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Digitalization and Internet of Things

Digitalization and Internet of Things Market Research Reports

"Connecting the Dots: Rise of Digitalization and IoT in a Global Economy (2024 Market Size: USD 621 billion)"!

Digitalization and Internet of Things Industry Overview

The digitalization and Internet of Things (IoT) market is expanding at a rapid pace, with significant advancements and a growing adoption across a variety of industries. According to cognitive market research, the global IoT market size is USD 621 billion in 2024, and will be USD 2225.7 billion in 2031, with a compound annual growth rate (CAGR) of 17.3%. In 2023, IoT market size was USD 450 billion. The escalating demand for connected devices and intelligent solutions in both consumer and industrial applications is the primary factor driving this expansion. In 2023, the global number of IoT devices exceeded 14.4 billion, and will increase to 18 billion by 2024. The proliferation of industrial IoT applications, wearable technology, and smart home devices is a significant factor in this increase. Businesses are progressively implementing IoT solutions to improve customer experiences, reduce costs, and improve operational efficiency. 

As per our research analyst, the percentage of enterprises that have implemented IoT solutions will increase to 75% by 2024, having reached 60% in 2023. This adoption is primarily driven by the following market: manufacturing, healthcare, transportation, and energy. The investment in smart city initiatives is increasing, with global spending USD 158 billion in 2023 and increase to USD 203 billion in 2024. The primary objective of smart city initiatives is to enhance public safety, energy efficiency, traffic management, and urban infrastructure by utilizing IoT technologies. Automation, predictive maintenance, and asset management fuel the expansion of the IIoT market. The IIot Market size was USD 217 billion in 2023 and will be USD 309 billion in 2024. Industries, including manufacturing, oil and gas, and logistics, are utilizing IIoT to improve productivity and optimize operations. 

The healthcare market is currently undergoing a significant increase in the adoption of IoT, with the market size USD 140 billion in 2023 to USD 176 billion in 2024. Remote patient monitoring, smart sensors, and telemedicine are among the healthcare applications of the Internet of Things (IoT). These applications enhance patient outcomes and decrease healthcare expenses. The necessity for comprehensive cybersecurity measures is increasing in tandem with the expansion of IoT adoption. Global spending on IoT security solutions was USD 3.1 billion in 2023 and will increase to USD 4.2 billion by 2024. Safeguarding data privacy and safeguarding against cyber threats is essential for the continued expansion of the IoT ecosystem.

Top Countries Contributing to Digitalization and Internet of Things Market

United States (2024 Market Size: USD 240 billion)

According to cognitive market research, the United States IoT market share is 40% of the total revenue generated and its market size is USD 240 billion in 2024. In 2023, the market was valued at USD 180 billion. Manufacturing, healthcare, transportation, and smart residences are among the primary sectors in the United States that implement IoT. Manufacturing is the pioneer in the utilization of IoT for automation, predictive maintenance, and supply chain optimization. They were followed by the healthcare market, which implements IoT applications in telehealth services and remote patient monitoring. Significant IoT adoption is also observed in smart cities and transportation, which improves urban infrastructure and mobility. The number of connected devices in the United States is 8 billion in 2024. Furthermore, the United States is a leader in the deployment of 5G technology, which is essential for the development of IoT technologies. The increase in cybersecurity investment is significant, with USD 1.5 billion in 2023 to USD 2 billion in 2024. This investment is intended to safeguard the integrity of data and IoT networks.

China (2024 Market Size: USD 210 billion)

In 2023, the IoT market in China was valued at USD 160 billion. The China's Iot market holds a significant revenue share of 35% of the total revenue generated and its market size is USD 210 billion in 2024. The adoption of IoT is primarily driven by the following sectors: manufacturing, smart cities, healthcare, and agriculture. The manufacturing market in China is the largest consumer of IoT technologies, utilizing IoT for energy management, quality control, and automation, with a concentration on Industry 4.0. Smart cities are a substantial investment opportunity, with cities such as Shanghai and Shenzhen being at the forefront of traffic management and smart infrastructure. IoT is also being rapidly adopted by the healthcare market, particularly in areas such as remote diagnostics and patient monitoring. China's vigorous 5G deployment is a critical enabler of IoT expansion, with an total of 6 billion IoT devices in 2024. Additionally, cybersecurity investments are increasing, with a increase in expenditure from USD 1.2 billion in 2023 to USD 1.7 billion in 2024.

Germany (2024 Market Size: USD 60 billion)

According to cognitive market research, the Germany's Iot market share is 10% of the total revenue generated and its market size is USD 60 billion in 2024. In 2023, the IoT market in Germany was valued at USD 45 billion. Manufacturing, automotive, and smart communities are the primary sectors in Germany that are utilizing IoT. Particularly through initiatives such as Industry 4.0, the manufacturing market is a significant factor in the adoption of IoT, with an emphasis on energy efficiency, predictive maintenance, and automation. The automotive industry is also a substantial user of IoT, utilizing it to develop smart transportation systems and connected vehicles. Germany's smart city initiatives are gathering momentum, with projects that are designed to enhance urban infrastructure and sustainability. In 2024, the number of IoT devices in Germany will have reached 1.2 billion. The growing investment in cybersecurity in Germany is indicative of the country's strong emphasis on the subject. The expenditure will increase from USD 600 million in 2023 to USD 800 million in 2024.

Japan (2024 Market Size: USD 55 billion)

In 2024, the Japanese IoT market share is 8% of the total revenue generated and its marjet size is USD 55 billion and in 2023, the market was valued at USD 40 billion. Manufacturing, healthcare, and transportation are the primary sectors in Japan that employ IoT. The manufacturing market is the most significant user of IoT technologies due to its emphasis on automation and robotics. The Internet of Things (IoT) is being rapidly integrated into the healthcare market for remote patient monitoring and the development of intelligent medical devices. Additionally, the transportation market is a substantial consumer, particularly in the context of smart infrastructure and connected vehicles. As per our research analyst, the number of IoT devices in Japan will surpass one billion by 2024. The growth of IoT is being facilitated by Japan's extensive 5G network deployment, and cybersecurity investments are on the rise, with a increase from USD 500 million in 2023 to USD 700 million in 2024.

South Korea (2024 Market Size: USD 40 billion)

According to cognitive market research, the IoT market in South Korea was valued at USD 30 billion in 2023 and will be USD 40 billion in 2024. The South Korea Iot market share is 6% of thr global market. The adoption of IoT is primarily driven by the following sectors: healthcare, manufacturing, and smart cities. South Korea is a pioneer in the implementation of smart city initiatives, with cities such as Busan and Seoul implementing extensive IoT solutions for public services and urban management. IoT is also extensively utilized in the manufacturing market for automation and smart industrial applications. The healthcare market is experiencing an increase in the adoption of IoT, particularly for remote patient monitoring and telehealth services. In 2024, the number of IoT devices in South Korea will exceed 800 million. IoT growth is significantly facilitated by the nation's sophisticated 5G network, and cybersecurity expenditures will increase from USD 400 million in 2023 to USD 600 million in 2024.

United Kingdom (2024 Market Size: USD 35 billion)

In 2024, the UK's IoT market holds a 5% market share and its market size is USD 35 billion. In 2023, the market was valued at USD 25 billion. Healthcare, manufacturing, and smart communities are among the sectors that have implemented IoT. The healthcare market is the leader in the adoption of IoT, with applications in digital health systems and remote patient monitoring. Manufacturing follows, utilizing IoT to facilitate predictive maintenance and automation. Additionally, there is an increase in the popularity of smart city projects, which are designed to enhance energy management and urban infrastructure. In 2024, the United Kingdom will have 700 million Internet of Things (IoT) devices. The rollout of 5G networks significantly influences the adoption of IoT, and cybersecurity investments are on the rise, with a increase in expenditure from USD 300 million in 2023 to USD 450 million in 2024.

