Industrial Internet Of Things (IIoT) Market Size and Share
Market Overview
| Study Period | 2019 - 2030 |
|---|---|
| Market Size (2025) | USD 154.14 Billion |
| Market Size (2030) | USD 469.67 Billion |
| Growth Rate (2025 - 2030) | 24.96% CAGR |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
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*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
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Industrial Internet Of Things (IIoT) Market Analysis by Mordor Intelligence
The industrial internet of things market size stood at USD 154.14 billion in 2025 and is forecast to reach USD 469.67 billion by 2030, translating into a 24.96% CAGR through the period. The growth trajectory reflects a sharp decline in sensor prices, wider private-5G roll-outs, and chiplet-based edge-AI designs that allow real-time analytics at the point of operation. Manufacturers are accelerating deployments to move from reactive to predictive maintenance, improve overall-equipment-effectiveness, and cushion supply-chain shocks. Cloud resources remain pivotal for fleet-wide analytics, yet hybrid edge-cloud architectures are being favored for latency-sensitive control loops. Competitive dynamics reveal stronger collaboration between operational-technology vendors and cloud hyperscalers as outcome-based service models become the norm.
Key Report Takeaways
- By component, hardware captured 46.73% of industrial internet of things market share in 2024, whereas Services and Connectivity is advancing at a 25.53% CAGR to 2030. Services and Connectivity is projected to outpace all other component categories at a 25.53% CAGR through 2030.
- By deployment model, Cloud deployments held 53.41% of industrial internet of things market size in 2024, while Edge-Cloud hybrids are set to expand at 25.76% CAGR. Edge-Cloud hybrid models are the fastest-growing deployment approach, climbing 25.76% CAGR to 2030.
- By connectivity technology, Wired links retained 42.62% share in 2024 in the industrial internet of things market; Private 5G leads wireless growth at a 25.40% CAGR. Private 5G networks are forecast to record the highest connectivity CAGR at 25.40% through 2030.
- By end-user vertical,Discrete manufacturing led with 36.81% revenue in 2024, whereas Healthcare and Pharmaceuticals is projected to post a 25.48% CAGR. Healthcare and Pharmaceuticals is positioned for the fastest vertical growth at 25.48% CAGR to 2030.
- By geography, North America commanded 38.76% share in 2024, while Asia Pacific will log the highest regional CAGR of 25.42%. Asia Pacific’s 25.42% CAGR makes it the quickest-expanding geography through 2030
Global Industrial Internet Of Things (IIoT) Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Integration of advanced sensors and falling device costs | +4.2% | Global, with strongest uptake in APAC manufacturing hubs | Short term (≤ 2 years) |
| Push for predictive maintenance and OEE improvement | +5.8% | North America and EU industrial corridors, expanding to APAC | Medium term (2-4 years) |
| Government-backed smart-manufacturing initiatives | +3.7% | APAC core (China, India, South Korea), spill-over to ASEAN | Medium term (2-4 years) |
| Private 5G campus networks in heavy industry | +4.1% | Global, with early adoption in automotive and aerospace clusters | Short term (≤ 2 years) |
| ESG-driven energy-intensity benchmarking | +2.9% | EU leading, followed by North America and select APAC markets | Long term (≥ 4 years) |
| Chiplet-based industrial edge AI accelerators | +3.8% | Global, concentrated in high-tech manufacturing regions | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
Integration of Advanced Sensors and Falling Device Costs
Unit-level sensor prices keep falling while embedded processors add neural acceleration, enabling AI-ready devices such as STMicroelectronics’ STM32N6 MCU that runs in-situ inference without a discrete accelerator.[1]“STM32N6 MCU with Neural-ART NPU,” STMicroelectronics, st.com Manufacturers, especially in brownfield plants, now blanket legacy assets with non-intrusive sensors instead of complete system swaps. Low-power wide-area options like LoRaWAN extend coverage to remote assets, and smart-sensor self-diagnostics feed lifetime event logs into analytics hubs. Expanded visibility drives stronger return-on-investment cases, speeding projects that previously stalled due to retrofit costs. Consequently, the industrial internet of things market enjoys a larger addressable base among cost-sensitive mid-tier factories.
Push for Predictive Maintenance and OEE Improvement
Operations heads see unplanned downtime as a strategic liability. Continuous condition data equips machine-learning models that flag anomalies weeks in advance, cutting unscheduled stoppages by double-digit percentages. Vibration, thermal, and acoustic signatures guide maintenance crews toward prioritized tasks, freeing scarce labor for higher-value assignments. Digital-twin overlays simulate service scenarios across multiple lines, optimizing spare-parts inventory and technician dispatch. In process industries, every avoided shutdown saves millions in lost throughput, explaining why predictive systems draw premium budgets despite capital discipline.
