Global IOT Solution & Services Market Size, Share, Statistics Analysis Report By Component (Solution [Hardware, Software], Services), By Deployment Mode (Cloud-Based, On-Premise), By Organization Size (Large Enterprises, Small and Medium-Sized Enterprises (SMEs)), By Industry Vertical (Manufacturing, Retail, Healthcare, Energy and Utilities, Transportation and Logistics, Other Industry Verticals), Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2025-2034
- Published date: Jan 2025
- Report ID: 137837
- Number of Pages: 254
- Format:
-
Quick Navigation
- Report Overview
- Key Statistics
- Key Takeaways
- US IOT Solution & Services Market Size
- Key Regions and Countries
- By Component
- By Deployment Mode
- By Organization Size
- By Industry Vertical
- Key Market Segments
- Driving Factor
- Restraining Factor
- Growth Opportunities
- Challenging Factors
- Growth Factors
- Emerging Trends
- Business Benefits
- Key Player Analysis
- Recent Developments
- Report Scope
Report Overview
The Global IOT Solution & Services Market size is expected to be worth around USD 1602.3 Billion By 2034, from USD 330.5 Billion in 2024, growing at a CAGR of 17.10% during the forecast period from 2025 to 2034.
In 2024, North America held a dominant market position, capturing more than a 38.4% share, holding USD 126.91 Billion in revenue. Further, In North America, The United States Dominates the market size by USD 104.0 Bn holding the strong position steadily with a CAGR of 19.5%.
IoT (Internet of Things) solutions and services encompass a comprehensive range of technologies and support mechanisms that enable the connection, management, and analysis of devices embedded with sensors and software.
These interconnected devices communicate and exchange data over the Internet, facilitating real-time monitoring, automation, and enhanced decision-making across various sectors. Services in this domain include the design, deployment, and operation of IoT applications tailored to specific industry needs.
The IoT solutions and services market has witnessed substantial growth in recent years, driven by the increasing adoption of connected devices and the need for efficient data management. This expansion is attributed to advancements in wireless technologies, the proliferation of smart devices, and the growing emphasis on digital transformation across industries.
Key Statistics
IoT in Retail
- The IoT in retail market is projected to grow from $39.52 billion in 2024 to $46.77 billion in 2025, reflecting a CAGR of 18%.
- By 2025, the number of IoT active connections in the retail sector is expected to reach 3.09 million, up from 1.53 million in 2016.
IoT Connectivity Management Platform
- Cellular Connectivity: Including technologies like 2G, 3G, 4G, and 5G, as well as Narrowband IoT (NB-IoT) and LTE-M.
- Non-Cellular Connectivity: Encompassing Wi-Fi, Bluetooth, LoRaWAN, Zigbee, and satellite connectivity.
IoT Services
- The IoT services market is segmented into:
- Professional Services: Such as consulting, deployment and integration services, and support and maintenance services.
- Managed Services: Covering device management, network management, application management, and data management.
- The market for IoT services is expected to grow significantly, with applications in smart buildings, smart manufacturing, smart transport and logistics, smart healthcare, smart retail, and smart energy.
IoT Security
The IoT security market includes:
- Types of Security: Network security, endpoint security, application security, and cloud security.
- Applications: Covering sectors such as healthcare & life sciences, infrastructure & cities, industrial systems & sensors, smart home & consumer devices, and transport & urban mobility.
Sector-Specific Growth
- The Industrial IoT segment is expected to see substantial growth due to applications in factory automation and supply chain optimization.
- The automotive sector will also expand significantly with advancements in vehicle-to-everything (V2X) communications and advanced driver-assistance systems (ADAS).
Several key factors are propelling the growth of the IoT solutions and services market. The increasing demand for real-time data analytics and automation in industries such as manufacturing, healthcare, and transportation is a significant driver.
Industries are increasingly deploying IoT devices for applications such as predictive maintenance, supply chain optimization, and remote monitoring. This surge in demand is also fueled by the growing need for regulatory compliance and the desire to gain a competitive edge through technological innovation.
