Internet of Things (IoT) Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Platform (Network Management, Application Management, and Device Management), By Component (Hardware (Device & Gateways), Software (Real Time Streaming Analytics, Security, Data Management, Remote Monitoring, and Network Bandwidth Management) and Services (Professional Services & Managed Services)) By Application (Consumer Electronics, Smart Mobility & Transportation, Building & Home Automation, Connected Logistics, Smart Retail, and Others), By Region, Competition 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 1083.04 Billion
CAGR (2026-2031)	25.34%
Fastest Growing Segment	Hardware
Largest Market	North America
Market Size (2031)	USD 4199.36 Billion

Market Overview

The Global Internet of Things (IoT) Market will grow from USD 1083.04 Billion in 2025 to USD 4199.36 Billion by 2031 at a 25.34% CAGR. The Internet of Things comprises a network of physical objects embedded with sensors and software that facilitate data exchange with other systems over the internet. The primary drivers supporting market growth include the extensive rollout of high-speed 5G networks and the increasing necessity for industrial automation to optimize operational workflows. According to 5G Americas, in 2024, global IoT subscriptions reached 3.4 billion, illustrating the rapid integration of these technologies into the global infrastructure.

However, the market encounters a substantial challenge in the form of cybersecurity risks. As the number of connected endpoints multiplies, the susceptibility to data breaches and unauthorized access intensifies, creating significant privacy concerns for enterprises and consumers alike. This security deficit poses a critical obstacle that could hinder broader adoption and impede the overall expansion of the IoT landscape if not effectively mitigated.

Key Market Drivers

Accelerated Adoption of Industry 4.0 and Smart Manufacturing is a primary force propelling the market, as industrial entities increasingly digitize production lines to enhance efficiency and reduce downtime. The convergence of operational technology with digital systems allows for advanced applications such as predictive maintenance and digital twins, which rely heavily on interconnected sensors and real-time analytics to optimize resource allocation. This transition from legacy infrastructure to intelligent, data-driven environments significantly increases the density of connected endpoints within factory settings. According to Rockwell Automation, April 2024, in the '9th Annual State of Smart Manufacturing Report', 95% of surveyed manufacturers are now using or evaluating smart manufacturing technology, marking a significant increase that underscores the industrial sector's aggressive shift toward connected operations.

Simultaneously, the Expansion of High-Speed 5G Network Infrastructure is foundational to the market's trajectory, providing the necessary bandwidth and low latency for mission-critical applications. This robust connectivity layer supports massive machine-type communications, enabling dense networks of devices to function seamlessly in smart cities and autonomous logistics where nearly instantaneous data transmission is required. According to Ericsson, June 2024, in the 'Ericsson Mobility Report', approximately 160 million 5G subscriptions were added in the first quarter of 2024 alone, demonstrating the rapid establishment of the high-performance networks essential for next-generation IoT scalability. Reflecting the broader economic impact of this connectivity ecosystem, according to GSMA, in 2024, mobile technologies and services generated $5.7 trillion of economic value added globally during the previous year.

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Key Market Challenges

The rapid proliferation of connected endpoints creates a substantial attack surface, making cybersecurity risks a primary impediment to the Global Internet of Things (IoT) Market. As organizations integrate more devices into their operational frameworks, the complexity of securing these networks increases exponentially, leaving critical infrastructure and sensitive corporate data vulnerable to malicious exploitation. This heightened threat environment forces enterprises to divert significant capital from innovation toward defensive measures, creating a reluctance to deploy IoT solutions in sectors where data integrity and operational continuity are paramount. Consequently, the fear of reputational damage and financial liability resulting from data breaches is actively decelerating the adoption rate of connected technologies across enterprise environments.

The impact of these vulnerabilities is underscored by significant deficiencies in device lifecycle management. According to the IoT Security Foundation, in 2024, unpatched firmware and outdated software were responsible for 60% of all reported IoT security breaches. This statistic highlights a systemic failure to maintain the security posture of deployed hardware, which often lacks the processing power to support robust, modern encryption standards. When businesses cannot guarantee the long-term security of their automated systems, the perceived risk outweighs the operational benefits, directly hampering the market’s ability to sustain its projected growth trajectory.

Key Market Trends

The Convergence of Artificial Intelligence and IoT (AIoT) is fundamentally reshaping the market by transitioning devices from passive data collectors to autonomous decision-makers. Unlike traditional architectures that rely on centralized cloud processing, this trend embeds intelligence directly into endpoints, enabling immediate responses to complex environmental stimuli without latency. This evolution is critical for applications requiring high-level cognitive processing, such as autonomous robotics and advanced situational awareness, where mere connectivity is insufficient to drive value. According to Viasat, November 2024, in the 'State of Industrial IoT in 2024' report, 93% of surveyed organizations identified improved decision-making as the primary benefit of their deployments, confirming the industry's decisive pivot toward intelligent, outcome-oriented systems.

The Adoption of Satellite and Non-Terrestrial Network (NTN) Solutions is emerging as a vital trend to address the persistent coverage deficits of terrestrial cellular infrastructure. While terrestrial 5G focuses on maximizing bandwidth in high-density urban areas, NTN integrates satellite connectivity directly with standard IoT devices to ensure ubiquitous continuity in remote, maritime, and agricultural sectors. This hybridization guarantees that mission-critical assets remain visible and operational regardless of geographic isolation, effectively closing the digital divide for global supply chains. According to GSMA Intelligence, December 2024, in the 'Satellite and NTN tracker, Q4 2024' report, the number of telecom operators that have signed partnerships with satellite vendors reached 91, highlighting the massive strategic push to normalize hybrid connectivity services.

