Internet of things (IoT) market is Projected to Grow at a CAGR of 22.16% During the Forecast Period 2024 - 2032

Internet of Things (IoT) Market Overview

The Internet of Things (IoT) is a network of physical devices, automobiles, appliances, and other items that are equipped with sensors, software, and network connectivity to gather and exchange information. These "smart objects" can vary from simple "smart home" gadgets like smart thermostats to wearables like smartwatches and RFID-enabled clothes to large industrial machinery and transportation networks. Technologists even imagine complete "smart cities" based on IoT technology. IoT allows these smart devices to interact with one another and with other internet-enabled devices, such as smartphones and gateways, resulting in a massive network of interconnected gadgets capable of exchanging data and performing a variety of functions autonomously. This can range from monitoring environmental conditions on farms to managing traffic patterns using smart vehicles and other smart automotive devices, regulating machinery and processes in factories, and tracking inventory and shipments in warehouses. IoT has many potential uses, and its effect is already being seen in areas such as manufacturing, transportation, healthcare, and agriculture.

The IoT market is estimated to register a CAGR of 22.16% during the forecast period of 2024 to 2032.

MRFR recognizes the following companies as the key players in the global IoT market - NETOBJEX INC, SAMSARA, Amazon Web Services (AWS), AT&T Inc., Cisco Systems, Inc., Google LLC, Oracle Corporation, Dell, Microsoft Corporation, Hitachi Ltd, Huawei Technologies Co. Ltd., IBM Corporation, and Others.

Market Highlights

The global IoT market is expected to register a CAGR of 22.1% during the forecast period and is estimated to reach USD 3,569,884.5 Million by 2032.

The Internet of Things (IoT) market is experiencing significant growth due to the increasing demand for better integration in sectors reliant on sensor-based measurements. In various industries such as healthcare, agriculture, manufacturing, transportation, and smart cities, IoT sensor-based measurements play a significant role. For instance, in healthcare, IoT sensors monitor patient health metrics in real-time and in agriculture, sensors are being integrated to track soil moisture levels and weather conditions for optimized crop growth. Similarly, Manufacturing sectos is also experiencing high demand of IoT based sensors as it relies on IoT sensors for predictive maintenance and quality control.

The Internet of Things (IoT) has changed the way businesses and organizations operate, it has been playing an important role in their transformation. As more industries adopt IoT technologies, the need for effective integration between different systems and devices has become increasingly important. Also, with growing adoption of IoT across the sectors it has become important for market players to address industry-specific needs and requirements. This is being achieved by developing tailored IoT solutions that cater to the unique demands of each sector.

In the healthcare sector, IoT technologies are being increasingly used for patient care, remote monitoring, and operational efficiency. For instance, wearable devices equipped with sensors can continuously monitor vital signs and alert healthcare providers in real-time in case of any abnormalities. This not only improves patient outcomes but also reduces hospital readmission rates and healthcare costs. By addressing the specific needs of healthcare providers such as data security, interoperability, and regulatory compliance, IoT solutions are driving significant growth in this industry. For example, Philips’ remote patient monitoring solutions use wearable sensors and mobile apps to track vital signs and other health indicators, allowing healthcare professionals to monitor patients’ conditions outside of hospital settings.

Segment Analysis

The global IoT market has been segmented based on Component, Connectivity Platform, Organization Size, and end use Industry.

Based on component, the global Internet of Things (IoT) market segmentation includes hardware, software, and Services. The Hardware segment held the majority share in 2022, contributing around ~39.6% to the market revenue. IoT hardware refers to the actual equipment and components that comprise an IoT system. These devices may be sensors, actuators, camera modules, gateways, microcontrollers, or routing devices. Consider components in charge of security, internet and device connectivity (such as IoT protocols), IoT ecosystem activation, and data gathering. An IoT solution's hardware often comprises a network infrastructure for connecting devices. Non-IP Enabled Devices devices do not connect to the internet directly, but their communications are routed through other hardware, such as a field gateway.

