Industrial Internet Of Things (IoT) Market Size 2025-2029
The industrial internet of things (IoT) market size is valued to increase USD 195.8 billion, at a CAGR of 14.8% from 2024 to 2029. Growth in industrial automation will drive the Industrial Internet of Things (IoT) market.
Major Market Trends & Insights
- APAC dominated the market and accounted for a 43% growth during the forecast period.
- By End-user - Manufacturing segment was valued at USD 28.50 billion in 2023
- By Component - Hardware segment accounted for the largest market revenue share in 2023
Market Size & Forecast
- Market Opportunities: USD 262.15 billion
- Market Future Opportunities: USD 195.80 billion
- CAGR : 14.8%
- APAC: Largest market in 2023
Market Summary
- The market encompasses a dynamic and continuously evolving landscape, driven by the integration of core technologies such as artificial intelligence, machine learning, and advanced sensors into industrial processes. IoT applications span various sectors, including manufacturing, transportation, energy, and healthcare, with a growing emphasis on improving operational efficiency and productivity. According to recent studies, the industrial automation segment is expected to dominate the market, accounting for over 40% of the total IoT spending. The evolving global device manager market is another significant factor, with an increasing number of organizations recognizing the need for efficient management of their IoT initiatives and investments.
- However, the market faces challenges, such as the lack of awareness and understanding of IoT technologies among businesses and the need for robust security measures to protect against cyber threats. Despite these challenges, opportunities abound, including the potential for predictive maintenance, real-time data analysis, and enhanced supply chain visibility. With the increasing adoption of IoT technologies, the market is poised for significant growth, offering numerous benefits to businesses across industries.
What will be the Size of the Industrial Internet Of Things (IoT) Market during the forecast period?
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How is the Industrial Internet Of Things (IoT) Market Segmented and what are the key trends of market segmentation?
The industrial internet of things (IoT) industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.
- End-user
- Manufacturing
- Automotive and transportation
- Energy and utilities
- Healthcare
- Others
- Component
- Hardware
- Software
- Services
- Platforms
- Connectivity
- Wired
- Wireless
- Deployment
- On-cloud
- On-premises
- Organization Size
- Large Enterprises
- Small and Medium Enterprises (SMEs)
- Geography
- North America
- US
- Canada
- Europe
- France
- Germany
- UK
- APAC
- Australia
- China
- India
- Japan
- South Korea
- South America
- Brazil
- Rest of World (ROW)
- North America
By End-user Insights
The manufacturing segment is estimated to witness significant growth during the forecast period.
In the dynamic and evolving market, data visualization dashboards play a pivotal role in making informed business decisions. IoT sensors are integrated into various industries, including machinery, food and beverage, chemicals and materials, and electrical and electronics, to monitor equipment performance and optimize processes. High-performance computing and distributed ledger technology facilitate real-time data processing and secure transactions. Operational efficiency improvements are achieved through the implementation of manufacturing execution systems, software-defined networking, and data acquisition systems. Time series databases and edge computing devices enable sensor data fusion, while cloud computing platforms offer scalability and flexibility. Anomaly detection methods and network security protocols ensure data security and privacy.
Remote monitoring systems and digital twin technology provide insights into industrial processes, enabling predictive maintenance models and process optimization techniques. Industrial control systems and energy management systems are enhanced through IoT integration, leading to significant energy savings. Low-power wide-area networks facilitate seamless connectivity, while machine learning algorithms and real-time data processing optimize performance and reduce downtime. Despite the numerous benefits, cybersecurity threats pose a challenge to IoT adoption. Data stream mining and big data analytics help businesses gain valuable insights from the vast amounts of data generated by IoT devices. System integration services ensure seamless implementation of IoT solutions, while smart factory implementation and industrial automation protocols streamline manufacturing processes.
The Manufacturing segment was valued at USD 28.50 billion in 2019 and showed a gradual increase during the forecast period.
Wireless communication networks enable seamless connectivity between devices and systems. The IoT market is expected to grow significantly, with manufacturing industries projected to account for a substantial share of this growth. Additionally, the market is witnessing increasing investments in research and development, as well as collaborations between organizations, to address the challenges of security, standardization, and interoperability.
Regional Analysis
APAC is estimated to contribute 43% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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In North America, the market is experiencing significant momentum, fueled by the expanding industrial, automotive, and healthcare sectors. The US federal government's legislation, including the Affordable Care Act and HITECH Act, encourages the adoption of advanced technologies like telehealth, mHealth, and nanomedicine to enhance patient care. The market's growth is further propelled by the expansion of mobile network infrastructure and the increasing use of cloud computing.
Institutional IoT investments, consolidations, and partnerships are on the rise as organizations seek competitive advantages. This dynamic market is poised to bring about transformative changes in industries, improving operational efficiency and driving innovation.
Market Dynamics
Our researchers analyzed the data with 2024 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The Industrial Internet of Things (IIoT) market is witnessing significant growth as businesses increasingly adopt advanced technologies to enhance operational efficiency and productivity. IIoT enables predictive maintenance using machine learning algorithms, enabling businesses to identify potential equipment failures before they occur, reducing downtime and maintenance costs. Real-time data analytics for process optimization is another key application, allowing businesses to make data-driven decisions and improve overall performance. Security is a critical concern in IIoT deployments, with secure data transmission essential to prevent unauthorized access and data breaches. IIoT sensor integration with existing systems is also crucial, requiring seamless system integration to ensure smooth operations.
Cloud-based data storage and edge computing provide scalable solutions for managing and processing vast amounts of data in real-time. Anomaly detection in industrial control systems is another significant application, enabling businesses to identify and address issues before they escalate. IIoT data visualization offers better decision-making capabilities, while high-performance computing and cybersecurity solutions ensure the reliability and security of industrial networks. Digital twin development for industrial assets is gaining traction, allowing businesses to monitor and optimize asset performance in real-time. Wireless communication protocols enable seamless connectivity between devices, while data stream processing provides real-time insights for proactive decision-making. Time series forecasting for equipment failures and supply chain visibility through IIoT sensors offer significant opportunities for energy efficiency improvements and optimizing operations.
Compared to traditional manufacturing methods, IIoT-enabled smart factories offer substantial improvements in operational efficiency and productivity. For instance, more than 70% of new product developments in the manufacturing sector focus on integrating IIoT technologies, underscoring its growing importance. By leveraging these advanced technologies, businesses can gain a competitive edge, improve their bottom line, and enhance overall customer satisfaction.
What are the key market drivers leading to the rise in the adoption of Industrial Internet Of Things (IoT) Industry?
- Industrial automation's growth is the primary factor driving market expansion.
- The industrial landscape is undergoing transformative changes as automation becomes increasingly prevalent. The fusion of physical and digital systems enhances the human-machine interface (HMI) and facilitates machine-to-machine (M2M) communication. Industry 4.0 signifies the entire product lifecycle, with intelligent machines executing manufacturing processes autonomously, humans collaborating with robots in product assembly, and self-driving transport vehicles managing logistics tasks. Cyber systems' integration within manufacturing industries boosts productivity, safety, predictive machine maintenance, and enhanced profitability.
- Consequently, industries worldwide are embracing Industry 4.0 to optimize material flow and identify product errors early in their lifecycle.
What are the market trends shaping the Industrial Internet Of Things (IoT) Industry?
- The evolution of global device management is an emerging market trend. This trend signifies significant advancements in managing and maintaining various devices on a global scale.
- In the dynamic and expanding market, companies are focusing on implementing global device managers to simplify interoperability complexities within their IoT platforms. These device managers empower Original Equipment Manufacturers (OEMs) and system integrators to effectively manage their remotely installed device bases and promptly resolve issues. Integrating global device managers with industrial IoT systems offers several advantages to end-users: OEMs and system integrators can efficiently manage their diverse device installations without the necessity of learning additional programming languages or dealing with interoperability hurdles.
