Connected IoT Devices Market - Size, Share, Industry Trends, and Forecasts (2024 - 2031)

By Component:

Based on the component, the market is segmented into hardware, software, and service.

Trends in the component:

• Smart cities are increasingly leveraging IoT sensors to optimize traffic flow, lessen congestion, and increase safety.
• The trend towards advanced technology such as edge computing, artificial intelligence, and blockchain is propelling the component segment of connected IoT devices market demand.

The hardware accounted for the largest revenue share of 56.21% in the year 2023.

• The hardware components comprise sensors, processors, communication modules, and actuators among others. Moreover, components play a crucial role in the innovation of soft robotics which is utilized in industries for enhancing flexibility capabilities. Additionally, the rising adoption of Microelectromechanical Systems (MEMS) technology as well as the reduced size of sensors is propelling the connected IoT devices market size in the hardware segment.
• The sensors are utilized in various end-use industries including automotive, healthcare, and consumer products among others. Moreover, the primary function of sensors is to collect and transmit real-time data for monitoring and controlling various systems, optimize operations, and improve decision-making.
• In April 2023, MultiTech launched Radio Bridge LoRaWAN which is a wireless temperature sensor product line engineered to detect ambient air temperature or humidity, utilizing air flow to measure levels.
• Thus, the rising adoption of microelectromechanical systems and the ability to collect and transmit data is driving the hardware segment of connected IoT devices market trends.

The service segment is anticipated to register the fastest CAGR during the forecast period.

• The IoT-based connected devices generate a huge amount of data which is processed, stored, and analyzed for real-time monitoring and control activities. Businesses leverage IoT to enhance decision-making and improve the service offered to the customers which has led to rising cyber-attacks and threats of data breach driving the service segment.
• The service segment will experience significant growth due to the evolution of various advanced technologies integrated into IoT devices including artificial intelligence, machine learning, blockchain, and edge computing.
• In September 2021, Silicon Labs launched Zero Trust security architectures which is a new security service for IoT companies aiming to meet emerging cybersecurity standards and combat the rising tide of threats.
• Therefore, as per the analysis, the emergence of advanced technology and rising security concerns are anticipated to boost the market during the forecast period.

By Deployment:

Based on the deployment, the market is bifurcated into on-premise and cloud.

Trends in the Deployment:

• Businesses are leveraging multi and hybrid cloud deployment for optimizing usage and portability over the cloud.
• Cloud computing is using blockchain technology to improve the security and safety of transactions over the cloud.

The cloud accounted for the largest revenue share in the year 2023 and is anticipated to register the fastest CAGR during the forecast period. 

• The cloud enables storing data and files on the internet through a cloud computing provider which is accessed through public internet or a dedicated private network connection. They offer a range of benefits including scalability, flexibility, cost-effectiveness, and security.
• The rapid evolution in technologies is promoting the cloud segment for sorting, storing, analyzing, computing, and transmitting data for real-time monitoring and controlling of various IoT devices.
• In August 2024, Oracle partnered with AT&T to integrate Oracle's industry cloud application with AT&T network to provide a single cloud platform for IoT devices.
• Thus, the aforementioned benefits and ability to store and analyze huge volumes of data are driving the cloud segment of connected IoT devices market expansion.

By Technology:

Based on the technology, the market is segmented into Wi-Fi, Bluetooth, ZigBee, Cellular, NFC, RFID, and others.

Trends in the Technology:

• The integration of ZigBee with the 5G network enhances security measures and increases interoperability.
• The advancing encryption and secure data transmission is promoting the adoption of the NFC segment.

Wi-Fi accounted for the largest revenue share in the year 2023 and is anticipated to register the fastest CAGR during the forecast period.

