Consumer IoT Market Outlook – 2030
The global consumer IoT market size was valued at $70.52 billion in 2020 and is projected to reach $292.83 billion by 2030, registering a CAGR of 13.9% from 2021 to 2030.
Consumer IoT is a term used to denote connected gadgets designed for the consumer market, such as smart wearables, smartphones, smart homes, and others that gather and offer information via the Internet. There are various real-life applications of consumer IoT such as home security & smart domestic, personal healthcare, wearable technology, and asset tracking, among others.
The growth of the global consumer IoT market is anticipated to be driven by factors such as the adoption of smart devices, and the rising number of internet users. In addition, growing consciousness about fitness & surge in disposable incomes in emerging economies boosts the overall market growth. However, the increasing risk of data breaches associated with consumer IoT acts as a major restraint for the global consumer IoT industry. On the contrary, increasing government funding in R&D related to IoT and raising favorable government regulations to encourage green buildings is expected to create lucrative opportunities for the consumer IoT industry.
Key Takeaways
- The global consumer IOT market study covers 20 countries. The research includes a segment analysis of each country in terms of value for the projected period.
- More than 1,500 product literature, industry releases, annual reports, and other such documents of major market industry participants along with authentic industry journals, trade associations' releases, and government websites have been reviewed for generating high-value industry insights.
- The study integrated high-quality data, professional opinions and analysis, and critical independent perspectives. The research approach is intended to provide a balanced view of global markets and to assist stakeholders in making educated decisions to achieve their most ambitious growth objectives.
Segment Overview
The global consumer IoT market is segmented into offering, connectivity, end user, and region. By offering, the market is classified into hardware, software, and services. The connectivity covered in the study includes wired, and wireless. Based on end-users, the market is classified into home automation, consumer electronics, automotive, healthcare, and others.
Region-wise, the consumer IoT market trends are analyzed across North America (U.S., Canada, and Mexico), Europe (UK, Germany, France, Italy, and the rest of Europe), Asia-Pacific (China, Japan, India, South Korea, and rest of Asia-Pacific), and LAMEA (Latin America, Middle East, and Africa). North America dominated the consumer IoT market in 2020 and is projected to register a significant growth rate during the forecast period, owing to the growth of the consumer electronics sector. However, Asia-Pacific is expected to witness a significant growth rate by the end of the forecast period, followed by LAMEA.
Leading consumer IoT manufacturers such as Honeywell International Inc., Siemens AG, and Intel Corporation, are focusing on investment in technologically advanced, cost-effective, and more secure products and solutions for various applications.
By Offering
Hardware segment is expected to secure leading position during forecast period.
Top Impacting Factors
The prominent factors that impact the consumer IoT market growth are the high demand for connected & wearable devices and the surge in usage of IoT devices in automotive. In addition, the rise in the growth of wireless platforms drives the consumer IoT market. However, data privacy and security-related concerns restrict the market growth. On the contrary, the surge in demand for IoT devices in the development of smart cities is expected to create lucrative opportunities for the consumer IoT market.
Competitive Analysis
Competitive analysis and profiles of the major consumer IoT market players such as Cisco Systems, Inc., Honeywell International Inc., Infineon Technologies, Intel Corporation, International Business Machines Corporation (IBM), Microsoft Corporation, NXP Semiconductors, Siemens AG, STMicroelectronics, and TE Connectivity Ltd. have been covered in the report. These key players have adopted strategies, such as product portfolio expansion, mergers & acquisitions, agreements, regional expansion, and collaboration, to enhance their market penetration.
By End User
Home Automation segment is projected as one of the most lucrative segments.
Key Market Dynamics
The consumer IoT market is experiencing robust growth, driven primarily by the increasing demand for smart home devices and the desire for enhanced connectivity and automation in daily life. As consumers become more tech-savvy, the appeal of devices that provide convenience, energy efficiency, and improved security continues to rise. Innovations in artificial intelligence and machine learning are further enhancing the functionality of IoT devices, making them more intuitive and user-friendly. The proliferation of high-speed internet and the expansion of 5G networks are also enabling seamless connectivity, allowing consumers to control and monitor devices from anywhere, thus fueling market adoption.
