IOT Platform Market Analysis

IoT Platform Market Overview

The IoT Platform Market size is projected to grow from USD 199.6 Million in 2024 to USD 1,089.6 Million by 2032, exhibiting a compound annual growth rate (CAGR) of 23.6% during the forecast period (2024 - 2032). Additionally, the market size for the IoT platform was valued at  USD 160.7 Million in 2023.

IoT Platform, Increased demand in automotive testing and Increasing TIC in medical equipment industry are the key market drivers boosting the growth of the IoT Platform market. As per Analyst at MRFR, “The key element of an IoT architecture that unites the physical and virtual realms and permits object-to-object communication while controlling data flows is an IoT platform. They also offer basic analytics and application development support for Internet of Things devices that are connected.”

Figure 1: IOT Platform Market Size, 2022-2032 (USD Billion)

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

IoT Platform Market Drivers

The rise in use of smart connected devices is expected to drive market growth.

The growth of the IoT platform market is attributed to the increasing adoption of smart connected devices across various industries. According to a report by Forbes, almost 47% of energy sector executives indicate they have implemented IoT across functions; data sources for energy include the use of machinery (49%) and robots (46%); IoT is deployed by 45% of energy companies to monitor asset performance; 43% of energy companies use IoT to enhance customer experiences, and 40% of energy companies reported an overall boost in productivity.

According to a recent study by Cogzinant, manufacturing-intensive industries lead in IoT deployment. Over half of IoT leaders (53%) come from five manufacturing-intensive industries: consumer goods, life sciences, manufacturing, oil and gas and utilities. As more devices become connected to the internet, the demand for IoT platforms is anticipated to rise.

IoT platforms play a crucial role in enabling the seamless integration, management, and analysis of data generated by these interconnected devices.  The rise in number of smart connected devices is driven by the proliferation of smart home devices. Smart home technology, including thermostats, security cameras, lighting systems, and appliances, has become increasingly popular among consumers looking to enhance convenience, security, and energy efficiency in their homes. These devices rely on IoT platforms to connect and communicate with each other, enabling users to control and monitor them remotely through smartphones or voice assistants.

Another significant factor resuting in the rise of smart connected devices is rapidly increasing adoption of Industrial IoT (IIoT) solutions in manufacturing, logistics, healthcare, and other sectors. IIoT applications leverage connected sensors, machines, and equipment to optimize operations, improve productivity, and enable predictive maintenance. IoT platforms serve as the backbone of IIoT ecosystems by collecting real-time data from diverse sources, analyzing it for insights, and triggering automated actions based on predefined rules. Moreover, the growth of the automotive industry is accompanied by the rising adoption of smart connected devices which in turn is anticipated to propel the growth of the market.

In automotive sector increasing use of IoT technologies is being carried out to enable connected vehicles with advanced features such as telematics, infotainment systems, and autonomous driving capabilities. IoT platforms play a critical role in supporting vehicle-to-vehicle (V2V) communication, vehicle-to-infrastructure (V2I) connectivity, and data exchange between vehicles and cloud-based services. These capabilities enhance road safety, traffic management, and overall driving experience.

IoT Platform Market Platform Segment Insights

IoT Platform Insights

Based on platform, the global IoT Platform market segmentation includes IoT Connectivity Platforms, IoT Device Management Platforms, IoT Application Enablement Platforms, loT Analytics Platforms, IoT Hardware Development Platforms and IoT Integration Platforms. The IoT Application Enablement Platforms held the majority share in 2022, contributing around ~25.5% to the market revenue. Platforms for IoT application enablement enable developers to create, implement, and oversee IoT applications effectively. These platforms enable quick application development by offering frameworks and tools for gathering, handling, and evaluating data from networked devices. With the help of capabilities like data storage, real-time analytics, device connectivity, and visualization, developers may design unique IoT solutions that are suited to particular use cases.

Prominent platforms like as AWS IoT Core, Google Cloud IoT, Microsoft Azure IoT Suite, and IBM Watson IoT Platform provide extensive service suites to facilitate the building of end-to-end IoT applications. These platforms are essential for shortening time-to-market, cutting development costs, and opening up new revenue streams as companies use IoT more and more to spur innovation and digital transformation. Application Enablement Platforms are crucial tools in the expanding IoT space for realizing the full potential of linked devices and data

IoT Platform Service Organization Size Insights

Based on the organization size, the global IoT Platform market segmentation is Small & Medium Enterprises and Large Enterprises. Large Enterprises dominated the market in 2022. IoT platforms are experiencing exponential growth in the field of large enterprises as essential instruments for fostering innovation and streamlining operations. These platforms include strong infrastructure, cutting-edge analytics, and strict security features to meet the complicated requirements of large-scale deployments. Prominent service providers including AWS IoT, Microsoft Azure IoT, Google Cloud IoT, and IBM Watson IoT Platform offer extensive service suites customized to meet the needs of large enterprises. Large businesses use these platforms to automate procedures for increased competitiveness and efficiency, handle enormous volumes of IoT data, and derive useful insights.

Furthermore, these platforms allow for the smooth integration of third-party apps and current enterprise systems, promoting ecosystem growth and interoperability. IoT platforms act as strategic facilitators for large firms embracing digital transformation, helping them to take advantage of new business possibilities, make better decisions, and maintain their competitive edge in an ever-changing and linked business world.

FIGURE 2: IOT PLATFORM MARKET, BY ORGANIZATION SIZE 2022 VS 2032 (USD BILLION)

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

IoT Platform Deployment Model Insights

Based on end-user, the global IoT Platform market segmentation includes Cloud and On-Premises. The Cloud owners held the majority share in 2022. With its scalable architecture, sophisticated analytics, and secure data management features, the cloud lays the basis for the Internet of Things' explosive growth. Strong IoT platforms are available from top cloud providers including AWS, Microsoft Azure, Google Cloud, and IBM Cloud. These platforms allow for easy connectivity, real-time data processing, and actionable insights from IoT devices. Without requiring a substantial initial investment in hardware or infrastructure, these platforms enable companies in a variety of industries to effectively implement and maintain IoT solutions. By leveraging the potential of linked devices and data, businesses can boost customer experiences, spur innovation, and streamline operations with cloud-based IoT systems. Cloud-based platforms will become more and more essential as the IoT landscape develops, helping IoT technologies to expand and be adopted and enabling businesses to prosper in the digital era.

IoT Platform Application Insights

Based on Application, the global IoT Platform market segmentation includes Consumer loT, Enterprise loT, and Industrial loT, The Enterprise loT held the majority share in 2022. As businesses use connected devices to boost productivity, spur innovation, and optimize operations, enterprise IoT platforms are expanding quickly. To meet the complicated requirements of large-scale deployments, these platforms offer powerful security features, scalable infrastructure, and comprehensive analytics. Prominent enterprise IoT platforms, like IBM Watson IoT, Microsoft Azure IoT, Google Cloud IoT, and AWS IoT, provide extensive service suites to accommodate a range of use cases in sectors like logistics, manufacturing, and healthcare.

They facilitate data-driven decision-making and the automation of business processes by enabling enterprises to gather, examine, and act upon data from IoT devices. Enterprise IoT platforms drive digital transformation and open up new opportunities for growth and competitiveness in the increasingly connected and data-driven business landscape by facilitating interoperability and ecosystem expansion through their seamless integration capabilities and support for industry standards

IoT Platform End Use Vertical Insights

Based on End Use Vertical, the global IoT Platform market segmentation includes Smart Manufacturing, Smart Infrastructure, Smart Grid and Utilities, Connected Healthcare, Smart Retail, Smart Transportation, Telecommunications, and Others (Smart Education, Smart Agriculture, Connected Banking. The Smart Manufacturing held the majority share in 2022. As the manufacturing sector embraces digital transformation to increase efficiency, agility, and competitiveness, smart manufacturing IoT platforms are growing quickly. These platforms enable the smooth integration of IoT devices, sensors, and production equipment by providing comprehensive solutions designed specifically to meet the demands of smart factories. Prominent IoT solutions for Smart Manufacturing, such GE Digital's Predix, Bosch Rexroth ctrlX, Siemens Industrial Edge, and PTC ThingWorx, offer real-time monitoring, predictive maintenance, and advanced analytics to maximize efficiency and reduce downtime.

They make it possible for producers to gather, examine, and respond to data from all points of the production line, which promotes quick decisions and ongoing development. Smart Manufacturing IoT platforms enable the shift towards Industry 4.0 principles for enhanced productivity and competitiveness in the global market by promoting innovation and facilitating interoperability and connectivity among diverse manufacturing systems. This is achieved through support for industry standards and protocols.

IoT Platform Regional Insights

By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The Europe IoT Platform market accounted for ~37% in 2022. The data processing needed for Internet of Things networks and devices is supported more efficiently and quickly by 5G networks. Ten times reduced latency than 4G will result in more dependable and hassle-free operations. Thus, the introduction of 5G serves as a stimulant for the market's emergence of automated and self-driving gadgets.The Asia Pacific region is seeing a rise in the demand for 5G-enabled IoT devices due to these advantages. In an effort to profit from smart devices, the region's communication providers—including Taiwan Mobile, Samsung Electronics Co., Ltd., and Reliance in India—are also diversifying their product lines. This presents chances for creating data gathering systems and adding sophisticated analytics features to already-existing systems. New innovations are being used by a number of regional network providers and vendors to improve their offerings. Following the introduction of 5G services, Bharati Airtel expanded its cloud offering in September 2022 by adding a number of cutting-edge goods. The CDN (Cloud Edge Content Delivery Network) is part of the new cloud portfolio, which enables edge computing and 5G networks to be combined into a unified platform for data processing and computation by Internet of Things devices.

