The Internet of Things (IoT) market is entering a scaled, platform-led growth phase, fueled by 5G, edge computing, AI, and a rapidly expanding connectivity ecosystem across industries such as manufacturing, transportation, energy, buildings, and healthcare. MarketsandMarkets projects the global IoT market to grow from USD 547.06 billion in 2025 to USD 865.20 billion by 2030 at a CAGR of 9.6%, positioning IoT as a core enabler of digital transformation and new revenue models for enterprises worldwide.
Executive Summary
- The IoT market is forecast to reach USD 865.20 billion by 2030, growing at a CAGR of 9.6% between 2025 and 2030, driven by large-scale deployment of connected devices, industrial digitalization, and smart infrastructure investments.
- IoT platforms and professional services are emerging as the largest and most strategic segments, as enterprises seek unified device management, secure connectivity, and tailored integration to operationalize IoT at scale.
- Smart manufacturing leads current IoT focus areas, while smart healthcare is among the fastest-growing segments, underpinned by remote monitoring, connected diagnostics, and data-driven care models.
- Asia Pacific is expected to record the fastest growth and become the largest IoT region, supported by 5G rollout, government-backed digital programs, and high device connection density across industrial and consumer environments.
- Market leadership is concentrated among players such as Microsoft, AWS, Huawei, Cisco, and Siemens, which collectively hold an estimated 28–38% share through end-to-end IoT, cloud, edge, and connectivity portfolios.
Several structural trends define current and future IoT market research themes and enterprise investment priorities. These trends are reshaping how B2B organizations build connected products, services, and operations.
- Convergence of 5G, edge, and AI: 5G provides ultra-low-latency, high-throughput connectivity, while edge computing moves processing closer to devices, enabling real-time analytics, autonomy, and mission-critical use cases in factories, cities, and transport.
- Platform-centric ecosystems: Unified IoT platforms that integrate device lifecycle management, connectivity orchestration, AI-driven analytics, and automation are becoming the backbone of enterprise IoT strategy, with providers such as Microsoft Azure IoT and AWS IoT Core leading adoption.
- Security and data governance: Rising cybersecurity risks, tighter privacy regulations, and cross-border data governance challenges are elevating demand for secure hardware, security software, and zero-trust architectures across IoT deployments.
- Space-based and hybrid connectivity: Expansion of satellite and low-Earth orbit (LEO) IoT networks is enabling global coverage for logistics, agriculture, energy, and environmental monitoring, complementing terrestrial LPWAN and cellular networks.
- Sector-specific solutions: Verticalized IoT stacks in manufacturing, healthcare, utilities, and smart cities are gaining traction as customers seek domain-specific analytics, compliance, and workflows rather than generic connectivity alone.
Go-to-Market Insights for IoT Growth
B2B companies looking to capture value from the IoT market research need tightly aligned go-to-market (GTM) strategies anchored in clear use cases, vertical focus, and ecosystem positioning. MarketsandMarkets data points to several strategic GTM levers:
- Prioritize platforms and services in the value stack: Given the projected leadership of IoT platforms and professional services, vendors should emphasize recurring revenue models (platform subscriptions, managed services, consulting) over one-time hardware sales.
- Focus on high-growth verticals: Smart manufacturing and smart healthcare present strong opportunities; GTM efforts should package use cases such as predictive maintenance, connected worker, remote patient monitoring, and asset tracking with clear ROI narratives.
- Build for Asia Pacific scale: With Asia Pacific poised for the highest growth and device density, regionalized offerings aligned to government digital programs and local telecom partners can accelerate adoption.
- Co-innovate with hyperscalers and network providers: Partnerships similar to those between AT&T, Ericsson, Microsoft Azure, Tata Communications, Cisco, and others showcase the power of joint marketplaces, integrated connectivity, and cloud-native IoT management.
- Differentiate via security and governance: Embedding device-level security hardware, secure OS, and end-to-end security software, along with compliance-aware data architectures, can be a key buying differentiator in regulated industries.
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