The IoT integration market is set to see a CAGR of 31.58% from 2024 to 2032, according to SNS Insider.

The market was valued at $4.67bn in 2023 and is projected to reach $55bn by 2032.

The market is growing rapidly, fuelled by the increasing use of IoT devices in industries such as healthcare, automotive and smart homes. By the end of 2023, cellular IoT connections hit 3.4 billion, while worldwide expenditure on IoT technology is expected to reach $260bn in 2024.

As companies aim to optimise operations and improve customer experiences, innovations in AI, 5G and cloud computing drive the need for comprehensive IoT integration. Salesforce’s introduction of a connected vehicle app in 2024 demonstrates how AI-powered options are transforming personalised experiences. As sectors aim to use real-time data and automation, the demand for smooth IoT integration will keep increasing.

In 2023, the device and platform management segment led the IoT integration market, capturing around 30% of the total revenue. This dominance is driven by the growing need for effective management and monitoring of connected devices across various industries. As businesses deploy an increasing number of IoT products, managing diverse devices, ensuring smooth communication and maintaining optimal system performance have become essential.

The system design and architecture segment is expected to see a CAGR of approximately 34.61% from 2024 to 2032. This growth is fuelled by the increasing complexity of IoT systems and the rising demand for customised, scalable architectures that can accommodate a wide range of devices and applications. As businesses seek to create more flexible and robust IoT ecosystems, the emphasis on system design and architecture will be crucial to ensuring compatibility, reliability and scalability, contributing to the segment’s rapid growth.

In 2023, the manufacturing and industrial segment dominated the IoT integration market, capturing the largest revenue share of approximately 23%. This is driven by the growing adoption of IoT technologies for predictive maintenance, process optimisation and real-time monitoring across manufacturing operations. Industries are increasingly leveraging IoT to reduce downtime, enhance production efficiency and enable higher levels of automation, making this segment the primary revenue generator in the market.

The healthcare and life sciences segment is projected to experience the fastest growth, with a CAGR of about 35.03% from 2024 to 2032. This rapid expansion is driven by the rising demand for IoT-enabled products that improve patient care, optimise hospital operations and enhance diagnostics through connected devices. The integration of wearable health monitors, telemedicine and remote patient management systems is changing healthcare delivery, fuelling the growth of this segment as providers and patients embrace IoT technology for improved outcomes.

In 2023, North America led the IoT integration market, capturing the largest revenue share of approximately 39%. This dominance is attributed to the region’s technological infrastructure, the presence of key market players, and the widespread adoption of IoT across diverse industries. The extensive deployment of IoT applications in sectors such as manufacturing, healthcare and smart cities has solidified North America’s position as a leader in the IoT space, driving market growth and innovation.

The Asia Pacific region is projected to experience the fastest CAGR of around 34.43% from 2024 to 2032. This rapid growth is fuelled by increasing industrialisation, rising urbanisation and the growing demand for smart products in countries such as China, India and Japan. With investments from governments in digital transformation, smart cities and manufacturing automation, Asia Pacific is set to become a major hub for IoT adoption, driving market expansion in the years ahead.

Key developments in the IoT integration market include, in 2024, TCS opening an IoT engineering lab in Ohio, and, this year, Accenture acquiring Percipient’s digital twin platform to boost its banking modernisation efforts, enabling financial institutions to transform systems without disrupting operations.

More information on the report can be found at www.snsinsider.com/reports/iot-integration-market-3530.