IoT Solutions and Services Market Size and Trends

Global IoT solutions and services market is estimated to be valued at US$ 286.35 Bn in 2024 and is expected to reach US$ 913.67 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 18% from 2024 to 2031.

IoT Solutions and Services Market Key Factors

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Growing adoption of advanced technologies such as AI, Machine learning, and cloud computing can boost demand for IoT solutions and services globally. Global IoT solutions and services market can witness significant growth during the forecast period due to rising deployment of IoT across various industry verticals such as manufacturing, healthcare, retail, transportation and logistics. Furthermore, increasing investment by major technology players such as IBM Corporation, Microsoft Corporation, General Electric Company, Siemens AG, etc. to develop innovative IoT platforms and solutions can also drive the market growth.

Growing adoption of smart devices and connected technologies

Rising adoption of connected devices and smart technologies can drive the market growth. From basic smartphones to the latest smart watches and virtual assistants, people have increasingly brought connectivity into their everyday lives. Devices ranging from appliances to vehicles now have internet connectivity and the ability to communicate. This growing trend of connectivity has helped lay the foundation for the internet of things.

As devices becomes smart and sensing capabilities improves, more day-to-day products and infrastructure are gaining networked connectivity. Home automation has gained popularity, thus, allowing people to monitor and control lights, locks, thermostats and other systems remotely. Smart functionalities are making their way into other areas like healthcare with connected medical devices and sensors, smart cities through infrastructure monitoring, and supply chain management with track-able shipments and inventory. The desire for convenience and efficiency through smart connectivity compels both consumers and organizations to adopt IoT solutions.

Seamless communication between various smart endpoints has led to many applications involving device integration and data sharing. This has expanded the IoT ecosystem and infrastructure requirements. User expectations around personalization and predictive services have pushed companies to leverage the vast amounts of data generated through connected systems. The proliferation of smart devices and growing reliance on connectivity across sectors have established IoT technologies.

Increased focus on automation and efficiency across industries

Rising focus across industries on driving operational efficiency, reducing costs and enhancing productivity through automation and data-driven insights can drive the market growth. Leveraging IoT technologies is seen as an avenue to achieve these strategic priorities. Continuous data collection from connected devices allows previously unobserved processes and assets to be monitored remotely. This improves visibility and provides invaluable performance metrics. Streaming data also enables detection of inefficiencies, downtime prediction as well as maintenance upgrades post-analysis. With IoT, idle capacities can be better utilized while unnecessary resource expenditure gets curtailed.

Automation of routine tasks optimizes labor deployment while minimizing human errors. For example, industrial equipment monitoring helps achieve predictive maintenance through sensors that track machine health. IoT-enabled smart transportation pilots reduced traffic congestion with sophisticated traffic light controls. Smart grids leveraged IoT to balance energy demands in real-time. In logistics, track-and-trace technologies help optimize deliveries and address issues proactively. The healthcare sector has deployed IoT to monitor patients remotely as well as streamline hospital operations through electronic records.

For instance, In March 2023, IBM, a global leader in technology and consulting services, introduced a new AI-powered Internet of Things (IoT) platform aimed at industrial applications. This innovative platform is designed to enhance operational efficiency by integrating AI capabilities with IoT data, enabling businesses to gain valuable insights and drive automation in their processes. The launch reflects IBM's commitment to advancing digital transformation across various industries through cutting-edge technology solutions.