IoT Sensors Market Size, Share & Growth

Updated on : October 23, 2024

IoT Sensors Market Size & Growth

[269 Pages Report] The global IoT sensors market size is expected to grow from USD 16.0 billion in 2024 to USD 70.1 billion by 2029; growing at a CAGR of 34.4% during 2024 to 2029. Rising demand for connected and wearable  devices are the key factors driving the growth of the IoT sensors industry . The growing adoption of wearable devices, including fitness bands, smartwatches, smart glasses, EEG monitors, and pain management devices, is primarily driven by the healthcare sector.

IoT Sensors Market Size & Forecast to 2029

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IoT Sensors Market Trends

Driver: Higher adoption of IPv6

The Internet Protocol (IP), a more flexible, reliable, and scalable protocol than the Network Control Protocol (NCP), was introduced for routing data between networks or hosts. There are two versions of IP: IPv4 and IPv6. IPv6 is the evolutionary development of IP. It uses a 32-bit address scheme, allowing for over 4 billion addresses. With the growing number of Internet users, the number of unused IPv4 addresses is likely to be exhausted because all devices, including computers, smartphones, and gaming consoles, that connect to the internet require an IP address. Hence, IPv6 was introduced to fulfill the need for more internet addresses. IPv6 is designed to allow the internet to grow steadily in terms of the number of hosts connected and the total amount of data traffic transmitted. The adoption of IPv6 has boosted the IoT market as IPv6 utilizes 128-bit Internet addresses. It provides around 2,128 unique addresses, which are more than sufficient to fulfill the requirements of present and future communication devices.

Restraint: Data security concerns

With the emergence of new technologies, data intrusions are also increasing rapidly. IoT platforms are newly developed, and there is a lack of security standards. This is a major hindrance to the growth of the IoT sensors market size because enterprise data security is paramount while developing analytics solutions for several vertical-specific applications. Moreover, many data security standards need to be followed to analyze large-scale data. Failing to adhere to these standards could result in data tampering and raise doubts about the authenticity of results generated via the analytics platform being used. In the IoT ecosystem, data is generated from machines and humans; when it comes to personal data such as patient details or financial details, security is a top priority that cannot be compromised.

Opportunity: Cross domain collaboration across businesses

IoT offers an exponential growth opportunity for organizations and businesses to adapt to technological trends and innovations. Cross-domain collaborations and new business models are of utmost importance to realize the full potential of IoT and become successful in the IoT market. For instance, in March 2015, NEXCOM International (Taiwan) developed 6 IoT applications—IoT robotics, Industry 4.0, connected cars, responsive stores, medical informatics, and security—in the industry. Opening 6 different market segments within the IoT ecosystem allowed the company to target a wide range of IoT applications.

Challenge: Lack of common protocol and communication standards

It is necessary to define common protocols or communications standards to enable smart devices to communicate with each other, share data, or form an intelligent network. Interoperability and easy exchange of information between the connected devices is of utmost importance for the further growth of IoT, which would drive the demand for semiconductor chips. The current technical scenario of IoT does not provide any architectural solution or a universal standard to solve the interoperability issue. A universal standard is required in either connectivity type, data formatting, or protocol.

IoT Sensors Market Map:

IoT Sensors Market Share

Inertial sensors channel to capture the second largest market growth of the IoT sensors market during the forecast period.

An inertial sensor is a combination of the accelerometer and gyroscope functionality. These sensors are used to detect and measure acceleration, tilt, shock, vibration, rotation, and multiple degrees of freedom motions. They are used in the marine, automotive, military, aviation, wearable, consumer, medical, and automotive industries. They are useful in geoengineering, condition monitoring, and navigation.

Ethernet to have largest market size in Wired network technology during the forecast period.

Ethernet, or 802.3, is a network protocol that controls data transmission over the local area network (LAN). For the past two decades, Ethernet has had a major influence on nearly every aspect of communication systems and networking. Initially, it was used in LAN, but now it is used in most WANs too. Ethernet is cost-effective and is popular for emerging applications, such as video transport and storage area networks.

IoT Sensors Market Regional Analysis

The IoT sensors market in APAC to have largest market szie during the forecast period

India, China, Japan, South Korea, and Australia are key contributors to the growth and development of the IoT sensors market in Asia Pacific. The growing penetration of the Internet across commercial and residential spaces, along with a broadening consumer base, increasing disposable income of the masses, and improving IT infrastructures are some key determinants supplementing the growth of the IoT sensors market  size in Asia Pacific. The surging adoption of cloud-based services and the prevailing trend of industrial automation are the key drivers fueling the growth of the IoT sensors market size in China, South Korea, Japan, and India.

IoT Sensors Market by Region

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Top IoT Sensors Companies: Key players

The key players in the IoT sensors companies are

• Texas Instrument (US),
• TE Connectivity(Switzerland),
• Broadcom(US),
• NXP Semiconductors(Netherlands),
• STMicroelectronics (Switzerland),
• Bosch Sensortec (Germany),
• TDK Corporation (Japan),
• Infineon Technologies AG (Germany),
• Analog Devices(US), and
• Omron Corporation (Japan).

IoT Sensors Market Report Scope

IoT Sensors Market Highlights

This report categorizes the IoT sensors market size based on the sensor type, Network Technology, Vertical, and region.

Recent Developments in IoT Sensors Industry

• In November 2023, NXP Semiconductor collaborated with Zendar to accelerate and improve high-resolution radar solutions for autonomous driving (AD) and advanced driver assistance systems (ADAS) to complement NXP’s leading scalable radar portfolio.
• In August 2023, Texas Instruments Incorporated introduced the TMCS1123 Hall-effect current sensor with a simple design and precision for high-voltage applications. It has the industry's most robust reinforced isolation and superior accuracy throughout various temperatures and lifetimes.
• In February 2023, Bosch Sensortec announced the BMA530 and BMA580, one of the world's smallest MEMS accelerometers. BMA530 tracks activities with its step counter and is especially suitable for wearables, and BMA580 targets with voice activity detection.
• In February 2023, TE Connectivity collaborated with Preddio Technologies to monitor equipment of all sizes and to increase their efficiency through real-time data analysis. This collaboration allowed them to find solutions combining digital sensors, wireless technology, edge gateway, cloud software, and analytics.

Critical questions answered by this report: