Enterprise IoT market hits USD $269 billion amid growth shifts

The enterprise Internet of Things (IoT) market has reached a size of USD $269 billion in 2023, demonstrating a year-over-year growth of 15%, according to recent data from IoT Analytics. However, growth rates are expected to decelerate to 12% in 2024, primarily due to economic concerns that are anticipated to affect corporate spending. A re-acceleration in growth is projected for 2025.

China, India, and the United States are projected to lead in regional spending growth. Additionally, automotive and process manufacturers are expected to be the predominant sectors driving this expansion. Despite the overall deceleration, IoT software spending continues to exhibit robust growth, outpacing general enterprise IoT spending.

Knud Lasse Lueth, CEO of IoT Analytics, stated, "IoT remains a key priority for enterprises, with software vendors, hyperscalers, and telecommunications firms increasing their market share in the USD $269 billion IoT market. Growth continues to be strong for these and other firms, though not exponential."

However, IoT hardware technologies have been significantly affected by the current economic challenges. The downturn in hardware spending is notable compared to the sustained strength observable in IoT software investment.

Joaquin Fernandez, Market Analyst at IoT Analytics, shared an optimistic outlook for the years ahead: "Despite recent economic challenges, it looks like the enterprise IoT market is set for a strong recovery in 2025. We expect a CAGR of over 15% from 2024 to 2030. IoT software will be the growth engine, driven by AI integration and real-time data exchange."

The Global IoT Enterprise Spending dashboard (Q2/2024 update) further highlights the specific challenges and opportunities within the IoT market. The focus on software points to a shift in investment strategies as companies prioritise scalable and flexible technology solutions capable of integrating advanced analytics and artificial intelligence.

As the economic landscape continues to pose challenges, cautious optimism remains. The anticipated recovery and growth in 2025 suggest that the evolving technological landscape, particularly advancements in AI and IoT software, will play a significant role in driving future growth trajectories.

Regional leadership by China, India, and the US reflects broader trends in industrial and technological investment patterns. It highlights the importance of these key markets in pushing forward the global adoption and deployment of IoT technologies.

The insights from IoT Analytics underscore the enterprise IoT market's present condition and future prospects. They illustrate the dynamic yet unpredictable nature of technology-driven markets, particularly how they respond to economic pressures and opportunities for recovery and growth.