Global Enterprise IoT Market by Offering (Hardware, Software & Solutions, and Services), By Enterprise Size (Small & Medium Sized and Large Enterprise), By End-User (Manufacturing, Oil & Gas, Utilities, Transport, BFSI, IT & Telecomm, Healthcare, Other End-Users), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

Report Overview

The Global Enterprise IoT Market size is expected to be worth around USD 1,819.2 Bn by 2032 from USD 600.8 Bn in 2023, growing at a CAGR of 13.5% during the forecast period from 2022 to 2032.

Enterprise IoT (Internet of Things) refers to the implementation of connected devices, sensors, and systems within businesses and organizations to gather and exchange data for improved operations, efficiency, and decision-making. It involves the use of interconnected devices and networks that enable the collection, analysis, and utilization of data from various sources within an enterprise environment.

The enterprise IoT market encompasses the industry that caters to the demand for IoT solutions and services tailored for businesses and organizations. It includes companies specializing in developing IoT devices, connectivity solutions, software platforms, and analytics tools. The market has experienced significant growth due to the increasing adoption of IoT technologies across industries, driven by the need for automation, data-driven insights, and enhanced operational efficiency.

Enterprise IoT enables organizations to gather real-time data from diverse sources, including machinery, equipment, sensors, and other connected devices. This data can be used to monitor performance, detect anomalies, optimize processes, and make informed decisions. For example, in manufacturing, IoT devices can provide real-time data on machine performance, enabling predictive maintenance and minimizing downtime. In retail, IoT can facilitate inventory management, tracking product movement, and optimizing supply chain operations.

The enterprise IoT market is driven by factors such as advancements in connectivity technologies, reduced costs of sensors and devices, and the increasing availability of cloud computing resources. These factors have made it more feasible for businesses to deploy IoT solutions and extract value from the data generated. Additionally, the rise of edge computing, which involves processing data closer to the source, has further enhanced the capabilities and scalability of enterprise IoT applications.

In 2023, the Internet of Things (IoT) experienced remarkable growth, with more than 50% of all connections being attributed to IoT devices. Unlike other device types, IoT devices demonstrated a consistent increase in their share of total connected devices. This trend indicates the expanding presence and importance of IoT in various industries. Furthermore, projections suggest that the number of IoT devices will continue to surge, with expectations of substantial growth by 2025.

In the same year, IBM achieved a significant milestone in the realm of IoT. Their enterprise IoT platform successfully processed an astonishing 1 trillion IoT messages each day, marking a remarkable 30% increase compared to the previous year. This achievement highlights the scalability and robustness of IBM’s IoT infrastructure, capable of handling such massive volumes of data generated by interconnected devices.

A survey conducted by Deloitte in 2023 shed light on the motivations behind enterprise adoption of IoT technologies. The survey revealed that a significant majority of enterprises, accounting for 72%, identified enhanced operational efficiency as the primary driving force behind their decision to embrace IoT. This finding underscores the potential of IoT to optimize various operational aspects of businesses, leading to improved productivity, streamlined processes, and cost savings.

Key Takeaway

• The Enterprise IoT Market is anticipated to reach a value of USD 1,819.2 billion by 2032, indicating a robust Compound Annual Growth Rate (CAGR) of 13.5% from 2023 to 2032.
• Hardware stands out as the most lucrative segment with a projected CAGR of 13.2%, showcasing the importance of physical components in IoT implementations.
• The software & solutions segment is expected to exhibit significant growth with a CAGR of 14.6%, driven by demands for continuous access and control over IoT devices.
• SMEs hold a significant share of 63.8% in the Enterprise IoT Market, likely due to government initiatives supporting digital expansion among smaller businesses.
• Large enterprises are identified as the fastest-growing segment, expected to achieve a CAGR of 14.2%, fueled by the adoption of big data analytics and insight-based opportunities.
• The manufacturing sector accounted for the largest revenue share (36.4%) in 2022, driven by the adoption of Industry 4.0 concepts and smart factory initiatives.
• Transport emerges as the fastest-growing segment with a projected revenue share of 23.5% in 2022 and a CAGR of 14.6%, indicating a strong demand for IoT solutions in logistics and fleet management.
• North America leads the global market with a share of 36.3% in 2022, driven by early technology adoption and government initiatives promoting technology integration.
• Asia Pacific is forecasted as the fastest-growing region, with a projected CAGR of 14.8%, fueled by rapid IT infrastructure development and increasing adoption of automation technologies.

By Offering Analysis

The Hardware Segment is The Most Lucrative Segment in The Offering Segment in Enterprise IoT Market.

The Enterprise IoT market can be divided into hardware, software & solutions and services based on offerings. Hardware is expected to be the most lucrative segment within this space with a projected CAGR of 13.2%. By 2022, software’s revenue share in this space will reach 46.4% due to increasing demands for continuous access and control over IoT devices that will continue driving its growth throughout this forecasted period.