France (2024 Market Size: USD 28 billion)

According to cognitive market research, France's IoT market size was USD 20 billion in 2023 and will be USD 28 billion in 2024. France holds 4% of the global market share . Manufacturing, healthcare, and smart communities are among the sectors that are most influential in the adoption of IoT. The manufacturing market is the major user of IoT technologies, with an emphasis on enhancing efficiency and automation. Smart cities are a substantial investment area, with initiatives designed to improve urban infrastructure and sustainability. The healthcare market is also experiencing an increase in the adoption of IoT, particularly for remote patient monitoring and the development of digital medical devices. In 2024, the number of IoT devices in France will surpass 600 million. The expansion of IoT is facilitated by the country's 5G network rollout, and cybersecurity expenditure will increase from USD 250 million in 2023 to USD 350 million in 2024.

Singapore (2024 Market Size: USD 20 billion)

In 2023, the IoT market in Singapore holds a 3% of the global market share and its market size was USD 15 billion in 2023 and will be USD 20 billion in 2024. Smart communities, healthcare, and logistics are among the sectors that extensively employ IoT. Singapore is a global leader in smart city initiatives, with extensive IoT deployments for public services and municipal management. The healthcare market is also a significant adopter, with applications in digital health systems and remote patient monitoring. The logistics market utilizes IoT to optimize the supply chain and monitor assets. Singapore will have 500 million IoT devices by 2024. IoT growth is facilitated by the country's advanced digital infrastructure and 5G network, and cybersecurity investments are on the rise, with a increase from USD 200 million in 2023 to USD 300 million in 2024.

Canada (2024 Market Size: USD 25 billion)

According to cognitive market research, In 2024, the Canada's IoT market share is 4% of the total revenue generated and its market size wad USD 18 billion in 2023 and will be USD 25 billion in 2024. Smart cities, healthcare, and agriculture are among the primary sectors that are propelling the adoption of IoT. Cities such as Toronto and Vancouver are employing IoT solutions for urban management and sustainability, with a particular emphasis on smart city initiatives. The healthcare markegt is swiftly adopting IoT for remote patient monitoring and the development of smart medical devices. The agricultural market implements precision cultivation and resource management through the utilization of IoT. In 2024, the number of IoT devices in Canada will exceed 550 million. The rollout of 5G networks significantly influences the adoption of IoT, and cybersecurity investments are on the rise, with a increase in expenditure from USD 220 million in 2023 to USD 320 million in 2024.

Netherlands (2024 Market Size: USD 14 billion)

In 2024, the Netherlands' IoT market size is USD 14 billion with a market share of 2% of the global market. In 2023, the market was valued at USD 10 billion. Smart cities, agriculture, and logistics are among the sectors that most frequently implement IoT. The Netherlands is a pioneer in smart city initiatives, with a focus on enhancing urban infrastructure and sustainability through projects. Precision cultivation and resource management are among the applications of IoT that the agriculture market has implemented. The logistics market utilizes IoT to optimize the supply chain and monitor assets. In 2024, the Netherlands will have 400 million IoT devices. The country's 5G network and advanced digital infrastructure are expected to facilitate the development of IoT, and cybersecurity spending is increasing USD 150 million in 2023 to USD 220 million in 2024.

PESTEL Analysis of Digitalization and Internet of Things Market

Political

The digitization and IoT market is highly affected by the political climate. Government laws, rules, and international relations influence Internet of Things (IoT) technology development and implementation. For example, the General Data Protection Regulation (GDPR) in Europe and similar data privacy and security standards place stringent demands on the manner in which IoT devices gather, retain, and analyze data. Businesses in the industry face new compliance hurdles as a result of these rules, which protect user privacy. Internet of Things adoption might be boosted by government backing of digitization projects. Some nations, including the US and China, are pouring a lot of money into smart city initiatives that use the Internet of Things to improve city services and infrastructure. The government's dedication to encouraging innovation and digital transformation is shown by these programs. The opposite is also true: bureaucratic red tape and complicated regulations can impede the rollout of IoT technologies. The Internet of Things (IoT) is also affected by foreign policy and trade policies. The manufacture and distribution of Internet of Things components can be impacted by trade conflicts or sanctions that disrupt the supply chain. For instance, producers of the Internet of Things (IoT) have seen their prices rise due to tariffs on electrical components resulting from US-China trade concerns.

