IoT Sensors Market size is estimated at USD 27.5 billion in 2024 and is projected to reach USD 445.6 billion by the end of 2037, growing at around 29.3% CAGR during the forecast period i.e., between 2025-2037. In 2025, the industry size of IoT sensors is assessed at USD 35.6 billion.
Internet of Things (IoT) sensors measure physical parameters such as light, pressure, humidity, motion, etc., allowing real-time monitoring. They are the backbone of IoT ecosystems and allow devices to interact with each other and automate tasks in various sectors. The U.S. Telecom Association estimated that there will be more than 20.4 billion connected devices by 2020. Due to rapid digitization, the number can be expected to increase exponentially by 2025. The IoT sensors market is expected to rise significantly during the forecast period owing to the proliferation of smart systems and the increasing adoption of connected devices. With increased digitization globally, the need for IoT sensors is growing to gather real-time data across diverse applications.
Key players in the IoT sensors market are actively engaged in R&D and product innovations to maintain their strategic edge. For instance, in February 2024, OnePlus launched the OnePlus Watch 2 which can offer a central hub in Android 14 for managing data permissions from multiple fitness and health apps and allowing users to sync their health data with health-compatible apps. In August 2024, Medtronic announced the Food and Drug Administration (FDA) approval of the Simplera Continuous Glucose Monitor (CGM) integrated with the Simplera Sync sensor.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
29.3% |
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Base Year Market Size (2024) |
USD 27.5 billion |
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Forecast Year Market Size (2037) |
USD 445.6 billion |
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Regional Scope |
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Network Technology (Wireless, Wi-Fi, ZIGBEE, Z-WAVE, NFC, RFID, KNX, Wired, LonWorks, Ethernet, DALI, MODBUS, Bluetooth Smart, Bluetooth Smart/Ant+, Bluetooth 5, Others)
Wireless segment is projected to capture over 83.8% IoT sensors market share by 2037 due to the increasing demand for flexible and scalable connectivity solutions. Wireless allows seamless connectivity between IoT devices and the cloud. Wireless IoT sensors require comparatively less maintenance which has led to higher demands. Additionally, wireless sensors can be deployed in remote areas which makes them ideal for applications in agriculture, smart cities, healthcare, etc. For instance, smart cities like Barcelona have implemented wireless sensor networks for energy-efficient waste management systems. In September 2023, Energous and InPlay launched low-maintenance wireless sensors for IoT industrial applications.
The Wi-Fi segment is expanding significantly, driven by the widespread availability of Wi-Fi networks and the rising demand for reliable, high-speed connectivity in various sectors. WiFi mesh networks can extend coverage to large areas, enabling connection of IoT devices in challenging environments. The introduction of Wi-Fi 6 is a major boost to the growth potential as it is more secure and much faster than its predecessor. In September 2022, Nordic Semiconductor introduced a dual-band Wi-Fi6 nRF7002 companion IC designed to provide seamless Wi-Fi connectivity and location. In 2022, the World Economic Forum estimated that over 335 million homes globally will be smart homes in the next 5 years, and due to this, the demand for Wi-Fi-enabled IoT sensors is projected to rise.
Sensor Type (Touch Sensor, Magnetometer, Gyroscope, Pressure Sensor, Humidity Sensor, Image Sensor, Inertial Sensor, Temperature Sensor, Accelerometer, Flow Sensor, Others)
The touch sensor segment in IoT sensors market is poised to witness considerable growth during the forecast period owing to rising demand across consumer electronics and industrial applications. The large-scale penetration of smartphones, tablets, and wearable devices integrated with touch-based interfaces is a key driver of market growth. Touch sensors are rapidly being integrated into the automotive industry in advanced driver assistance systems (ADAS) to improve user experience. In February 2023, Henkel launched a novel sensor INKxperience kit for IoT sensor engineering that contains four different technologies, i.e., a Leak Detection Sensor, a Non-Contact Liquid Level Sensor, a Positive Temperature Coefficient Heater, and a Multi-Zone Force Sensitive Resistor. With new innovations in touch sensors, the segment is expected to continue its growth curve.
