IoT Technology Market Size, Share & Growth

Updated on : October 23, 2024

IoT technology market size

[323 Pages Report] The IoT technology market size is projected to grow from USD 945.6 billion in 2024 to USD 1,377.8 billion by 2029, growing at a CAGR of 7.8% during the forecast period from 2024 to 2029.In the next five years, the market for loT technology is anticipated to develop due to the expanding use of wireless smart sensors and networks, as well as the growing need for data centers brought on by the growing popularity of cloud platforms. However, high power consumption by wireless sensor terminals/connected devices will likely pose challenges for industry players.

Furthermore, the emergence of loT Platform-as-a-Service (PaaS) has also increased the deployment of IoT solutions across various industries. Cloud platforms provide organizations with newer ways of connecting traditional information systems to loT-enabled devices. Various companies in the loT technology market are tailoring their cloud offerings to meet the requirements of their customers. Additionally, rising investments in implementing digital technologies in healthcare institutions and the emergence of connected care are the key factors boosting industry growth in healthcare sector. Further, advanced automotive technologies and new vehicle features have increased the scope for electrification. As a result, original equipment manufacturers (OEMs) are installing a greater number of ICs, microprocessors, and IoT sensors in high-end electric vehicles which will lead to create an opportunity for the market.

The objective of the report is to define, describe, and forecast the IoT technology market based on node component, services, platform, software solution, end user application, and region.

IoT Technology Market Forecast to 2029

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IoT technology market dynamics.

Driver: Emergence of 5G communications technology

The launch of the 5th generation in cellular mobile communications or 5G is having a positive impact on the loT technology market. This is because 5G networks enhance the dependability and performance of these linked gadgets. The requirement for a quicker, more advanced network that can meet connection demands. The frequencies on which digital cellular technologies will carry data are expanded by the 5G spectrum. 5G and IoT technologies together have a wide spectrum that boosts the total bandwidth and allows a vast amount of lot devices to connect. This wider spectrum is available for use raises the total capacity of cellular networks, which allowing additional devices to connect. With the increasing Internet penetration rate, IoT is finding applications in retail, consumer electronics, automotive and transportation, agriculture, and other sectors. The continuous increase in the number of Internet users across the world is expected to strengthen the overall market for IoT, owing to the growth in Internet-enabled smart devices such as radio frequency identification (RFID), barcode scanners, and mobile computers.

Restraint: Data security and privacy concerns

The Internet of Things gateway manages a vast number of devices and the data that is sent back and forth between edge devices and cloud servers. It acts as a communication layer between these devices. The lot gateway must protect data secrecy while translating protocols. Because Internet of Things communication occurs over both public and private networks, a secure network is necessary. Data privacy is a challenge for the IoT gateway when translating protocols. Data security can be achieved by using encryption security keys, but managing those keys would still be an important concern. Despite advances in hardware and software security, many systems and solutions remain vulnerable to cyber threats.  Furthermore, the need for hardware for Internet of Things applications is anticipated to be impacted by the ongoing data security concerns. This will need the development of more secure and highly encrypted hardware chipsets and networking solutions (such gateways) in the future.

Opportunities: Increased potential for the incorporation of IoT in electric and hybrid vehicles

The automotive sector made technological improvements to lower the harmful exhaust emissions from vehicles due to the strict global emission regulations. One of the significant advancement in the automobile industry is to safeguard the environment with the introduction of electric vehicles. Power electronics is a crucial component of hybrid vehicles and accounts for 20% of the overall cost of ownership, providing an opportunity for semiconductor technology. Currently in the introduction stage, these new technologies are expected to have an impact on the automotive semiconductor market in the upcoming years. Automotive electronics are becoming necessary as EVs and HEVs become more popular. Many governments provide various incentives to encourage the adoption of electric and hybrid vehicles domestically, including those in France, Sweden, the UK, India, Germany, the US, Denmark, and China. Thus, there is now more opportunity for electrification due to new features and improved technologies. Original equipment manufacturers (OEMS) are consequently equipping high-end electric vehicles with an increasing number of ICs, microprocessors, and lot sensors.

Challenges: High power consumption by wireless sensor terminals/connected devices

Sensors and other peripherals in the Internet of Things consume a lot of power. IoT devices must have effective power management and minimize power consumption despite the availability of technology like wireless networking, ultra-low-power processors, and tiny mobile sensors. Another significant issue would be connectivity burden because multiple devices must be linked simultaneously. For example, a typical smart house may include between 50 and 100 connected lights, thermostats, appliances, and other devices—each of which needs a certain amount of power. The line power efficiency would be increased by the usage of devices like smart meters. The main challenge is the power management of devices using wireless technologies like Wi-Fi, as it is not practical to manually change the batteries of hundreds of sensors, actuators, and other linked devices within loT systems on a regular basis. The production of ultra-low-power chips and modules is already a priority for semiconductor makers, but battery technology and wearable and portable devices power management remain areas that require innovation.

