IoT Communication Protocol Market Research Report By Device Type (Sensors, Actuators, Controllers, Gateways, Others), By Communication Technology (Wi-Fi, Bluetooth, Zigbee, Cellular (GSM, 3G, 4G, 5G), NFC, Others), By Market Verticals (Industrial Automation, Smart Cities, Healthcare, Retail, Transportation, Energy, Others) and By Region (North America, Europe, South America, Asia Pacific, Middle East and Africa)- Forecast to 2032.

IoT Communication Protocol Market Overview

As per MRFR analysis, the IoT communication protocol market size was estimated at 30.62 (USD Billion) in 2022. The IoT communication protocol market industry is expected to grow from 36.75 (USD Billion) in 2023 to 190.1 (USD Billion) by 2032. The IoT communication protocol market CAGR (growth rate) is expected to be around 20.04% during the forecast period (2024-2032).

Key IoT Communication Protocol Market Trends Highlighted

The surge in IoT device adoption, the need for reliable and efficient communication protocols, and the growing popularity of cloud-based IoT platforms are key drivers fueling the IoT communication protocol market. The proliferation of 5G networks presents opportunities for enhanced connectivity and reduced latency, opening new avenues for IoT communication protocols. Additionally, the growing focus on sustainability and energy efficiency creates opportunities for protocols that optimize power consumption in IoT devices.

The market is witnessing a shift towards open-source and standardized protocols, enabling interoperability and reducing vendor lock-in. The trend towards low-power wide-area networks (LPWANs) and the convergence of cellular and non-cellular technologies are also shaping the landscape. The emergence of AI/ML techniques in IoT communication protocols holds promise for enhanced performance, reliability, and security.

Source Primary Research, Secondary Research, MRFR Database and Analyst Review

IoT Communication Protocol Market Drivers

Rising Adoption of IoT Devices and Applications

The proliferation of IoT devices and applications in manufacturing, healthcare, retail, transportation, and other industries. These devices produce a lot of data that must be communicated in efficient and secure ways.

Advanced communication protocols become more and more in demand due to the rising number of internet of things devices. The proliferation of IoT also drives growth of the IoT communication protocol market because the need for standardized communication protocols becomes more critical.

Advancements in Wireless Technologies

Another major driver of growth for the  IoT communication protocol market is the rapid development of wireless technologies, such as 5G, Wi-Fi 6, and Narrowband IoT. These technologies enable faster data transmission rates, lower latency, and better coverage, all of which make communication between IoT devices more efficient and reliable. As wireless technologies continue to improve, they will become crucial for supporting the increasing number of IoT devices and their applications.

Growing Demand for Smart Cities and Buildings

The increasing focus on developing smart cities and buildings is also driving the growth of the  IoT communication protocol market. Smart cities and buildings utilize IoT devices and sensors to collect data and improve efficiency, safety, and sustainability.

These applications require reliable and secure communication protocols to facilitate data exchange between devices and centralized systems. As the demand for smart cities and buildings grows, so too will the need for robust and interoperable communication protocols.

IoT Communication Protocol Market Segment Insights

IoT Communication Protocol Market Device Type Insights

The  IoT communication protocol market is segmented by device type into sensors, actuators, controllers, gateways, and others. Sensors accounted for the largest revenue share in 2023 and are expected to maintain their dominance throughout the forecast period. The growth of this segment can be attributed to the increasing adoption of sensors in various industries, such as manufacturing, healthcare, and retail.

Actuators are expected to witness the highest growth rate over the forecast period. This growth is attributed to the rising demand for actuators in industrial automation and robotics applications. Controllers are also expected to experience significant growth, owing to their increasing use in smart buildings and homes.

Gateways are expected to witness a steady growth rate, driven by the increasing adoption of IoT devices and the need for data aggregation and management. The market growth is attributed to the increasing adoption of IoT devices and the need for efficient and reliable communication protocols. The market is expected to be driven by the growing demand for IoT devices in various applications, such as smart homes, smart cities, and industrial automation.

Source Primary Research, Secondary Research, MRFR Database and Analyst Review

IoT Communication Protocol Market Communication Technology Insights

The IoT communication protocol market is segmented by communication technology into wi-fi, Bluetooth, Zigbee, cellular (GSM, 3G, 4G, 5G), NFC, and others. Wi-fi held the largest market share in 2023, accounting for over 40% of the revenue. This is due to its wide range, high speed, and low cost.

Bluetooth is expected to grow at the highest CAGR during the forecast period, owing to its increasing adoption in wearable devices and home automation applications. Zigbee is another popular protocol for IoT devices, as it is low-power and mesh-based, making it ideal for applications where devices need to communicate over long distances or in difficult-to-reach locations.

