Internet of Things (IoT) Market Size, Share and Trends Analysis by Region, Type (Enterprise, Consumer), Product (Hardware, Software and Services), Enterprise Size, Vertical (Government, Utilities, Manufacturing, Transport and Logistics and Others) and Segment Forecast 2021-2026
IoT Market Analysis Overview
The IoT market size was valued at more than US$ 700 billion in 2021 and is expected to grow at a compound annual growth rate (CAGR) of more than 10% during 2021-2026. The increasing demand for mobile data connectivity at higher speeds, mainly driven by mobile video consumption, ultra-low latency communication services (e.g., gaming, AR, and VR), and the development of the mobile 5G, will support the adoption of IoT.
Although the market is gaining traction, manufacturers of IoT devices face major design challenges. The battery life of IoT products is a serious limitation. Manufacturers face issues in packaging and integration of small-sized chips with less weight and power consumption. Computers are getting smaller, but battery energy remains the same.
Internet of Things Market Overview, 2021-2026 ($ billion)
View Sample Report for Additional Insights on the Market Forecast, Download a Free Sample
According to GlobalData estimates, the global IoT market will grow from more than US$ 700 billion in 2021 to more than US$ 1200 billion in 2026 at a CAGR of more than 10% from 2021 to 2026. The sector has been able to grow so rapidly partly due to a lack of standards. The leading standards body for the Industrial Internet is called the Industrial Internet Consortium (IIC), founded in 2014. The IIC – whose founding members include Intel, Cisco, AT&T, GE, and IBM – aims “to test applications, coming up with best practices and standards, influencing IoT standards for Internet and industrial systems, creating a forum for sharing ideas and in general, pushing the ecosystem forward.” It has a broad membership of over 250 firms, including Microsoft, Samsung Electronics, Infosys, SAP, Kuka, Dell, and HP.
Until a broad, open, standardized, industrial-scale platform as a service (PaaS) comes on stream, IoT’s mass adoption could be restrained. With the formation of the industrial internet consortium (IIC), the march toward universal standards and protocols has begun. Meanwhile, rival platforms will coexist, competing and collaborating.
IoT Market Segmentation by Vertical
The Internet of Things market can be segmented into government, utilities, manufacturing, transport and logistics, energy, insurance, travel and leisure, retail, and healthcare based on verticals.
As of 2021, the Enterprise IoT market in the government category captured the highest market size, accounting for over 25% of the overall enterprise market size globally.
IoT Market Share by Verticals, 2021 (%)
Fetch Sample PDF for Segment-specific Revenues and Shares, Download a Free Sample
In addition, verticals like utilities, manufacturing, transport and logistics, energy, and retail captured over 50% of the market size in 2021.
While IoT’s traditional use cases in delivering government public sector services such as smart city and traffic management are witnessing increased adoption, we are also witnessing the evolution of new use cases of IoT in connected vehicles, autonomous driving, smart packaging, and patient monitoring. As of 2021, the IoT market value in the Utilities segment exceeded US$ 100 billion and is anticipated to witness a CAGR surpassing 8% from 2021 to 2026.
IoT Market Segmentation by Product
The Internet of Things is primarily implemented through three product types, IoT hardware, IoT software, and IoT services. The IoT hardware segment demand is projected to surpass US$ 700 billion by 2026. During the forecast period, the IoT hardware market will witness healthy growth, exceeding a CAGR of 10% from 2021 to 2026.
IoT Market Share by Product, 2021 (%)
Internet of Things Market Outlook Report with Detailed Segment Analysis is available with GlobalData Now! Download a Free Sample
The IoT software segment captured approximately 25% of the market value in 2021. According to GlobalData’s Emerging Technology Trends Survey 2020, which polled more than 1,700 senior executives worldwide in the summer of 2020, approximately 48% of the respondents showed a positive sentiment towards IoT and believed IoT would help them get through the pandemic.
IoT Market Segmentation by Enterprise Size
Based on enterprise size, the Internet of Things market is categorized into micro (less than 50), small (51-250), medium (251-1000), large (1001-4999), and very large (5000+). In 2021, the very large enterprises market captured a sizeable market share exceeding 27%, and the segment is anticipated to witness striking growth from 2021 to 2026, recording a CAGR surpassing 9%.
IoT Market Share by Enterprise Size, 2021 (%)
Fetch Sample PDF for Segment-specific Revenues and Shares, Download a Free Sample
IoT Market Segmentation by Type
Based on type, the Internet of Things market is categorized into consumer IoT and enterprise IoT. In 2021, the enterprise IoT market captured a sizeable market share exceeding 70%, and the segment is anticipated to witness striking growth from 2021 to 2026, recording a CAGR surpassing 9%.