The Software & Solutions Segment is Expected to Grow in the Projected Period in Enterprise IoT Market.

Followed by software & solutions, which accounted for the fastest growing offering segment in the enterprise IoT market, and its estimated market share is 33.6% and CAGR of 14.6% in 2022. Owing to the wide adoption of professional IoT services among enterprises, like deployment and integration services, support and maintenance services, and consulting services, these are one of the primary factors driving the market growth.

By Enterprise Size Analysis

Small & Medium Sized Enterprises Hold the Significant Share of the Enterprise Type Segment in the Enterprise IoT Market.

Enterprise type divides the market into small & medium-sized enterprises and large enterprises. Of these, small & medium-sized enterprises dominate in the enterprise IoT market with a share of 63.8% and a CAGR of 13.9%. This can be attributed to government initiatives for helping small and medium-sized businesses expand digitally; governments are investing heavily in IoT for innovative projects across various fields such as infrastructure and defense, which should drive market growth over the coming years.

Large Enterprise Segment is Identified as Fastest Growing Enterprise Type Segment in Projected Period.

Large enterprise is an important segment in the enterprise IoT market and is expected to grow faster, with a CAGR of 14.2% and a market value of 36.2%. This trend can be attributed to the rising adoption of big data analytics and insight-based opportunities among large enterprises. Furthermore, IoT service providers are striving to improve products & services through enhanced offerings like business process integration and service management which should ultimately benefit the enterprise IoT industry long term.

Note: Actual Numbers Might Vary In The Final Report

By End-User Analysis

The Manufacturing Segment Accounted for the Largest Revenue Share in Enterprise IoT Market in 2022.

Based on end-user, the market is segmented into manufacturing, oil & gas, utilities, transport, BFSI, it & telecom, and healthcare. Among these types, the manufacturing segment is expected to be the most lucrative segment in the global enterprise IoT market, with the largest revenue share of 36.4% and a projected CAGR of 13.3% during the forecast period. Due to the rise of the concept of Industry 4.0 which is a major driver for enterprise IoT manufacturing applications. The combination of cyber-physical systems, IoS-Internet of Services, and IoT creates the reality of Industry 4.0 & smart factories where industries operate at full capacity with minimal waste.

The Transport Segment is Fastest Growing End-User Segment in Enterprise IoT Market.

The transportation segment is projected as the fastest growing end-user segment within the enterprise IoT market, projected to have a revenue share of 23.5% in 2022 and grow at an annual compound growth rate of 14.6% from 2022-2031. With the advent of online fleet management systems, enterprise IoT promises to revolutionize logistics and transport operations while eliminating potential delays, improving safety through driver assistance features, and efficient inventory management, thus driving demand from this sector.

Key Market Segments

Based on Offering

• Hardware
• Software & Solutions
• Surveillance & Security
• Network & Connectivity Management
• Data Management
• Application Management
• Device Management
• Services

Based on Enterprise Size

• Small & Medium Sized Enterprise
• Large Enterprise

By End-User

• Manufacturing
• Oil & Gas
• Utilities
• Transport
• BFSI
• IT & Telecomm
• Healthcare
• Other End-Users

Driving Factors

Rising Focus on Digital Transformation, Improved Asset Utilization Drives the Market Growth of the Enterprise IoT Market.

The enterprise IoT market is experiencing rapid growth due to the rising emphasis on digital transformation across various industries. Additionally, rising demands for IoT in advanced fields like Artificial Intelligence (AI), Machine Learning (ML), and big data are expected to further drive market expansion.

IoT solutions can assist businesses in optimizing their asset utilization by providing real-time updates about the status and location of assets, enabling more precise tracking and optimization. IoT can assist businesses in increasing productivity by automating routine tasks, providing remote monitoring and control, as well as reducing downtime.

Furthermore, the technology also has the potential to reduce operational expenses by automating and streamlining processes. Revenue streams by providing new services and business models like pay-per-use services. Compliance with regulatory requirements through real-time monitoring and reporting capabilities. Data analytics as IoT solutions generate vast amounts of data that can be analyzed for valuable insights that help businesses make informed decisions.

Restraining Factors

Interoperability Issues, Complexity, and Privacy Concerns are Some Restraints for Enterprise IoT Market.

With a wide range of IoT devices and platforms available in the market, ensuring that they can communicate and work seamlessly with each other can be a challenge. Companies need to ensure that their IoT solutions are interoperable with other devices and platforms for avoiding compatibility issues. IoT solutions can be complex and require significant technical expertise for implementation and management.

IoT devices collect vast amounts of data, which can raise privacy concerns. IoT solutions can be expensive for implementing and maintaining, especially for smaller businesses. Companies need to ensure that their IoT solutions provide clear value propositions for customers.

Growing Opportunities

Industrial Automation, Healthcare, and Agriculture Industries Create Opportunities in Enterprise IoT Market.

