Internet of Things (IoT) Technology Market, by Component (Hardware, Software Solutions and Services), Organization Size, Focus Area (Smart Manufacturing, Smart Energy and Utilities, and Smart Retail) and region (North America, Europe, Asia-Pacific, Middle East and Africa and South America).
The global Internet of Things (IoT) Technology Market size was estimated at USD 1,001.0 billion in 2023 and is projected to reach USD 2,846.1 billion in 2030 at a CAGR of 16.1% during the forecast period 2023-2030.
The Internet of Things (IoT) technology comprises of intelligent devices that are interconnected with the web and are capable of acquiring, examining, and manipulating data from their environment through the aid of embedded systems, which consist of sensors, processors, and communication hardware. Numerous enterprises, spanning across various industries, are progressively transitioning towards IoT technology, with the objective of ameliorating their organizational performance, comprehending their clientele better, providing superior customer services, augmenting decision-making capabilities, and elevating their business's worth.
The Internet of Things market is being driven by several key factors including the availability of low-cost, low-power sensor technology, widespread access to high-speed connectivity, the increasing adoption of cloud-based solutions, and a growing reliance on data processing and analytics. In addition, the worldwide increase in smart city initiatives and the proliferation of connected devices are expected to further fuel the growth of IoT. Furthermore, the emergence of 5G technology is poised to play a key role in driving IoT adoption on a global scale, presenting lucrative opportunities for IoT vendors.
On the other hand, Lack of advancements in communication technology and poor operational efficiency in developing economies may hamper the market growth to some extent.
The Internet of Things (IoT) market has observed significant growth over recent years. However, due to the COVID-19 pandemic outbreak, organizations are swiftly transitioning their operations towards digital platforms. This shift can be attributed to the lifting of lockdown and movement restrictions in public places by governments in the majority of countries, as well as the resumption of travel and tourism, albeit with caution, to boost the local economy and promote market growth. COVID-19 has caused widespread disruption to daily life and has necessitated substantial changes in the policies, priorities, and activities of individuals, organizations, and governments. These changes have served as a catalyst for technology and innovation. Remote working has become the norm for many companies over the past few months, and it will continue to be so wherever possible. This arrangement provides greater flexibility for companies to save on physical spaces, have teams working in different locations, and reduce the time wasted on commuting.
The pandemic had a considerable impact on businesses globally, with nations like India and China bearing the brunt of the virus's outbreak. Advancements in digital technology at an industrial-grade level, a growing inclination towards cloud-based Internet of Things (IoT) software, and an increased need for improved management of supply chain and customer relations all significantly contribute to the expansion of the global IoT market. The utilization of IoT technology enables individuals to live and work more intelligently by providing them with complete control over their lives. Moreover, smart devices that automate homes have become a primary need for customers. Additionally, IoT offers businesses a real-time perspective into the functionality of their systems, providing insights into everything from machine performance to supply chain and logistics operations. Companies can also automate processes and decrease labor costs through the employment of IoT. Furthermore, it reduces waste and enhances service delivery, resulting in cheaper manufacturing and transportation costs. The transparency it provides into customer transactions is expected to create profitable opportunities for global IoT market expansion. These factors have led to the expansion of the market and increased demand for Internet of Things (IoT) Technology solutions.
North America to Dominate the Market