IoT Market Share by Type, 2021 (%)
IoT Market Analysis by Region
The Internet of Things market value in APAC was the highest in 2021, capturing over 35% of the overall market size. The regional demand was led by the US and China collectively accounting for over 40% of the IoT market in 2021. The adoption of mobile 5G services will be supported by increasing demand for mobile data connectivity at higher speeds will drive the regional IoT markets.
APAC Enterprise IoT Market Share by Country, 2021 (%)
View Sample Report for Additional IoT Market Insights, Download a Free Sample
APAC is projected to retain the largest share by 2026 accounting for over 35% of the global IoT market value, with a forecasted growth rate exceeding 10% from 2021 to 2026. Growing demand and implementation of 5G services will favor the proliferation of the IoT market in APAC. Apart from the APAC market, the Middle East & Africa IoT market is also expected to witness growth over the near future, registering a CAGR of more than 12% from 2021 to 2026.
IoT Market - Competitive Landscape
The overall competitive landscape for the IoT sector is highly fragmented. Numerous venture capital companies are heavily investing in innovative cyber security start-ups that possess pioneering expertise. On July 29, Telit, a US-based provider of IoT technology solutions including hardware and management platforms, announced its intention to acquire the cellular IoT products of Thales, a French vendor of aerospace, defense, security, and digital identity solutions. These include Thales’ portfolio of wireless communication modules, gateways, and data modem cards that support 4G LTE, LPWAN, and 5G. Telit notes that the acquisition will expand its presence in new industrial IoT segments including payment systems, energy, e-health, and security. It also enhances the company’s ability to respond to the demand for cyber-secure IoT solutions in modules and cellular connectivity. In turn, Thales will take a 25% stake in the expanded Telit business, which will be rebranded as Telit Cinterion. Furthermore, On August 2, US LoRa specialist and semiconductor manufacturer Semtech confirmed its $1.3 billion acquisition of Canadian vendor Sierra Wireless (i.e., a provider of cellular modules and gateways as well as cloud and MVNO services and platforms). Semtech states that the move “significantly” expands its addressable market and will double annual revenue, generating $40 million in run-rate operational synergies within 12-18 months of the deal’s closing. Semtech’s CEO noted that the acquisition is a “critical part of bringing the Internet of Everything” to life by combining the two vendors’ cellular, LoRa, and cloud services.
The key players leading the IoT market include Microsoft, Alphabet, IBM, Samsung, Intel, Qualcomm, Apple, Amazon, and Cisco among others.
Leading Players in the IoT Market
- Microsoft Corp
- Alphabet Inc
- Samsung Electronics Co Ltd
- Intel Corp
- Qualcomm Inc
- Apple Inc
- International Business Machines Corp
- Amazon.com Inc
- Cisco Systems Inc
- Salesforce Inc
Other IoT Market Vendors Mentioned
Telefonaktiebolaget LM Ericsson, Deutsche Telekom AG, Vodafone Group Plc, Huawei Investment & Holding Co Ltd, AT&T Inc, Nokia Corp, and Verizon Communications Inc, among others.
To Know More About Leading IoT Market Players, Download a Free Sample
IoT Market Research Scope
| Market Size (2021) | >US$ 700 billion |
| CAGR (2021-2026) | >10% |
| Forecast Period | 2021-2026 |
| Historic Period | 2019-2021 |
| Report Scope & Coverage | Revenue Forecast, Competitive Index, Company Market Share, and Growth Trends |
| Type Segment | Consumer IoT, Enterprise IoT |
| Product Segment | IoT Hardware, IoT Software, and IoT Services |
| Enterprise Size Segment | Micro (Less than 50), Small (51-250), Medium (251-1000), Large (1001-4999), and Very Large (5000+) |
| Vertical Segment | Government, Utilities, Manufacturing, Transport and Logistics, Energy, Insurance, Travel and Leisure, Retail, and Healthcare, among others. |
| Region Segment | North America, South & Central America, Europe, APAC, and Middle East & Africa |
| Key Companies | Microsoft, Alphabet, IBM, Samsung, Intel, Qualcomm, Apple, Amazon, Salesforce, and Cisco |
IoT Market Segments and Scope
GlobalData Plc has segmented the IoT market report by type, product, vertical, enterprise size, and region:
Global IoT market Channel Type Outlook (Revenue, USD Million, 2019-2026)
- Consumer
- Enterprise
Global IoT market Product Outlook (Revenue, USD Million, 2019-2026)
- IoT Hardware
- IoT Software
- IoT Services
Global IoT market Enterprise Size Outlook (Revenue, USD Million, 2019-2026)
- Micro (Less than 50)
- Small (51-250)
- Medium (251-1000)
- Large (1001-4999)
- Very Large (5000+)
Global IoT market vertical Outlook (Revenue, USD Million, 2019-2026)
- Government
- Utilities
- Manufacturing
- Transport and Logistics
- Energy
- Insurance
- Travel and Leisure
- Retail
- Healthcare
- Others
Global IoT Regional Outlook (Revenue, USD Million, 2019-2026)
- North America
- U.S.
