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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,
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,
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.
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,
Thus, blockchain could help improve connected technology's scalability and security concerns.
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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,
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.
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,
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.
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,
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The market has been analyzed across five major regions: North America, Asia Pacific, Europe, the Middle East & Africa, and South America.
North America Internet of Things (IoT) Market Size, 2023 (USD Billion)
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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.
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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.
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,
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.
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.
An Infographic Representation of Internet of Things (IoT) Market
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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.
ATTRIBUTE | DETAILS |
Study Period | 2019-2032 |
Base Year | 2023 |
Estimated Year | 2024 |
Forecast Period | 2024-2032 |
Historical Period | 2019-2022 |
Growth Rate | CAGR of 24.3% from 2024 to 2032 |
Unit | Value (USD Billion) |
Segmentation | By Component
By End-use Industry
By Region
|
According to Fortune Business Insights, the global market size is expected to reach USD 4,062.34 billion by 2032.
In 2023, the market value stood at USD 595.73 billion.
The market is projected to grow at a CAGR of 24.3% during the forecast period.
The solution and services segment is expected to dominate the market.
The growing adoption of smart cities is expected to drive market growth.
North America held the highest market share.
Asia Pacific is expected to grow at the highest CAGR.
By end-use industry, agriculture is expected to grow with a leading CAGR during the studied period.
Below is the list of companies that are studied in order to estimate the market size and/or understanding the market ecosystem
This list does not necessarily mean that all the below companies are profiled in the report. The report includes profiles of only the top 10 players based on revenue/market share.
Internet of Things (IoT) Market: