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The Internet of Things market size is forecast to increase by USD 1,036.83 billion between 2022 and 2027, accelerating at a CAGR of 15.12%.
In 2017, the US held the largest market share, projecting an annual revenue of USD 161.06 billion. The rise of industrial automation is a major driving force behind the significant growth in the market. In 2017, the industrial sector was valued at USD 168.54 billion and has continued to expand through 2021. This market forecast and report includes Market size, historical data (2017-2021), and future projections in terms of value (in USD billion) for all the mentioned segments.
Study Period | 2023-2027 |
Base Year For Estimation |
2022 |
CAGR | 15.12% |
Historic period |
2017 - 2021 |
Fastest Growing Region |
APAC at 38% |
Largest Segment |
Application |
Our segment comprises two primary segments, each with its respective sub-segments for further detailed analysis within specific national markets. Furthermore, our market coverage extends across geographic regions including North America, Europe, APAC, South America, and the Middle East and Africa, with comprehensive breakdowns to provide in-depth insights.
The industrial segment was valued at USD 168.54 billion in 2017 and continued to grow until 2021. The market share growth by the industrial segment will be significant during the forecast period. Globally, the industrial segment is reaping the benefits of IoT technology in terms of increasing business productivity and gaining a competitive advantage. The software connects machines and devices to the Internet. The data generated and the insights gained into the manufacturing process are used for predictive maintenance and performance optimization on the factory floor. This segment is confronted with a number of challenges, including the need for additional investments, the redesign of business models, security concerns, a lack of standardization, and interoperability issues. Favorable government policies and collaboration among various organizations operating in the IoT space should help to improve the level of expertise and, as a result, aid in overcoming these challenges.
APAC is estimated to contribute 38% to the growth of the global market during the forecast period. Government investments in infrastructure in India, China, and the Philippines, along with SME modernization efforts, are boosting IoT adoption. APAC governments are promoting embedded sensor usage in smart city initiatives to enhance city management and public services. For example, Bangalore, India, uses IoT-connected streetlights that adjust light based on pedestrians, monitor pollution, recognize license plates, and enforce traffic rules.
Increased IoT spending has driven the adoption of technologies like nanoscale devices and sensors. China leads in industrial IoT solutions in APAC, thanks to government initiatives such as Made in China Strategy 2025 and Internet Plus. Strong collaboration between mobile operators and the government has spurred rapid growth in the industrial IoT market.
The Internet of Things Market is fragmented in nature. Some significant players include Aeris Communications Inc., Alphabet Inc., Amazon.com Inc., AT and T Inc., Cisco Systems Inc.
This market research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Fujitsu Ltd., General Electric Co., Hewlett Packard Enterprise Co., Honeywell International Inc., Intel Corp., International Business Machines Corp., Koninklijke Philips NV, Microsoft Corp., Oracle Corp., PTC Inc., Robert Bosch GmbH, SAP SE, Siemens AG, Wipro Ltd., and Thales Group
The rise in industrial automation is notably driving the Internet of things (IoT) market growth during the forecast period. With the increasing automation of industrial processes, industries are undergoing revolutionary changes. The use of a combination of digital and physical systems to enable machine-to-machine (M2M) communication and improved human-machine interfaces (HMI) has grown significantly, with most developed regions already implementing such systems. Industry 4.0 refers to the entire product lifecycle, in which smart machines perform manufacturing processes on their own, smart robots collaborate with human workers on product assembly, and smart driverless transport vehicles perform logistics processes on their own.
The integration of physical and cyber systems in industrial manufacturing leads to increased efficiency, predictive machine maintenance, increased safety, and increased profitability. As a result, industries all over the world are implementing Industry 4.0 to optimize material flows and detect errors early in a product's lifecycle. Germany is running a strategic program called Industrie 4.0 and has announced a USD 565 million investment in developing a new factory standard to enable end-to-end automation. In the United States, the Smart Manufacturing Leadership Coalition (SMLC), founded in July 2012, is launching initiatives to promote the widespread adoption of smart manufacturing systems. The primary goal of this coalition is to create global standards and systems for intelligent factories. Thus, the rising automation of the Industry 4.0 process will drive the demand for IoT during the forecast period.
The use of wearables to monitor human health and the environment is a new trend in the global IoT market. In today's world, smartphones and tablets have become the epicentres of mobile computing and communication. Mobile phones, when combined with various inbuilt sensors, provide enhanced features and developments that are expected to revolutionise a variety of social and economic areas. Examples include social networking, environmental and surveillance monitoring, healthcare and well-being monitoring, and transportation. GPS, microphones, accelerometers, cameras, ambient light sensors, gyroscopes, and digital compasses are all built into today's smartphones. Furthermore, most smartphones have WIFI, 3G/4G/5G, and Bluetooth radios.
IoT wearables assist consumers in understanding their own healthcare needs and enable doctors to remotely monitor patients. This technology also enables companies to track their employees' health and safety, which is especially useful for people who work in hazardous environments. Wearable devices have shown a lot of promise in terms of assisting in the control of the COVID-19 pandemic in 2020. Wearable devices, such as smartwatches, smart bracelets, and patches, can detect, monitor, recover from, and manage COVID-19 symptoms and disease progression. Thus, increasing demand for health wearable devices will increase the demand for IoT solutions, which, in turn, will boost the growth of the market in focus during the forecast period.
The lack of awareness of efficient management of IoT initiatives and investments is a major challenge that may hinder the global IoT market growth during the forecast period. Though industrial IoT adoption is increasing, enterprises continue to face significant challenges in managing, securing, and optimizing their IoT investments. One of the primary tasks that industries undertake is the implementation of IoT in industrial facilities. The next step is to train employees on how to use the IoT platform so that workers can adapt to IoT better and faster.
The lack of skilled employees to handle the complexities of IoT systems is a major issue faced by end-user industries. The capabilities of IoT can only be partially exploited without proper training and knowledge of IoT systems. Employee training in IoT systems necessitates the presence of skilled professionals as well as higher end-user investments.
The Internet of Things (IoT) market continues to flourish, fueled by advancements in 5G technology and a proliferation of IoT vendors offering innovative solutions. With the widespread adoption of sensors and Radio Frequency Identification (RFID) tags, various communication technology industry verticals are leveraging IoT to enhance operations and efficiency. From smart cities to smart transportation and smart utilities, IoT is revolutionizing how connected devices communicate and interact. In developing economies, IoT is driving connectivity and enabling new opportunities across sectors such as energy sector, healthcare sector, and transportation sector. Real-time marketing analysis and sensor-driven decision analytics empower businesses to better understand consumer behavior and optimize operations. As IoT knowledge grows, demand for software solutions tailored to IoT applications is on the rise, shaping the future of this dynamic market.
Internet Of Things Market Scope |
|
Report Coverage |
Details |
Page number |
193 |
Base year |
2022 |
Historic period |
2017 - 2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 15.12% |
Market growth 2023-2027 |
USD 1,036.83 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
14.43 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 38% |
Key countries |
US, China, Germany, Norway, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Aeris Communications Inc., Alphabet Inc., Amazon.com Inc., AT and T Inc., Cisco Systems Inc., Fujitsu Ltd., General Electric Co., Hewlett Packard Enterprise Co., Honeywell International Inc., Intel Corp., International Business Machines Corp., Koninklijke Philips NV, Microsoft Corp., Oracle Corp., PTC Inc., Robert Bosch GmbH, SAP SE, Siemens AG, Wipro Ltd., and Thales Group |
Market dynamics |
Parent market analysis, Market forecasting, Market Growth and Trends, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our market analysis and report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Technology
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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