IoT Market Report 2025

The IoT market size has grown rapidly in recent years. It will grow from $535.97 billion in 2024 to $629.5 billion in 2025 at a compound annual growth rate (CAGR) of 17.5%. The growth in the historic period can be attributed to proliferation of connected devices, data analytics and insights, industrial automation, smart cities initiatives, healthcare transformation.

The IoT market size is expected to see exponential growth in the next few years. It will grow to $1.52 trillion in 2029 at a compound annual growth rate (CAGR) of 24.7%. The growth in the forecast period can be attributed to 5g network rollout, edge computing adoption, expansion in industrial IoT (iIoT), smart home and consumer IoT, focus on sustainability and energy efficiency. Major trends in the forecast period include blockchain for data integrity, interoperability standards, edge ai and inference, focus on sustainable IoT solutions, healthcare IoT growth.

The expansion of the Internet of Things (IoT) market is significantly driven by its application across various industries, notably in the automotive sector. The integration of IoT in the automotive industry has ushered in new opportunities for both manufacturers and consumers globally. This technology has become a focal point for multifunctional applications in transportation, offering advanced communication, control, and seamless data delivery. Leading companies such as Mercedes-Benz, Volkswagen, Volvo, Toyota, and Google Inc. are making substantial investments to develop smart cars equipped with sophisticated features, promising enhanced driving experiences. According to UBS, projections indicate that by 2030, 12% of total car sales will be for autonomous taxi fleets, with an estimated 26 million driverless taxis operational worldwide.

The proliferation of cloud computing is expected to be a key driver for the growth of the IoT market. Cloud computing involves providing a range of internet-based computing services, including servers, storage, databases, networking, software, analytics, and intelligence. When integrated with IoT, cloud computing acts as a potent catalyst, incorporating cutting-edge technologies with promising future benefits. For instance, data from July 2023, published by Google Cloud, reveals a notable increase in the adoption of multiple public clouds, rising from 21% in 2021 to 26% in 2022. Similarly, hybrid cloud adoption surged from 25% to 42.5% during the same period. This surge in cloud computing utilization is poised to propel the growth of the IoT market in the foreseeable future.

Leading companies in the multifamily housing green buildings sector are developing advanced technologies like green transformation (GX) to improve sustainability, energy efficiency, and environmental performance in residential projects. Green transformation (GX) involves adopting sustainable practices, technologies, and innovations to reduce environmental impact and enhance energy efficiency. For example, in September 2024, Hitachi Ltd., a Japan-based multinational conglomerate, introduced its new BuilMirai Building IoT solution. This comprehensive platform is designed to enhance the management and operational efficiency of small and medium-sized buildings while emphasizing green building practices in line with global sustainability trends in construction and management. Hitachi plans to offer these solutions through monthly subscription plans, allowing customers to select services based on their needs, thereby reducing investment costs and supporting both green transformation (GX) and digital transformation (DX) for smaller buildings. The BuilMirai solution connects various building facilities and systems, enabling improved management and operational efficiency.

Prominent companies in the IoT market are introducing innovative products, such as Matter-enabled software development kits, as part of their strategy to enhance profitability. Matter-enabled software development kits represent an open-source, IP-based connectivity standard designed to work seamlessly with thread and Wi-Fi network transport, all without any royalty fees. In a notable example, Texas Instruments (TI), a leading semiconductor manufacturing company based in the United States, unveiled new Matter-enabled software development kits tailored for Wi-Fi and Thread SimpleLink wireless microcontrollers (MCUs) in November 2022. This initiative aims to streamline the integration of the Matter protocol into Internet of Things (IoT) applications. The software is a result of TI's extensive collaboration with the Connectivity Standards Alliance and advancements in the 2.4-GHz connectivity domain. When coupled with wireless MCUs, this software empowers engineers to develop highly efficient and secure battery-operated smart home and industrial automation IoT applications capable of seamless communication with devices across various proprietary ecosystems.

In February 2022, Breadware LLC, a U.S.-based IoT solutions company, successfully acquired Medium One Inc. for an undisclosed sum. This strategic acquisition incorporates the Medium One platform into Breadware's portfolio, enhancing its capability to design and provide IoT-enabled products. Additionally, it establishes an integrated environment for the seamless and rapid implementation of IoT products. Medium One Inc. is an American IoT software company that served as the acquired entity in this transaction.

Major companies operating in the IoT market include Google Inc., Microsoft Corporation, AT&T Inc., Dell Inc., Huawei Technologies Co. Ltd., Hitachi DataSystems Corporation, Amazon WebServices Inc., General Electric Company, Intel Corporation, International Business Machine Corporation, CiscoSystems Inc., Oracle Corporation, SAP SE, Fujitsu Ltd., Hewlett-Packard Enterprise Company, Bosch Software Innovation GmbH, Accenture plc, PTC Inc., Davra Networks Limited, Cumulocity GmbH, BlackBerry Limited, C3 IoT Inc., Exosite LLC, Device Insight GmbH, Concirrus Limited, EVRYTHNG Limited, Bright Wolf LLC, Connio Inc.

Asia-Pacific was the largest region in the IoT market in 2024. North America was the second largest region in the global IoT market share. The regions covered in the iot market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the iot market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The Internet of Things (IoT) constitutes a network of physical objects equipped with integrated technologies enabling connection, sensing, and interaction within internal or external environments. Companies engage external vendors to design, build, install, and manage end-to-end IoT solutions, often seeking consulting advice for IoT planning.

IoT platforms typically revolve around device management, application management, and the overall process of handling the implementation, operation, and maintenance of physical or virtual devices. Various applications span building and home automation, smart energy and utilities, smart manufacturing, connected logistics, smart retail, smart mobility and transportation, among others. These applications find use across industries such as BFSI, retail, government, healthcare, manufacturing, transportation, IT, and telecom.

The internet of things iot market research report is one of a series of new reports that provides internet of things iot market statistics, including internet of things (IoT) industry global market size, regional shares, competitors with an internet of things iot market share, detailed internet of things iot market segments, market trends and opportunities, and any further data you may need to thrive in the internet of things iot market industry. This internet of things iot market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The Internet of Things iot market includes revenues earned by entities by offering IoT solutions used in building and home automation, smart energy and utilities, connected logistics, smart retail, smart mobility, and transportation. The internet of things, or IoT, is a collection of interconnected smart devices, mechanical and digital machines, objects, animals or people supplied with unique identifiers (UIDs) and the ability to transmit data across a network without needing human-to-human or human-to-computer interaction. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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