Our in-depth analysis of the IoT sensors market includes the following segments:
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Network Technology |
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Sensor Type |
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Vertical |
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North America Market Analysis
North America is poised for significant revenue growth in the IoT sensors market during the forecast period, owing to advancements in smart technology and rising demand for automation across multiple sectors. Additionally, growing investments in 5G networks are accelerating the adoption of IoT sensors in various applications. In 2019, a Stanford University research concluded that 66% households in North America had at least one IoT device, making it the highest density globally.
The U.S. IoT sensors market is rising at a significant pace owing to increasing demand for connected devices across various sectors, smart city initiatives, an increase in smart homes, and technological innovations. U.S. is leading the charge in self-driving vehicles and companies such as Tesla are at the forefront by utilizing IoT sensors to enable autonomous driving. In September 2024, Tesla launched the Actually Smart Summon (ASS) system where drivers can summon their vehicles using voice command.
Furthermore, in July 2024, a study at Texas Mccombs conducted a study that highlighted the importance of IoT sensors in marketing, stating that installing IoT sensors in promotional displays and hoardings can ensure that displays are run in conjunction with ad campaigns. As the U.S. gears for a new era of digitization, the demand for IoT sensors in various applications is expected to rise exponentially in the next decade.
In Canada, the market is experiencing steady growth owing to investments in smart infrastructure and digital transformation across companies. A key driver is the ongoing government investments in precision agriculture where IoT sensors are used to collect real-time data on numerous environmental factors. In February 2022, the government invested USD 875 thousand in Ukko Agro Inc. to develop an analytics platform for efficient pest control. In November 2023, ABB Canada signed a third contract with GHGSat to manufacture optical sensors for C12, C13, C14, and C15 satellites set to be launched into orbit in 2024.
APAC Market Analysis
By 2037, Asia Pacific IoT sensors market is predicted to hold more than 43.3% revenue share. Consumer electronics is a key sector that has led the market growth in APAC. Countries like China, India, South Korea, and Japan are leveraging IoT solutions to increase digitization in various sectors. Government initiatives such as India’s Smart Cities Mission and China’s Made in China 2025 are propelling the market growth. Additionally, emerging economies such as Vietnam, the Philippines, and Indonesia are bedrock of rapid economic growth and increasing adoption of IoT in various sectors.
In India, the market is witnessing an impressive growth curve owing to the increased digitization across various sectors combined with the demands of a large population. For instance, the government is pushing to install smart electricity meters in all households in the country which is expected to raise the demand for IoT sensors. A significant demand for IoT sensors is arising from the Smart Cities initiative in India which is projected to conclude by March 2025. Other key sectors which are boosting the demands are healthcare and telecom. In March 2023, Smart Digital Thermometer, IoT-enabled Environmental Monitoring System, and Multichannel Data Acquisition System developed at C-MET were released reiterating focus on indigenously developed IoT sensors.
China is a leading market in IoT sensors owing to the massive rollout of 5G networks across the country driven by rising focus on automation in various sectors. The Made in China 2025 initiative by the government aims at positioning China as a powerhouse in high-tech industries. In March 2024, GSMA’s Mobile Economy China report noted of 1.28 billion unique mobile subscribers in the country and more than 800 million connections of 5G. The large-scale penetration is expected to continue boosting the market demands for IoT sensors. In June 2023, ABB and China telecom launched a joint industrial IoT laboratory in Hangzhou, China. The collaboration aims at developing industrial IoT solutions for companies based in China.
South Korea is witnessing a surge in the market during the forecast period due to the focus on becoming a leader in digital revolution. The government has put initiative such as the Basic IoT Promotion Plan in practice to facilitate digital revolution. The market is characterized by the presence of global and local companies vying for revenue share. Survey by the Ministry of Science, ICT, and Future Planning & Korea IoT Association highlights the personalized IoT service sector to have the most viable growth potential. In May 2023, Korea Land and Housing Company along with Information Technology Consortium launched the Smart Home Platform that provides a secure framework to manage smart home appliances using IoT sensors.
Author Credits: Abhishek Verma
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