Moreover, the growing awareness of energy conservation and smart living is creating significant opportunities for businesses in this space. Companies can capitalize on the rising trend of sustainable living by developing IoT solutions that promote energy efficiency and resource management. The integration of IoT technology into various sectors, such as healthcare, automotive, and retail, opens new avenues for growth, allowing for more personalized and efficient services. Additionally, partnerships between technology firms and traditional industries can accelerate innovation and broaden the consumer base. As the market evolves, there will be increasing opportunities for companies that focus on security, data privacy, and interoperability, ensuring that consumers feel confident in adopting these technologies. Overall, the consumer IoT market presents a dynamic landscape filled with growth potential, driven by technological advancements and changing consumer preferences.
Regional/Country Market Outlook
North America: The U.S. remains a leading market for consumer IoT, driven by high consumer demand for smart home devices and robust infrastructure supporting advanced technologies. The proliferation of connected devices, such as smart thermostats, security systems, and wearables, is fueled by a tech-savvy population and a strong focus on convenience and energy efficiency.
Europe: In Europe, countries like Germany and the UK are experiencing significant growth in consumer IoT due to increasing awareness of smart living and energy efficiency. The integration of IoT solutions in everyday life, from smart appliances to security systems, is being encouraged by supportive government policies and initiatives aimed at digital transformation.
Asia-Pacific: China is at the forefront of the consumer IoT market, thanks to rapid urbanization and a burgeoning middle class. The widespread adoption of smart home devices, wearables, and health monitoring technologies is notable in cities like Beijing and Shanghai. Additionally, advancements in 5G technology are enhancing connectivity and expanding IoT applications.
LAMEA: In Latin America, Brazil, and Mexico are witnessing rising demand for consumer IoT products, driven by improving internet access and a growing focus on smart technologies. Meanwhile, in the Middle East, countries like the UAE and Saudi Arabia are rapidly adopting consumer IoT solutions due to investments in smart city projects and a growing tech-savvy population, enhancing the overall market landscape.
By Region
Asia-Pacific would exhibit the highest CAGR of 16.3% during 2021-2030
Report Coverage & Deliverables
The global consumer IoT market is segmented into offering, connectivity, end user, and region. By offering, the market is classified into hardware, software, and services. The connectivity covered in the study includes wired, and wireless. Based on end-users, the market is classified into home automation, consumer electronics, automotive, healthcare, and others.
Offering Insights
The hardware, software, and services are integral to creating a cohesive and efficient ecosystem. Hardware serves as the foundation, providing the physical devices that enable connectivity and automation in daily life. As technology advances and becomes more affordable, consumers are more inclined to invest in smart devices that enhance convenience and energy efficiency. Software plays a crucial role in managing and optimizing these devices, offering platforms that enable seamless communication and control. The trend towards interoperability is essential, as it allows different devices to work together, enhancing user experience. Finally, services are vital for ensuring the longevity and functionality of IoT solutions. As consumers increasingly rely on smart technologies, the demand for installation, maintenance, and cloud services rises, with many seeking expert support to navigate the complexities of their IoT ecosystems. Together, these segments not only enhance the consumer experience but also drive innovation and growth in the market.
Connectivity Insights
In the consumer IoT market, wired connectivity offers stability and reliability, making it ideal for applications requiring consistent performance, such as smart home security systems and industrial automation. Its importance lies in providing a robust connection that minimizes latency and interference. On the other hand, wireless connectivity including Wi-Fi, Bluetooth, and cellular networks enables greater flexibility and mobility, allowing users to connect devices easily and control them remotely. The trend toward wireless solutions is driven by the increasing demand for convenience and ease of use, making smart devices more accessible and enhancing user engagement. Both segments are crucial for creating a seamless and efficient IoT ecosystem.
End User Insights
Home automation is a major driver, as consumers seek convenience, energy efficiency, and enhanced security through smart devices like thermostats and security systems. The trend toward connected living solutions is bolstered by advancements in artificial intelligence, resulting in more intuitive user experiences. In consumer electronics, IoT integration into gadgets such as smart TVs and wearables enhances functionality and connectivity, appealing to a tech-savvy audience eager for seamless device integration. The automotive sector is also experiencing significant growth, with connected cars and telematics becoming essential as consumers prioritize safety and convenience. The rise of electric and autonomous vehicles further accelerates the adoption of IoT solutions. In healthcare, the pandemic has propelled the use of IoT devices for remote monitoring and telehealth services, emphasizing accessibility and efficiency in patient care. This focus on preventive health and personalized solutions drives demand in the sector. Collectively, these trends highlight the increasing consumer desire for connectivity, convenience, and efficiency, making the consumer IoT market a vital component of modern living.
