IoT Market Report 2026

The iot market size has grown rapidly in recent years. It will grow from $599.39 billion in 2025 to $699.83 billion in 2026 at a compound annual growth rate (CAGR) of 16.8%. The growth in the historic period can be attributed to connected device proliferation, automation in manufacturing, early smart city projects, declining sensor costs, enterprise digitalization initiatives.

The iot market size is expected to see rapid growth in the next few years. It will grow to $1.3 trillion in 2030 at a compound annual growth rate (CAGR) of 16.9%. The growth in the forecast period can be attributed to 5g enabled iot expansion, AI powered data analytics growth, large scale smart infrastructure projects, increasing enterprise iot investments, demand for real time operational insights. Major trends in the forecast period include end to end iot platform adoption, industrial iot deployment, cloud based iot management, edge computing integration, cross industry iot solutions.

The increasing use of cloud computing is expected to propel the growth of the IoT market going forward. Cloud computing refers to the delivery of computing services, including servers, storage, databases, networking, software, and analytics, over the internet to offer faster innovation, flexible resources, and economies of scale. The increasing adoption of cloud computing is primarily driven by its cost efficiency, as it allows businesses to reduce capital expenditures on physical infrastructure while paying only for the computing resources they actually use. Cloud computing supports IoT by providing scalable storage, real-time data processing, and seamless connectivity that enable IoT devices to efficiently collect, analyze, and share information across networks. For instance, in April 2025, according to the American Bar Association, a U.S.-based professional organization, approximately 75% of attorneys reported using cloud computing for work-related tasks, up from 69% in 2023 and about 70% in 2022. Therefore, the increased use of cloud computing drives the growth of the IoT market.

Major companies operating in the multifamily housing green buildings sector are innovating advanced technologies, such as green transformation (GX), to enhance sustainability, energy efficiency, and environmental performance in residential developments. Green transformation (GX) refers to the process of adopting sustainable practices, technologies, and innovations to minimize environmental impact and promote energy efficiency. For instance, in September 2024, Hitachi Ltd., a Japan-based multinational conglomerate company launched a new model BuilMirAI Building IoT solution. The BuilMirAI Building IoT solution is a comprehensive platform aimed at enhancing the management and operational efficiency of small and medium-sized buildings. The solution emphasizes green building practices, aligning with global trends toward sustainability in construction and management. The company will provide these solutions through monthly subscription plans, allowing customers to choose services as needed, which lowers their investment costs and promotes green transformation (GX) and digital transformation (DX) for small and medium-sized buildings. BuilMirAI connects various building facilities and systems, facilitating improved management and operational efficiency.

In January 2023, Semtech Corporation, a US-based provider of analog and mixed-signal semiconductors, acquired Sierra Wireless, Inc. for approximately $1.2 billion. Through this acquisition, Semtech aims to strengthen its end-to-end Internet of Things (IoT) platform by integrating Sierra Wireless’s cellular IoT expertise with its own low-power connectivity technology, enhancing its device-to-cloud capabilities and accelerating growth across global IoT markets. Sierra Wireless Inc. is a Canada-based company that provides cellular IoT modules, gateways, and cloud-based device management services.

Major companies operating in the iot market are Google Inc.; Microsoft Corporation; AT&T Inc.; Dell Inc.; Huawei Technologies Co. Ltd.; Hitachi DataSystems Corporation; Amazon WebServices Inc.; General Electric Company; Intel Corporation; International Business Machine Corporation; CiscoSystems Inc.; Oracle Corporation; SAP SE; Fujitsu Ltd.; Hewlett-Packard Enterprise Company; Bosch Software Innovation GmbH; Accenture plc; PTC Inc.; Davra Networks Limited; Cumulocity GmbH; BlackBerry Limited; C3 IoT Inc.; Exosite LLC; Device Insight GmbH; Concirrus Limited; EVRYTHNG Limited; Bright Wolf LLC; Connio Inc.

Asia-Pacific was the largest region in the IoT market in 2025. North America was the second largest region in the global IoT market share. The regions covered in the iot 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 market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Tariffs have impacted the IoT market by increasing costs associated with imported sensors, connectivity modules, and networking equipment used across IoT deployments. Manufacturing, smart infrastructure, and connected logistics segments are more affected, particularly in regions dependent on global electronics supply chains. Higher hardware costs can slow large scale IoT rollouts for enterprises. To mitigate these effects, companies are shifting toward localized sourcing and cloud centric IoT platforms. Tariffs have also accelerated innovation in software driven and service based IoT solutions with lower hardware intensity.

The iot market research report is one of a series of new reports that provides iot market statistics, including iot industry global market size, regional shares, competitors with a iot market share, detailed iot market segments, market trends and opportunities, and any further data you may need to thrive in the iot industry. This iot 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) constitutes a network of physical objects equipped with integrated technologies enabling connection, sensing, and interaction within internal or external environments. Companies engage external vendors to design, build, install, and manage end-to-end IoT solutions, often seeking consulting advice for IoT planning.

IoT platforms typically revolve around device management, application management, and the overall process of handling the implementation, operation, and maintenance of physical or virtual devices. Various applications span building and home automation, smart energy and utilities, smart manufacturing, connected logistics, smart retail, smart mobility and transportation, among others. These applications find use across industries such as BFSI, retail, government, healthcare, manufacturing, transportation, IT, and telecom.

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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