Significant opportunities exist within the IoT solutions and services market, particularly in emerging economies where digital infrastructure is rapidly developing. The expansion of 5G networks is expected to facilitate faster and more reliable IoT connectivity, opening avenues for new applications and services.
The integration of artificial intelligence enables more sophisticated data processing and decision-making, while improvements in cybersecurity measures address concerns related to data privacy and protection. These technological strides are instrumental in building trust and driving further adoption of IoT solutions across various industries.
The number of connected IoT devices is also on the rise, with projections indicating that there will be approximately 18.8 billion connected devices by the end of 2024, and this figure is expected to reach 40 billion by 2030. The growth in connected devices highlights the increasing adoption of IoT technologies across various sectors, including smart manufacturing, healthcare, and transportation.
Key Takeaways
- Market Value: The IoT Solutions & Services Market is expected to grow from USD 330.5 billion in 2024 to USD 1,332 billion by 2034, registering a CAGR of 17.10% over the forecast period.
- By Component: The solutions segment dominates the market, accounting for 74.1% of the overall share.
- By Deployment Mode: Cloud-based solutions lead the market with a 61.8% share, reflecting the growing preference for scalable and flexible IoT platforms.
- By Organization Size: Large enterprises represent the largest segment, contributing 64.0% of the market demand.
- By Industry Vertical: Manufacturing is the leading industry vertical, comprising 21.5% of the market share, driven by the adoption of IoT for automation and predictive maintenance.
- Regional Insights: North America leads the market with a 38.4% share, driven by advanced technological infrastructure and high IoT adoption rates.
- U.S. Market Highlights: The U.S. will contribute USD 104.0 billion to the market in 2024, growing at a robust CAGR of 19.5%, highlighting its strong leadership position in IoT adoption and innovation.
US IOT Solution & Services Market Size
Further, in North America, the United States dominates the IoT Solutions & Services market, holding a substantial market size of USD 104.0 billion in 2024. This strong position is underpinned by a robust compound annual growth rate (CAGR) of 19.5%, reflecting steady and significant expansion.
The U.S. leads due to its advanced technological capabilities, significant investments in IoT innovation, and the presence of major market players driving developments in connected solutions. Key industries such as manufacturing, healthcare, and smart cities are at the forefront of IoT adoption in the U.S., leveraging advanced technologies to optimize operations and deliver value-driven solutions.
Additionally, the growing adoption of 5G connectivity and cloud-based IoT platforms further strengthens the country’s leadership in the regional and global market.
In 2024, North America held a dominant position in the IoT Solutions & Services market, capturing more than 38.4% share and generating approximately USD 126.91 billion in revenue. This strong market position is attributed to the region’s advanced technological infrastructure, high penetration of IoT devices, and widespread adoption of digital transformation initiatives across various industries.
North America’s leadership in innovation and development of IoT platforms continues to drive growth in this segment. The country’s dominance stems from the presence of key IoT players, significant investments in research and development, and a thriving ecosystem for startups and large enterprises alike.
Industries such as manufacturing, healthcare, and retail are leading in IoT adoption, leveraging connected devices to optimize operations and enhance customer experiences. The region benefits from government support for smart city initiatives and industrial IoT (IIoT) deployment, further boosting demand for IoT solutions.
Policies promoting energy efficiency, automation, and data-driven decision-making encourage enterprises to integrate IoT technologies into their operations. Additionally, the availability of reliable cloud infrastructure and advanced communication networks like 5G has accelerated the adoption of IoT applications across North America.
North America’s strong position in the IoT market is also supported by high consumer awareness and demand for connected devices in smart homes, wearable technology, and automotive applications. The region’s commitment to innovation and infrastructure development ensures it will continue to lead the global IoT market in the coming years.