Segmental Insights

The Hardware segment is projected to emerge as the fastest-growing category within the Global Internet of Things (IoT) Market, driven by the intensifying global demand for connected devices and endpoints. Industry analysis indicates that this surge is primarily attributed to the proliferation of cost-effective sensors and processors, which are essential for enabling automation across manufacturing, healthcare, and consumer sectors. Additionally, the widespread rollout of 5G infrastructure is accelerating the need for compatible physical modules and gateways to manage high-speed data transmission. This fundamental requirement to establish a robust device layer prior to software implementation sustains the rapid expansion of the hardware sector.

Regional Insights

North America maintains the primary position in the Global Internet of Things (IoT) Market, driven by the early and widespread adoption of connected technologies across industrial and consumer sectors. This dominance relies on well-established digital infrastructure, including extensive 5G network coverage that facilitates reliable device connectivity. Furthermore, the region houses headquarters for key technology providers such as Microsoft and Cisco, fostering a competitive environment for software and hardware development. Favorable government initiatives focused on smart cities and strict cybersecurity standards also encourage enterprise investment, solidifying the region’s market leadership.

Recent Developments

• In November 2024, Microsoft reinforced its infrastructure for the Global Internet of Things (IoT) Market by releasing "Azure IoT Operations," a unified data plane for the industrial edge. This new offering, powered by Azure Ark, provides a suite of modular and scalable services designed to capture, process, and manage data from various assets and sensors on the shop floor. By enabling organizations to normalize and contextualize data locally before transmitting it to the cloud, the solution addresses critical challenges in IT and OT convergence. The launch empowers industrial customers to build interoperable and secure IoT ecosystems, facilitating real-time decision-making and seamless integration into the Microsoft Fabric for advanced analytics.
• In August 2024, Sateliot, a satellite telecommunications operator, successfully launched four new satellites aboard a SpaceX Transporter mission, marking the commencement of its commercial phase in the Global Internet of Things (IoT) Market. This launch expanded the company's low-Earth orbit constellation, which is distinctively designed to function as an extension of terrestrial cellular networks using the 5G NB-IoT standard. The new satellites enable unmodified commercial IoT devices to connect seamlessly from space, eliminating coverage dead zones for applications in agriculture, logistics, and critical infrastructure. This development represents a significant breakthrough in standardizing non-terrestrial network connectivity, allowing for 100% global coverage for cellular IoT devices without requiring proprietary hardware.
• In April 2024, Qualcomm Technologies expanded its presence in the Global Internet of Things (IoT) Market by launching the "Qualcomm RB3 Gen 2" platform and the "Qualcomm QCC730" Wi-Fi solution at the Embedded World exhibition. The RB3 Gen 2 platform is designed for embedded applications, offering advanced on-device artificial intelligence capabilities to support robots, drones, and industrial cameras. Simultaneously, the QCC730 system-on-chip was introduced as a micro-power Wi-Fi solution intended to significantly reduce power consumption for battery-operated industrial and consumer IoT devices. These innovations are engineered to deliver high-performance computing and connectivity, addressing the growing demand for intelligent, energy-efficient solutions in the broader IoT ecosystem.
• In January 2024, Siemens and Sony Corporation announced a strategic partnership to develop a new solution for the industrial metaverse, directly impacting the Global Internet of Things (IoT) Market. This collaboration integrates the "Siemens Xcelerator" portfolio of industry software with Sony’s new spatial content creation system, which features an XR head-mounted display equipped with high-quality 4K OLED microdisplays. The joint initiative aims to enable designers and engineers to create and explore product concepts in a borderless immersive workspace. By combining the real and digital worlds, this partnership enhances the capabilities of digital twins and industrial IoT applications, allowing for more efficient product engineering and content creation within the immersive industrial landscape.

Key Market Players

• International Business Machines Corporation
• Cisco Systems, Inc.
• Microsoft Corporation
• Amazon Web Services
• Intel Corporation
• Huawei Technologies Co., Ltd.
• SAP SE
• Alphabet Inc.
• Oracle Corporation
• Hewlett Packard Enterprise Development LP

By Platform	By Component	By Application	By Region
Network Management Application Management Device Management	Hardware (Device & Gateways) Software (Real Time Streaming Analytics, Security, Data Management, Remote Monitoring, and Network Bandwidth Management) and Services (Professional Services & Managed Services)	Consumer Electronics Smart Mobility & Transportation Building & Home Automation Connected Logistics Smart Retail Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• Internet of Things (IoT) Market, By Platform:

• Network Management
• Application Management
• Device Management

• Internet of Things (IoT) Market, By Component:

• Hardware (Device & Gateways)
• Software (Real Time Streaming Analytics, Security, Data Management, Remote Monitoring, and Network Bandwidth Management) and Services (Professional Services & Managed Services)

• Internet of Things (IoT) Market, By Application:

• Consumer Electronics
• Smart Mobility & Transportation
• Building & Home Automation
• Connected Logistics
• Smart Retail
• Others

• 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