• In November 2023, AWS and Siemens expanded their partnership to facilitate easier connectivity of physical devices to the cloud. As part of this extended collaboration, AWS's IoT SiteWise Edge software can now be directly installed from Siemens' Industrial Edge Marketplace.

• In June 2023, Rockwell and PTC extended their alliance to focus on selling PTC's IoT and augmented reality (AR) software. Rockwell Automation will continue to resell PTC's ThingWorx IoT software, including the Digital Performance Management (DPM) solution, to new and existing customers across both process and discrete manufacturing sectors.

• In March 2023, Siemens introduced the Connect Box, a smart IoT solution designed for small buildings. The Connect Box enables users to efficiently manage daily building operations from a single cloud-driven interface, eliminating the need for additional software.

• In January 2023, Intel launched the Intel Core 13th Gen mobile processors. Featuring a hybrid architecture, these processors power advancements in thin and light laptops and Internet of Things (IoT) devices, offering a range of thirty-two mobile processor options under the Core P, H, and U series.

In this report, the Internet of Things (IoT) Market has been segmented by Component, Solution, Industry Vertical and Geography.

Internet of Things (IoT) Market, Segmentation by Component

The Internet of Things (IoT) Market has been segmented by Component into Hardware and Software & Services.

Hardware

The hardware segment holds a significant share of the IoT market, accounting for around 45% of the total revenue. It includes essential components such as sensors, actuators, gateways, and networking devices that form the physical layer of IoT systems. The demand for robust and cost-effective hardware is growing with the expansion of connected devices across industries.

Software & Services

The software & services segment dominates the IoT market with approximately 55% market share, driven by the need for efficient data processing, device management, and analytics. This segment includes cloud platforms, middleware, and IoT application software along with consulting and integration services, which are vital for seamless operation and real-time decision-making in IoT ecosystems.

Internet of Things (IoT) Market, Segmentation by Deployment

The Internet of Things (IoT) Market has been segmented by Deployment into On-premise and Cloud

On-premise

The on-premise segment accounts for nearly 40% of the IoT market, preferred by organizations requiring high levels of data control, security, and customization. This model is widely adopted in industries with strict compliance requirements, allowing businesses to manage their own infrastructure and ensure data remains within internal systems.

Cloud

The cloud segment holds a larger market share of approximately 60%, driven by its scalability, cost efficiency, and remote accessibility. Cloud-based IoT deployments enable real-time data analytics, faster implementation, and seamless updates, making it ideal for dynamic applications across smart cities, logistics, and industrial automation.

Internet of Things (IoT) Market, Segmentation by Solution

The Internet of Things (IoT) Market has been segmented by Solution into Remote Monitoring, Real Time Streaming Analytics, Security, Data Management, Network Bandwidth Management and Others.

Remote Monitoring

The remote monitoring segment contributes to around 25% of the IoT market, offering enhanced visibility and control over assets and systems. It enables businesses to track performance, detect anomalies, and reduce downtime through proactive maintenance and real-time alerts.

Real Time Streaming Analytics

Holding nearly 20% market share, real time streaming analytics is crucial for processing continuous data flows from connected devices. It supports instantaneous decision-making, improves operational efficiency, and is widely used in applications like traffic management and predictive maintenance.

Security

With rising cyber threats, the security segment commands approximately 18% of the market. It includes encryption, authentication, and intrusion detection systems that safeguard IoT infrastructures against vulnerabilities and unauthorized access.

Data Management

The data management segment comprises about 15% of the market, focusing on the efficient collection, storage, and retrieval of data generated by IoT devices. It is essential for ensuring data integrity and enabling advanced analytics.

Network Bandwidth Management

Accounting for nearly 12%, network bandwidth management ensures optimized data flow and minimal latency in IoT networks. It is vital in maintaining QoS (Quality of Service), especially in environments with dense device connectivity.

Others

The others segment includes miscellaneous solutions such as device provisioning, firmware management, and user interface systems, collectively contributing to around 10% of the IoT market. These are essential for enabling smooth deployment and user interaction within the IoT ecosystem.

Internet of Things (IoT) Market, Segmentation by Industry Vertical

The Internet of Things (IoT) Market has been segmented by Industry Vertical into Manufacturing, Transportation, Healthcare, Retail, Energy and Utilities, Banking and Financial Services and Others.

Manufacturing

The manufacturing segment dominates with nearly 25% market share, driven by the adoption of Industrial IoT (IIoT) for predictive maintenance, asset tracking, and process automation. It significantly enhances productivity and reduces operational costs through real-time data insights.

Transportation

The transportation segment holds about 18% of the market, benefiting from IoT-enabled fleet management, real-time vehicle tracking, and smart traffic systems. These applications improve route optimization and safety across logistics and mobility services.

Healthcare

Comprising approximately 15% of the market, the healthcare segment leverages IoT for remote patient monitoring, wearable health devices, and real-time diagnostics. This facilitates improved patient outcomes and efficient care delivery.

Retail

The retail segment contributes around 12% through smart shelves, inventory management, customer behavior tracking, and personalized marketing. IoT enhances both operational efficiency and customer experience.

Energy and Utilities

Representing about 10% of the market, energy and utilities use IoT for smart grids, energy consumption monitoring, and predictive equipment maintenance. These solutions support sustainability and resource optimization.

Banking and Financial Services

Accounting for roughly 8%, the banking and financial services segment applies IoT in fraud detection, branch automation, and customer engagement. It helps institutions deliver more secure and personalized services.

Others

The others segment, with nearly 12% share, includes sectors like agriculture, education, and hospitality, where IoT is used for smart farming, connected classrooms, and automated guest services, respectively.

Internet of Things (IoT) Market, Segmentation by Geography

In this report, the Internet of Things (IoT) Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa and Latin America.