Key Regions and Countries
- North America
- US
- Canada
- Europe
- Germany
- France
- The UK
- Spain
- Italy
- Rest of Europe
- Asia Pacific
- China
- Japan
- South Korea
- India
- Australia
- Singapore
- Rest of Asia Pacific
- Latin America
- Brazil
- Mexico
- Rest of Latin America
- Middle East & Africa
- South Africa
- Saudi Arabia
- UAE
- Rest of MEA
By Component
In 2024, the Solution segment held a dominant market position in the IoT Solutions & Services market, capturing more than 74.1% of the total market share. This leadership can be attributed to the critical role of both hardware and software components in enabling IoT ecosystems.
IoT solutions provide the foundational infrastructure required to connect devices, collect data, and deliver actionable insights, making them indispensable for industries seeking to implement IoT technologies. The hardware sub-segment, which includes sensors, IoT gateways, and communication devices, forms the backbone of IoT systems.
These components are essential for capturing and transmitting data, driving demand across sectors such as manufacturing, healthcare, and logistics. Additionally, advancements in hardware technology, such as energy-efficient sensors and edge devices, have further boosted adoption in the market.
On the other hand, the software sub-segment plays a pivotal role in managing and analyzing the vast amounts of data generated by IoT devices. Platforms that enable real-time monitoring, predictive analytics, and automation are increasingly in demand as businesses look to optimize operations and enhance decision-making processes. The flexibility and scalability offered by these software solutions make them a preferred choice for both large enterprises and small businesses.
By Deployment Mode
In 2024, the Cloud-Based segment held a dominant market position in the IoT Solutions & Services market, capturing more than 61.8% of the total share. This leadership can be attributed to the flexibility, scalability, and cost-effectiveness that cloud-based solutions offer compared to traditional on-premise deployments.
Businesses across industries are increasingly turning to cloud platforms to support their IoT initiatives, allowing them to adapt quickly to changing demands without significant upfront investments in infrastructure. One of the primary advantages of the cloud-based approach is its ability to handle large volumes of IoT data in real-time.
As the number of connected devices continues to grow, organizations require robust platforms capable of managing and analyzing this data efficiently. Cloud-based IoT solutions provide seamless integration with analytics tools and offer the computing power needed for advanced applications such as predictive maintenance, real-time monitoring, and automated workflows.
Additionally, the cloud model enables organizations to scale their IoT deployments easily as their needs evolve. This is particularly beneficial for businesses in dynamic sectors like retail, logistics, and healthcare, where data volumes and processing requirements can fluctuate significantly. Cloud-based IoT solutions also support remote accessibility, allowing businesses to manage operations and gain insights from any location, further driving adoption.
By Organization Size
In 2024, the Large Enterprises segment held a dominant market position in the IoT Solutions & Services market, capturing more than 64.0% of the total share. This dominance is primarily driven by the substantial resources and infrastructure that large organizations have to adopt and integrate advanced IoT technologies.
These enterprises are at the forefront of digital transformation, leveraging IoT to streamline operations, improve productivity, and gain valuable insights from data. Large enterprises typically have complex operations spread across multiple locations, making IoT solutions essential for centralizing control and ensuring efficiency.
For instance, in manufacturing, IoT-enabled devices are used to monitor equipment performance in real-time, reducing downtime and optimizing production. Similarly, in sectors like logistics and supply chain, large organizations rely on IoT to track assets, improve inventory management, and enhance delivery precision.
Another factor contributing to the dominance of large enterprises is their capacity to invest in advanced IoT infrastructure. They are more likely to deploy high-performance hardware and cloud-based platforms, ensuring scalability and seamless integration with existing systems. These organizations also prioritize data security and compliance, often opting for hybrid IoT models that combine on-premise and cloud-based deployments to meet regulatory requirements.
By Industry Vertical
In 2024, the Manufacturing segment held a dominant market position in the IoT Solutions & Services market, capturing more than 21.5% of the total share. This leadership is driven by the rapid adoption of IoT technologies to enhance operational efficiency, reduce costs, and improve productivity in manufacturing operations.