Digital transformation technologies facilitate innovation and functional improvement of firms and organizations using digital solutions.

FIGURE 3: IOT PLATFORM MARKET SIZE BY REGION 2022 VS 2032

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

Further, the major countries studied in the market report are the U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Europe market accounts for the second-largest market share. Big data analytics combined with the Internet of Things can yield a variety of insights, including descriptive, prescriptive, predictive, and diagnostic analytics. Big data and connected devices should become more popular in Europe.Additionally, businesses in Germany, the United Kingdom, France, Italy, Spain, and the Netherlands are becoming more and more in need of this technology, which is contributing to the expansion of the market in the region. In a similar vein, the Nordic and Eastern European regions exhibit notable rates of advanced technology adoption. A report released in March 2021 by the CBI Ministry of Foreign Affairs states that a number of European organizations are starting to see the benefits and significance of industry 4.0.

The North America IoT Platform Market is expected to grow at the fastest CAGR between 2022 and 2032. The quantity of Internet of Things (IoT)-based devices that wirelessly connect to a network to share data is rapidly increasing. Furthermore, sensor technology that is integrated into Internet of Things devices is sophisticated, broadly accessible, and reasonably priced. Large-scale monitoring and detection are just two of the new sensor applications made possible by the devices' affordability and ease of availability.

Additionally, the introduction of 5G has increased mobile connection, which has accelerated investments in IoT-based solutions even more. Big businesses keep putting money into IoT because they are using the technology more and more into their business strategies. They are doing this by quickly updating their IoT plans and closing long-term IoT contracts. For example, Godrej & Boyce said in January 2023 that they would be investing in IoT-based technologies to enhance customer experience, expand their global presence, and gain a larger market share. The company's business division for material handling intended to invest twice as much in technology to assist sales, manufacturing, and sustainability throughout the company's value chain, among other operations. Additionally, companies are spending money on sensors for connected devices, which range from tools and machinery to cars and buildings.

IoT Platform Key Market Players & Competitive Insights

With a strong presence across different verticals and geographies, the IoT Platform market is highly competitive and dominated by established, pure-play vendors. Over 30 vendors cater to this market, and they continually innovate their solutions to meet the evolving needs of businesses by adopting new technologies. These vendors have a robust geographic footprint and partner ecosystem to cater to diverse customer segments. The IoT Platform market is highly competitive, with many vendors offering similar products and services.

Cisco, Google, Microsoft, AWS, PTC and Others are some of the key players operating in the global market. These companies compete in terms of availability, quality, price, and technology. They consider acquisition as a key strategy in the market. Although the international players dominate the market, regional and local players with small market shares also have a significant presence. 

Furthermore, companies follow organic and inorganic strategies to strengthen their presence in the global market. They are focusing on product development and expansion to expand their product portfolio and enhance their customer relationships. Additionally, the companies are investing in the development of new and innovative audio equipment products.

The global IoT Platform market is consolidated, increasing competition, acquisitions, mergers, and other strategic market developments and decisions to improve operational effectiveness.

Key Companies in the IoT Platform market include

• IBM


• Oracle


• Salesforce Inc


• Cisco


• Google


• Microsoft


• SAP


• Seimens


• Robert Bosch


• Samsung


• Telit


• Autodesk


• AWS


• PTC


• Particle Industries

IoT Platform Industry Developments

In January 2024, Hyundai Motor and Kia will link Samsung’s ‘SmartThings’ IoT (Internet of Things) platform to their connected car services.

In February 2024, Oracle announced the Enterprise Communications Platform (ECP). By seamlessly connecting Oracle industry applications to networks and IoT devices to extend their value, ECP enables organizations to reimagine how they do business.

IoT Platform Market Segmentation

IoT Platform Outlook

• IoT Connectivity Platforms


• IoT Device Management Platforms


• IoT Application Enablement Platforms


• loT Analytics Platforms


• IoT Hardware Development Platforms


• IoT Integration Platforms

IoT Platform Organization Size Outlook

• Small & Medium Enterprises Cloud


• Large Enterprises

IoT Platform Deployment Model Outlook

• Cloud


• Public


• Private


• Hybrid


• On-Premises

IoT Platform Application Outlook

• Consumer loT


• Enterprise loT


• Industrial loT

IoT Platform End Use Vertical Outlook

• Smart Manufacturing


• Smart Infrastructure


• Smart Grid and Utilities


• Connected Healthcare


• Smart Retail


• Smart Transportation


• Telecommunications


• Others (Smart Education,Smart Agriculture,Connected Banking)

IoT Platform Regional Outlook

• 
  

  North America

  
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• 
  

  Europe

  
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• 
  

  Asia-Pacific

  
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• 
  

  Rest of the World

  
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America