Internet of Things (IoT) Market 2025: Size, Growth Factors, Trends and Forecast to 2033

IMARC Group, a leading market research company, has recently released a report titled "Internet of Things (IoT) Market Report by Component (Hardware, Software, Services, Connectivity), Application (Smart Home, Smart Wearables, Smart Cities, Smart Grid, IoT Industrial Internet, IoT Connected Cars, IoT Connected Healthcare, and Others), Vertical (Healthcare, Energy, Public and Services, Transportation, Retail, Individuals, and Others), and Region 2025-2033." The study provides a detailed analysis of the industry, including the global internet of things (IoT) market size, share, trends, growth and forecast. The report also includes competitor and regional analysis and highlights the latest advancements in the market.

Internet of Things (IoT) Market Overview

The global internet of things (IoT) market size reached USD 1,022.6 Billion in 2024. The market is forecasted to grow to USD 3,486.8 Billion by 2033, exhibiting a CAGR of 14.6% during the forecast period 2025-2033. Growth is driven by advancements in IT, increasing demand for data collection and communication, and enhanced customer experience through IoT integration.

Study Assumption Years

• Base Year: 2024
• Historical Year/Period: 2019-2024
• Forecast Year/Period: 2025-2033

Internet of Things (IoT) Market Key Takeaways

• Current Market Size: USD 1,022.6 Billion in 2024
• CAGR: 14.6%
• Forecast Period: 2025-2033
• Significant growth in the IT industry with advancements in networking technologies such as 5G and LPWAN.
• Software segment dominates the market due to centralized device management and control features.
• Healthcare is the leading vertical, leveraging IoT for asset tracking and resource optimization.
• North America holds the largest market share owing to strong IT infrastructure and government support.
• Asia Pacific expected to grow rapidly due to urbanization and increased demand for smart city solutions.

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Market Growth Factors

The IoT market is driven by advancements in the field of information technology (IT), such as the development of new 5G networks and low power wide area networks (LPWAN); technologies that ease reliable communication between Internet of Things devices. The IT industry also develops security protocols for protecting devices and data like encryption protocols and intrusion detection systems with standards that ensure interoperability between heterogeneous devices for easing integration of the IoT in automation infrastructures.

IoT devices became smaller. They became lighter. They became more portable through miniaturization. This enables the use of IoT devices within a wide variety of applications, including wearables, healthcare monitoring, asset tracking, and smart homes. Small form factor devices are non-intrusive, providing good user experience, and can easily be attached in objects.

Growing demand for data-driven decision-making among enterprises is the key market driver. IoT devices are generating large volumes of data that are being used for decision-making and predictive analytics. Infrastructure such as cloud computing and edge computing are needed for real-time data analytics and to provide timely perceptions for business decisions.

Market Segmentation

Breakup by Component:

• Hardware: Enables real-time monitoring, data capture, and control of physical objects. Recent advancements in miniaturization and low-power technologies have increased hardware proliferation.
• Software: Dominates the market by facilitating connectivity, centralized device management, remote monitoring, updates, and diagnostics.
• Services: Include consulting, planning, and deployment assistance for IoT solution implementation.
• Connectivity: Involves wireless technologies like Wi-Fi, cellular networks, Bluetooth, Zigbee, LoRaWAN, and NB-IoT for ubiquitous device connectivity.

Breakup by Application:

• Smart Home: Connects and automates devices within a home, including lighting, security, and entertainment systems.
• Smart Wearables:
• Smart Cities: Driven by investments in smart city development and infrastructure upgrade.
• Smart Grid: Benefiting from public and private sector investments to enhance energy systems.
• IoT Industrial Internet:
• IoT Connected Cars: Support vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) communication to improve safety and traffic management.
• IoT Connected Healthcare: Enables continuous patient monitoring of vital signs, improving healthcare delivery.
• Others:

Breakup by Vertical:

• Healthcare: Leading vertical using IoT for equipment tracking, theft prevention, and optimizing resource utilization.
• Energy: No specific description provided.
• Public and Services: Not detailed explicitly.
• Transportation: Offers fleet management, passenger experience enhancement, traffic management, parking solutions, logistics, and supply chain management.
• Retail:
• Individuals:
• Others:

Breakup By Region:

• North America (United States, Canada)
• Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, Others)
• Europe (Germany, France, United Kingdom, Italy, Spain, Russia, Others)
• Latin America (Brazil, Mexico, Others)
• Middle East and Africa

North America dominates the Internet of Things (IoT) market with the largest market share, primarily due to its well-established IT infrastructure. The United States is a key growth driver through extensive industrial IoT adoption, supported by strong government initiatives promoting digitalization, increased use of industrial IoT devices, and the adoption of advanced technologies like artificial intelligence and cloud computing. Asia Pacific is expected to witness further growth owing to urbanization and increased demand for smart city and connected infrastructure solutions across sectors like transportation, healthcare, energy, and manufacturing.

Recent Developments & News

• Amazon Web Services, Inc. (Amazon.com, Inc.) introduced AWS Well-Architected IoT Lens providing detailed guidance on building scalable and secure IoT workloads on AWS.
• Cisco Systems, Inc. partnered with Newark, an Avnet Company, to deploy industrial IoT network solutions across infrastructure components.
• IBM, in collaboration with Verizon, expanded 5G Industry 4.0 testbed capabilities at its Industry Solution Lab in Coppell, Texas, allowing enterprise customers to test innovative Industry 4.0 use cases with 5G technology.

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Key Players

• Amazon Web Services, Inc. (Amazon.com, Inc.)
• Cisco Systems, Inc
• General Electric Company
• IBM Corporation
• Intel Corporation
• Microsoft Corporation
• Oracle Corporation
• PTC Inc
• SAP SE
• Siemens AG

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