Analytics to Aid Market Growth

Industries around the world are utilizing big data to improve operational efficiency. Previously, isolated devices limited the ability to collect real time data, making it difficult to gain insights. Today, owing to IoT-enabled smart devices, operators can obtain real-time information from factories. Predictive analytics are essential for maintenance planning, enabling companies to foresee problems through data evaluation. The collection of real-time data allows vendors to evaluate the current state of plant equipment, forecast possible failures, and avoid unnecessary downtime.

Market Restraints

High Cost of Implementation to Hinder Market Expansion

High costs of implementing IoT solutions, especially sensor-related implementations-constitute another major challenge. For many SMEs, the upfront investments that an IoT system would require are quite substantial. These financial limitations can hinder the uptake of IoT technologies and limit the IoT sensors market growth.

Market Opportunities

Rising Application Usage of IoT in Automotive and Transportation Presents Lucrative Opportunities

The global automotive industry is steadily progressing toward an era of autonomy, driven by recent partnerships among cybersecurity companies, major automakers, semiconductor manufacturers, and systems integrators. IoT is transforming the automotive, transportation, and logistics sectors through preventive maintenance, connected mobility, and access to real-time data. Global investment in IoT within transportation and logistics has seen substantial growth. IoT facilitates effective route planning, optimizes fuel consumption, provides logistics track-and-trace functionality, and allows for real-time parking space monitoring.

• As reported by NASDAQ, self-driving vehicles are expected to dominate the market by 2030. Moreover, programs including DHL SmarTrucking plan to deploy a fleet of 10,000 trucks equipped with IoT technology by 2028, further supporting the widespread use of IoT sensors in the near future.

IoT Sensors Market Trends

Increased Connectivity and AI to Emerge as a Key Market Trend

A major trend in the IoT sensors market is the increasing integration of IoT sensors with AI technologies. AI supports advanced analytics, predictive maintenance, and automation to enhance the capability of IoT systems. The combination of IoT and AI drives innovation in different areas such as smart cities, industrial automation, healthcare, and agriculture. This trend will continue to shape the future landscape of the IoT sensors market while opening new prospects for growth and development.

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SEGMENTATION ANALYSIS

By Sensor Type

Rising Demand for Adaptable Temperature and Humidity Sensors in Smart Homes and Industrial Systems Boosted Segment’s Growth

Based on sensor type, the market is segmented into temperature and humidity sensors, touch sensors, pressure and flow sensors, biosensors, magnetometers, image sensors, accelerometers, motion sensors, and others.

By sensor type, the temperature and humidity sensors segment led the IoT sensors market share in 2024. The segment is expected to lead with a 20.5% share in 2025. It is used to control production, monitor environmental factors, and implement safety measures. There is a wide use of temperature sensors and humidity sensors in smart thermostats, from simple home systems to complex industrial installations that show great adaptability and high demand. These sensors are very important in smart home systems, particularly in HVAC solutions, hence results in energy efficiency as well as comfort.

The biosensors segment will achieve the highest compound annual growth rate (CAGR) of 29.91% during the forecast period.

By Connectivity Type

Increasing Adoption of 5G and LPWAN Fueled Expansion of Wireless

Based on connectivity type, the market is segmented into wired and wireless.

By share, the wireless segment led the market in 2024. The segment is expected to lead with a 60.5% share in 2025, driven by rising adoption of 5G and LPWAN. Furthermore, the growing need for wireless data from smartphones and smart grids drives this expansion.

The wired segment will achieve the highest compound annual growth rate (CAGR) of 29.10% during the forecast period.

By End-Use

Consumer Electronics Dominated Market Due to Rising Popularity of Smart Devices

Based on the end-use, the market is categorized into consumer electronics, automotive & transportation, retail, smart cities, healthcare, and others.

The consumer electronics segment was the major segment in 2024. In 2025, the segment is anticipated to dominate with a 28.2% share due to the rising popularity of smart devices such as smartphones, smartwatches, and fitness trackers that come with various sensors (such as motion, heart rate, and GPS). Additionally, the growing use of smart home gadgets, including smart thermostats, security systems, and connected appliances, depends on smart sensors for their operation. This heightened demand for smart home products is driving growth in the segment.

The smart cities sector is growing at a CAGR of 29.42% during the forecast period.

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IOT SENSORS MARKET REGIONAL OUTLOOK

By region, the market is divided into North America, Europe, South America, the Middle East & Africa, and Asia Pacific.