Economical

One of the main factors propelling development and advancement in the field of digitization and the Internet of Things (IoT) is the state of the economy. Economic variables, including market size, economic growth, investment levels, and consumer spending power, strongly impact the Internet of Things (IoT) development and adoption. With a value of USD 621 billion in 2024 and in 2023, it was USD 450 billion, the worldwide IoT industry is expanding at a rapid pace. The rising need for smart solutions and interconnected devices in many different markets is driving this expansion. Spending on Internet of Things (IoT) gadgets, like smart home items and wearable tech, is on the rise as a result of increased disposable incomes and economic success. To grow the Internet of Things, money must be poured into its infrastructure and technologies. The increased funding of Internet of Things startups and initiatives from venture capital firms and corporate investors is propelling innovation and development. For instance, in order to meet the connectivity demands of IoT devices, substantial investments in 5G infrastructure are necessary. More complex Internet of Things (IoT) applications will be possible with the advent of 5G networks, which improve data transmission rates and dependability.

Social

Consumer habits, social movements, and the dynamics of the workforce are all profoundly affected by the social environment, which in turn affects the digitalization and IoT industry. A number of social factors, including changes in demographics, changes in lifestyle, changes in education levels, and public attitudes towards technology, have significant impacts on the uptake and use of IoT technologies. Demand for Internet of Things solutions is being propelled by demographic trends, such as increasing urbanization and population expansion. Smart city projects that utilize the Internet of Things (IoT) for effective urban administration are becoming more necessary as the population of metropolitan areas continues to grow. Smart cities use the Internet of Things to improve the lives of city dwellers through measures such as traffic and waste management as well as energy optimization. Furthermore, healthcare organizations are increasingly turning to the Internet of Things (IoT) for solutions like remote monitoring and assisted living as a result of an aging population in many nations. The IoT market is highly susceptible to shifts in consumer tastes and lifestyles. Internet of Things (IoT) gadgets like smart thermostats, security cameras, and home automation systems are in high demand due to the increasing popularity of smart homes. These homes are designed to be more convenient, secure, and energy efficient.

Technological

One of the main forces propelling the digitization and IoT industry is the technological landscape. The growth and implementation of IoT solutions are influenced by technological developments, such as advancements in connection, sensor technology, data analytics, and artificial intelligence (AI). Thanks to these technical developments, more complex, efficient, and scalable Internet of Things applications are now within reach. An essential part of the Internet of Things is connectivity. By delivering quicker data transmission, reduced latency, and increased capacity, the advent of 5G networks greatly improves the possibilities of IoT devices. Forty percent of IoT devices will reportedly be 5G-enabled by 2024's end, paving the way for real-time data transfer and sophisticated analytics. From smart city infrastructure to driverless vehicles, this improved connectivity supports it all. Advancements in sensor technology are also crucial. Smaller, more efficient, and more accurate sensors have made it possible to deploy IoT devices in a wide variety of settings. The massive volumes of data collected by these sensors can be mined for insights and used to inform decision-making. In addition to healthcare, agricultural, and environmental monitoring, new Internet of Things (IoT) applications are created as a result of innovations in sensor technology.

Environmental

Digitalization and the Internet of Things (IoT) are heavily impacted by environmental factors, which in turn affect the creation and implementation of IoT solutions that promote sustainability and protect the environment. The demand for Internet of Things (IoT) solutions that can reduce environmental impact and increase resource efficiency is being propelled by environmental issues like climate change, restrictions on resource management, and regulatory mandates. Many people are becoming more environmentally conscious and concerned about climate change, which is pushing the adoption of IoT technologies forward. By facilitating more effective energy use, decreasing emissions, and enhancing resource management, IoT solutions contribute to climate action. One application of the Internet of Things is smart grids, which increase efficiency and decrease energy waste by monitoring and managing energy delivery. Through the use of IoT, precision farming techniques can be enhanced in the agricultural market, leading to more sustainable practices by optimizing water usage, reducing chemical inputs, and increasing crop yields. One of the most important uses of the Internet of Things is environmental monitoring. Internet of Things (IoT) devices with sensors may monitor soil conditions, weather patterns, and water and air quality in real-time. Research, policymaking, and catastrophe management all rely on this data. 

