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IoT market projected to grow 17% annually till 2030, reveals report
Sun, 17th Mar 2024

IoT Analytics has identified 10 key emerging trends in its State of IoT Spring 2024 report that are driving growth in the Internet of Things (IoT) market. The report provides an analysis of the current state of the IoT market, highlighting trends that are expected to contribute towards the IoT market's compound annual growth rate (CAGR) of 17% until 2030.

Among the key insights, it was found that while Artificial Intelligence (AI) has taken over as the top technology priority, the combination of IoT and AI is on the rise, boosting the $236-billion IoT market. IoT has remained one of the top three corporate technology priorities. Knud Lasse Lueth, CEO at IoT Analytics, stated that "In 2023, the IoT market demonstrated significant resilience among economic fluctuations and geopolitical tensions. We now estimate a robust growth of 17% per annum through 2030. This growth is fuelled by an increase in connected assets and corresponding investments in AI and cybersecurity within the IoT sector."

The report also enlightened shifts in trends within the technological world, recognising the growing prominence of B2B marketplaces as the fastest-growing procurement channel for software. This adaptation to the emerging subscription-based economy is simplifying procurement processes for both companies and sellers. Justina-Alexandra Sava, a Market Analyst at IoT Analytics, noted that "Cloud hyperscaler marketplaces currently lead in cloud-based software spending since many businesses have already committed to cloud spending."

Within the context of manufacturing, the rise of generative AI (GenAI) is broadening investment in AI technologies that can benefit the global economy by $2.6-$4.4 trillion annually, as per estimates from McKinsey. Jeff Winter, an Industry 4.0 expert and advisor, anticipates an increase in workforce upskilling due to the prevailing lack of dedicated AI training budgets in 65% of manufacturing firms.

The IoT is experiencing continuous evolution and resilience driven by technological advancements and strategic shifts. With a projected CAGR of 17% until 2030, the potential for growth and transformation in the IoT sector is immense.