IoT in Manufacturing Market Report 2026

The iot in manufacturing market size has grown rapidly in recent years. It will grow from $332.21 billion in 2025 to $389.55 billion in 2026 at a compound annual growth rate (CAGR) of 17.3%. The growth in the historic period can be attributed to automation of production processes, need to reduce equipment downtime, rising labor costs, adoption of smart sensors, demand for operational efficiency.

The iot in manufacturing market size is expected to see rapid growth in the next few years. It will grow to $710.98 billion in 2030 at a compound annual growth rate (CAGR) of 16.2%. The growth in the forecast period can be attributed to integration of AI with industrial iot, expansion of smart manufacturing initiatives, rising investment in edge computing, demand for real time analytics, growth of connected factory ecosystems. Major trends in the forecast period include predictive maintenance solutions, smart factory integration, real time production monitoring, industrial iot platforms, edge computing for manufacturing.

The increased use of artificial intelligence is expected to drive the market growth of IoT in manufacturing. Artificial Intelligence (AI) involves machines, particularly computer systems, simulating human intelligence processes. The convergence of AI and IoT within the manufacturing sector harbors significant potential to enhance operational excellence, efficiency, and overall profitability. For instance, in March 2025, according to the Office for National Statistics, a UK-based government department, in 2023, artificial intelligence (AI) was adopted by 9% of firms, while cloud-based computing systems and applications were adopted by 69% of firms in the UK. Therefore, the increased use of artificial intelligence will be propelling the growth of IoT in the manufacturing market going forward.

Major companies operating in the IoT in Manufacturing market are focusing on developing innovative new products, such as the SimpleLink family of Wi-Fi 6 companion integrated circuits (ICs), to increase their profitability in the market. SimpleLink family of Wi-Fi 6 companion integrated circuits (ICs) are innovated to help designers implement highly reliable, secure, and effective Wi-Fi connections at a reasonable cost for applications to operate in high-density or high-temperature settings up to 105°C. For instance, in April 2023, Texas Instruments (TI), a US-based semiconductor manufacturing company, launched a new SimpleLink family of Wi-Fi 6 companion integrated circuits (ICs). When combined with a microcontroller (MCU) or CPU, the CC33xx devices provide a secure Internet of Things (IoT) connection with reliable radio frequency (RF) performance in diverse industrial sectors such as grid infrastructure, healthcare, and building automation.

In June 2025, Nordic Semiconductor, a Norway-based provider of low-power wireless connectivity solutions, acquired Memfault Inc. for an undisclosed amount. Through this acquisition, Nordic Semiconductor aims to evolve from a hardware supplier to a complete IoT solution partner, integrating cloud-based monitoring, analytics, and connectivity for industrial and manufacturing applications. Memfault Inc. is a US-based company that provides IoT-related services related to manufacturing industrial use cases.

Major companies operating in the iot in manufacturing market are Microsoft Corporation, SAP SE, Robert Bosch GmbH, International Business Machines Corporation, Cisco Systems Inc., General Electric Company, Huawei Technologies Co. Ltd., PTC Inc., Zebra Technologies Corporation, Siemens Aktiengesellschaft, Rockwell Automation Inc., Wind River Systems Inc., Schneider Electric SE, ClearBlade Inc., Mocana Corporation, Impinj Inc., Uptake Technologies Inc., ARCSTONE Pte. Ltd., Software AG, Texas Instruments Incorporated, Hitachi Ltd., Konux GmbH, Honeywell International Inc., Intel Corporation, ABB Ltd., Mitsubishi Electric Corporation, Fujitsu Limited, Accenture plc, Oracle Corporation, Hewlett Packard Enterprise Development LP, Dell Technologies Inc., Amazon Web Services Inc., Fanuc Corporation, Kuka AG, Yaskawa Electric Corporation.

Asia-Pacific was the largest region in the IoT market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the iot in manufacturing market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the iot in manufacturing market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Tariffs have influenced the iot in manufacturing market by increasing the cost of imported sensors, controllers, gateways, and industrial networking components used in smart factories. Higher duties have raised deployment costs for predictive maintenance, asset management, and process optimization solutions, especially in manufacturing hubs across asia pacific and europe. Small and mid sized manufacturers have experienced slower adoption due to cost pressures. On the positive side, tariffs have encouraged local manufacturing of iot hardware, accelerated software centric solutions, and promoted regional innovation in industrial automation platforms.

The iot in manufacturing market research report is one of a series of new reports that provides iot in manufacturing market statistics, including iot in manufacturing industry global market size, regional shares, competitors with a iot in manufacturing market share, detailed iot in manufacturing market segments, market trends and opportunities, and any further data you may need to thrive in the iot in manufacturing industry. This iot in manufacturing market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The Internet of Things (IoT) in manufacturing refers to the integration of interconnected sensors, devices, and machines within industrial settings to gather and share real-time data. This connectivity allows for enhanced monitoring, automation, and control of manufacturing operations. Consequently, manufacturers are able to improve operational efficiency, enable predictive maintenance, and enhance overall product quality.

The key components of IoT in manufacturing include solutions, platforms, and services. An IoT solution in manufacturing is an integrated system that combines connected devices, sensors, software platforms, and data analytics to monitor, manage, and optimize manufacturing processes in real time. These solutions are extensively adopted across various verticals such as energy and utilities, automotive, food and beverage, aerospace and defense, chemicals and materials, high-tech manufacturing, and healthcare. They function through platforms including device management platforms, application management platforms, and connectivity management platforms, and are utilized in applications such as process optimization, predictive maintenance, asset and workforce management, emergency and incident management, logistics and supply chain management, and inventory management.

The Internet of Things iot market includes revenues earned by entities by offering IoT solutions used in building and home automation, smart energy and utilities, connected logistics, smart retail, smart mobility, and transportation. The internet of things, or IoT, is a collection of interconnected smart devices, mechanical and digital machines, objects, animals or people supplied with unique identifiers (UIDs) and the ability to transmit data across a network without needing human-to-human or human-to-computer interaction. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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