IoT-enabled solutions are transforming traditional manufacturing processes by enabling real-time monitoring, predictive maintenance, and advanced automation. The manufacturing sector benefits significantly from IoT’s ability to provide actionable insights through connected devices and sensors.
These technologies help monitor machinery performance, detect anomalies, and schedule maintenance proactively, minimizing unplanned downtime. Predictive maintenance, in particular, has gained widespread adoption, as it not only reduces costs but also extends the lifespan of critical equipment, making IoT indispensable for manufacturers.
Additionally, the implementation of IoT in manufacturing supports the shift toward Industry 4.0, where smart factories leverage data analytics and automation to optimize production processes. IoT solutions enable seamless integration of machines, systems, and personnel, fostering better decision-making and greater agility in responding to market demands. The use of IoT in supply chain management further strengthens the manufacturing segment, enabling precise tracking of raw materials and finished goods.
Key Market Segments
By Component
- Solution
- Hardware
- Software
- Services
By Deployment Mode
- Cloud-Based
- On-Premise
By Organization Size
- Large Enterprises
- Small and Medium-Sized Enterprises (SMEs)
By Industry Vertical
- Manufacturing
- Retail
- Healthcare
- Energy and Utilities
- Transportation and Logistics
- Other Industry Verticals
Driving Factor
Expansion of 5G Technology Enabling Faster IoT Connectivity
The expansion of 5G networks is a significant driving force in the IoT solutions and services market. 5G technology offers higher speeds, lower latency, and improved reliability compared to existing 4G networks, facilitating real-time communication between IoT devices.
This advancement enables the deployment of complex IoT applications across various industries, including smart manufacturing, connected healthcare, and autonomous vehicles. In smart manufacturing, for instance, 5G connectivity allows for seamless communication between machinery and control systems, enhancing automation and operational efficiency.
Similarly, in healthcare, 5G-enabled IoT devices can support remote patient monitoring and telemedicine services, improving patient outcomes and access to care. The automotive industry also benefits from 5G through the development of connected cars that can communicate with each other and infrastructure in real-time, enhancing safety and enabling autonomous driving capabilities.
Restraining Factor
Security Concerns and Data Privacy Issues
Despite the promising growth of the IoT solutions and services market, security concerns and data privacy issues pose significant challenges. The proliferation of connected devices increases the potential attack surface for cyber threats, making IoT systems attractive targets for malicious actors. Breaches can lead to unauthorized access to sensitive data, operational disruptions, and financial losses.
Data privacy is another critical concern, as IoT devices often collect and transmit personal or confidential information. Without robust security measures, there is a risk of data being intercepted, misused, or inadequately protected, leading to violations of privacy regulations and eroding user trust.
Addressing these challenges requires implementing comprehensive security protocols, including data encryption, secure authentication mechanisms, and regular software updates. Additionally, adherence to data protection regulations and the development of industry standards are essential to mitigate risks and build confidence among users and stakeholders.
Growth Opportunities
Integration of Advanced Technologies
The integration of advanced technologies such as artificial intelligence (AI), machine learning (ML), and edge computing presents significant growth opportunities in the IoT solutions and services market. These technologies enhance the capabilities of IoT systems, enabling more efficient data processing, real-time analytics, and intelligent decision-making.
AI and ML can be applied to IoT data to identify patterns, predict outcomes, and optimize processes across various industries. For example, in predictive maintenance, AI algorithms analyze data from IoT sensors to forecast equipment failures, allowing for proactive maintenance and reducing downtime.
Edge computing complements IoT by processing data closer to the source, reducing latency and bandwidth usage. This is particularly beneficial for applications requiring immediate responses, such as autonomous vehicles and industrial automation.
Challenging Factors
Interoperability and Standardization Issues
Interoperability and standardization issues present significant challenges in the IoT solutions and services market. The diverse range of devices, platforms, and communication protocols used in IoT ecosystems can lead to compatibility problems, hindering seamless integration and data exchange.
