“The IoT connectivity mark, valued at USD 8.43 billion in 2023, is expected to reach USD 51.51 billion by 2032, growing at a strong CAGR of 22.33% from 2024 to 2032.”
Major Players Analysis Listed in this Report are:
- Aeris Communications India Pvt. Ltd. (Aeris IoT Platform, Aeris Mobility)
- AT&T Inc. (AT&T IoT Services, AT&T Control Center)
- Cisco Systems Inc. (Cisco IoT Solutions, Cisco Jasper)
- Huawei Technologies Co. Ltd. (Huawei IoT Cloud, Huawei 5G IoT Solutions)
- Orange (Orange Business Services, Orange IoT Solutions)
- Sierra Wireless (AirLink Routers, Octave IoT Platform)
- Sigfox (Sigfox IoT Network, Sigfox Backend Services)
- Telefonaktiebolaget LM Ericsson (Ericsson IoT Accelerator, Ericsson Device Connection Platform)
- Telefónica S.A. (IoT Global Platform, Telefónica IoT Connectivity)
- Telit IoT Platforms, LLC (Telit IoT Modules, Telit Connectivity Platform)
- Verizon Communications Inc. (Verizon IoT Solutions, Verizon ThingSpace)
- Vodafone Group Plc (Vodafone IoT Platform, Vodafone Automotive)
- Hologram (Hologram IoT SIM Cards, Hologram Data Plans)
- Particle (Particle IoT Devices, Particle Cloud Platform)
- EMnify (EMnify IoT Platform, EMnify Cellular IoT Solutions)
- Moeco (Moeco IoT Network, Moeco Data Management)
IoT Connectivity Market Report Scope:
| Report Attributes | Details |
| Market Size in 2023 | USD 8.43 Billion |
| Market Size by 2032 | USD 51.51 Billion |
| CAGR | CAGR of 22.33% From 2024 to 2032 |
| Base Year | 2023 |
| Forecast Period | 2024-2032 |
| Historical Data | 2020-2022 |
| Key Regional Coverage | North America (US, Canada, Mexico), Europe (Eastern Europe [Poland, Romania, Hungary, Turkey, Rest of Eastern Europe] Western Europe [Germany, France, UK, Italy, Spain, Netherlands, Switzerland, Austria, Rest of Western Europe]). Asia Pacific (China, India, Japan, South Korea, Vietnam, Singapore, Australia, Rest of Asia Pacific), Middle East & Africa (Middle East [UAE, Egypt, Saudi Arabia, Qatar, Rest of Middle East], Africa [Nigeria, South Africa, Rest of Africa], Latin America (Brazil, Argentina, Colombia Rest of Latin America) |
| Key Growth Drivers | • AI Integration in IoT Drives Cost Savings and Revenue Growth Across Industries
• Connected Devices and Smart Systems Propel IoT Connectivity Market to New Heights |
This remarkable expansion is driven by the accelerating adoption of smart devices, advancements in 5G and LPWAN technologies, and increasing enterprise demand for real-time data and automation. Industries such as manufacturing, healthcare, logistics, and agriculture are increasingly integrating IoT solutions to enhance operational efficiency, reduce costs, and drive innovation. Moreover, the growing push for digital transformation and the expansion of smart city initiatives globally are further fueling demand for scalable, secure, and low-latency connectivity infrastructure across diverse IoT applications.
The U.S. IoT connectivity market, valued at USD 2.08 billion in 2023, is expected to reach USD 12.41 billion by 2032, growing at a strong CAGR of 21.94% from 2024 to 2032.
The growth of the U.S. IoT connectivity market is driven by several key factors. The rapid expansion of smart infrastructure ranging from connected homes to intelligent transportation systems is creating strong demand for reliable and scalable connectivity. Widespread 5G deployment, combined with increasing adoption of low-power wide-area networks (LPWAN), is enabling more efficient, high-speed communication across devices. Additionally, U.S. enterprises are prioritizing digital transformation, leveraging IoT for predictive maintenance, supply chain optimization, and real-time analytics.