• The Wi-Fi segment plays a crucial role in the connected IoT-based devices ranging from phones and computers to homes and workplace devices. The Wi-Fi technology provides high performance with low latency connectivity which makes it efficient and reliable for various applications.
• Further, the development of Wi-Fi 6 technology is providing higher performance, lower latency, and faster data rates for ensuring seamless connectivity with IoT devices.
• In September 2024, Edgecore Networks launched an EAP112 device integrated with Wi-Fi HaLow access point and Matter IoT gateway functionalities. The device is engineered for growing IoT applications. The EAP112 offers long-range connectivity, energy efficiency, and robust performance for seamless IoT deployment.
• Thus, as per the analysis, the ability to provide high performance with low latency connectivity is driving the Wi-Fi segment.

By Application:

Based on the application, the market is segmented into smart home devices, industrial automation, smart retail, medical devices, connected logistics, and others.

Trends in the application:

• The rising automation and industrialization are increasingly adopting IoT-based connected devices to improve efficiency and productivity driving the connected IoT devices industry.
• Various IoT devices have the ability to sense soil moisture and nutrients which is boosting the connected IoT devices market for agriculture applications.

The smart home devices accounted for the largest revenue share of 23.42% in the year 2023.

• Smart home devices offer remote monitoring and control of appliances and systems including kitchen appliances, smart TVs, smartphones, and others.
• Additionally, the rise of connected home devices that can seamlessly manage and automate various household appliances is driving the growth of the IoT devices market in smart home applications.
• In October 2023, Samsung Electronics Co., LTD. introduced new features into SmartThings including AI energy mode, enhanced automatic demand response (DR) functionality, and others.
• Thus, the connected devices at homes and seamlessly manage and automate various home devices is driving the connected IoT devices market trends.

Medical device is anticipated to register the fastest CAGR during the forecast period.

• The IoT-embedded medical devices play a crucial role in the healthcare sector with an IoT-based monitoring system that tracks data and transmits data to cloud storage through a network.
• The devices provide real-time data to both doctors and patients which is beneficial for allowing urgent medical decisions by doctors at the right time. Further, growing medical infrastructure across the globe is providing a connected IoT devices market opportunity.
• In February 2024, KORE launched MGMini which is a medical alert device utilizing eSIM technology. The technology is designed to address healthcare access disparities and enable two-way communication enhancing the healthcare sector.
• Therefore, as per the analysis, the ability to track and transmit data in real-time and advancement in medical devices are anticipated to boost the market during the forecast period.

By End-Use:

Based on the end use, the market is segmented into consumer electronics, retail, logistics & transportation, automotive, healthcare, manufacturing and others.

Trends in the End Use:

• The sensor-based soil monitors and automated irrigation systems are spurring the adoption of connected devices for precision farming and improved resource management.
• The rising need for enhancing customer experience and enhanced supply chain management with real-time tracking is boosting the demand for connected devices in the retail sector.

Consumer electronics accounted for the largest revenue share of 27.12% in the year 2023.

• The role of IoT in consumer electronics is to connect devices to the internet and use sensors to collect, process, and share data. Moreover, IoT in consumer electronics creates communication protocols that allow seamless and uniform data sharing, regardless of device manufacturer or function.
• Further, the widespread adoption of voice assistants and other smart home technologies is driving the growth of connected IoT devices market share. Additionally, the growing demand for luxury and convenience to enhance lifestyle is boosting the segment.
• In August 2023, Samsung launched Crystal Vision 4K UHD TV embedded with voice assistant and video calling facility as well as various IoT features including IoT light sensors and a built-in IoT Hub.
• Thus, the rising adoption of voice assistants and other smart home technologies is driving the connected IoT devices market demand.

Healthcare is anticipated to register the fastest CAGR during the forecast period.

• The connected devices play a crucial role in the healthcare sector with features including remote patient monitoring, glucose monitoring, heart rate monitoring, and Parkinson’s disease monitoring among others.
• Regulatory compliance such as HIPAA and others have stringent rules for healthcare devices which includes the data collected by medical devices.
• In October 2024, Heterogeneous, launched a connected ambulance solution. The ambulance is embedded with advanced 5GIoTTM technology with real-time patient monitoring, and data transmission facility.
• Therefore, according to connected IoT devices market analysis, stringent rules and the aforementioned features are anticipated to boost the market during the forecast period.