Global Internet of Things (IoT) Connectivity Market to Reach US$38.8 Billion by 2030

The global market for Internet of Things (IoT) Connectivity estimated at US$11.8 Billion in the year 2023, is expected to reach US$38.8 Billion by 2030, growing at a CAGR of 18.6% over the analysis period 2023-2030. Platform, one of the segments analyzed in the report, is expected to record a 19.1% CAGR and reach US$27.1 Billion by the end of the analysis period. Growth in the Services segment is estimated at 17.4% CAGR over the analysis period.

The U.S. Market is Estimated at US$3.3 Billion While China is Forecast to Grow at 17.6% CAGR

The Internet of Things (IoT) Connectivity market in the U.S. is estimated at US$3.3 Billion in the year 2023. China, the world`s second largest economy, is forecast to reach a projected market size of US$5.8 Billion by the year 2030 trailing a CAGR of 17.6% over the analysis period 2023-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 16.6% and 15.6% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 13.6% CAGR.

Global Internet of Things (IoT) Connectivity Market - Key Trends and Drivers Summarized

Why Is Internet of Things (IoT) Connectivity Critical for the Future of Smart Devices?

The Internet of Things (IoT) connectivity plays a crucial role in linking billions of smart devices, enabling seamless communication, data exchange, and automation across different networks. IoT connectivity encompasses a wide range of communication technologies, such as Wi-Fi, Bluetooth, Zigbee, LPWAN (Low Power Wide Area Network), and cellular networks like 4G, 5G, and Narrowband IoT (NB-IoT). These technologies are designed to support various use cases, from consumer smart homes and wearable devices to large-scale industrial systems and smart cities. Reliable and efficient connectivity is essential to ensure that IoT devices can exchange data in real-time, monitor systems remotely, and enable automation, making it a foundational component for a wide array of industries, including manufacturing, healthcare, logistics, and agriculture.

How Are Technological Advancements Shaping the IoT Connectivity Market?

Technological innovations, especially in 5G and LPWAN, are driving significant advancements in IoT connectivity. 5G technology is a game-changer for IoT, offering ultra-low latency, high-speed data transfer, and the capacity to support millions of devices within a small geographic area. This is particularly important for applications requiring real-time data processing, such as autonomous vehicles, smart factories, and telemedicine. LPWAN technologies, including LoRaWAN and NB-IoT, are expanding the reach of IoT connectivity in remote and rural areas where traditional cellular networks are not feasible. These technologies allow IoT devices to operate on low power for extended periods, enabling long-term monitoring in applications like agriculture and environmental management. The integration of edge computing with IoT connectivity is also emerging, providing real-time data processing closer to the source and reducing the dependency on cloud computing.

How Do Market Segments Define the Growth of the IoT Connectivity Market?

Connectivity technologies include cellular, Wi-Fi, Bluetooth, Zigbee, and LPWAN, with LPWAN gaining traction due to its ability to support long-range communication with low power consumption. Applications span across consumer electronics, automotive, healthcare, and industrial automation, with industrial automation representing the fastest-growing segment as manufacturers increasingly rely on IoT to optimize operations and reduce downtime. End-user industries include manufacturing, healthcare, energy, agriculture, and logistics, with smart cities and transportation also emerging as significant areas of growth. The adoption of IoT connectivity is accelerating in regions such as North America, Europe, and Asia-Pacific, where smart infrastructure projects and industrial digitalization are key drivers.

What Factors Are Driving the Growth in the IoT Connectivity Market?

The growth in the IoT connectivity market is driven by several factors, including the increasing number of connected devices, the deployment of 5G networks, and the demand for real-time data monitoring and automation. As IoT applications become more complex and widespread, reliable connectivity solutions are essential for managing large networks of devices and ensuring seamless communication. The rollout of 5G is accelerating this growth by providing higher bandwidth and lower latency, enabling advanced applications like smart cities, autonomous vehicles, and industrial IoT. Additionally, the growing trend of remote monitoring and management, particularly in sectors like healthcare and manufacturing, is fueling the demand for robust and scalable connectivity solutions.