Based on Connectivity Platform, the global Internet of Things (IoT) market segmentation includes Cellular, Wi-Fi, Ethernet, Bluetooth, Zigbee and Others. The Wi-fi segment held the majority share in 2022 contributing around ~32.2% to the market revenue. Wi-Fi accounts for 32.1% of all IoT connections. More than half of all Wi-Fi-enabled devices released in 2022 used the most recent Wi-Fi 6 and Wi-Fi 6E technologies, which promise quicker and more stable wireless access. The introduction of these technologies has made communication between IoT devices more efficient, resulting in better user experiences and overall performance. Wi-Fi technology is driving IoT connection in industries including smart homes, buildings, and healthcare.

Based on the Organization Size, the global Internet of Things (IoT) market segmentation includes Small & Medium Enterprise and Large Enterprise. By Organization Size, Large Enterprise segment hold the majority market share in 2022 contributing 65.4% of the market share. Large businesses have already started to reap the benefits of IoT. By incorporating IoT into their operations, these businesses may boost efficiency, save operating costs, and improve decision-making processes. IoT devices generate real-time data, allowing businesses to respond quickly to changes and make data-driven choices.

Based on the end use Industry, the global Internet of Things (IoT) market segmentation includes Manufacturing, Transportation, Logistics, Construction, Healthcare, Automotive, Retail, IT & Telecom, Utility, and Others. By end use Industry, Manufacturing segment hold the majority market share in 2022 contributing 19.6% of the market share. The Internet of Things (IoT) is no longer a luxury in the fast-changing manufacturing industry; it is a requirement. Industry 4.0 introduces technical breakthroughs that help organizations become more adaptive, inventive, and resilient. These capabilities, which range from artificial intelligence to wearables and 3D printing, are creating disruptive IoT use cases in manufacturing while also offering significant ROI. The IoT in the industrial business, also known as IIoT (Industrial Internet of Things), has far-reaching ramifications for operations. This describes how organizations make items, sell to clients, and provide assistance.

Regional Analysis

By Region, the study provides market insights into North America, Europe, Asia-Pacific, Middle East & Africa, and South America. In terms of revenue, Asia-Pacific held the largest share of 38.7% in the Internet of Things (IoT) market in 2022 and is expected to maintain its dominance during the forecast period. IoT adoption is particularly strong in asset-intensive industries such as manufacturing, transportation, and utilities. Whether fixed or mobile, these assets are now part of a linked ecosystem in which they may interact and share critical information with one another. Shipment vehicles, such as trucks and ship boats, are moveable assets that are becoming an important element of the IoT network and have a long-term impact on the logistics business. Even before the phrase "Internet of Things" was invented, the logistics and warehousing sectors were among the first to use linked technologies. This early adoption has allowed these sectors to thrive while also empowering other industrial segments to improve their supply chain management and other end-to-end operations. The Internet of Things in the logistics vertical has transformed the business with better telemetry capabilities and monitoring systems. Clearly, IoT for the logistics industry is a gift. Its deployment has enabled a logistics company to change its operations and get better outcomes. As previously stated, the logistics sector used linked infrastructures even before the term "IoT" was coined.

Smart cities in the construction, smart cities incorporate technology into several parts of city administration such as water management, traffic flow, waste management, public safety, and education to not only raise the quality of life for people but also maximize resources. Keep in mind that smart devices are an extension of the Internet of Things idea to a wide range of community projects. The construction sector benefits from a wide range of IoT (Internet of Things) technologies, which improve efficiency, safety, and resource management.

Key Findings of the Study

• The global IoT market is expected to reach USD 3,569,884.5 Million by 2032, at a CAGR of 22.1% during the forecast period.


• The Asia Pacific region accounted for the fastest-growing global market, imperative factors, such as the significant number of investments in Asia Pacific, making it the primary contributor to the market share.


• Based on component, the hardware segment was attributed to holding the largest market in 2022, with an approximate market share of 39.6%.


• NETOBJEX INC, SAMSARA, Amazon Web Services (AWS), AT&T Inc., Cisco Systems, Inc., Google LLC, Oracle Corporation, Dell, Microsoft Corporation, Hitachi Ltd, Huawei Technologies Co. Ltd., IBM Corporation, and Others are the key market players.