Autonomous IoT Payments Market size is estimated at USD 54.3 billion in 2024 and is set to cross USD 3775 billion by the end of 2037, witnessing more than 42.4% CAGR during the forecast period i.e., between 2025-2037. In 2025, the industry size of autonomous IoT payments is evaluated at USD 77.3 billion.
The market growth is influenced by inflated demand for digitalized and instant payment methods. Consumers expect more convenience while making payments, regardless of the amount. Market leaders allegedly incorporate advanced features for seamless transactions in autonomous IoT payment methods.
From NEFT to QR Code transactions, autonomous IoT payments have brought unmatched favorable features into action. Key players are introducing advanced technologies for enhanced security in the payment process. In addition, the traditional banking system is transforming with digitalization, offering a cashless experience for consumers. According to a report published by the Bank for International Settlements, in January 2023, the total value of cashless payments grew by a record hike. The growth escalated by 14% in AEs (Advanced Economies), and 15% in EMDEs (Emerging Market and Developing Economies) in 2021. As technology advances, and reaches rural areas worldwide, the autonomous IoT payments market is projected to witness significant expansion over the years.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
42.4% |
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Base Year Market Size (2024) |
USD 54.3 billion |
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Forecast Year Market Size (2037) |
USD 3775 billion |
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Regional Scope |
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Component (Solutions, Services)
Solution segment is likely to hold over 70.7% autonomous IoT payments market share by the end of 2037. It is poised to hold a market size of USD 60.0 billion by 2025, due to its capability of enhancing transaction security. The segment offers consumers end-to-end comprehensive solutions such as payment gateway, cloud services, and analytic tools. These solutions allow real-time transaction processing to manage the data of connected devices, enhancing user experience. With the increased adoption of IoT devices, it has become crucial to enable scalable and adaptable payment solutions, attracting more consumer engagement. Features such as seamless transactions and personalized services are also one of the growth factors, solidifying the leading position in the market.
Payment (Peer-to-Peer (P2P), Business-to-Business (B2B), Business-to-Consumer (B2C), Machine-to-Machine (M2M))
By 2037, B2B segment is predicted to capture over 33.6% autonomous IoT payments market share. The segment growth is driven by the increment in demand for robust data management. Business transactions consist of larger sums, which require an efficient and secure automated system to be processed. The autonomous IoT payment systems align perfectly with consumer needs and offer fast and cost-effective solutions. Moreover, businesses opt for real-time data analytic systems to upgrade their economic strategies, subsequently enlarging the market. Business-specific IoT technologies are carefully designed to comply with regulatory standards to protect consumer data. Many market leaders are now targeting large-scale businesses to secure a stable client base. They are also inventing advanced solutions, which can handle complex billing and invoicing without human intervention.
Our in-depth analysis of the global market includes the following segments:
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Components |
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Payment |
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Deployment |
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Technology |
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Application |
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North America Market Analysis
North America dominates the autonomous IoT payments market with a 40.5% share in 2024, due to technological advancements and large business accomplishments. The region is expected to capture 44.4% of the total sector by the end of the forecast period. Heavy investments in 5G networks have boosted the complete cashless payments throughout the region. Advanced technological infrastructure is helping market leaders to invest in IoT innovations. Situating some of the world’s biggest businesses has increased the demand for large-scale transaction management systems. The key players are investing overseas to expand their IoT product portfolio worldwide. In April 2024, Microsoft announced an investment of USD 2.9 billion to reconstruct the AI and cloud infrastructure in Japan. They are also planning to provide AI skills to more than 3 million people to expand their digital skilling programs.
The U.S market for autonomous IoT payments is witnessing record-high growth. Innovation in AI, machine learning, and blockchain has secured the market-leading position of this country. The rapid increment in the adoption of smart devices also inflates the demand for enhanced payment automation systems. Investment in fintech startups is also fostering its potential for development. The key players are now collaborating with banks to outstretch their services to a larger number of consumers. According to a report published by Mastercard, in December 2023, they built a powerful set of Open Banking assets acquired through Finicity and Aiia. In addition, with its connectivity to over 95% of deposit accounts in the US and 3,000 banks across Europe, they are expanding its portfolio to outer regions.
Canada is also predicted to witness a remarkable development in the autonomous IoT payments market. The increasing deployment of advanced IoT devices is connecting consumers with a sustainable payment integration facility. A huge number of connected devices have been implemented across sectors such as retail and transportation, stimulating the market to grow bigger. Faster data transmission due to the 5G rollout boosted the e-commerce shopping sector, which cordially piqued the demand for efficient automated payment systems.
APAC Market Statistics
The widespread mobile payment usage and rapid digitalization have stimulated the Asia Pacific autonomous IoT payments market to grow bigger in the upcoming years. The government and private sectors are conjugately contributing to developing the digital infrastructure of this region. Further encouraging companies to invest in bringing instant digital transaction solutions. The region’s varied payment landscape also captivates the focus for future innovations. The region’s growing international trade and travel are also contributing to the autonomous IoT payments industry.
India is one of the fastest-growing countries in this sector. Government campaigns such as Atmanirbhar Bharat Abhiyan, and Digital India are attracting bigger investments in the development of digital payment. According to a report published by RTI, in August 2024, the volume of digital payment transactions increased from USD 0.3 billion in FY 2017-18 to USD 2.2 billion in FY 2023-24 at a CAGR of 44%. This massive growth concludes in the enlargement of the overall autonomous IoT payments market.
With one of the largest populations and recent developments, China is also augmenting to achieve noticeable growth in the IoT payment industry. With a wider network of 5th-generation operating systems, China is expected to shape the IoT at home and abroad. According to a report published by Merics, in 2021, China accounted for three-quarters of cellular IoT connections worldwide at the end of 2020. Electronic companies such as Xiaomi are generating larger market revenue from IoT platform connections. Further increasing the demand for autonomous IoT payment systems.
Big market players are now expanding their market reach by partnering with regional governments or private sectors. They are acquiring other companies to collaborate on new technologies, which widens the scope for future investments. In August 2024, Mastercard announced the global launch and first massive test of its new Payment Passkey service in India. Such bold moves made by market leaders are creating a new path for newcomers to extend their footprint in external regions.
Author Credits: Abhishek Verma
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