IoT Technology Market Segmentation

IoT technology Market : Key Trends.

The prominent players in the IoT technology market share are  Intel Corporation (US), Qualcomm (US), Texas Instruments Incorporated (US), Cisco Systems, Inc. (US), Hewlett Packard Enterprise (US), IBM (US), STMicroelectronics (Switzerland), Microsoft, PTC Inc. (US), and Amazon Web Services (US), among others. These companies boast mixing trends with a comprehensive product portfolio and strong geographic footprint.

IoT technology market share

Managed service is expected to grow at the highest CARG in the IoT technology market during the forecast period.

The managed service segment is expected to account for a significant share and grow at the highest CAGR during the forecast period. All the pre- and post-deployment queries and needs of customers are addressed under the managed services unit. Companies mainly outsource such services to offer customers on-time delivery. Integrated facility management, consultancy, round-the-clock help desk, finance, and accounts are some of the upcoming managed services required by operators. This segment is mainly driven by the increasing adoption of outsourced managed services in the IoT market size . Managed services increase productivity and help in mitigating risks.

The aerospace & defense segment under industrial application is expected to witness the highest CAGR of the IoT technology market during the forecast period.

The aerospace & defense segment is expected to witness the highest CAGR during the forecast period. IoT in the aerospace and defense segment in industrial application provides connectivity and integration and equips the manufacturer with wide-ranging views of their operations. The aerospace and defense end-user application makes use of sensors to capture comprehensive machine data. These sensors can be used on key equipment, machines, and vehicles. IoT offers numerous opportunities to airlines for the improvement of baggage handling and equipment monitoring.

IoT Technology Market Regional Analysis

The IoT technology market is expected to have a largest market share in China from the Asia Pacific region during the forecast period.

The Asia Pacific continues to be a significant market for IoT technology. In Asia Pacific region, China is the leading country du to various covernment initiatives such as the "Made in China 2025". China is also the largest automotive manufacturer in the world. It is a leading producer of consumer devices and appliances. The developing economy of the country and the growing deployment of sensors in its most sectors are factors driving the growth of the loT sensors market in China. The Internet Plus strategy of the country that aims to integrate its loT initiatives, mobile Internet, cloud computing, and big data is expected to extensively promote the application of loT and smart technologies.

Moreover, as China is the major hub for semiconductor fabrication and manufacturing industries, its involvement in the development of IoT is essential for the growth of these markets. In the production process, IoT is used to monitor the machinery, employees, and environmental conditions. The data can be further used to analyze, control, and prevent risks and avoid economic losses. End-to-end automation is a new concept gaining momentum in the current technology market in China.

IoT Technology Market  and Statistics by Region

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IoT Technology Market Companies : Top Key 

Major vendors in the IoT technology market companies

• Intel Corporation (US),
• Qualcomm (US),
• Texas Instruments Incorporated (US),
• Cisco Systems, Inc. (US),
• Hewlett Packard Enterprise (US),
• IBM (US),
• STMicroelectronics (Switzerland),
• Microsoft, PTC Inc. (US), and
• Amazon Web Services (US),  among others.

IoT Technology Market Report Scope :

IoT Technology Market Highlights

This report categorizes the IoT technology market based on platform, node component, software solution, servies, end use application, and region.

Recent developments IoT Technology Industry : 

• In January 2024, Texas Instruments (US) has launched a semiconductors designed to enhance automotive safety and intelligence named as AWR2544 77GHz millimeter-wave radar sensor chip for satellite radar architectures which enables high level of autonomy by improving sensor fusion and decision-making in ADAS.
• In October 2023, Sasken Technologies (India), announced a collaboration with Qualcomm Technologies, Inc (US) through the Qualcomm® IoT Accelerator Program. This collaboration leads to the innovation of internet of Things (IoT) and shaping the future of connected devices and services.
• In January 2023, Intel Corporation (US) has launched full Intel Core 14th Gen mobile and desktop processor lineup, including powerful HX-series mobile processors and mainstream 65-watt and 35-watt desktop processors. Additionally, Intel launched its new Intel Core mobile processor Series 1 family, led by the Intel Core 7 processor 150U, for performant mainstream thin- and-light mobile systems.

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