Industrial Internet of Things (IoT) Market – Global Industry Size, Share, Trends, Opportunity, and Forecast Segmented by Type (Hardware, Solutions, Services), Application (Manufacturing, Transportation, Oil, and Gas), By Region, By Competition 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 202.87 Billion
CAGR (2026-2031)	7.02%
Fastest Growing Segment	Manufacturing
Largest Market	North America
Market Size (2031)	USD 304.79 Billion

Market Overview

The Global Industrial Internet of Things (IoT) Market will grow from USD 202.87 Billion in 2025 to USD 304.79 Billion by 2031 at a 7.02% CAGR. The Industrial Internet of Things refers to the integration of interconnected sensors, instruments, and devices with industrial computer applications to enhance manufacturing and energy management. Key drivers propelling this market include the critical need for predictive maintenance to minimize equipment downtime and the demand for operational efficiency through real time data analytics. These factors encourage industries to adopt connected technologies to streamline supply chains and reduce operational costs. According to the National Association of Manufacturers, in 2024, 50 percent of manufacturing leaders planned to integrate Industrial Internet of Things sensor networks into their production facilities by 2026. This statistic highlights the aggressive adoption strategies currently being formulated by industrial decision makers to leverage digital transformation.

Despite the strong growth trajectory, the market faces a significant hurdle regarding cybersecurity and data privacy. The convergence of operational technology with information systems exposes critical industrial infrastructure to potential cyberattacks and data breaches. This security vulnerability necessitates rigorous protection protocols and remains a primary challenge that could impede the widespread implementation of interconnected industrial systems across sensitive sectors.

Key Market Drivers

The integration of Artificial Intelligence (AI) and Machine Learning (ML) serves as a primary catalyst for the Global Industrial Internet of Things (IoT) Market, fundamentally reshaping how industrial assets utilize data. These advanced technologies enable manufacturers to move beyond simple monitoring to predictive capabilities, where algorithms analyze vast datasets to foresee equipment failures and optimize production schedules autonomously. Generative AI is also rapidly gaining traction for its ability to simulate scenarios and generate code for automation systems, reducing engineering time. According to Rockwell Automation, April 2024, in the 'State of Smart Manufacturing Report', 83% of manufacturers expect to use generative AI (GenAI) in their operations in 2024. This surge in intelligent computing allows facilities to maximize asset performance and minimize unplanned downtime, driving substantial value across the industrial sector.

Simultaneously, the rapid adoption of Industry 4.0 and smart factory principles is accelerating the deployment of interconnected systems and digital infrastructure. Industrial decision-makers are increasingly prioritizing digital transformation to enhance real-time visibility and streamline supply chain operations through unified data environments. This shift requires robust connectivity to ensure seamless information flow between operational and information technologies. According to Zebra Technologies, June 2024, in the '2024 Manufacturing Vision Study', 92% of manufacturing leaders prioritize digital transformation to improve data management and visibility. This strategic focus is underpinned by a need for flexible infrastructure; according to Microsoft, June 2024, in the 'IoT Signals report', 72% of manufacturers highlighted scalability as the most crucial paradigm for their factory's future, reinforcing the market-wide push for scalable IoT solutions.

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Key Market Challenges

The most significant challenge hindering the growth of the Global Industrial Internet of Things (IoT) Market is the escalating threat regarding cybersecurity and data privacy. As industrial organizations merge operational technology with information systems to enable connectivity, they inadvertently expand the attack surface for malicious actors. This convergence creates critical vulnerabilities where a single breach can lead to severe physical disruptions, safety hazards, and the theft of proprietary intellectual property. Consequently, potential adopters often hesitate to fully implement interconnected systems, fearing that the risks of downtime and data loss outweigh the operational benefits.

This apprehension is well-founded and directly impedes market expansion by forcing companies to divert capital from innovation to defense. The prevalence of these threats has reached alarming levels, making the sector a primary target for criminals. According to the World Economic Forum, in 2024, the manufacturing sector was the most targeted industry globally, accounting for 25.7 percent of all recorded cyberattacks. Such high incident rates create a cautious investment environment where decision-makers delay IoT integration until they can guarantee robust infrastructure protection, thereby slowing the overall growth trajectory of the market.

Key Market Trends

The deployment of Private 5G Networks for Ultra-Low Latency is emerging as a significant trend in modern industrial environments, distinct from general connectivity upgrades. These private cellular networks enable manufacturers to bypass the congestion and security risks of public infrastructure, providing the deterministic connectivity essential for autonomous mobile robots and remote control applications. By keeping data processing on-premises, organizations ensure data sovereignty while achieving the transmission speeds required for real-time operational feedback loops. The financial viability of this infrastructure is accelerating its expansion across the sector; according to Nokia, June 2024, in the '2024 Industrial Digitalization Report', 79% of companies experienced a return on their investment in less than six months, highlighting the immediate efficiency gains realized through private wireless deployments.

