The Internet of Things (IoT) technologies allows devices to exchange data over a network. There are many IoT use cases today, and they are expected to grow exponentially over the coming years.
But what do the current IoT statistics say about its adoption, market, and challenges worldwide?
In this article, I go over recent IoT market statistics, industry-related statistics and forecasts, IoT adoption statistics and trends, and statistics related to IoT adoption challenges.
Top 8 Intriguing Statistics on IoT (Editor’s Pick)
- APAC is projected to account for ⅓ of IoT spending in 2023.
- The IoT industry will be worth over $1 trillion by 2024.
- By 2027, IoT manufacturing revenue is expected to double.
- The IoT revenue in health and social care will reach $23.4 billion by 2030.
- Electricity & gas IoT revenue is predicted to exceed $35 billion by 2030.
- The global agriculture IoT drone market will reach $1.75 billion by 2030.
- The IoT consumer segment will account for 27% of all IoT revenue by 2024.
- 57% of US households will have smart home devices by 2025.
Statistics on IoT’s Largest Market Players
1. Intel, Cisco, and Samsung are some of the biggest IoT players.
Intel offers dedicated industry IoT solutions and produces new-gen IoT chips. Cisco focuses on IoT security solutions and industrial sensors. Samsung focuses more on consumer IoT with Smart Homes and wearables.
2. Google, IBM, SAP, and Ericsson winded down IoT projects in 2022.
These four prominent IoT players retired or sold their IoT ventures in 2022. Google and IBM’s IoT projects will continue in 2023 but will be deprecated.
3. Almost 100,000 IoT patents were filed in 2021.
In 2021, 99,534 patents protecting IoT innovations were filed globally. Over the last ten years, China has filed the most patents globally: 286,246. US-based players filed about ½ of that over that period: 155,374, to be precise.
4. Amazon hired the most IoT professionals in 2022.
From July 2021-June 2022, the tech giant hired 4,986 IoT workers. That is almost five times more than Siemens, which employed 1,838 relevant professionals in that period.
5. Samsung had the highest growth in IoT hiring in 2021-2022.
From July 2021-June 2022, the South Korean company hired many more IoT workers with a higher frequency than other companies, including Bosch and Apple. That is mainly due to Samsung opening a new plant in Texas and creating 2,000 jobs in the state.
IoT Market Size Statistics and Future Predictions
6. VC investment in IoT reached $1.2 billion at the start of 2022.
That is a considerable increase compared to the $266 million invested in IoT in Q1 of the previous year.
7. Envision Digital raised $210 million for an IoT project in 2022.
This funding round was the biggest IoT funding round in 2022. Another large funding round in IoT that year was closed by semiconductor company, Morse Micro, which raised $94 million for IoT projects.
8. IoT spending to reach $1.1 trillion in 2023.
This growth has continued increasing IoT spending by at least $40 billion since 2018. That year, it was $646 billion, climbing to $686 billion in 2019, $749 billion in 2020, and $1 trillion in 2022.
9. APAC is projected to account for ⅓ of IoT spending in 2023.
35% of global IoT spending is predicted to fall on Asian markets, which is a 2% drop from 2018. In contrast, EMEA spending is expected to grow by 2% and account for 25% of all global IoT spending in 2023.
And by 2026, APAC’s IoT spending is expected to reach $436 billion.
IoT Revenue Statistics
10. By 2030, the total IoT revenue worldwide will reach $621.6 billion.
As of 2022, the IoT revenue worldwide amounted to $251.6 billion and is predicted to increase to $293.2 billion in 2023. By 2030, the IoT revenue is expected to triple and reach $621.6 billion.
11. ¾ of total IoT revenue comes from the enterprise segment.
The enterprise IoT market comprised 76% of the overall IoT revenue in 2020, and the segment retains its lion’s share of the IoT market in 2023. By 2024, it is expected to drop, but only to 73% of the overall IoT market.
12. The IoT industry will be worth over $1 trillion by 2024.
The IoT industry’s compound annual growth rate of 13% means that by 2024, it will be worth $1.1 trillion. Much of the growth will come from the wearables industry.
13. The IoT revenue from smart homes is predicted to reach $141 billion in 2023.
USA and Canada are forecast to account for 40% of the total $141 billion figure.
IoT Statistics by Industry
IoT Manufacturing & Construction Statistics and Predictions
14. By 2027, IoT manufacturing revenue is expected to double.
As of 2022, the global IoT revenue in the manufacturing sector was $5.5 billion. This figure is expected to double by 2027, when the IoT revenue in that industry is predicted to be $11.2 billion. And by 2030, it will go up to $15 billion.
15. The manufacturing industry is expected to spend $40 billion on IoT in two years.
Manufacturing, logistics, and utilities industries are each projected to spend that amount on IoT platforms, systems, and services in 2023-2024. Other industries investing heavily in IoT will be consumer goods ($25 billion) and healthcare ($15 billion).
16. Over 50% of manufacturers consider IoT pivotal for transforming industrial operations.
58% of manufacturers say that IoT is strategically important for the digital transformation of their organizations and operations and increased efficiency.
17. The industrial sector will contribute up to $3.7 trillion to global IoT revenue by 2025.
The industrial sector is forecast to contribute the most to IoT revenue. By 2025, it is expected to bring in between $1.2 – $3.7 trillion, a lot of which will come from factories.
18. IoT revenue in construction is projected to grow by $0.1 billion per year.
From 2021, the IoT revenue in the construction industry has steadily been growing by $100 million each year. It is expected to reach $1 billion by 2025 and $1.4 billion by 2030.
IoT Healthcare Statistics & Predictions
In 2023, the worldwide IoT revenue in the health and social care industry is predicted to reach $8 billion – almost double what it was in 2020. And by 2030, the IoT revenue in that industry will be nearly $23.5 billion, tripling its 2023 mark.
20. The IoT healthcare market is predicted to grow at 19.9% per annum by 2025.
Thanks to this compound annual growth rate (CAGR), the IoT healthcare industry is forecast to reach a $534.3 billion valuation by 2025.
21. The Internet of Medical Things market was valued at $158 billion in 2022.
The top use cases for IoMT are patient monitoring and remote operations. Additionally, innovation and cost-saving are the top drivers for IoMT adoption in the healthcare industry. The $158 billion figure is almost quadruple of $41 billion at which IoMT was valued in 2017.
Security is the primary challenge in IoT in healthcare. Included are malware and DDoS, accounting for 49% and 22% of cases, respectively. Human error challenges account for 39% of cases.
IoT Energy Statistics & Predictions
23. Electricity & gas IoT revenue is predicted to exceed $35 billion by 2030.
The IoT revenue for the electricity, gas, steam, and A/C sector has reached $18 billion in 2022. And by 2030, this number is expected to double and reach $37.9 billion.
24. The utility IoT market will be worth $129.1 billion by 2032.
The 11.9% compound annual growth rate of the IoT market in utilities means that by the end of 2032, it will have made $129.1 billion.
25. IoT technologies can save up to $500 billion by 2025 in the Power sector.
Embedding IoT technologies in the energy and power sector to allow consumers to power down their systems and appliances during peak demand can save between $200 and $500 billion by 2025.
26. 46% of European companies in the electricity & gas industries used IoT in 2021.
Over a third of companies in the accommodation sector in the region (36%) also benefited from IoT technologies that year.
IoT Agriculture Statistics & Predictions
27. The expected 2030 IoT revenue in agriculture is $8.9 billion worldwide.
As of 2022, the IoT revenue in Agriculture, Fishing, and Forestry industry is $2.7 billion. It is expected to nearly double by 2026 and triple by 2030, reaching $8.9 billion worldwide.
28. The global agriculture IoT drone market will reach $1.75 billion by 2030.
Rural applications in the US will account for 80% of the B2B market for agricultural drones.