Legal

The legislative framework, data privacy, security requirements, and intellectual property rights that control the creation and implementation of IoT technologies are all shaped by the legal environment, which in turn has a substantial influence on the digitization and IoT industry. Compliance mandates, industry standards, and legal conflicts are all examples of legal considerations that impact the use and adoption of Internet of Things solutions. Important legal factors for the Internet of Things (IoT) market include data privacy and protection legislation. Data collection, storage, and processing by Internet of Things devices are subject to stringent regulations in many countries, including the EU's General Data Protection Regulation (GDPR) and the US's California Consumer Privacy Act (CCPA). Internet of Things (IoT) businesses face new compliance hurdles as a result of these rules meant to safeguard consumers' personal information. Strong data protection procedures are crucial because of the serious penalties for not complying with data privacy legislation. The Internet of Things (IoT) industry also urgently needs cybersecurity legislation. The growing number of interconnected devices increases the potential vectors for cyberattacks, emphasizing the critical nature of cybersecurity measures. 

Top Countries Contributing in Digitalization and Internet of Things Market

IBM

IBM generated USD 23 billion in revenue from its digitalization and Internet of Things (IoT) market in 2023, and it will increase to USD 25 billion in 2024. The company has consistently allocated an USD 6 billion to research and development (R&D) in 2023, and it intends to increase this amount to USD 6.5 billion in 2024. Cloud computing, AI, cybersecurity, and IoT comprise IBM's principal business segments. IBM's Watson IoT platform provides solutions for industrial automation, predictive maintenance, and smart city applications within the IoT market, making it a significant contributor. IBM's digitalization initiatives are implemented in a variety of markets, such as transportation, healthcare, and manufacturing. The company's primary objective is to improve the operational efficiency and data analytics of its clients by incorporating AI and machine learning into its IoT solutions. IBM maintains a competitive advantage by utilizing its extensive portfolio of patents and technological innovations, which account for 12% of the global digitalization and IoT market share. It is a critical factor in the global market due to its strong presence in cloud computing and AI, which further enhances its IoT capabilities.

Cisco Systems

In 2023, Cisco Systems generated an USD 15 billion in revenue from its digitalization and IoT market, which is increasing to USD 17 billion In 2024. Cisco's research and development expenditure for 2023 was USD 7.3 billion, and it will be USD 7.8 billion in 2024. Networking hardware, cybersecurity, and IoT solutions comprise Cisco's principal business segments. The IoT segment is dedicated to the provision of data administration, security, and connectivity solutions for a variety of industries, including energy, transportation, and manufacturing. The Cisco IoT Control Center and Cisco Kinetic are among the products in Cisco's IoT portfolio that provide comprehensive data analytics and device management capabilities. Capitalizing on its extensive customer base and robust networking infrastructure, Cisco Systems holds 10% of the global digitalization and IoT market share. The company's market position is further fortified by its strategic emphasis on cybersecurity within the IoT, which guarantees secure and dependable IoT deployments for its clients.

Microsoft

Microsoft's revenue from its digitalization and IoT market was USD 13 billion in 2023 and will be USD 15 billion in 2024. In 2023, the organization allocated USD 20 billion to research and development, with a substantial portion of this funding dedicated to AI and IoT advancements. This amount will increase to USD 22 billion in 2024. Cloud computing, software development, and IoT solutions comprise Microsoft's principal business segments. The Azure IoT suite is a critical element of Microsoft's IoT offerings, offering tools for device connectivity, data analytics, and machine learning. Manufacturing, retail, healthcare, and smart communities are among the industries that Microsoft's IoT solutions serve. Microsoft's Azure, a comprehensive cloud platform, seamlessly integrates with its IoT solutions, enabling the deployment of scalable and secure IoT solutions. The company's extensive cloud infrastructure and ongoing innovation in AI and machine learning have contributed to its 15% market share in the global digitalization and IoT market. Its global reach and strategic partnerships further bolster Microsoft's competitive position in the IoT market.

