Industrial IoT Market size was over USD 487.7 billion in 2024 and is estimated to reach USD 6260.2 billion by the end of 2037, expanding at a CAGR of 23.5% during the forecast timeline, i.e., 2025-2037. In 2025, the industry size of industrial IoT is evaluated at USD 603.2 billion. Key factors fueling this expansion include advancements in technologies such as 5G, AI, edge computing, and digital twins, which enable real-time data analysis.
For instance, in February 2024, Digi International Inc. launched Digi IX40, a 5G edge computing industrial IoT cellular router solution. Digi IX40 is purpose-built for Industry 4.0 use cases such as advanced robotics, predictive maintenance, and asset monitoring. The growth of autonomous systems and robotics also drives adoption, addressing labor shortages and increasing operational accuracy. Increasing investments in IoT-enabled cybersecurity solutions help mitigate risks, build trust, and accelerate industrial IoT market growth.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
23.5% |
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Base Year Market Size (2024) |
USD 487.7 billion |
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Forecast Year Market Size (2037) |
USD 6260.2 billion |
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Regional Scope |
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Component (Solution, Hardware, Services, Platform)
Based on component, the solution segment is poised to account for industrial IoT market share of more than 56.1% by the end of 2037. Solutions offer integrated platforms that combine hardware, software, and analytics to deliver end-to-end functionality. It further encompasses predictive maintenance systems, digital twins, and real-time monitoring platforms that optimize industrial processes. Moreover, the increasing focus on interoperability and seamless connectivity has made solutions more attractive, as they provide comprehensive frameworks for managing IoT ecosystems. For instance, in April 2024, ABB, Capgemini, Microsoft, Rockwell Automation, Schneider Electric, and Siemens announced a collaboration for a new initiative to deliver interoperability for Industrial IoT ecosystems.
End use (Manufacturing, Metal & Mining, Smart Grids, Energy & Power)
Based on end use, the manufacturing segment is projected to register considerable growth in the industrial IoT market by 2037. The segment’s early adoption of advanced technologies such as smart factories and industry 4.0, supported by government initiatives ensures that manufacturing remains at the forefront of IIoT innovation. In June 2023, ABB Measurement & Analytics China Technology Center and E Surfing IoT announced a collaboration to unveil a joint digitalization and industrial IoT lab. It is intended to support manufacturing industries with end-to-end industrial IoT solutions that help with real-time, data-driven decisions for safer, smarter, and more sustainable operations.
Our in-depth analysis of the market includes the following segments:
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Component |
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End Use |
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Software |
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Connectivity Technology |
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Device and Technology |
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North America Market Analysis
North America in industrial IoT market is expected to capture around 36.7% revenue share by the end of 2037. Industries such as manufacturing, oil and gas, and automotive leverage industrial IoT for efficiency, predictive maintenance, and sustainability. An established industrial base and significant investments in innovation also drive the market significantly. In February 2022, Lantronix Inc. launched its application-specific industrial IoT solutions to address concerns in Industry 4.0, Security, and Transport markets with its G520 Series Smart cellular IoT devices and services.
U.S. dominates the North America industrial IoT market owing to early adoption of cutting-edge technologies. Industries such as aerospace, automotive, and manufacturing utilize industrial IoT for real-time monitoring, automation, and operational optimization. Additionally, the strong presence of global technology leaders and an innovation-driven economy make the U.S. a hub for IIoT advancements.
Canada industrial IoT market is growing steadily with several collaborative approaches, including public-private partnerships, ensuring a robust IIoT adoption across key sectors. Government programs, including the Innovation Superclusters program, draw funding and foster collaboration to boost industries' digital transformation. As per Budget 2022, USD 750 million was earmarked for Canada's Global Innovation Clusters, for over five years. So far, the local government has invested USD 2 billion in the Global Innovation Clusters to strengthen their ecosystems and position Canada for global markets.
APAC Market Statistics
APAC industrial IoT market is anticipated to grow at the fastest rate during the forecast period. The market is majorly driven by rapid industrialization, urbanization, and digital transformation. Governments in the region actively promote initiatives such as smart factories and digital economies, further accelerating IIoT adoption. In March 2024, Rockwell Automation announced the launch of the Customer Experience Centre (CEC) in Singapore, intending to help the region’s manufacturing, mining, and heavy industry sectors embrace digital transformation.
China is a leader in the industrial IoT market supported by the Made in China 2025 initiative which emphasizes smart manufacturing and technological self-reliance. The country’s manufacturing dominance and robust investments in AI, robotics, and 5G connectivity drive the adoption of IIoT across industries. As a global hub for innovation and manufacturing, the country’s market continues to expand rapidly, shaping the region’s technological landscape.
India industrial IoT market is gaining momentum, fueled by the government’s Digital India, and Make in India initiatives. Rising investments in smart factories and automation, coupled with the deployment of 5G, are key growth drivers. Additionally, the push for sustainability and energy efficiency is prompting industries to adopt industrial IoT technologies, making India a rapidly emerging player in the global market.
Companies in the industrial IoT market are emphasizing customization and scalability to cater to diverse industry needs. Many focus on strategic partnerships and collaborations, and geographical expansion to accelerate adoption and expand market presence. For instance, in December 2018, General Electric (GE) established a new, independent company for Industrial Internet of Things (IIoT) software with USD 1.2 billion in annual software revenue and an existing global industrial customer base. Some of the prominent market players are:
Author Credits: Abhishek Verma
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