Internet of Things Market Expands with Demand for Smart, Connected Solutions

 Hyderabad, August 1, 2025 – The internet of things market is experiencing sustained growth fueled by widespread digital transformation, integration of smart technologies, and increasing adoption across major industries.

Introduction

The internet of things market stands at USD 1,350 billion in 2025 and is forecast to reach USD 2,720 billion by 2030, advancing at a 15.04% CAGR. The internet of things (IoT) market is undergoing a dynamic evolution, propelled by technological advancements and the growing demand for connected, intelligent devices. With applications spanning agriculture, retail, energy, healthcare, manufacturing, and smart cities, the IoT ecosystem is rapidly expanding. The integration of IoT into operational and consumer environments is not only revolutionizing how data is collected and utilized but also redefining how industries function. As businesses aim to enhance operational efficiency, gain real-time insights, and optimize customer experiences, the IoT market is becoming a cornerstone of digital innovation.

Growing Need for Smart Infrastructure

With the accelerating pace of urbanization and the rise of smart city initiatives, there is a surge in the deployment of IoT-enabled infrastructure. IoT-powered solutions are helping urban planners optimize traffic flows, reduce energy consumption, manage waste more efficiently, and enhance public safety. In sectors like energy and utilities, IoT applications such as smart metering and grid automation are driving efficiency and reducing operational costs. Similarly, the transportation industry is leveraging IoT to enable predictive maintenance, fleet management, and real-time tracking of vehicles and assets.

Technological Advancements Shaping the Market

The internet of things (IoT) market is witnessing rapid innovation, with developments in sensors, edge computing, and 5G connectivity significantly enhancing the capabilities of IoT systems. The adoption of cloud-based platforms and real-time data analytics is enabling organizations to derive actionable insights from large volumes of machine-generated data. As a result, IoT is facilitating smarter decision-making and fostering greater agility in business operations. Moreover, the increasing integration of artificial intelligence (AI) with IoT is amplifying automation and predictive capabilities across diverse industries.

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Segmentation Analysis

By Component
The IoT market is segmented into hardware, software, services, and more. Hardware continues to hold a significant share due to the proliferation of sensors, actuators, and smart devices. Software solutions are also gaining traction as businesses seek scalable platforms for data analysis, visualization, and remote device management. Additionally, managed and professional services are critical in supporting end-to-end IoT deployment and maintenance, especially in large-scale industrial applications.

By End-User Industry
The internet of things (IoT) market serves a diverse array of sectors. In agriculture, IoT enables precision farming, real-time crop monitoring, and automated irrigation systems, resulting in higher yields and reduced resource usage. The retail and e-commerce sectors are employing IoT for inventory management, personalized marketing, and enhancing customer experiences through smart shelves and connected devices. In the energy and utilities sector, smart grids and smart meters are streamlining operations and reducing energy wastage. The healthcare industry is seeing significant gains from IoT in areas such as remote patient monitoring, wearable health devices, and automated diagnostics.

By Application
Key applications driving the IoT market include asset tracking and fleet management, predictive maintenance, smart metering, smart home systems, environmental monitoring, and more. Predictive maintenance is particularly prominent in manufacturing and transportation, where minimizing downtime is critical. Meanwhile, smart metering applications are aiding utility providers in delivering real-time consumption data to consumers, fostering energy conservation and operational transparency.

By Deployment Model
IoT deployment can occur via cloud, on-premises, or hybrid models. The cloud model is preferred for its scalability, remote accessibility, and reduced upfront infrastructure costs. However, on-premises deployment remains relevant in sectors with stringent data security and compliance requirements. Hybrid models are gaining favor as they combine the strengths of both approaches, ensuring flexibility and control.

By Geography
Geographically, North America leads the internet of things market due to its mature digital infrastructure and high technology adoption across industries. Europe follows closely, with strong regulatory support for smart energy and sustainability. The Asia-Pacific region is witnessing the fastest growth, driven by expanding industrialization, growing internet penetration, and large-scale investments in smart city projects, particularly in countries like China, India, and Japan. Latin America and the Middle East & Africa are also adopting IoT technologies in sectors such as agriculture, oil & gas, and transportation.

Key Players Driving the IoT Ecosystem

The internet of things (IoT) market is characterized by a competitive landscape, with several global players offering hardware, software, and service solutions. Key companies include:

  • Cisco Systems Inc. – A leader in IoT networking and cybersecurity, offering end-to-end connectivity and edge computing solutions.

  • Microsoft Corporation – Through Azure IoT, the company enables cloud-native IoT development, device management, and analytics.

  • IBM Corporation – Known for its Watson IoT platform, which delivers AI-powered solutions for industrial automation and data analytics.

  • Amazon Web Services Inc. (AWS) – Provides a wide range of IoT services including device management, analytics, and secure communication.

  • PTC Inc. – Offers ThingWorx, an industrial IoT platform for digital transformation in manufacturing and asset-heavy sectors.

  • Oracle Corporation – Delivers integrated IoT solutions for logistics, fleet, and enterprise asset management.

  • Bosch Software Innovations GmbH – Specializes in IoT software, enabling smart mobility, building automation, and energy management.

  • SAP SE – Focuses on IoT integration with enterprise resource planning (ERP) and analytics systems.

These companies are investing in R&D, strategic partnerships, and ecosystem expansion to deliver scalable, secure, and intelligent IoT solutions tailored to industry-specific needs.

For a complete market analysis, visit the Mordor Intelligence page: https://www.mordorintelligence.com/industry-reports/internet-of-things-iot-market?utm_source=blogger

Market Trends and Outlook

The internet of things market trends point toward a more connected and data-driven world. Innovations such as digital twins, AIoT (AI + IoT), and edge computing are enhancing the real-time responsiveness and efficiency of systems. Cybersecurity remains a focal area, with the rise of connected devices bringing increased exposure to security vulnerabilities. As regulations tighten and businesses place greater emphasis on data protection, vendors are focusing on integrating secure-by-design principles into IoT architectures.

Furthermore, environmental sustainability is emerging as a key driver of IoT adoption. Green IoT initiatives are promoting the use of energy-efficient devices and sustainable practices across industries. IoT is also being deployed for environmental monitoring, air quality assessment, and smart farming, reinforcing its role in achieving broader sustainability goals.

Conclusion

The internet of things market is at the forefront of digital transformation, providing businesses with unprecedented visibility, control, and efficiency. As technology matures and use cases expand, the IoT ecosystem is expected to become more pervasive and intelligent. With continued investment, innovation, and cross-sector collaboration, the market is poised to play a vital role in shaping the future of connected enterprises and smart living.

Location: United States

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