Internet of Things (IoT) Market Trends and Analysis by Type, Product, Enterprise Size, Vertical, Region and Segment Forecast to 2026
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How is our ‘Internet of Things’ report different from other reports in the market?
- The report presents in-depth market sizing and forecast at a segment level for more than 30 countries including historical and forecast analysis by revenue for the period 2019-2026 for market assessment
- Detailed segmentation by type – consumer and enterprise
- The report also highlights segmentation at product level – IoT Hardware, IoT Software, and IoT Services
- The report also highlights segmentation at vertical level – Government, Utilities, Manufacturing, Transport and Logistics, Energy, Insurance, Travel and Leisure, Retail, Healthcare, and others
- The report also highlights segmentation at enterprise size level – Micro (Less than 50), Small (51-250), Medium (251-1000), Large (1001-4999), and Very Large (5000+)
- The report offers driving and challenging factors impacting the IoT market.
- The growth innovation matrix included in the report, divides the market players in to four categories i.e., flagbearers, contenders, specialists, and experimenters, which will help value chain participants in understanding how competition is performing based on their revenue growth and their R&D efforts
- The report provides an analysis of M&As, Venture Financing deals, patent activity, social media, and jobs in the IoT market.
- Competitive Landscape includes List of Key Emerging Companies/Technology Disruptors/Innovators and Recent Mergers & Acquisitions
- Competitive profiling and benchmarking of key players in the market to provide deeper understanding of industry competition
We recommend this valuable source of information to anyone involved in:
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- Operations Managers
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- Independent researchers
- BI analysts
- Consultants
- Investment Advisors
- Consultancy firms
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IoT Market Report Overview
The IoT market size will be valued at $925.2 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 13% during 2023-2026. The increasing demand for mobile data connectivity at higher speeds, mainly driven by mobile video consumption, ultra-low latency communication services (e.g., gaming, AR, and VR), and the development of mobile 5G, will support the adoption of IoT.
Although the market is gaining traction, manufacturers of IoT devices face major design challenges. The battery life of IoT products is a serious limitation. Manufacturers face issues in packaging and integration of small-sized chips with less weight and power consumption. Computers are getting smaller, but battery energy remains the same. Players need to come up with better approaches when designing IoT based solutions to handle the costs of digital electronic components and increase the practicality of IoT devices.
IoT Market Outlook, 2019-2026 ($ billion)
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The sector has been able to grow so rapidly partly due to a lack of standards, and consumer awareness regarding the benefits and features of Internet of Things. 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 in the functioning of IoT.
| Market Size (2023) | $925.2 billion |
| Market Size (2026) | $1,334.1 billion |
| CAGR (2023-2026) | 13% |
| Forecast Period | 2023-2026 |
| Historic Data | 2019-2022 |
| Report Scope & Coverage | Revenue Forecast, Competitive Index, Company Landscape, and Growth Trends |
| Type Segment | Consumer IoT, Enterprise IoT |
| Product Segment | IoT Hardware, IoT Software, and IoT Services |
| Region Segment | North America, South & Central America, Europe, Asia Pacific, and Middle East & Africa |
| 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, Healthcare, and others |
| Key Companies | Microsoft, Alphabet, IBM, Samsung, Intel, Qualcomm, Apple, Amazon, Salesforce, and Cisco |
IoT Market Segmentation by Vertical
Internet of Things industry vertical categories include Government, Utilities, Manufacturing, Transport and Logistics, Energy, Insurance, Travel and Leisure, Retail, and Healthcare, among others. As of 2023, the IoT market in the Government category captured the highest market size, accounting for over 25% of the overall market size globally.
In addition, verticals like Utilities, Manufacturing, Transport and logistics, Energy, and Retail captured over 25% of the market size in 2023. 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.
IoT Market Share by Verticals, 2023 (%)
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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 capture a major share of the market by 2026. During the forecast period, the IoT hardware market will witness healthy growth, exceeding a CAGR of 10% from 2023 to 2026.
IoT Market Share by Product Type, 2023 (%)
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The IoT Software segment was the second-largest segment in the market in 2023. According to GlobalData’s Emerging Technology Trends Survey 2020, approximately 50% of the respondents showed a positive sentiment towards benefits of IoT and believed implementation of IoT systems would help them get through the pandemic.The survey polled more than 1,700 senior executives worldwide in the summer of 2020.
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 2023, the Very large enterprises market captured a sizeable market share exceeding 20%, and the segment is anticipated to witness striking growth from 2023 to 2026, recording a CAGR surpassing 12%.
Key growth factors for IoT infrastructure include digital transformation across enterprises, implementation of industry 4.0 standards, traditional industries looking for sustainable operational practices as well as concurrent technological developments such as introduction of 5G networks and adoption of advanced analytics and AI which allow for fast processing of the data collected at various IoT nodes and subsequent action on the same. The huge amount of data collected by IoT devices needs to be analyzed for better user experience giving rise to the use of big data in IoT. Many organizations are adopting cloud-based IoT solutions as they provide better integration, processing, scalability, and security.
