IoT Market Expected to Reach $5,372.46 Billion by 2034

According to a new report published by Allied Market Research, titled, “IoT Market," The IoT market size was valued at $1,425.48 billion in 2024, and is estimated to reach $5,372.46 billion by 2034, growing at a CAGR of 14.1% from 2025 to 2034.

Advancements in industrial-grade digital technology, increase in inclination toward cloud-based IoT software, and rise in need for improved supply chain & customer relation management majorly contribute toward growth of the global IoT market. In addition, IoT offers smart devices that automate homes, an increasingly essential need for customers while enabling people to live and work more efficiently and maintain greater control over their lives, thus augmenting the IoT market growth. Furthermore, IoT provides businesses with a real-time look into how their systems really work, delivering insights into everything from the performance of machines to supply chain and logistics operations, contribute toward the growth of the Internet of Things (IoT) market.

Moreover, the integration of artificial intelligence (AI) and machine learning (ML) with IoT platforms has further accelerated IoT market size growth by enabling predictive maintenance, advanced analytics, and automated decision-making processes. These capabilities empower businesses to minimize downtime, enhance operational efficiency, and optimize resource allocation. For instance, in manufacturing, IoT-enabled smart sensors can predict equipment failure before it occurs, reducing maintenance costs and increasing production uptime.

In the healthcare sector, IoT devices such as remote patient monitoring systems and wearable fitness trackers are transforming patient care by enabling continuous health monitoring, real-time alerts, and data-driven diagnostics. These innovations not only improve patient outcomes but also reduce the burden on healthcare systems by minimizing unnecessary hospital visits, propelling IoT market growth. In addition, in agriculture, IoT applications like smart irrigation systems and soil monitoring tools are helping farmers maximize crop yields and manage resources efficiently, further accelerating the growth of the IoT industry.

Furthermore, the growing adoption of 5G technology, offering faster data speeds, lower latency, and enhanced connectivity, fuels the growth of the Internet of Things (IoT) market. These improvements are crucial for supporting the massive number of devices connected in IoT ecosystems, particularly in applications like autonomous vehicles, smart cities, and industrial automation. As 5G networks become more widespread, they are expected to unlock new possibilities for real-time, data-intensive IoT applications. In addition, the government initiatives and investments in smart infrastructure and digital transformation across both developing and developed countries are playing a pivotal role in accelerating IoT adoption. Programs aimed at building smart cities, upgrading public services, and improving energy efficiency are creating robust demand for IoT solutions. 

On the basis of component, the solution segment attained the highest market share in 2024 in the IoT market, as solutions include essential hardware and software products like sensors, devices, and platforms that are needed to build and run IoT systems. These solutions are the core components that enable connectivity, data collection, and real-time decision-making, making them crucial for industries such as manufacturing, healthcare, and smart cities. Meanwhile, the services segment is projected to be the fastest-growing segment during the forecast period, owing to rise in demand for managing, maintaining, and upgrading their IoT systems. As IoT networks become more complex, the demand for consulting, support, cloud integration, and cybersecurity services continues to rise. 

Region-wise, North America attained the highest IoT market share in 2024 and emerged as the leading region in the IoT market due to North America's strong technology infrastructure, high internet penetration, and leading tech companies that are early adopters of IoT solutions. The region also benefits from high investments in smart homes, industrial automation, and connected healthcare, which further accelerates the market growth. On the other hand, LAMEA is projected to be the fastest-growing region during the IoT market forecast period owing to increasing digital transformation initiatives, expanding internet connectivity, and rising adoption of smart technologies across various industries. Countries like Brazil, South Africa, and the United Arab Emirates are heavily investing in IoT technologies, which is driving strong IoT industy growth in the region.   

Key findings of the study  

• By Component, the solution segment held the largest share in the IoT market for 2024.   

• By Application, the industrial segment held the largest share in the IoT market for 2024.   

• By Deployment, the cloud segment held the largest share in the IoT market for 2024.   

• Region-wise, North America held the largest market share in 2024. However, LAMEA is expected to witness the highest CAGR during the forecast period. 

The key players profiled in the IoT market analysis are Amazon Web Services, Inc., Robert Bosch GmbH, Hewlett Packard Enterprise Development LP, IBM Corporation, Intel Corporation, Microsoft Corporation, Oracle Corporation, SAP SE, Siemens AG, Telefonaktiebolaget LM Ericsson, ABB Ltd., Qualcomm Technologies, Inc., Zebra Technologies Corp, Thales, Advantech Co., Ltd., Hitachi, Ltd., Samsung SDS Co Ltd, Huawei Cloud Computing Technologies Co., Ltd., Alphabet (Google Inc.), and Armis Inc. These players have adopted various strategies to increase their market penetration and strengthen their position in the IoT industry.