Global IoT Services Market Set to Reach USD 238.84 Billion by 2032

The Global IoT Services Market was valued at USD 93.35 billion in 2024 and is projected to grow at a CAGR of 12.46% from 2025 to 2032, reaching nearly USD 238.84 billion by the end of the forecast period. This growth is driven by rapid digital transformation, increasing AI-powered IoT adoption, and the rising demand for connected solutions across industries.

IoT Services: The Backbone of Digital Connectivity

IoT services have emerged as the second-largest component after IoT hardware, redefining the way devices communicate, analyze, and deliver real-time insights. With internet connectivity becoming a necessity, IoT services play a pivotal role in enabling data management, device integration, and application development across industries.

The COVID-19 pandemic accelerated IoT adoption by highlighting the need for remote monitoring, automation, and real-time connectivity. While the short-term disruptions varied across regions, the long-term impact has been overwhelmingly positive, pushing businesses to invest in IoT-driven efficiency and resilience.

Key Growth Drivers

1. AI & Automation – AI-powered IoT platforms are enabling predictive analytics, smart decision-making, and enhanced consumer experiences.
2. Rising Device Connectivity – With over 50% of the global population connected online, demand for IoT services continues to surge. For instance, China had more than 720 million internet users in 2016, followed by the US with nearly 300 million users, a number that has only grown since.
3. Healthcare & Remote Monitoring – Wearables, patient monitoring systems, and connected healthcare devices are boosting IoT services demand.
4. Cybersecurity Demand – With global cybersecurity spending exceeding USD 95 billion, managed IoT services focusing on security, data, and device management are critical to reducing risks.

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Segment Insights

• By Offering:
  • Platform Segment dominates due to its role as the backbone of scalable IoT deployments, integrating edge computing, AI analytics, and security features.
  • Services Segment remains vital for customization and integration, particularly for enterprises looking to tailor IoT solutions to industry-specific needs.
• By Vertical:
  • Manufacturing leads the market, powered by Industry 4.0 adoption, predictive maintenance, and smart factory solutions.
  • Transportation & Logistics follows closely, driven by real-time tracking, fleet management, and intelligent freight systems.
  • Healthcare and Utilities are rapidly growing segments with increasing reliance on IoT-enabled monitoring and energy optimization.

Regional Overview

• North America: Strong adoption across IT, healthcare, and automotive industries, with the US leading in connected device penetration.
• Europe: Investments in smart cities and industrial IoT are boosting growth.
• Asia Pacific: The fastest-growing region, driven by China, India, Japan, and South Korea, supported by government initiatives in smart manufacturing and digital infrastructure.
• Middle East & Africa: Emerging opportunities in energy, oil & gas, and urban digitalization.
• South America: Brazil and Argentina lead IoT adoption in manufacturing and smart agriculture.

Competitive Landscape

The IoT services market is highly competitive with major players including:

• AT&T, Ericsson, Cisco, Infosys, Accenture, Tech Mahindra, Tata Consultancy Services, Dell Technologies, Bosch, Deloitte, Vodafone, and Verizon Enterprise Solutions.

These companies are focusing on AI integration, cloud platforms, cybersecurity solutions, and partnerships to expand their IoT service offerings globally.

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Conclusion

The IoT Services Market is positioned for exponential growth, reshaping industries from manufacturing and logistics to healthcare and energy. With platforms providing the infrastructure for innovation and services ensuring customization and security, IoT adoption is set to deepen across all sectors. By 2032, the market will surpass USD 238.84 billion, creating new opportunities for enterprises, technology providers, and consumers alike.