Global IoT in Manufacturing Market Poised for Strong Growth at 14.2% CAGR Through 2030

Posted by Aryan on December 17th, 2025

The global IoT in manufacturing market generated USD 87.9 billion in revenue in 2024 and is projected to expand at a robust CAGR of 14.2% from 2024 to 2030, driven by rapid industrial automation, growing adoption of artificial intelligence (AI), and increasing demand for higher production efficiency across manufacturing facilities worldwide.

Manufacturers are increasingly integrating IoT-driven digitization to enable real-time data acquisition, predictive insights, and automated decision-making. This shift is transforming traditional manufacturing processes, improving operational efficiency, enhancing supply chain visibility, and enabling smarter asset tracking and safety management.

According to the WORLDMETRICS Report 2024, nearly 72% of manufacturing companies are already leveraging IoT technologies, resulting in productivity improvements of up to 30%. Additionally, approximately 40% of global IoT platforms are specifically designed for manufacturing applications, highlighting the sector’s central role in IoT innovation.

AI-Enabled IoT Emerges as a Key Market Trend

The convergence of AI and IoT is redefining industrial operations by enabling intelligent machines capable of autonomous decision-making with minimal human intervention. AI-powered industrial IoT solutions analyze vast volumes of data in real time, helping manufacturers optimize performance, predict failures, and improve operational outcomes.

As manufacturers recognize the full potential of connected ecosystems, investments in advanced technologies such as digital twins, smart surveillance, and cloud-based IoT platforms continue to rise.

Industrial Automation and Smart Inventory Management Drive Growth

Rapid industrial automation remains a primary growth driver, with IoT playing a critical role in creating responsive, scalable, and cost-effective system architectures. IoT-enabled inventory management solutions provide end-to-end visibility, automate tracking and reporting, and significantly reduce inventory holding costs—making them indispensable for modern manufacturing operations.

However, high implementation costs, including expenses related to hardware, connectivity, cloud infrastructure, and system integration, pose a challenge—particularly for manufacturers operating legacy machinery.

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Key Market Insights

• By Component:
• Solutions segment dominated the market with a 75% revenue share in 2024, driven by demand for IoT software platforms and integrated manufacturing solutions.
• By Deployment:
• On-premises held the larger share, while cloud deployment is expected to grow faster at a CAGR of 14.7%, owing to scalability and lower upfront investment.
• By Application:
• Predictive maintenance leads the market and is the fastest-growing segment, enabling proactive asset management and improved worker safety.
• By End User:
• Automotive remains the largest segment, while medical device manufacturing is projected to witness the fastest growth due to rising demand for IoT-enabled healthcare equipment.

Regional Highlights

• North America accounted for the largest market share (35% in 2024), supported by advanced IT infrastructure, high technology investments, and strong adoption of Industry 4.0 practices.
• Asia-Pacific (APAC) is expected to register the fastest growth, driven by rapid industrial transformation in China, India, and Japan.
• Europe continues to show strong momentum, particularly in Germany, the U.K., and France, supported by manufacturing expansion and growing 5G adoption.

Competitive Landscape

The IoT in manufacturing market is moderately fragmented, with key players focusing on strategic partnerships, product launches, and mergers & acquisitions. Major companies operating in the market include:

• General Electric Company
• Cisco Systems Inc.
• IBM Corporation
• Microsoft Corporation
• Siemens AG
• Robert Bosch GmbH
• Huawei Technology Co. Ltd.
• Oracle Corporation
• SAP SE

Recent developments include collaborations between Rockwell Automation & NVIDIA, Qt Group & Qualcomm, and Nokia’s expansion of industrial IoT applications, underscoring the rapid pace of innovation in the market.