Internet of Things Market size to increase by USD 695.38 billion

The global internet of things market size is expected to increase by USD 695.38 billion between 2020 and 2025. The market witnessed year-over-year growth of 18.97% in 2021. However, the growth momentum is expected to decelerate at a CAGR of 13.77% during the forecast period.

The market is driven by technological developments across industries. In addition, the exponential growth of internet-connected and operated devices will further propel the growth of the global IoT market. However, factors such as the lack of awareness of efficient management of IoT initiatives and investments, increasing cybersecurity threats, and the high cost of implementation of IoT will hamper the market growth.

The market is segmented by industrial, retail, healthcare, ICT, and others. The demand and adoption of IoT technologies are significant among industrial end-users. Industrial operators are increasingly adopting IoT solutions to ensure a smooth transition of their manufacturing operations. These solutions are also enabling industrial operators to control and maintain all the equipment remotely. Such factors are fostering the growth of the industrial end-user segment.

 About 34% of the market's overall growth is expected to originate from APAC. The modernization of small and medium-sized enterprises (SMEs) in countries such as China, India, and the Philippines is increasing the adoption of IoT technologies. Besides, many governments in APAC countries are undertaking various initiatives to develop smart cities and deliver better public services. Many such factors are driving the growth of the IoT market in APAC. China is the key market for IoT in APAC.