Government-backed Smart-Manufacturing Initiatives
Public-sector programs are narrowing capability gaps for small and midsize plants. India’s SAMARTH Udyog Bharat 4.0 has opened 18 tech centers that offer subsidized pilot lines to prove IIoT value.[2]Government of India, “SAMARTH Udyog Bharat 4.0,” india.gov.in APEC’s Industry 4.0 framework aligns cross-border standards, smoothing vendor selection for regional suppliers. Such backing de-risks initial investments and seeds domestic solution ecosystems. Emerging economies thus transition faster from labor-cost arbitrage to productivity-led competitiveness, broadening the industrial internet of things market beyond early-mover geographies.
Private 5G Campus Networks in Heavy Industry
Dedicated 5G frees factory applications from shared Wi-Fi congestion. Toyota Material Handling’s Indiana plant and Jaguar Land Rover’s Solihull body shop already run mission-critical workloads on isolated Ericsson networks.[3]“Private 5G Networks for Industrial Applications,” Ericsson, ericsson.com Ultra-low latency supports autonomous mobile robots and machine-vision loops, while on-premises spectrum boosts cybersecurity by ring-fencing traffic. Enterprises also gain deterministic service-level control absent in public networks. As device vendors embed 5G modules, private-cellular adoption widens into logistics yards and open-pit mines, pushing the industrial internet of things market toward mobile-first architectures.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| OT cybersecurity and legacy system vulnerabilities | -3.4% | Global, with acute concerns in critical infrastructure sectors | Short term (≤ 2 years) |
| Lack of cross-vendor interoperability standards | -2.8% | Global, particularly challenging in multi-vendor environments | Medium term (2-4 years) |
| Scarcity of brown-field digital-twin talent | -1.9% | North America and EU industrial corridors, emerging in APAC | Medium term (2-4 years) |
| Rising shadow-IT risk from low-code IoT apps | -2.1% | Global, with highest risk in decentralized manufacturing organizations | Short term (≤ 2 years) |
| Source: Mordor Intelligence | |||
OT Cybersecurity and Legacy System Vulnerabilities
Industrial-control gear that predates the internet now sits on converged networks, enlarging the attack surface. Extended equipment lifecycles mean patches may never be issued, leaving PLCs exposed. Departments sometimes install unvetted IoT nodes, creating “shadow OT”, that bypass central security controls. Low-code development platforms accelerate application rollout but, without governance, can propagate insecure code. Operators must weigh production gain against cyber risk, often delaying internet-connected upgrades until layered defenses and zero-trust frameworks are in place.
Lack of Cross-Vendor Interoperability Standards
OPC UA offers a lingua franca for machine data, yet vendor-specific tweaks still require costly middleware. Brownfield plants juggling PROFINET, Modbus-TCP, and proprietary buses incur complex system-integration roadmaps. The Open Industry 4.0 Alliance pushes common semantic models, but commercial rivalries slow consensus. Resulting vendor lock-in deters best-of-breed adoption and inflates lifetime ownership costs, tempering expansion of the industrial internet of things market in multi-OEM environments.
Segment Analysis
By Component: Services Drive Integration Complexity
Hardware retained 46.73% of industrial internet of things market share in 2024, anchored by sensors, gateways, and industrial PCs. Sensors and actuators form the backbone of condition monitoring, while edge gateways pre-process telemetry to manage bandwidth. However, Services and Connectivity is registering a 25.53% CAGR, underlining how integration pain points are reshaping procurement decisions. Professional-service teams retrofit brownfield assets to modern protocols, and managed offerings attract mid-market factories that lack in-house OT-IT talent.
In practice, hardware vendors increasingly bundle device-management portals and remote-monitoring subscriptions, blurring product-service boundaries. Systems integrators earn annuities from operating the infrastructure they once commissioned. As low-code dashboards become mainstream, operational teams build custom visualizations without coding, reducing reliance on enterprise IT.[4]“Industrial IoT Solutions and Edge Computing,” Advantech, advantech.com The industrial internet of things market thus gravitates toward life-cycle partnerships rather than one-time capital purchases.
Note: Segment shares of all individual segments available upon report purchase
By Deployment Model: Edge-Cloud Hybrid Architectures Gain Momentum
Cloud platforms accounted for 53.41% of industrial internet of things market size in 2024 by offering elastic analytics at lower upfront cost. Yet pure cloud cannot meet sub-10-millisecond control requirements; hence, hybrid edge-cloud deployments are growing at 25.76% CAGR. Manufacturers process vibration spectra or machine-vision frames on-site and forward aggregated insights to the cloud for fleet-level optimization.
Private-5G backbones accelerate this fusion by providing deterministic, low-latency uplinks. Containerized microservices let engineers drop AI modules anywhere along the compute continuum, conforming to data-sovereignty rules in pharmaceuticals and defense. On-premises only models persist in niche, high-regulation niches, but hybrid architectures are expected to become the default for next-generation roll-outs in the industrial internet of things market.
By Connectivity Technology: Private 5G Disrupts Established Patterns
Wired Ethernet, PROFINET, and Modbus-TCP maintained 42.62% share in 2024 owing to deterministic performance for fixed assets. Short-range wireless, mainly Wi-Fi 6/6E, supports mobile tools on single lines. Private 5G, however, is surging at 25.40% CAGR, driven by dedicated spectrum licenses that enable interference-free, campus-wide mobility.
Early adopters deploy private-cellular to orchestrate autonomous forklifts and mobile inspection bots across millions of square feet. Time-sensitive networking standards converge wired and wireless links under a single control plane, simplifying quality-of-service management. LPWAN flavors such as LoRaWAN remain optimal for sparse, battery-powered field assets. Collectively, these trends expand the industrial internet of things market coverage from fixed workcells to entire enterprise footprints.
Note: Segment shares of all individual segments available upon report purchase
By End-user Vertical: Healthcare Transformation Accelerates
Discrete manufacturing captured 36.81% revenue in 2024, powered by automotive and electronics plants adopting vision-based quality checks and flexible assembly lines. The industrial internet of things market size for discrete operations is on track to keep its lead, but Healthcare and Pharmaceuticals is accelerating at a 25.48% CAGR as regulators push continuous-manufacturing and serialization mandates under FDA 21 CFR Part 11.
Pharma firms embed track-and-trace sensors in packaging lines, while biotech facilities run closed-loop environmental controls that log compliance data in real time. Other process industries, chemicals, F&B, oil and gas, incrementally scale predictive analytics across rotating equipment, yet their CAGR trails the healthcare surge. Mining groups adopt collision-avoidance telemetry, boosting haul-truck tonnage without proportional headcount increases. Overall, sectoral diversification secures a broader demand base for the industrial internet of things industry.
Geography Analysis
North America’s 38.76% share in 2024 stems from its advanced manufacturing base, strong venture funding, and early adoption of private-5G pilots. Federal programs that incentivize reshoring and resilience amplify demand for visibility across domestic supply chains. Regulatory frameworks, notably FDA process-monitoring rules, push real-time quality logging in life-sciences plants.
Asia Pacific, growing at 25.42% CAGR, benefits from the world’s largest electronics production clusters and government subsidies that lower initial deployment costs. China’s tier-one cities spearhead large-scale smart factories, while India’s tech centers extend low-cost integration services to neighboring ASEAN exporters. Cross-border component trade encourages interoperable solutions, further enlarging the industrial internet of things market.
Europe balances stringent data-privacy laws with sustainability directives. GDPR steers architectures toward local edge processing, and the continent’s 2050 carbon-neutral goal mandates granular energy metering. Germany’s automotive primes adopt OPC UA over TSN to converge IT-OT backbones, providing reference models replicated across the European Economic Area.
Competitive Landscape
The field remains moderately fragmented as traditional automation majors and cloud hyperscalers jostle for platform primacy. Siemens, Rockwell Automation, and Schneider Electric extend legacy hardware with cloud-connected suites, leveraging installed bases to upsell analytics. AWS, Microsoft, and IBM package industrial-specific PaaS blueprints, courting OEMs that favor elastic compute over proprietary stacks.
Low-code specialists like Guidewheel supply plug-on sensors and pre-built dashboards that prove value in days, compressing sales cycles. Strategic partnerships proliferate: Rockwell aligns with AWS on hybrid edge-cloud toolkits, and Telit pairs with Nestlé Brazil to field-test private 5G. Acquisition pipelines also stay active, evidenced by IMI’s purchase of TWTG for water-utility plays.
Success increasingly hinges on outcome-based terms where vendors guarantee uptime or throughput rather than software licenses. Interoperability credentials, adherence to OPC UA, and AI-powered self-configuration become buying criteria. The move toward edge-cloud hybridity rewards suppliers able to orchestrate workloads seamlessly across plant-floor nodes and hyperscale data lakes.
Industrial Internet Of Things (IIoT) Industry Leaders
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General Electric Company
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Oracle Corporation
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SAP SE
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Honeywell International Inc.
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International Business Machines Corporation
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- February 2025: Rockwell Automation and Amazon Web Services unveiled an integration of FactoryTalk with AWS IoT to streamline hybrid analytics.
- January 2025: Telit Cinterion partnered with Nestlé Brazil to blanket plants with private 5G for real-time quality control.
- January 2025: KaaIoT linked with Sensative for joint smart-building and industrial monitoring packages.
- October 2024: IMI plc bought TWTG Group for EUR 25 million (USD 26.6 million) to boost smart-utilities portfolios.