The Widespread Adoption of Digital Twin Technology is also influencing product development strategies by moving beyond static models to dynamic simulations. This trend empowers engineering teams to create comprehensive virtual replicas of physical assets, allowing for rigorous testing of design concepts and production scenarios before physical implementation. Consequently, manufacturers can significantly reduce prototyping costs and accelerate time-to-market by identifying potential issues in a virtual environment without disrupting active operations. This strategic value is evidenced by high industry engagement; according to Altair, March 2024, in the 'Digital Twin Global Survey Report', 94% of participants in manufacturing organizations noted that digital twins have enhanced their decision-making in the development of new products.

Segmental Insights

The Manufacturing segment is recognized as the fastest-growing category within the Global Industrial Internet of Things market, primarily driven by the accelerating adoption of Industry 4.0 practices. Industrial facilities are increasingly utilizing connected sensors and automated systems to implement predictive maintenance and real-time asset monitoring. This strategic integration significantly reduces unplanned operational downtime and enhances overall production efficiency. Furthermore, the rising demand for supply chain transparency and automated quality control measures compels manufacturers to invest heavily in connectivity solutions, thereby securing the segment's rapid expansion.

Regional Insights

North America maintains a dominant position in the Global Industrial Internet of Things market due to the extensive presence of major technology providers and the early adoption of smart manufacturing practices. The region benefits from established infrastructure that supports heavy investment in automation and cloud computing solutions. Additionally, initiatives led by the National Institute of Standards and Technology promote the creation of secure and interoperable frameworks, encouraging industrial facilities to integrate connected devices. This favorable ecosystem allows enterprises to enhance operational efficiency, thereby securing the region’s leadership status.

Recent Developments

• In May 2025, ABB and Red Hat announced an extended collaboration to advance industrial automation systems using enterprise open-source technologies. This partnership focused on enabling the secure and modular deployment of control applications across process industries by leveraging platforms such as Red Hat Device Edge and Red Hat OpenShift. The initiative aimed to provide a consistent foundation for industrial controls that met strict uptime and security requirements while allowing for the scalable introduction of data analytics and artificial intelligence. This development was designed to bridge the gap between operational and information technology without disrupting core control environments.
• In November 2024, Rockwell Automation and Microsoft revealed an expanded strategic alliance designed to accelerate industrial transformation through advanced cloud and artificial intelligence solutions. The collaboration featured the integration of Microsoft’s Azure IoT Operations with Rockwell’s digital capabilities, specifically the FactoryTalk Optix portfolio. This combination enabled manufacturers to capture and analyze critical data from existing sites without the need for extensive retrofitting. The joint offering focused on simplifying the connection of shop-floor data to cloud-based applications, which facilitated enhanced scalability and provided actionable insights to optimize production efficiency in complex, multi-site environments.
• In October 2024, Honeywell launched a new generation of artificial intelligence-enabled handheld computers, including the CT37, CK67, and CK62 models, tailored for demanding industrial environments such as warehouses. These devices were designed to run advanced AI applications that streamlined workflows and improved workforce productivity by enabling faster access to on-the-job knowledge. The product launch supported the company's strategic focus on automation and coincided with the development of a multi-modal intelligent agent. This technology allowed workers to interact naturally with devices via voice, images, or barcodes, significantly enhancing operational accuracy and efficiency in supply chain settings.
• In April 2024, Qualcomm Technologies introduced the RB3 Gen 2 Platform and the QCC730 Wi-Fi solution to drive innovation in the embedded and industrial IoT sectors. The QCC730 system was engineered as a micro-power connectivity solution that reduced power consumption by up to 88 percent compared to previous generations, making it highly suitable for battery-operated industrial applications. Simultaneously, the RB3 Gen 2 Platform provided a comprehensive hardware and software foundation for robotics and embedded systems, featuring a significant increase in on-device artificial intelligence processing. These products were released to support the digital transformation of industries by enabling high-performance computing at the network edge.

Key Market Players

• AT&T Inc.
• Microsoft Corporation
• Sony Corporation
• Apple Inc.
• LG Electronics
• Alphabet Inc.
• Hewlett Packard Enterprise
• Honeywell International Inc.
• Cisco Systems Inc.
• Intel Corporation

By Region

North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Industrial Internet of Things (IoT) Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Industrial Internet of Things (IoT) Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE