The global market for internet of things (IoT) devices will top $1.5trn by 2029, almost doubling from 2024, according to a new report.
GlobalData’s Market Opportunity Forecasts to 2029: Internet of Things report indicates that total IoT revenues were $760.9bn in 2024 and are expected to grow at a compound annual growth rate (CAGR) of 15.05% through 2029 to reach $1.53trn.
Manufacturing and government organisations continue to represent the largest vertical segments for enterprise IoT, with industrial automation and smart city initiatives both creating long-term opportunities for ecosystem vendors and service providers. They topped the table of 27 industries in terms of global market revenues in the 2025 edition of the report, with agriculture and energy forecast to be the fastest growing verticals.
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John Marcus, senior principal analyst for enterprise technology and services at GlobalData, commented: “IoT is now mature as a market in the sense that enterprises of all kinds both understand and use the technology in one way or another. And while technology investment trends around AI and digital transformation make all the headlines, so many of those cutting-edge use cases require connectivity at the machine, device, or edge – pulling IoT along with them in global enterprise efforts to monitor, analyse and optimise their operations.
The forecast spans four technology segments – hardware, software, services and connectivity – 59 geographical markets, six regions, 27 verticals and five customer size bands. The connectivity market is further segmented by connectivity type and use case.
Services and connectivity innovation will drive growth
Among the four technology segments, hardware and software account for more than half of the addressable market, but services and connectivity are often where innovation is realised.
“New developments based on emerging technology standards around satellite (direct-to-device, 5G-satellite integration), 5G (RedCap, network slicing) and embedded connectivity (eSIM) will drive new use cases, improve customer experience for others and make IoT adoption easier,” Marcus said. “This in turn will drive growth across each of the other technology segments.”
Cellular (including 5G) accounted for approximately two-thirds of connectivity monetized by service providers in 2024, but with low power technologies and satellite growing rapidly over the next five years, its market share will be closer to half in 2029.
Geographically, Asia-Pacific overtook North America as the largest regional market in 2024. Its 18% CAGR through 2029 exceeds that of all other regions except for South & Central America. At the country level, the US represents the largest opportunity, followed by China, Japan and India.
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