30 Internet of Things IoT Stats in 2024 From Reputable Sources

Internet of things (IoT) is the network of objects and consists of sensors, software, and other tools. These systems can collect and analyze data without human intervention. IoT term, coined by Kevin Ashton, started to be used in the 2000s and has become a key part of many industries today.

Our detailed list of internet of things (IoT) statistics is created from reliable sources to provide you a better understanding about current applications and its future.

IoT market size in revenue

• 2020: Firms in the IoT sector is expected to have more 450 billion annual revenue.(Bain & Company)
• 2021: The size of market of IoT, including hardware, software, systems integration and data services is expected be $520 billion. (Bain & Company)
• 2022: $1 trillion is expected to be spent on the Internet of Things (IoT) technology worldwide. (Statista)
• 2023: Asia Pacific is expected to be the leader for IoT spending market share with 35% rate. North America is expected 27% and EMA (Europe, Middle East and Africa) is expected 25% of spending market share after Asia Pacific. (Statista)
• 2027: The market size of IoT is estimated to expand to over $2 trillion. (Business Insider)

Number of devices & data generated

• 2023: A big increase is estimated, 15 billion, in M2M (Machine to Machine) connections. This was 6 billion in 2018. The connected home applications are expected to be 48% the total M2M connections.(Cisco)
• 2025: The number of IoT devices are estimated to be 75 billion. (Statista)

• 2027: 41 billion IoT devices are expected to be used. (Business Insider)

Use cases & trends

11. The fastest-growing category is expected to be the connected vehicle applications (e.g. fleet management, navigation, vehicle diagnostics, etc.)(30%) and the connected cities is expected to be the second fastest-growing category in M2M connections (26%) (Cisco)

12. Seven focus areas from the image below are expected to be in high demand for IoT system integration and professional services. (IOT Analytics)

13. In 2018, Gartner emphasized top 10 strategic IoT technologies and trends:
    • Artificial intelligence: 25 billion connected things would be used by 2021 and AI solutions would use large amount of IoT data.
    • Social, legal and ethical IoT: Companies would find new ways and tools to prevent bias and reduce the concerns about data privacy.
    • Infonomics and data broking: Selling and purchasing of IoT data would be common for many IoT systems By 2023.
    • The shift from intelligent edge to intelligent mesh: The existing architecture would transform into more unstructured architecture in a dynamic mesh.
    • IoT Governance: This would be key to avoid inappropriate behaviours related to IoT projects.
    • Sensor innovation: Current sensors would be more affordable and new sensors would have better capabilities to detect various situations.
    • Trusted hardware and operating system: There would be more hardware and software combinations to build more secure IoT systems by 2023.
    • Novel IoT user experiences: New technologies would be used to create an innovative user experience with IoT systems.
    • Silicon chip innovation:New special-purpose chips would be generated and it would use less power to run a deep neural networks by 2023.
    • New wireless networking technologies for IoT: New technologies such as low earth orbit satellites or backscatter networks would change the structure of IoT networking.(Gartner)

Industry/function specific stats

14. Healthcare (15%) insurance (12%) and education (12%) are expected to have the strongest industry gains in IoT spending. (IDC)
15. The Internet of Medical Things (IoMT) is expected to cap market size of $257.162B in 2026, from $55.324B. (Research and Markets)
    • We have an article that discusses the use cases of IoT in healthcare in more detail.
16. The global smart home market including automation system that controls the lighting, climate, entertainment, appliances and home security is expected to reach to $126B by 2022 and $208B by 2026. (Statista)
17. Video entertainment may take the largest share from smart home market by 2023. (Statista)
18. Smart cities sector is expected to create business opportunities that may have $2 trillion market value by 2025. 70% of global smart city spending by 2030 is expected to come from US, Western Europe, and China. (Frost & Sullivan)
19. The agricultural industrial internet of things (IIoT) market is estimated to have $7 billion U.S. by 2025 with smart farming concept. This market includes agricultural management platforms, supply chain & inventory management solutions, GPS services and field mapping services.(Statista)
20. The penetration of IOT semiconductor components is estimated to have a market size of 12% by 2025 in the industry. (IOT Analytics)

Results/benefits

21. 61% of organizations assess themselves to have a high level of IoT maturity as of 2019. (Gartner)
22. Organizations that made IoT investments think that they would obtain the expected financial returns in 3 years. (63%) (Gartner)
23. According to a survey, the biggest benefits of IoT for businesses has been gaining new capabilities (35%) and efficiency (34%). (PWC)

Investments

24. After the Covid – 19 outbreak, 47% of organizations are making plans for new investments in the Internet of Things (IoT) and 35% of organizations have already reduced their investments. (Gartner) 
25. The investments in IoT are expected to grow 14% annually through 2022. Especially, business applications with customer functionality and enablement platforms for gathering and processing data may have high market growth. (McKinsey)
26. Manufacturing companies are expected to build 40% more smart factories in next 5 years and expand the investments by almost 2 times compared to the last 3 years. (Forbes)

Challenges

27. Security: Even as of 2018, 22% of the businesses were willing to pay more for IoT devices to decrease security concerns about IoT systems. (Bain & Company)
28. ROI: Uncertain returns on investment of IoT solutions are one of the top concerns for the companies. (Bain & Company)
29. Privacy: 74% of consumers think that small privacy invasions may cause a loss of civil rights because of connected things. 92% of them would like to control personal data that is collected automatically. (EIU)
30. Regulatory change: Especially in healthcare, management of regulatory change would be a significant challenge for IoT solutions. (Deloitte)

For more on IoT

If you are curious about learning more about the use cases, market, and applications of IoT, read:

• 7 Ways IoT Will Improve Your Banking Experience
• Capture More IoT Market Share
• Top 10 IoT Communication Protocols

Finally, if you believe your business would benefit from adopting an IoT platform, we have a data-driven list of vendors prepared.

We would like to help you choose the best one tailored to your needs:

This article was drafted by former AIMultiple industry analyst Ayşegül Takımoğlu.