Global Industrial Internet Of Things (IIoT) Market Report Scope
IoT is a network of internet-connected objects. These objects collect and exchange data using sensors embedded within them. IoT systems connect specialized devices designed for specific purposes with limited programmability and customizability. Moreover, IoT systems also store and process data in a distributed manner.
The Industrial Internet of Things (IIoT) Market is segmented By Type (Hardware, Software, Services, and Connectivity), By End-user vertical (Manufacturing, Transportation, Oil, and Gas), and By Geography (North America, Europe, Asia-Pacific, Latin America, Middle East & Africa).
The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| Hardware | Sensors and Actuators |
| Edge Gateways and IPCs | |
| Industrial Robots and Controllers | |
| Software | Device Management Platforms |
| Analytics and Visualization | |
| MES/SCADA and Digital-Twin Software | |
| Services and Connectivity | Professional and Integration |
| Managed Services | |
| Connectivity Services (MNOs, LPWAN, Satellite) |
| On-premises |
| Cloud |
| Hybrid/Edge-Cloud |
| Wired (Ethernet, PROFINET, Modbus-TCP) |
| Short-Range Wireless (BLE, Wi-Fi 6/6E) |
| Cellular (4G LTE-M, Private 5G) |
| LPWAN (LoRa WAN, Sigfox, NB-IoT) |
| Discrete Manufacturing |
| Process Manufacturing |
| Oil and Gas |
| Utilities (Power, Water) |
| Transportation and Logistics |
| Mining and Metals |
| Healthcare and Pharmaceuticals |
| Other End-user Verticals |
| North America | United States | |
| Canada | ||
| Mexico | ||
| South America | Brazil | |
| Argentina | ||
| Rest of South America | ||
| Europe | Germany | |
| United Kingdom | ||
| France | ||
| Italy | ||
| Russia | ||
| Rest of Europe | ||
| Asia Pacific | China | |
| Japan | ||
| South Korea | ||
| India | ||
| Australia | ||
| Rest of Asia Pacific | ||
| Middle East and Africa | Middle East | Saudi Arabia |
| United Arab Emirates | ||
| Rest of Middle East | ||
| Africa | South Africa | |
| Nigeria | ||
| Rest of Africa | ||
| By Component | Hardware | Sensors and Actuators | |
| Edge Gateways and IPCs | |||
| Industrial Robots and Controllers | |||
| Software | Device Management Platforms | ||
| Analytics and Visualization | |||
| MES/SCADA and Digital-Twin Software | |||
| Services and Connectivity | Professional and Integration | ||
| Managed Services | |||
| Connectivity Services (MNOs, LPWAN, Satellite) | |||
| By Deployment Model | On-premises | ||
| Cloud | |||
| Hybrid/Edge-Cloud | |||
| By Connectivity Technology | Wired (Ethernet, PROFINET, Modbus-TCP) | ||
| Short-Range Wireless (BLE, Wi-Fi 6/6E) | |||
| Cellular (4G LTE-M, Private 5G) | |||
| LPWAN (LoRa WAN, Sigfox, NB-IoT) | |||
| By End-user Vertical | Discrete Manufacturing | ||
| Process Manufacturing | |||
| Oil and Gas | |||
| Utilities (Power, Water) | |||
| Transportation and Logistics | |||
| Mining and Metals | |||
| Healthcare and Pharmaceuticals | |||
| Other End-user Verticals | |||
| By Geography | North America | United States | |
| Canada | |||
| Mexico | |||
| South America | Brazil | ||
| Argentina | |||
| Rest of South America | |||
| Europe | Germany | ||
| United Kingdom | |||
| France | |||
| Italy | |||
| Russia | |||
| Rest of Europe | |||
| Asia Pacific | China | ||
| Japan | |||
| South Korea | |||
| India | |||
| Australia | |||
| Rest of Asia Pacific | |||
| Middle East and Africa | Middle East | Saudi Arabia | |
| United Arab Emirates | |||
| Rest of Middle East | |||
| Africa | South Africa | ||
| Nigeria | |||
| Rest of Africa | |||
Key Questions Answered in the Report
How large is the industrial internet of things market today?
It reached USD 154.14 billion in 2025 and is on pace for USD 469.67 billion by 2030.
Which component segment is expanding the fastest?
Services and Connectivity is forecast to grow at 25.53% CAGR as firms outsource integration and network management.
Why are private-5G networks gaining traction inside factories?
Dedicated 5G delivers low-latency, interference-free coverage that supports mobile robots and real-time control loops.
Which end-user vertical will show the strongest growth to 2030?
Healthcare and Pharmaceuticals leads with a projected 25.48% CAGR driven by regulatory serialization and continuous-manufacturing mandates.
What geography is expected to add the most new IIoT deployments?
Asia Pacific, powered by large-scale government digitalization programs and electronics manufacturing expansion, is set for a 25.42% CAGR.
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