29. The number of agricultural IoT devices will reach 225 million by 2024.
This figure amounts to an increase of 212 million such devices from 2014. The precision farming segment is expected to have the largest share.
IoT Automotive Statistics & Predictions
30. IoT-connected vehicles were the second largest IoT segment by revenue in 2022.
The third spot is taken by payment terminals, which made $39.4 billion that year. Together, these two industries generated 10% more revenue than the consumer media and internet devices industry alone, which took the top spot with $101.8 billion in IoT revenue.
31. By 2040, 90% of new cars will be connected to IoT.
And in 2023, the IoT vehicle market is expected to grow to $102.5 billion.
The self-driving vehicle market is expected to reach a $36 billion valuation by 2025. And ten years later, the North American market will hold the lion’s share of the self-driving fleet. China and Western Europe are expected to follow, with 24% and 20% of the share, respectively.
33. Vehicle anti-theft systems are a key IoT innovation area.
The key players in this IoT innovation include Sumitomo Electric Industries, with 238 related patents, and Toko Rika, with 336.
34. Over half of car drivers value productivity as a significant draw for IoT-enabled cars.
58% of people believe that the ability to work from their car on their commute would be a hugely popular feature. And 57% consider that such productivity features enabled by IoT would be a significant incentive to buy autonomous vehicles.
IoT Smart Cities Statistics & Predictions
35. Singapore and Helsinki were the world’s top smart cities in 2022.
Singapore’s introduction of IoT technologies across the public and private sectors and Helsinki’s ambitious environmental goals are why the two capitals were rated the world’s best smart cities in 2022.
Zurich, Oslo, and Seoul are also rated highly for their approaches towards energy saving, electric vehicles, and safety initiatives.
36. The IoT Smart Cities market is predicted to grow to $312 billion by 2026.
This growth from $130 billion in 2021 corresponds to a CAGR of 19%. That, in turn, results from the increased demand for real-time insights into the urban environment and the rise of the urban population worldwide.
37. Smart Cities' spending will grow to $442.6 billion in 2025.
The smart cities’ spending is expected to double by 2025, from $221.1 billion spent in 2019. Thus, representing a CAGR of 12%.
38. By 2025, we will have 26 smart cities.
16 of the 26 cities are expected to be in North America and Europe, and the rest will be spread across APAC (Asia-Pacific). Over 70% of smart city spending will come from these three regions.
39. Thanks to IoT, water management in smart cities is the fastest-growing segment.
IoT-based water management systems, such as smart water meters, drive the segment’s growth. It is forecast to be the fastest-growing one from 2023-2030.
40. IoT can improve emergency response time by 40%.
IoT in smart cities can offer 30-40% faster emergency response time and 10-15% faster arrival of emergency services. It can also reduce street crime by up to 10%, thanks to street monitoring.
However, the European market is expected to grow at the highest CAGR (compound annual growth rate) during that period.
IoT Adoption by Enterprise Statistics and Predictions
42. 60% of all cellular connections will be IoT by 2028.
In 2021, broadband IoT (4G/5G) reached 1 billion connections – more than 2G and 3G. And by the end of 2028, almost 60% of cellular connections will be IoT-based. 4G will connect the majority of them.
43. Cost-saving is the main IoT adoption driver for 54% of enterprise IoT projects.
35% of enterprises that adopt IoT do so to increase revenue and 24% are motivated by better safety.
44. Austria has the most enterprises using IoT in Europe.
51% of Austrian companies were using IoT in 2021. Slovenia and Sweden/Finland (tie) were in second and third place with 49% and 40% of enterprises, respectively.
45. Most European enterprises use IoT for security.
In 2021, about 72% of companies in the EU used IoT primarily in cameras and devices to secure their premises. Cyprus and Greece had the most companies that used IoT for that purpose – 96% and 92%, respectively.
46. 23% of companies in China use IoT to stay competitive.