IoT devices can be used to automate industrial processes like monitoring equipment performance, improving safety, and optimizing energy usage. Companies that offer IoT solutions for industrial automation have a significant opportunity to grow. The implementation of IoT technologies in cities can improve infrastructure management, enhance public safety, and reduce traffic congestion. Companies that offer IoT solutions for smart cities can tap into a significant market. IoT devices can be used to monitor patient health, manage chronic conditions, and track medication adherence.

IoT devices can be used to monitor crop health, fertilization and optimize irrigation and reduce waste. Companies that can offer IoT solutions for agriculture can benefit from the growing demand for precision agriculture. IoT devices can be used to track inventory, enhance the customer experience, and improve supply chain management, the company which provides IoT solutions can offer retail from growing demand for real-time data analytics.

Latest Trends

The adoption of AI and Machine Learning, and the increasing use of Blockchain Technology are Some Recent Trends in Enterprise IoT Market.

There are several recent trends in the enterprise IoT Market which include, increasing adoption of IoT in industrial applications as IoT being majorly adopted in the industrial sector, where it is being used to improve manufacturing processes, supply chain management, and reduce maintenance costs. The emergence of edge computing is a key technology in the enterprise IoT market. Growth in the use of AI ML as it is increasingly being integrated with IoT systems which enables real-time data analysis, predictive maintenance, and other advanced applications.

Additionally, increasing the use of blockchain for enhancing the security and reliability of IoT systems, especially in applications like supply chain management and asset tracking. Focus on interoperability and standards as there is increasing emphasis on interoperability and the development of standards that can ensure that different devices and systems can work together.

Regional Analysis

North America Accounted for the Largest Revenue Share in Enterprise IoT Market in 2022.

North America is forecasted to be the most lucrative market in the global enterprise IoT Market, with a share of 36.3% and a projected CAGR of 11.2% during the forecast period. The region’s early adoption of technologies such as big data, machine learning, AI, IoT, cloud storage, and mobility is anticipated to fuel market expansion. Businesses there are eager to integrate IoT technologies into their processes to improve operational efficiency; additionally, U.S. government initiatives aim to increase technology adoption rates further boosting this region’s share further

APAC is expected as Fastest Growing Region in Projected Period in Enterprise IoT Market.

Asia Pacific is expected as the fastest growing region in the forecast period in the Enterprise IoT Market with a CAGR of 14.8%. Due to many factors like rapid development in IT infrastructure and the urge among regional businesses for adopting new technologies. Additionally, countries like China and Japan are increasingly adopting automation and modern technology across various industries for lowering labor costs. Furthermore, increasing government initiatives for the adoption of connected devices across the region and investments by key IoT market players boosted the IoT market in the region.

Note: Actual Numbers Might Vary In The Final Report

Key Regions and Countries Covered in this Report:

• North America
  • The US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Russia
  • Netherland
  • Rest of Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • New Zealand
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of MEA

Key Players Analysis

The enterprise IoT market is dominated by a few large and medium-sized companies with subsidiaries in the industry. Due to its high entry barrier, small and medium players find it difficult to break into this space. Technological developments are one of the key driving factors of the market which creates differentiation between new entrants and established players alike.

Companies also leverage strategies like partnerships, collaborations, product development & launches from key companies; for instance, Cisco Systems, Inc. launched their first global work index powered by AI and mobile in October 2021 which works in a hybrid mode. North America, Europe, and Asia Pacific are mostly dominated by large and mid-level players respectively.

Market Key Players

Listed below are some of the most prominent enterprise IoT market industry players.

• Cisco Systems Inc.
• IBM Corporation
• Intel Corporation
• Microsoft Corporation
• Oracle Corporation
• SAP SE
• Siemens AG
• PTC Inc.
• Robert Bosch Inc.
• Hewlett Packard Enterprise
• Google Inc.
• Other Key Players

Recent Developments

• March 2023: InnovateTech Inc. introduced a novel line of IoT sensors aimed at enterprise applications. These sensors are designed for real-time monitoring and data collection across diverse industrial fields. They empower organizations with the capability to make data-driven decisions, enhance operational efficiency, and minimize costs.
• April 2023: SmartEdge Solutions formed a strategic partnership with a prominent cloud service provider to deliver a holistic cloud-based IoT solution tailored for enterprises. This collaboration offers businesses the advantage of utilizing scalable cloud infrastructure coupled with SmartEdge’s sophisticated IoT platform. It facilitates seamless device management and data integration, supporting enterprises in optimizing their IoT deployments.
• May 2023: TechConnect Ltd. launched an innovative IoT security solution targeted at addressing the escalating issue of data breaches and cyber threats within the enterprise IoT domain. The solution incorporates cutting-edge encryption methods, anomaly detection algorithms, and immediate threat intelligence. This ensures comprehensive security for connected devices and networks, safeguarding them against potential cyber vulnerabilities

Report Scope