Internet of Things (IoT) Market Share (%), by Geographical Region

North America

North America holds a dominant position in the IoT market, accounting for approximately 35% of the global share. This growth is fueled by high technology adoption, strong infrastructure, and heavy investments in smart cities, industrial automation, and connected vehicles.

Europe

Europe contributes around 25% to the market, driven by rising demand in sectors such as manufacturing, healthcare, and transportation. Government initiatives supporting digitalization and sustainability are further boosting IoT adoption.

Asia Pacific

The Asia Pacific region represents roughly 28% of the IoT market, with rapid expansion due to urbanization, growth in consumer electronics, and smart infrastructure development, especially in countries like China, India, and Japan.

Middle East and Africa

Middle East and Africa contribute about 7%, with growing implementation of IoT in smart city projects, energy management, and industrial applications. The market is gaining traction due to increasing digitization efforts in the region.

Latin America

Latin America holds close to 5% of the market share, primarily supported by sectors such as retail, agriculture, and telecommunications. Despite infrastructural challenges, IoT growth is gradually picking up momentum in the region.

This report provides an in depth analysis of various factors that impact the dynamics of Internet of Things (IoT) Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.

Drivers, Restraints and Opportunity Analysis

Drivers

• Rapid adoption of smart connected devices
• Expanding demand for real-time analytics
• Increased integration in industrial automation

• Advancements in wireless connectivity technologies - The continuous advancements in wireless connectivity technologies are significantly fueling the growth of the Internet of Things (IoT) market. With the proliferation of Wi-Fi 6, LTE-M, and NB-IoT, devices are now capable of achieving faster, more secure, and energy-efficient communication. These new standards offer low-latency communication and increased data transfer speeds, which are essential for mission-critical IoT applications like autonomous vehicles, remote surgeries, and industrial automation.

  Wireless technologies have improved in both range and reliability, enabling deployment of IoT systems in rural and hard-to-reach areas. This has unlocked growth for sectors such as agriculture, logistics, and mining, where wired infrastructure is often impractical. The scalability of wireless networks allows IoT ecosystems to expand rapidly with minimal infrastructure costs, accelerating innovation and deployment.

  The integration of edge computing with wireless IoT networks ensures real-time data processing and responsiveness. These systems reduce dependency on centralized cloud networks, which improves speed and reduces latency. As a result, critical applications in healthcare and smart factories are witnessing faster adoption due to their real-time decision-making capabilities.

  In essence, the IoT ecosystem continues to benefit immensely from wireless technology evolution. The convergence of advanced protocols with 5G, increased bandwidth, and device interoperability is reshaping how connected devices operate. This technological leap is laying the foundation for more resilient, adaptive, and secure IoT deployments across industries.

Restraints

• Security vulnerabilities and data privacy risks
• High deployment and maintenance costs
• Interoperability challenges across IoT platforms

• Limited network infrastructure in remote areas - Despite the growth of IoT applications, the limited network infrastructure in remote areas remains a major hurdle. Many rural and underdeveloped regions lack the necessary internet penetration and cellular coverage to support connected devices. This limitation severely restricts the deployment of IoT in critical sectors such as precision agriculture, rural healthcare, and remote energy management.

  Infrastructure deficits lead to unreliable connectivity, high latency, and frequent data transmission failures, compromising the performance and operational efficiency of IoT systems. Businesses that rely on real-time data from sensors often face challenges in decision-making, resulting in inefficiencies and increased operational risks.

  The cost of setting up high-quality network infrastructure in low-density regions can be prohibitive. Governments and private players are often reluctant to invest due to poor return on investment. This delays the implementation of essential technologies like smart metering, traffic management, and disaster response systems in these areas.

  The lack of robust digital infrastructure poses a risk of creating a digital divide, where urban regions benefit from IoT while remote areas are left behind. To achieve truly inclusive growth, stakeholders must address the need for scalable and affordable connectivity solutions in these underserved regions.

Opportunities

• Emergence of 5G-enabled IoT networks
• Smart city infrastructure development initiatives
• Growth of AI-powered IoT applications

• IoT expansion in agriculture and logistics sectors - The expanding application of IoT in agriculture and logistics sectors presents a powerful opportunity for market growth. In agriculture, IoT enables smart irrigation systems, soil health monitoring, and crop yield prediction, which help increase productivity while conserving resources. The integration of connected devices leads to real-time decision-making and data-driven farming practices.

  In logistics, IoT plays a crucial role in fleet management, temperature-controlled storage, and asset tracking. These capabilities ensure improved supply chain visibility, minimize delays, and reduce losses. IoT-powered logistics systems contribute to faster delivery cycles and optimized route planning, enhancing overall operational efficiency.

  The convergence of IoT with AI and machine learning further amplifies its impact by offering predictive maintenance and automated inventory control. These innovations are being embraced by large enterprises and SMEs alike to reduce waste, lower costs, and improve customer satisfaction. Moreover, the demand for traceability and compliance in supply chains has accelerated IoT adoption.

  This opportunity is expected to grow further with the advent of 5G and satellite IoT connectivity, allowing even remote locations to benefit from smart technologies. By enabling end-to-end transparency and automation, IoT is set to revolutionize traditional processes in farming and logistics, transforming them into highly efficient, data-centric systems.

Key players in Internet of Things (IoT) Market include:

• Intel Corporation
• SAP SE
• Cisco Systems Inc
• Microsoft Corporation
• IBM
• Oracle
• Google
• Hewlett Packard Enterprise
• Amazon Web Services, Inc
• PTC Inc

In this report, the profile of each market player provides following information:

• Company Overview and Product Portfolio
• Market Share Analysis
• Key Developments
• Financial Overview
• Strategies
• Company SWOT Analysis