- Furthermore, these managers feature a customizable multi-dimensional design, enabling OEMs and system integrators to create tailored portals to suit their unique requirements.
What challenges does the Industrial Internet Of Things (IoT) Industry face during its growth?
- The absence of adequate understanding and effective management of Internet of Things (IoT) initiatives and investments is a significant challenge impeding industry growth.
- The market is witnessing significant growth as more enterprises integrate connected devices into their operations. Industrial facilities are increasingly adopting IoT to optimize processes and enhance productivity. However, managing and securing these investments poses a challenge. Training employees to work on IoT platforms is a crucial step to fully leverage the technology's potential. The workforce's lack of expertise in handling IoT systems is a common hurdle for industries. Without proper education, the benefits of IoT can only be partially realized.
- This continuous learning process is essential to keep up with the evolving nature of the IoT market and its applications across various sectors. The importance of IoT training is underscored by the increasing complexity of these systems and the need for a skilled workforce to maintain and maximize their value.
Exclusive Technavio Analysis on Customer Landscape
The industrial Internet of Things (IoT) market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the industrial Internet of Things (IoT) market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape of Industrial Internet Of Things (IoT) Industry
Competitive Landscape
Companies are implementing various strategies, such as strategic alliances, industrial internet of things (IoT) market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry.
ABB Ltd. - The company specializes in Industrial Internet of Things (IIoT) innovations, featuring ABB's integrated platform and cloud infrastructure for enhanced industrial connectivity and data analysis.
The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
- ABB Ltd.
- Advantech Co. Ltd.
- Arm Ltd.
- Cisco Systems Inc.
- Dassault Systemes SE
- General Electric Co.
- Honeywell International Inc.
- Huawei Technologies Co. Ltd.
- Intel Corp.
- International Business Machines Corp.
- KUKA AG
- Microsoft Corp.
- NEC Corp.
- Qualcomm Inc.
- Robert Bosch GmbH
- Rockwell Automation Inc.
- Siemens AG
- Telefonaktiebolaget LM Ericsson
- Texas Instruments Inc.
- Yokogawa Electric Corp.
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key industry players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
Recent Development and News in Industrial Internet Of Things (IoT) Market
- In January 2024, Siemens and Microsoft announced a strategic partnership to integrate Microsoft's Azure IoT Suite with Siemens' MindSphere, aiming to offer industrial IoT solutions to customers (Microsoft Press Release).
- In March 2024, IBM secured a USD 2 billion contract from the U.S. Department of Defense to deploy IoT sensors and analytics across military bases (Reuters).
- In April 2024, Bosch and Amazon Web Services (AWS) announced a collaboration to offer Bosch IoT Suite on AWS, enabling customers to manage and process IoT data in the cloud (Bosch Press Release).
- In May 2025, Cisco Systems reportedly raised USD 2.5 billion in a funding round to expand its IoT product portfolio and accelerate research and development (Bloomberg). These developments underscore the growing importance of strategic partnerships, significant investments, and collaboration between technology giants and governments in driving the growth and innovation of the IoT market.
Dive into Technavio's robust research methodology, blending expert interviews, extensive data synthesis, and validated models for unparalleled Industrial Internet Of Things (IoT) Market insights. See full methodology.
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Market Scope |
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Report Coverage |
Details |
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Page number |
251 |
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Base year |
2024 |
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Historic period |
2019-2023 |
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Forecast period |
2025-2029 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 14.8% |
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Market growth 2025-2029 |
USD 195.8 billion |
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Market structure |
Fragmented |
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YoY growth 2024-2025(%) |
12.6 |
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Key countries |
US, China, Canada, India, Japan, UK, Germany, South Korea, France, Australia, and Brazil |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Research Analyst Overview
- The Industrial Internet of Things (IIoT) market is a dynamic and evolving landscape, characterized by the integration of data visualization dashboards, IoT sensors, and advanced technologies like distributed ledger technology and high-performance computing. This fusion of technologies is driving operational efficiency improvements across various industries, from manufacturing execution systems to equipment performance monitoring. Data acquisition systems, time series databases, and edge computing devices are key components of IIoT infrastructure, enabling real-time data processing and analysis. Software-defined networking and sensor data fusion further enhance the capabilities of these systems, allowing for more accurate and comprehensive insights.