IoT Market Share by Enterprise Size, 2023 (%)
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IoT Market Segmentation by Type
Based on type, the Internet of Things market is categorized into consumer IoT and enterprise IoT. In 2023, the enterprise IoT market was the largest segment and is anticipated to witness substantial growth from 2023 to 2026, recording a CAGR surpassing 14%.
Examples of connected things in the consumer IoT domain include Google’s Nest thermostat (which syncs your home heating system with your schedule to increase energy efficiency), the Amazon Echo smart speaker (which plays music, acts as an automated home hub, and provides information on the news and weather, operated by voice command), and connected cars (think of a Tesla, with Autopilot switched on).
The enterprise IoT segment includes the use of IoT in smart cities and IoT in the industrial Internet. Examples of connected things in the enterprise IoT market include Vuzix Blade smart glasses (a connected pair of glasses with augmented reality functionality) and Ordr’s IoT discovery sensor (which can help organizations identify IoT devices on the network that are vulnerable to cyberattacks and data breaches).
IoT Market Share by Type, 2023 (%)
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IoT Market Analysis by Region
Asia Pacific Internet of Things market value will be the highest in 2023, capturing a major portion of the overall market size. The regional demand will be led by the US and China collectively in 2023. The adoption of mobile 5G services supported by increasing demand for mobile data connectivity at higher speeds will drive the regional IoT markets.
Asia Pacific IoT Market Share by Country, 2023 (%)
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Asia Pacific is projected to retain the largest share of the global IoT market value by 2026, with a forecasted growth rate exceeding 14% from 2023 to 2026. Growing demand and implementation of 5G services will favor the proliferation of the IoT market in Asia Pacific. Apart from the Asia Pacific market, the Middle East & Africa IoT market is also expected to witness growth over the near future, registering a CAGR of more than 13% from 2023 to 2026. The US will have the highest market size in the North America IoT market in 2023.
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.
In May 2023, US-based technology company Qualcomm Technologies signed a deal to buy Israel-based chipmaker Autotalks in a bid to expand its automotive business. The acquisition will enable Qualcomm to integrate Autotalks’ V2X solutions with its Snapdragon Digital Chassis product portfolio, which is focused on assisted and autonomous driving. Furthermore, in March 2023, Japanese telecommunications company SoftBank Corp. unveiled a system to monitor the operations of up to 10 autonomous vehicles remotely. SoftBank’s system uses the AI engine to detect abnormal events and situations automatically, making it easy to monitor multiple vehicles at once.
Further, in February 2023, HERE Technologies partnered with Cognizant to provide real-time location insights and analytics to Cognizant’s customers across the retail, ride-hailing, logistics, manufacturing and automotive sectors. Through this partnership, Cognizant will use the HERE location platform’s data visualization and exchange capabilities including access to real-time traffic data, vehicle, weather, and detailed road attribute data to build spatial intelligent solutions for its customers. Vendors in the IoT market are investing heavily on R&D and acquiring latest technologies from startups to remain competitive in the market. 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.
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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.
Scope
This report provides overview and service addressable market for Internet of Things.
It identifies the key trends impacting growth of the market over the next 12 to 24 months.
It includes global market forecasts for the Internet of Things industry and analysis of patents, company filings, and hiring trends.
It contains details of M&A and VF deals in the Internet of Things space.
The detailed value chain consists of five main aspects: IoT Device layer, IoT Connectivity layer, IoT Data layer, IoT Services layer, and IoT App layer
Key Highlights
The global Internet of Things (IoT) market size will be valued at $925.21 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of than 13% during 2022-2026. 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.
Reasons to Buy
This market intelligence report offers a thorough, forward-looking analysis of the global Internet of things market, product type, key vendor outlook, 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 Internet of Things markets.
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 Internet of Things markets.
The broad perspective of the report coupled with comprehensive, actionable detail will help Internet of Things players, investors, and other stakeholders succeed in the growing Internet of Things market globally.
Key Players
Microsoft CorpAlphabet Inc
Samsung Electronics Co Ltd
Intel Corp
Qualcomm Inc
Apple Inc
International Business Machines Corp
Amazon.com Inc
Cisco Systems Inc
Salesforce Inc
Table of Contents
Table
Figures
Frequently asked questions
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What will be the IoT market size in 2023?
The IoT market size will be valued at $925.2 billion in 2023.
-
What is the IoT market growth rate?
The IoT market is expected to grow at a CAGR of 13% during the forecast period (2023-2026).
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What are the key IoT market drivers?
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.
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What are the key IoT market segments?
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
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Which are the leading IoT companies?
Some of the leading IoT companies are Microsoft, Alphabet, IBM, Samsung, Intel, Qualcomm, Apple, Amazon, Salesforce, and Cisco.
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Is there a third level of segmentation in the report?
GlobalData’s focus is on providing reliable and accurate data that is supported by robust research methodology. Our reports undergo rigorous quality checks and are based on primary and secondary research sources, ensuring that the numbers and insights provided are trustworthy. However, despite the best efforts to gather comprehensive data, there could be instances where the available data is limited, making it challenging to provide third level segmentation. In such cases, GlobalData may choose to provide high-level insights and general trends rather than forcing segmentation that may not be backed by sufficient data. This approach ensures that the report’s overall quality and credibility are maintained.
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