PUBLISHER: KBV Research | PRODUCT CODE: 1501212
PUBLISHER: KBV Research | PRODUCT CODE: 1501212
The Global IoT Technology Market size is expected to reach $1,754 billion by 2031, rising at a market growth of 11.4% CAGR during the forecast period.
The use of sensors comes in various types, such as temperature, humidity, motion, pressure, and proximity, each tailored to capture specific data types. Sensors are used for real-time monitoring and surveillance in IoT applications like smart cities and houses, and industrial facilities. Thus, the Sensor segment garnered $1,59,298.2 million revenue in the market in 2023. Sensors are deployed to collect data from various sources, including environmental conditions, equipment performance, human activity, and other parameters relevant to specific IoT applications.
The major strategies followed by the market participants are Partnerships as the key developmental strategy to keep pace with the changing demands of end users. For instance, In May, 2024, Qualcomm Incorporated came into partnership with Aramco, to create advanced end-to-end IoT solutions tailored to the unique needs of the Kingdom of Saudi Arabia, demonstrating cutting-edge and sustainable digital transformation in the industrial sector. Moreover, In February, 2024, IBM Corporation came into partnership with Wipro Limited. Through this partnership, IBM would develop joint solutions that promote the implementation of robust, reliable, integrated, and enterprise-ready AI systems.
Based on the Analysis presented in the KBV Cardinal matrix, Microsoft Corporation is the forerunner in the IoT Technology Market. In January, 2024, Microsoft Corporation came into partnership with Vodafone Idea Limited. Through this partnership, Microsoft would enhance its strengths in delivering scalable digital platforms to over 300 million businesses, public sector organizations, and consumers throughout Europe and Africa. Companies such as Amazon Web Services, Inc. Cisco Systems, Inc., and Qualcomm Incorporated are some of the key innovators in the IoT Technology Market.
Market Growth Factors
As companies and institutions strive to arrive at better informed judgments, there's a growing reliance on data-driven insights. IoT technology facilitates the collection of vast amounts of data from connected devices and sensors, enabling organizations to analyse this data for valuable insights into customer behaviour, operational efficiency, and market trends. Predictive maintenance uses machine learning algorithms to anticipate equipment failures before they occur, minimizing downtime, reducing maintenance costs, and optimizing asset performance. Thus, the rising demand for collecting, processing, and analysing large volumes of data fuels the growth of the IoT technology market.
As the number of electronic devices, such as smartphones, tablets, wearables, and smart home appliances, continues to increase globally, so does the potential for IoT connectivity. These devices serve as endpoints for IoT solutions, providing the means to collect, transmit, and receive data from the physical world. The increasing prevalence of electronic devices in enterprise environments creates opportunities for IoT solution providers to deliver value-added services, such as predictive maintenance, asset tracking, and supply chain optimization. Thus, the expansion of electronic devices sector worldwide creates a fertile environment for the growth of the IoT technology market.
Market Restraining Factors
Security breaches and privacy incidents erode consumer trust in IoT devices and services. When consumers perceive IoT technology as insecure or invasive of their privacy, they may hesitate to adopt these solutions or discontinue using them altogether. Moreover, IoT devices collect vast amounts of data about users' behaviour, preferences, and activities. Customers are becoming more cautious about disclosing personal information to Internet of Things devices, with IoT devices, especially considering high-profile data scandals involving tech companies. Thus, concerns regarding security and data privacy hinders the IoT technology market.
End Use Outlook
On the basis of end use, the market is classified into industrial and consumer. The industrial segment recorded 58% revenue share in the market in 2023. Industrial organizations are prioritizing digital transformation initiatives to modernize legacy systems, improve operational efficiency, and meet evolving market demands. IoT technology is central to digital transformation efforts by enabling connectivity, data integration, and analytics across the entire value chain.
Component Outlook
By component, the IoT technology market is segmented into software solution, platform, and services. The services segment procured 35% revenue share in the market in 2023. Services in the market encompass a range of offerings including installation, integration, consulting, and maintenance services. The significant revenue share of this segment reflects the complexity and need for expert support in deploying and managing IoT solutions.
Node Component Outlook
On the basis of node component, the market is classified into processor, connectivity IC, sensor, memory device, and logic device. The processor segment recorded 34% revenue share in the market in 2023. As the component that handles data processing and decision-making tasks within IoT devices, processors are fundamental to the performance of IoT systems. The fact that this segment recorded the largest revenue share suggests a high demand for advanced processing capabilities, likely driven by the increasing complexity and sophistication of IoT applications.
Regional Outlook
Region-wise, the market is analysed across North America, Europe, Asia Pacific, and LAMEA. The North America segment garnered 39% revenue share in the market in 2023. North America, especially the United States and Canada, has a well-established technological infrastructure, which supports the deployment and expansion of IoT solutions. This region often leads in technological innovations, including the development and application of IoT technologies in industries such as healthcare, automotive, manufacturing, and smart cities.
The IoT technology market is fiercely competitive, characterized by rapid innovation and diverse applications across industries. Major players like IBM, Cisco, Microsoft, and Amazon Web Services lead the market, leveraging extensive resources to develop comprehensive IoT solutions. The competition is further intensified by numerous startups and smaller companies that focus on niche markets or cutting-edge technologies. Key competitive factors include scalability, security, interoperability, and ease of deployment. Strategic alliances, acquisitions, and partnerships are prevalent as companies aim to bolster their IoT portfolios and market presence.
Recent Strategies Deployed in the Market
List of Key Companies Profiled
Global IoT Technology Market Report Segmentation
By End Use
By Component
By Node Component
By Geography