While cost-saving is the primary motivation to adopt IoT in the US, UK, and Australia, many Chinese, Mexican, and Italian enterprises use it to boost competitiveness. In contrast, many companies in Japan and Germany have “improving business processes” as their primary IoT adoption goal.
47. Over 80% of execs state IoT to be crucial to their business.
Most executives come from TMT, financial services, and energy utility industries. 28% plan IoT security spending in the next 12 months.
IoT for Consumers Statistics and Predictions
48. The IoT consumer segment will account for 27% of all IoT revenue by 2024.
This will be an increase from 24% of the share the segment held in 2020. Wearables technology is expected to be a significant contributor to the growth.
49. IoT consumer revenue is predicted to exceed $65 billion in 2023.
In 2022, the worldwide IoT revenue from consumers amounted to $53.9 billion. It is expected to reach $66 billion in 2023 and over $180 billion by 2030.
50. Consumer spending on IoT smart homes will reach $173 billion by 2025.
The spending on smart home devices dropped 9.5% during the COVID-19 pandemic in 2020, breaking the curve of a steady annual increase since 2015. It is expected to reach $147 billion worldwide in 2023 and $173 billion by 2025.
51. 57% of US households will have smart home devices by 2025.
In 2021, that figure amounted to 40%. Globally, smart home devices will be owned by 21.4% of households by 2025.
52. North America is the largest IoT consumer devices market.
However, the APAC region is the fastest-growing area with a demand for IoT consumer devices. This market is predicted to reach $142 billion by 2026 globally.
IoT Devices Statistics
53. In 2022, the number of IoT devices grew by 18%.
The number of connected IoT devices grew by 18% in 2022, reaching approximately 14.4 billion.
54. China will have the highest number of IoT devices worldwide by 2030.
In 2030, China is predicted to have around 5 billion consumer IoT devices. That is more IoT devices than any other country in the world is forecast to have.
55. 75% of devices will be IoT-connected by 2025.
In the short term, 66% of devices will be IoT units in 2023.
56. An IoT device, on average, has four sensors.
One-third of all sensors deployed in 2022 were IoT sensors. Interestingly, more than 50 billion connected sensors have been shipped to date.
57. Sensor processing is believed to be IoT’s most important innovation.
48% see sensor processing to be the main area to ensure IoT’s growth in the future. Computer vision is a close second, at 38%. It is followed by voice recognition at 13% and 1% for the rest.
IoT Adoption Challenges Statistics and Predictions
58. Attacks on IoT devices impacting critical operations are the top security concern in IoT adoption.
33% of IT executives cited this concern as the top security issue in IoT adoption. Lack of staff or IoT security implementation was a close second at 32%.
59. Data protection and regulations concerns for IoT adoption increased in 2021-2022.
Laws like GDPR made UK-based companies more concerned about data protection risks in IoT adoption. 53% of companies in the region, compared to 34% of US-based companies, include secure data collection in their IoT strategies.
60. 84% of companies that adopted IoT have experienced an IoT security breach.
Security breaches are the most significant barrier to IoT adoption by enterprises. Cost (50%) and maintenance (44%) are the second and third barriers, respectively.
61. 43% of organizations using IoT do not protect the infrastructure.
Although over 60% of companies worldwide use IoT solutions, almost half still need a system to protect them. This is mainly due to the diverse scope of IoT systems that are not always compatible with the security solutions in place.
62. Skilled IoT experts are in high demand.
From July 2021-April 2022, the number of job ads featuring IoT grew by 32%. “Edge computing” and “5G” skills were also in high demand, surging 53% and 52%, respectively, during that period.
How Big Is IoT Outreach?
Overall, the IoT statistics show that the Internet of Things will penetrate many major industries, with the APAC region taking the lead.
The enterprise segment will account for most IoT adoption, although the consumer segment is also expected to grow.
However, IoT adoption has its challenges, security being a significant one. A low-cost solution to get you started is a to secure your IoT device traffic from scammers, hackers, and other unauthorized users.