- Canada
- Europe
- Germany
- U.K.
- Italy
- France
- Spain
- The Netherlands
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- Australia
- Singapore
- South Korea
- Rest of Asia Pacific
- South & Central America
- Brazil
- Mexico
- Argentina
- Rest of South & Central America
- Middle East & Africa
- United Arab Emirates (UAE)
- Kingdom of Saudi Arabia (KSA)
- South Africa
- Rest of Middle East & Africa
The market intelligence report provides an in-depth analysis of the following –
- IoT market outlook: analysis as well as historical figures and forecasts of revenue opportunities from the type, product, vertical, enterprise size, and region segments.
- The competitive landscape: an examination of the positioning of leading players in the IoT market.
- Company snapshots: analysis of the market position of leading service providers in the IoT market.
- Underlying assumptions behind our published base-case forecasts, as well as potential market developments that would alter, either positively or negatively, our base-case outlook.
Reasons to Buy
- This market intelligence report offers a thorough, forward-looking analysis of the global IoT market by type, product, vertical, enterprise size, region, and key opportunities in a concise format to help executives build proactive and profitable growth strategies.
- Accompanying GlobalData’s Forecast products, the report examines the assumptions and drivers behind ongoing and upcoming trends in IoT markets.
- The report also highlights key type segments (Consumer and Enterprise)
- The report also highlights key product segments (IoT Hardware, IoT Software, and IoT Services).
- The report also highlights key vertical segments (Government, Utilities, Manufacturing, Transport and Logistics, Energy, Insurance, Travel and Leisure, Retail, Healthcare, and Others)
- The report also highlights key enterprise size segments (Micro, Small, Medium, Large, and Very large)
- With more than 20 charts and tables, the report is designed for an executive-level audience, boasting presentation quality.
- The report provides an easily digestible market assessment for decision-makers built around in-depth information gathered from local market players, which enables executives to quickly get up to speed with the current and emerging trends in IoT markets.
- The broad perspective of the report coupled with comprehensive, actionable detail, will help Telecom, Media, and Technology (TMT) stakeholders, service providers, and other IoT players succeed in growing the IoT market globally.
Key Players
Table of Contents
List of Tables
List of Figures
Frequently Asked Questions
The IoT market size was valued at more than US$ 700 billion in 2021.
The IoT market is expected to grow at a CAGR of more than 10% during the forecast period (2021-2026).
A significant increase in demand for IoT due to a drop in product prices, social distancing norms during COVID-19, and increasing IPOs and M&As are stimulating the IoT market growth worldwide.
Type Segments: Consumer and Enterprise
Product Segments: IoT Hardware, IoT Software, IoT Services
Vertical Segments: Government, Utilities, Manufacturing, Transport and Logistics, Energy, Insurance, Travel and Leisure, Retail, Healthcare, and Others.
Enterprise Size segments: Micro, Small, Medium, Large, and Very large
Some of the leading IoT companies are Microsoft, Alphabet, IBM, Samsung, Intel, Qualcomm, Apple, Amazon, Salesforce, and Cisco.
Get in touch to find out about our multi-purchase discounts
reportstore@globaldata.com
Tel +44 (0) 20 7947 2960
Every customer’s requirement is unique. We understand that and can customize the report basis your exact research requirements pertaining to market insights, innovation insights, strategy and planning, and competitive intelligence. You can also avail the option of purchasing stand-alone sections of the report or request for a country specific report.
Still undecided about purchasing this report?
Testimonial
“The GlobalData platform is our go-to tool for intelligence services. GlobalData provides an easy way to access comprehensive intelligence data around multiple sectors, which essentially makes it a one-for-all intelligence platform, for tendering and approaching customers.
GlobalData is very customer orientated, with a high degree of personalised services, which benefits everyday use. The highly detailed project intelligence and forecast reports can be utilised across multiple departments and workflow scopes, from operational to strategic level, and often support strategic decisions. GlobalData Analytics and visualisation solutions has contributed positively when preparing management presentations and strategic papers.”
“COVID-19 has caused significant interference to our business and the COVID-19 intelligence from GlobalData has helped us reach better decisions around strategy. These two highlights have helped enormously to understand the projections into the future concerning our business units, we also utilise the project database to source new projects for Liebherr-Werk to use as an additional source to pitch for new business.”
Your daily news has saved me a lot of time and keeps me up-to-date with what is happening in the market, I like that you almost always have a link to the source origin. We also use your market data in our Strategic Business Process to support our business decisions. By having everything in one place on the Intelligence Center it has saved me a lot of time versus looking on different sources, the alert function also helps with this.
Having used several other market research companies, I find that GlobalData manages to provide that ‘difficult-to-get’ market data that others can’t, as well as very diverse and complete consumer surveys.