By Enterprise Type, Large Enterprises Dominated IoT Connectivity Market, SMEs to Record Fastest Growth
In 2023, large enterprises dominated the IoT connectivity market in 2023 with a 56% revenue share, aided by their robust financial capabilities and advanced infrastructure. Such companies are well equipped to deploy extensive IoT installations across various industries like manufacturing, logistics, and supply chain management. Their risk-absorbing capacity and scale of investment enable them to generate significant returns, further endorsing successive investment in emerging IoT technologies.
Small and medium-sized businesses (SMEs) are anticipated to witness the fastest growth in IoT connectivity, with a forecasted CAGR of 23.13% until 2032. The growing availability of low-cost, cloud-based, and scalable IoT solutions allows SMEs to improve operational efficiency and customer interaction. With IoT technology becoming increasingly accessible, smaller companies are using these tools to compete more efficiently, lower costs, and fuel innovation without the weight of high initial investment.
By Application, Smart Manufacturing Leads IoT Connectivity Market, Smart Retail to Grow Rapidly
Smart manufacturing holds the largest share of the IoT connectivity market at 35%, driven by widespread adoption of automation, predictive maintenance, and real-time monitoring. These technologies reduce downtime, streamline operations, and optimize resource usage. As manufacturers seek to enhance productivity and simplify complex supply chains, IoT becomes integral to their digital transformation strategies. This dominance is expected to continue as industrial innovation demands scalable, connected solutions.
Smart retail is poised for rapid growth, projected to expand at a CAGR of 23.75% from 2024 to 2032. This growth is fueled by the rising demand for personalized shopping experiences and real-time supply chain visibility. IoT enables retailers to track inventory, engage customers more effectively, and create seamless, data-driven interactions. As consumer expectations shift toward convenience and speed, retailers are accelerating investment in connected technologies to stay competitive.
By Component, Solutions Dominate IoT Connectivity Market, Services Segment Set for Fastest Growth
In 2023, solutions represented 57% of total revenue in the IoT connectivity market, fueled by increasing demand for integrated platforms, smart sensors, and connectivity hardware. These end-to-end solutions facilitate real-time data gathering, automation, and more intelligent decision-making, and thus are invaluable as industries ramp up their digital activities. The desire for secure, turnkey systems continues to place solutions as the foundation of IoT deployment across industries.
The services segment is expected to expand at the fastest CAGR of 22.92% during 2024-2032, driven by the increasing demand for specialized assistance in network management, analytics, and cybersecurity. As companies increasingly implement IoT, they need continuous expertise to integrate, secure, and optimize their systems. This is propelling the growth of professional and managed services that are specific to complex, dynamic IoT environments.
IoT Connectivity Market Segmentation:
By Enterprise Type
- Buildings and Home Automation
- Smart Energy and Utility
- Smart Manufacturing
- Smart Retail
- Smart Transportation
- Others
By Enterprise Size
- Small and Medium-sized Enterprises
- Large Enterprises
By Component
North America Leads IoT Connectivity Market, Asia Pacific Set to Grow Fastest
North America led the IoT connectivity market in 2023, capturing 35% of the global share. Its leadership is credited to accelerating technology development, early adoption rates, and a well-established digital infrastructure. Industrial demand is being driven in the U.S. by sectors such as healthcare, automotive, and retail. 5G rollouts backed by the government, smart city investments, and strong consumer spending capabilities further support the region's solid footing for improving IoT deployment and innovation.
Asia Pacific is expected to grow at the fastest CAGR of 23.29% during the 2024-2032 period. Driven by industrial automation, urbanization, and digitalization, accelerated adoption in China and India leads the pace. Large investments in infrastructure, conducive government regulations, and massive expansion of mobile networks are cultivating an environment favorable for IoT development. The emphasis of the region on scalable efficiency is placing it at the helm for long-term IoT innovation leadership.