Lack of standardization can result in fragmented systems, increased complexity, and higher implementation costs for businesses. It may also impede scalability and limit the potential benefits of IoT deployments.
Addressing these challenges requires collaborative efforts among industry stakeholders to develop and adopt common standards and protocols. Such standardization would facilitate interoperability, reduce complexity, and promote a more cohesive IoT ecosystem, enabling broader adoption and realization of IoT’s full potential.
Growth Factors
Increasing Adoption of IoT Across Industries
Industries such as manufacturing, healthcare, retail, and transportation are increasingly implementing IoT technologies to enhance operational efficiency, reduce costs, and improve customer experiences. For instance, the manufacturing sector utilizes IoT for predictive maintenance and real-time monitoring, leading to increased productivity and reduced downtime.
Similarly, the healthcare industry leverages IoT devices for remote patient monitoring and improved diagnostics, contributing to better patient outcomes. The integration of advanced technologies like artificial intelligence (AI) and machine learning (ML) with IoT systems further propels market growth.
These technologies enable more efficient data processing and intelligent decision-making, enhancing the value proposition of IoT solutions. Additionally, the expansion of 5G networks provides faster and more reliable connectivity, facilitating the deployment of complex IoT applications across various sectors.
Emerging Trends
Integration of AI and IoT
A prominent emerging trend in the IoT market is the convergence of artificial intelligence (AI) and IoT, often referred to as AIoT. This integration enhances the capabilities of IoT devices by enabling intelligent data analysis and decision-making processes.
According to recent research, the combination of AI and IoT is seen as a strong tailwind for the IoT market, with companies increasingly interested in implementing both technologies within their organizations. The AIoT trend is evident in various applications, such as smart homes, where AI algorithms analyze data from IoT sensors to optimize energy consumption and enhance user comfort.
In industrial settings, AI-powered IoT systems predict equipment failures and optimize maintenance schedules, improving operational efficiency. The growing emphasis on IoT solutions is expected to drive further innovation and expansion in the IoT market.
Business Benefits
Enhanced Operational Efficiency
Implementing IoT solutions offers substantial business benefits, particularly in enhancing operational efficiency. By connecting devices and systems, IoT enables real-time monitoring and data collection, facilitating informed decision-making and process optimization. For example, in the manufacturing industry, IoT-driven predictive maintenance can reduce equipment downtime by up to 50%, leading to significant cost savings.
In the retail sector, IoT applications such as smart shelves and inventory management systems help reduce stock discrepancies by approximately 30%, improving inventory accuracy and reducing losses. Additionally, IoT-enabled supply chain management can enhance delivery times by 20%, resulting in improved customer satisfaction and competitive advantage.
Key Player Analysis
IBM has been actively enhancing its IoT capabilities through strategic acquisitions and collaborations. In June 2021, IBM completed the acquisition of Turbonomic, a provider of Application Resource Management and Network Performance Management software. This acquisition aimed to bolster IBM’s AIOps capabilities, enabling businesses to assure application performance using AI and optimize IT resources across hybrid cloud environments.
Cisco has demonstrated a strong commitment to the IoT market through significant acquisitions. In March 2016, Cisco acquired Jasper Technologies, a leading IoT service platform, for $1.4 billion. This acquisition enabled Cisco to offer a comprehensive IoT platform that helps enterprises manage and monetize IoT services on a global scale.
More recently, in March 2024, Cisco completed its largest acquisition to date by purchasing Splunk for $28 billion. Splunk specializes in data analysis and security, and this acquisition is expected to enhance Cisco’s capabilities in managing and securing IoT data across networks, further strengthening its position in the IoT solutions market.
Siemens has been expanding its digital and IoT offerings through strategic acquisitions and partnerships. In June 2022, Siemens acquired Brightly Software, a U.S.-based SaaS provider of asset and maintenance management solutions, for $1.575 billion. This acquisition aimed to enhance Siemens’ digital building operations and accelerate growth in the software market for buildings and infrastructure.