Cellular (GSM, 3G, 4G, 5G) protocols are used for IoT devices that need to communicate over long distances or in areas where Wi-Fi or Bluetooth are not available. NFC is a short-range wireless technology that is used for contactless payments and data exchange. Other protocols, such as LoRaWAN and Sigfox, are also gaining traction in the IoT market, as they offer low-power and long-range communication capabilities.

IoT Communication Protocol Market Verticals Insights

The IoT communication protocol market segmentation by market verticals includes industrial automation, smart cities, healthcare, retail, transportation, energy, and others. Among these, industrial automation held the largest revenue share in 2023, owing to the rising adoption of IoT devices and solutions in manufacturing and industrial settings to enhance efficiency, productivity, and safety.

Smart cities are expected to witness significant growth over the forecast period due to increasing government investments in smart city initiatives, such as smart grids, smart transportation, and smart buildings. Healthcare is another key vertical, driven by the growing adoption of IoT-enabled medical devices, remote patient monitoring systems, and telemedicine solutions. Retail, transportation, energy, and others are also expected to contribute to the overall market growth, as IoT applications continue to expand across various industries.

IoT Communication Protocol Market Regional Insights

The IoT communication protocol market is segmented into North America, Europe, APAC, South America, and MEA. North America is expected to dominate the market, followed by Europe and APAC. The growth in North America is attributed to the increasing adoption of IoT devices and the presence of major players in the region.

Europe is also expected to witness significant growth due to the increasing demand for IoT solutions in various industries. APAC is expected to be the fastest-growing region due to the rapid growth of the IoT market in China and India. South America and MEA are expected to witness moderate growth due to the increasing adoption of IoT devices in these regions.

Source Primary Research, Secondary Research, MRFR Database and Analyst Review

IoT Communication Protocol Market Key Players and Competitive Insights

The IoT communication protocol market’s major players are actively focusing on gaining a competitive edge by conducting research and development, expanding their product portfolios, and forming strategic partnerships or acquisitions. The competitive environment is comprised of a mix of traditional market dominators and new entrants.

Leading players respond to their customer’s changing needs and the challenges related to IoT connectivity by continuously developing new solutions. In addition, the number of new entrants and the acquisition rate of smaller players contribute to further intensifying the competitive environment.

Among market leaders, Huawei is a well-known player with a spectrum of IoT communication protocols. The company’s offerings include LPWAN protocols, such as NB-IoT and LTE-M, and proprietary protocols, such as OneLink.

Besides, Huawei is a well-established player in the Chinese IoT ecosystem and is actively expanding its presence in other parts of the world through partnerships with telecommunication operators and device manufacturers. The company’s customer-centric services and continuous innovations make a company an example of competitive resilience with its sizeable portion of the market share.

Another company is Qualcomm. Qualcomm’s IoT connectivity portfolios include mainly cellular technologies, like LTE and 5G, as well as short-range connection, such as Bluetooth and Wi-Fi. Moreover, Qualcomm can provide an end-to-end solution and has its competitive advantage in the form of strong semiconductor offerings. The company also has an established network of partnerships with chip manufacturers and OEMs. The company’s focus on technology leadership and fostering collaborative ecosystems made it a major player in the market.

Key Companies in the IoT Communication Protocol Market Include

• Huawei Technologies


• Arm Holdings


• Texas Instruments


• Intel


• Cisco System


• NXP Semiconductors


• STMicroelectronics


• Thales


• Zebra Technologies


• Wind River


• Ericsson


• Qualcomm


• Samsung Electronics


• IBM

IoT Communication Protocol Market Developments

The IoT communication protocol market is projected to experience significant growth in the coming years, driven by the increasing adoption of IoT devices and the need for reliable and secure communication networks. In 2023, the market is valued at approximately USD 36.75 billion, and it is expected to reach USD 190.1 billion by 2032, exhibiting a CAGR of 20.04% during the forecast period.

The market’s growth is attributed to the rising demand for IoT devices in various industries, including manufacturing, healthcare, transportation, and smart cities. Additionally, the advancements in communication technologies, such as 5G and NB-IoT, are expected to further boost market growth. Key market players are focusing on developing innovative communication protocols that offer high bandwidth, low latency, and enhanced security features.

IoT Communication Protocol Market Segmentation Insights

IoT Communication Protocol Market Device Type Outlook

• Sensors


• Actuators


• Controllers


• Gateways


• Others

IoT Communication Protocol Market Communication Technology Outlook

• Wi-fi


• Bluetooth


• Zigbee


• Cellular (GSM, 3G, 4G, 5G)


• NFC


• Others

IoT Communication Protocol Market Verticals Outlook

• Industrial Automation


• Smart Cities


• Healthcare


• Retail


• Transportation


• Energy


• Others

IoT Communication Protocol Market Regional Outlook

• North America


• Europe


• South America


• Asia Pacific


• Middle East and Africa