Siemens

Siemens digitalization and IoT market generated an USD 12 billion in revenue in 2023 and will be USD 14 billion in 2024. Siemens invested USD 5 billion in research and development in 2023, with an emphasis on IoT and digitalization. The company will increase this investment to USD 5.5 billion in 2024. Industrial automation, digital infrastructure, and healthcare comprise Siemens' principal business segments. MindSphere, the company's IoT platform, offers industrial IoT solutions that are both reliable and efficient. It enables predictive maintenance, asset management, and process optimization. Siemens' IoT solutions are designed to meet the needs of various industries, including manufacturing, energy, transportation, and healthcare. The organization's dedication to industrial IoT (IIoT) distinguishes it as a pioneer in the digitalization of industrial processes. Siemens leverages its expertise in automation and digital twins to promote efficiency and innovation across various industries, resulting in an 8% market share in the global digitalization and IoT market. Its market presence is further enhanced by its strategic initiatives in sustainable solutions and smart infrastructure.

Amazon Web Services (AWS)

Amazon Web Services (AWS) digitalization and IoT market generated revenue of USD 10 billion in 2023 and will be USD 12 billion in 2024. In 2023, AWS allocated USD 50 billion to research and development (R&D) across all of its services, with a significant portion of this investment allocated to cloud and IoT innovations. The company intends to increase this amount to USD 55 billion in 2024. Cloud computation, storage, and IoT solutions comprise AWS's principal business segments. AWS IoT Core is a critical component of its IoT offerings, offering machine learning capabilities, data processing, and device administration. Smart residences, industrial automation, healthcare, and transportation are among the industries that AWS's IoT solutions serve. The scalability and security of AWS's IoT deployments are facilitated by its extensive global cloud infrastructure. The company's dominant position in cloud computing and continuous advancements in AI and machine learning have contributed to 12% market share in the global digitalization and IoT market. AWS is a substantial participant in the global market due to its capacity to provide comprehensive and integrated IoT solutions.

Recent developments in Digitalization and Internet of Things Market

  • In June 2023, Qualcomm introduced new satellite IoT solutions to facilitate continuous remote monitoring and asset tracking. Ultra-low power and enhanced connectivity for IoT devices across satellite and cellular networks were made possible by the new modems, which were developed in partnership with Skylo, an NTN service provider. The new modems adhere to the 17 standards for satellite communications on GEO/GSO satellites that were released by the 3GPP. This ensures that connectivity is accessible worldwide and that device configuration and orientation are effortless. (Source: https://www.qualcomm.com/news/releases/2023/06/qualcomm-launches-new-satellite-iot-solutions-to-provide-uninter)

Conclusion

Worldwide, digitalization and the Internet of Things (IoT) are boosting efficiency and revolutionizing whole industries. The worldwide market for the Internet of Things (IoT) is USD 621 billion in 2024 and will be USD 2225.7 billion in 2031 with a compound annual growth rate (CAGR) of 17.3%. The predicted growth in the number of connected devices from 14.4 billion in 2023 to 18 billion in 2024 is driving this expansion.The industrial, healthcare, smart city and transportation industries are the main engines of this expansion. The Internet of Things (IoT) allows for predictive maintenance and automation in manufacturing, which leads to better operational efficiencies. Improved patient care at reduced costs is possible thanks to the Internet of Things (IoT) in healthcare via telemedicine and remote patient monitoring. The world spend USd 203 billion in 2024, up from USD 158 billion in 2023, on smart city infrastructure, traffic management, and public safety.

The expansion of the Internet of Things (IoT) is being accelerated by the incorporation of 5G networks, which provide higher data speeds, lower latency, and improved connectivity. 40% of IoT devices will reportedly be 5G-enabled by 2024's end, paving the way for real-time data transfer and sophisticated analytics. Furthermore, by 2025, the data generated by the IoT will exceed 79.4 zettabytes, highlighting the importance of integrating sophisticated analytics and AI to extract useful insights from this data.