Top Key Players in the Market
- IBM Corporation
- Cisco Systems, Inc.
- Siemens AG
- Microsoft Corporation
- Amazon Web Services, Inc.
- Intel Corporation
- PTC
- Schneider Electric
- ScienceSoft USA Corporation
- HCL Technologies Limited
- Cognizant
- Hitachi Digital Services, LLC
- Other Key Players
Recent Developments
In 2024: Telefónica and Siemens partnered to digitize the Spanish industrial sector using IoT, 5G, and AI, focusing on automation and sustainable production.
In 2024: Sateliot secured €30 million from the EIB to expand its LEO satellite network, enabling global IoT connectivity in remote areas with 5G-NB-IoT technology.
Report Scope
Report Features Description Market Value (2024) USD 330.5 Bn Forecast Revenue (2034) USD 1602.3 Bn CAGR (2025-2034) 17.10% Largest Market North America Base Year for Estimation 2024 Historic Period 2020-2023 Forecast Period 2025-2034 Report Coverage Revenue Forecast, Market Dynamics, Competitive Landscape, Recent Developments Segments Covered By Component (Solution [Hardware, Software], Services), By Deployment Mode (Cloud-Based, On-Premise), By Organization Size (Large Enterprises, Small and Medium-Sized Enterprises (SMEs)), By Industry Vertical (Manufacturing, Retail, Healthcare, Energy and Utilities, Transportation and Logistics, Other Industry Verticals) Regional Analysis North America (US, Canada), Europe (Germany, UK, Spain, Austria, Rest of Europe), Asia-Pacific (China, Japan, South Korea, India, Australia, Thailand, Rest of Asia-Pacific), Latin America (Brazil), Middle East & Africa(South Africa, Saudi Arabia, United Arab Emirates) Competitive Landscape IBM Corporation, Cisco Systems, Inc., Siemens AG, Microsoft Corporation, Amazon Web Services, Inc., Intel Corporation, PTC, Schneider Electric, ScienceSoft USA Corporation, HCL Technologies Limited, Cognizant, Hitachi Digital Services, LLC, Other Key Players Customization Scope We will provide customization for segments and at the region/country level. Moreover, additional customization can be done based on the requirements. Purchase Options We have three licenses to opt for Single User License, Multi-User License (Up to 5 Users), Corporate Use License (Unlimited User and Printable PDF) IOT Solution & Services MarketPublished date: Jan 2025add_shopping_cartBuy Now get_appDownload Sample -
-
- IBM Corporation
- Cisco Systems, Inc.
- Siemens AG
- Microsoft Corporation Company Profile
- Amazon Web Services, Inc.
- Intel Corporation
- PTC
- Schneider Electric SE. Company Profile
- ScienceSoft USA Corporation
- HCL Technologies Limited
- Cognizant
- Hitachi Digital Services, LLC
- Other Key Players
- settingsSettings
Our Clients
Kickstart 2025 with Exclusive Savings
Single User
$6,000
$3,999
USD / per unit
save 24%
|
Multi User
$8,000
$5,999
USD / per unit
save 28%
|
Corporate User
$10,000
$6,999
USD / per unit
save 32%
|
|
---|---|---|---|
e-Access | |||
Report Library Access | |||
Data Set (Excel) | |||
Company Profile Library Access | |||
Interactive Dashboard | |||
Free Custumization | No | up to 10 hrs work | up to 30 hrs work |
Accessibility | 1 User | 2-5 User | Unlimited |
Analyst Support | up to 20 hrs | up to 40 hrs | up to 50 hrs |
Benefit | Up to 20% off on next purchase | Up to 25% off on next purchase | Up to 30% off on next purchase |
Buy Now ($ 3,999) | Buy Now ($ 5,999) | Buy Now ($ 6,999) |