NORTH AMERICA

North America held the dominant share in 2023, valued at USD 5.04 billion, and also took the leading share in 2024 with USD 6.19 billion. The region benefits from a robust digital infrastructure characterized by high-speed internet access and a widespread implementation of IoT networks. In addition, the notable presence of numerous leading IoT sensor producers and technology firms focused on advancing innovative sensor technologies offers substantial growth prospects for the regional market. In 2025, the U.S. market is estimated to reach USD 5.75 billion.

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ASIA PACIFIC

During the forecast period, the Asia Pacific region is projected to record a growth rate of 27.08%, which is the highest among all the regions, and reach the valuation of USD 6.65 billion in 2025. The continuous growth of the manufacturing industry in nations such as China, India, and Japan generates a significant need for IoT sensors utilized in machine monitoring, industrial automation, and predictive maintenance. In addition, the swift increase in internet connectivity and mobile phone usage establishes a solid basis for IoT implementation, which is further improving the overall market prospects. Backed by these factors, countries including China are expected to record the valuation of USD 2.44 billion, and Japan to record USD 1.46 billion in 2025.

EUROPE

The market in Europe is estimated to reach USD 3.86 billion in 2025 and secure the position of the third-largest market share.

SOUTH AMERICA & MIDDLE EAST & AFRICA

Over the forecast period, South America and the Middle East & Africa regions would witness a moderate growth in this market. The South American market in 2025 is set to record USD 0.78 billion in its valuation, as a result of rising government initiatives and funding for smart city initiatives and an increasing consumer preference for smart building technologies. In the Middle East & Africa, GCC is set to attain the value of USD 0.63 billion in 2025.

COMPETITIVE LANDSCAPE

KEY INDUSTRY PLAYERS

Notable Players to Focus on Holding Contracts with Local Businesses to Expand Business Reach

Key players present in this market are offering IoT Sensors to provide users with enhanced safety and security, better operational efficiency, etc. They concentrate on holding contracts with small and local businesses to grow their business. Moreover, such mergers & acquisitions, partnerships, and investments will create a surge in demand for IoT sensors.

List of Key IoT Sensors Companies Studied (including but not limited to):

• Texas Instruments (U.S.)
• TE Connectivity (Switzerland) 
• Broadcom (U.S.) 
• NXP Semiconductors (Netherlands) 
• STMicroelectronics (Switzerland) 
• Infineon Technologies (Germany) 
• Bosch Sensortec (Germany) 
• Honeywell International (U.S.) 
• Analog Devices, Inc. (U.S.) 
• Sensirion (Switzerland) 
• Omron Corporation (Japan) 
• Murata Manufacturing (Japan) 
• Siemens AG (Germany) 
• General Electric (U.S.) 
• Qualcomm (U.S.) 
• Panasonic Corporation (Japan) 
• Robert Bosch GmbH (Germany) 
• AMS AG (Austria) 
• Microchip Technology (U.S.)
• Kita Sensor Tech. Co., Ltd. (Taiwan)

KEY INDUSTRY DEVELOPMENTS:

• June 2025: Infineon Technologies launched a new business unit called SURF (Sensor Units & Radio Frequency) to improve its sensor and RF capabilities, aiming to meet the increasing demand for smart sensors influenced by trends in green energy, mobility, and the IoT.
• May 2025: STMicroelectronics integrates activity monitoring and advanced sensing capabilities into a compact AI-enhanced sensor for personal devices and the Internet of Things (IoT).
• September 2025: Avery Dennison and Wiliot have enhanced their strategic collaboration to address the increasing global need for ambient IoT-driven supply chain insights. Avery Dennison will utilize its research and development and operational strengths, along with its scale, to create and produce advanced IoT Bluetooth-enabled sensors.
• April 2024: TE Connectivity unveiled the expansion of its IoT wireless pressure sensors lineup by introducing the 69xxN wireless pressure sensor and the 65xxN wireless pressure sensor.
• January 2024: Nozomi Networks launched its IoT security device, Guardian Air, in Australia in partnership with CyberCX and The Missing Link.

INVESTMENT ANALYSIS AND OPPORTUNITIES

The IoT sensors market provides great investment opportunities in the smart cities’ maturity, healthcare wearables, industrial automation, and connected vehicles. Further opportunities include edge AI integration as well as low-power designs and digital twins. However, supply chain dependencies, intense competition, and cybersecurity risks remain challenges. Overall, the market shows a robust long-term outlook with double-digit growth prospects.

REPORT COVERAGE

The report provides a detailed analysis of the market and focuses on key aspects, such as leading companies, types, and the leading end-use of the product. Besides, it offers insights into the IoT sensors market trends and highlights key industry developments. In addition to the factors mentioned above, the report encompasses several factors that have contributed to the market's growth in recent years.

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Report Scope & Segmentation