Regional Insights
The Asia-Pacific region shows significant growth in the consumer IoT market, primarily driven by China’s rapid urbanization and widespread adoption of smart devices. The increasing middle-class population, along with advancements in 5G technology, enhances connectivity and promotes smart home solutions. North America also remains a strong market due to the high demand for home automation and consumer electronics, fueled by a tech-savvy population. Collectively, these factors position these regions as leaders in consumer IoT adoption and innovation.
Key Strategies and Developments
- In March 2023, Skylo Technologies, a Non-Terrestrial Network (NTN) service operator, partnered with Monogoto, a cloud-based cellular network provider, to deliver an affordable solution for NB-IoT satellite connectivity tailored for asset tracking products. By integrating the same hardware for both terrestrial and satellite communication, this collaboration aims to enhance connectivity in previously unreachable areas, complemented by regular software updates enabled by the throughput of terrestrial networks.
- In December 2022, Alliot Technologies joined forces with Vodafone UK to offer NB-IoT connectivity across the UK. This partnership will significantly enhance Alliot’s capabilities with increased scale, innovation, and efficiency. As a result, Alliot plans to invest in cutting-edge technology to ensure an exceptional experience for its customers, positioning itself as the UK's sole provider of NB-IoT connectivity.
Key Benefits for Stakeholders
- This study comprises an analytical depiction of the global consumer IoT market size along with the current trends and future estimations to depict the imminent investment pockets.
- The overall consumer IoT market analysis is determined to understand the profitable trends to gain a stronger foothold.
- The report presents information related to key drivers, restraints, and opportunities with a detailed impact analysis.
- The current consumer IoT market forecast is quantitatively analyzed from 2020 to 2030 to benchmark the financial competency.
- Porter’s five forces analysis illustrates the potency of the buyers and the consumer IoT market share of key vendors.
- The report includes the market trends and the market share of key vendors.
Consumer IoT Market, by Offering Report Highlights
| Aspects | Details |
 By OFFERING |
|
 By CONNECTIVITY |
|
 By END USER |
|
 By Region |
|
 Key Market Players | INTEL CORPORATION, TE Connectivity Ltd., NXP SEMICONDUCTORS N.V., MICROSOFT CORPORATI, INFINEON TECHNOLOGIES AG, STMICROELECTRONICS N.V., Honeywell International Inc., Cisco Systems, Inc., Siemens AG, International Business Machines Corporation (IBM) |
Analyst Review
The global consumer IoT market is flourishing at a rapid pace. However, data privacy and security related issues are still a concern for new entrants. Market players are generously investing in R&D activities to develop improved components so as to increase security level of consumer IoT products. Also, according to industry experts, it is essential to optimize affordable prices for consumer IoT products for long-term growth.
The growth of the global consumer IoT market is anticipated to be driven by factors such as adoption of smart devices, and rising number of internet users. In addition, growing consciousness about fitness & surge in disposable incomes in emerging economies, boosts the overall market growth. However, increasing risk of data breaches associated with consumer IoT acts as a major restraint for the global consumer IoT industry. On the contrary, increasing government funding in R&D related to IoT and rising favorable government regulations to encourage green buildings is expected to create lucrative opportunities for the consumer IoT industry.
The key players of the market focus on introducing technologically advanced products to remain competitive in the market. Acquisition, partnership, and product launch are expected to be the prominent strategies adopted by the market players. North America accounted for a major share of the market in 2020, owing to presence of major players in the region; however, Asia-Pacific is expected to witness growth at the highest CAGR, owing to rise in adoption of consumer IoT in a variety of fields.
The consumer IoT market is estimated to grow at a CAGR of 13.9% from 2021 to 2030.
The consumer IoT market is projected to reach $292.83 billion by 2030.
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Adoption of smart devices, Rising number of internet users, Connected & wearable devices, and surge in usage of IoT device in automotive.
The key players profiled in the report include Cisco Systems, Inc., Honeywell International Inc., Infineon Technologies, and many more.
On the basis of top growing big corporations, we select top 10 players.
The consumer IoT market is segmented on the basis of offering, connectivity, end user, and region.
The key growth strategies of consumer IoT market players include product portfolio expansion, mergers & acquisitions, agreements, regional expansion, and collaboration.
Automotive segment would grow at a highest CAGR of 15.8% during the forecast period.
Asia-Pacific region will dominate the market by the end of 2030.
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