- Cloud computing platforms provide the necessary infrastructure for storing and analyzing the vast amounts of data generated by IIoT devices. Anomaly detection methods and network security protocols ensure data security and integrity, while remote monitoring systems and digital twin technology facilitate predictive maintenance models and process optimization techniques. Industrial control systems and energy management systems are major beneficiaries of IIoT technology, with low-power wide-area networks enabling seamless communication between devices and systems. IIoT also brings cybersecurity threats, necessitating the development and implementation of advanced machine learning algorithms and real-time data processing capabilities. The integration of IIoT technologies is transforming industries, from manufacturing to energy and beyond.
- IIoT adoption is on the rise, with an increasing number of companies implementing smart factory solutions and integrating industrial automation protocols and wireless communication networks into their operations. The IIoT market is a complex and diverse ecosystem, with ongoing research and development driving continuous innovation and growth. From data stream mining and big data analytics to system integration services and smart factory implementation, the potential applications and benefits of IIoT are vast and far-reaching.
What are the Key Data Covered in this Industrial Internet Of Things (IoT) Market Research and Growth Report?
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What is the expected growth of the Industrial Internet Of Things (IoT) Market between 2025 and 2029?
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USD 195.8 billion, at a CAGR of 14.8%
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What segmentation does the market report cover?
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The report segmented by End-user (Manufacturing, Automotive and transportation, Energy and utilities, Healthcare, and Others), Component (Hardware, Software, Services, and Platforms), Connectivity (Wired and Wireless), Deployment (On-cloud and On-premises), Geography (APAC, North America, Europe, South America, and Middle East and Africa), and Organization Size (Large Enterprises and Small and Medium Enterprises (SMEs))
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Which regions are analyzed in the report?
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APAC, North America, Europe, South America, and Middle East and Africa
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What are the key growth drivers and market challenges?
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Growth in industrial automation, Lack of awareness of efficient management of IoT initiatives and investments
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Who are the major players in the Industrial Internet Of Things (IoT) Market?
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Key Companies ABB Ltd., Advantech Co. Ltd., Arm Ltd., Cisco Systems Inc., Dassault Systemes SE, General Electric Co., Honeywell International Inc., Huawei Technologies Co. Ltd., Intel Corp., International Business Machines Corp., KUKA AG, Microsoft Corp., NEC Corp., Qualcomm Inc., Robert Bosch GmbH, Rockwell Automation Inc., Siemens AG, Telefonaktiebolaget LM Ericsson, Texas Instruments Inc., and Yokogawa Electric Corp.
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Market Research Insights
- The market is a dynamic and complex ecosystem, characterized by the interconnection of various devices and systems to optimize industrial operations. With an estimated 27 billion IoT devices in use by 2025, this market continues to expand at a significant pace. IoT gateways serve as crucial intermediaries, enabling communication between edge devices and the cloud, while resource allocation and data integrity are paramount for ensuring optimal performance. Data silos and interoperability issues pose challenges, necessitating API integrations and model deployment for seamless data exchange. Security concerns, including data encryption, intrusion detection, and access control, are essential components of IoT infrastructure.
- Model retraining and performance evaluation are ongoing processes to maintain model accuracy and mitigate risks. Network latency and bandwidth utilization are critical factors influencing cost optimization and scalability. Threat intelligence and authentication mechanisms are essential for risk mitigation, while m2m communication and incident response are integral to maintaining system functionality. Vulnerability assessments and algorithm training are ongoing efforts to address security vulnerabilities and improve overall system efficiency.
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