Industrial Internet of Things (IIoT) Market Size, Share, Growth, Industry Analysis, By Type (Hardware, Software and Services), By Application (Manufacturing, Energy and Electricity, Oil and Gas, Metals and Mining, Logistics, Transportation, Agriculture, Medical Insurance, Construction and Others) and Regional Forecast to 2033.

INDUSTRIAL INTERNET OF THINGS (IioT) MARKET OVERVIEW

The Global Industrial Internet of Things (IIoT) Market size was valued at USD 1.42 billion in 2025 and is anticipated to reach USD 6.49 billion by 2033, witnessing a Compound Annual Growth Rate (CAGR) of 20.7% during the forecast period.

When the Internet of Things is used in an industrial setting to enable connection and interaction of devices and machines is referred to as Industrial IIoT. The growth of the IIoT market is transforming the industrial sector by improving efficiency, providing real-time data and reducing cost. Growing emphasis on cyber security, technological advancement and increasing adoption of edge computing are the key factors that resulted in the growth of the IIoT market in the industrial sector.

LATEST TRENDS

Cloud Computing is the Latest Trends in the Market

In recent years, the use of cloud based solutions have increased in the industries. Cloud computing is usually employed in the industries to analyze vast amounts of data that are usually generated. This reduces manual error and improves efficiency. The data generated by the IIoT devices helps with advanced analytics and insights. Due to these applications, cloud computing has gained immense popularity within the industrial sector.

GLOBAL CRISIS IMPACTING THE MARKETUS TARIFF IMPACTS

US Tariffs On The IIoT Market Has Primarily Resulted in the Increase in Cost

The implementation of tariffs on the IIoT market has primarily resulted in the increase in cost. Tariffs on the imported hardware components results in increase in price, which then translates to increase in the price of IIoT devices and this potentially slows down the adoption of these devices in the industrial sectors. Increase in price could also lead to a disruption in the supply chain and this ripple effect could lead to delay or shortage in delivery. All these factors will force the manufacturers to shift towards tariff-less countries or local service providers to mitigate the cost. Although these are the primary impact of the tariffs, the long term effect is still yet to be known. But it is certain that tariffs will delay the growth of the IIoT market.

INDUATRIAL INTERNET OF THINGS (IIoT) MARKET

BY TYPE

Based on Type, the global industrial internet of things (IIoT) market is categorized into Hardware, Software and Service.

• Hardware: The physical components that make up the IIoT devices come under this type. Some of the IIoT hardware used in industries include automation controllers, digital output and input modules, industrial sensors and wireless solutions. These IIoT hardware provide real-time monitoring, optimize industrial processes, help with early detection of anomalies and support advanced analytics and machine learning. Due to these benefits the hardware market was valued at 195.3 billion USD in 2023 and it is estimated to reach 396.96 billion USD by 2032.

• Software: Software that is used to collect and analyze data in the industrial sector comes under the IIoT software. Some of the common ones include predictive maintenance, quality control, supply chain optimization and energy management. This software is used to reduce waste, increase productivity, prevent accidents through real-time monitoring and reduce maintenance cost. Due to these benefits the software IIoT market in industry was valued at 8.5 billion USD in 2023 and is estimated to reach 28.1 billion USD by 2032.

• Service: The IIoT services in the industrial sector enables organizations to leverage connected devices, automation and data analytics. These features are carried out to improve productivity, decision making and efficiency in the industries. Some of the services employed in industries include consulting, integration and managed services. The growth of these services in the industries played a crucial role in the growth of the IIoT market.

BY APPLICATION

Based on application, the global industrial internet of things (IIoT) market is categorized into Manufacturing, Energy and Electricity, Oil and Gas, Metals and Mining, Logistics, Transportation, Agriculture, Medical Insurance, Construction and Others.

• Manufacturing: In the manufacturing sector, the use of IIoT has resulted in increased efficiency and productivity. By employing IIoT the manufacturers are quickly able to respond to changing market and customer needs, they are able to provide real-time insights and data driven decision making and are able to adapt to new business models. As a result, of these impacts its market in manufacturing was valued at 116.52 billion USD and by 2032 it is estimated to reach 673.95 billion USD.

• Energy and Electricity: The IIoT in the energy and electricity sector is enabling real-time monitoring, optimizing the energy management in the industries and predictive maintenance to prevent accidents. Some of the impacts of using IIoT are reducing waste, improving productivity, preventing equipment failure, reducing carbon footprint and integrating renewable energy sources. As a result, its market in 2023 was valued at 153.89 billion USD and 747.65 billion USD in 2032.

• Oil and Gas: The IIoT in the oil and gas industry is growing rapidly. This is mainly due to increasing adaptation of smart technology and the constant need for efficient operation in the industry. The Asia-Pacific region dominated the market by holding nearly 38% of the global IIoT market in oil and gas in the year 2022. In the global scale, the market in the oil and gas sector was valued at 11.34 billion USD in 2022 and is projected to reach 22.24 billion USD by 2029. Growing demand for operational efficiency and integration of cloud computing are the key market drivers in this sector.

• Metals and Mining: In this sector, the growth of the IIoT has been quite significant in recent years. Increasing demand for metals and minerals especially in developing countries, increased funding from both government and private sectors and adoption of renewable energy in mining operations are the key factors driving this market. Due to these driving factors, the IIoT market for the metal and mining industry is expected to grow at a CAGR of 16% during the forecast period (2022-2027).

• Logistics: The IIoT in the logistics industry has seen considerable growth in recent years, with its growth being fueled by increasing adaptation of smart technologies and the need for efficient supply chain management in the industries. In the logistics sector North America holds the dominant market, as it had nearly 41% market shares in 2024. Increasing demand for real-time visibility and tracking of goods and growing demand for automation is future propelling this market growth. As a result, in 2024 the market was valued at 44.41 billion USD and by 2034 it is estimated to reach 90.37 billion USD.

• Transportation: In the transportation industry, the use of IIoT has increased in recent years. This is mainly due the need for efficient logistics and transportation management. North America especially the US dominated the IIoT in transportation market in the year 2023. In 2024, the global IIoT market in transportation was valued at 167.38 billion USD and by 2033 it is projected to reach 691.65 billion USD. Demand for connected vehicles and automation are the key driving factors of this market.

• Agriculture: The use of IIoT in agriculture is fairly new and this integration has brought out positive results. Asia-Pacific region is currently showing great results with the IIoT integration in agriculture. The need for efficient farming practices, precision agriculture and use of smart farming technologies are the key factors fueling this market. With the integration of IIoT in agriculture industry its market is projected to grow with a CAGR of 10.5% during the forecast period (2024-2033).

• Medical Insurance: IIoT in medical Insurance has had a considerable growth in recent years. The growth is mainly driven by the growing need for efficient healthcare management and increasing adoption of modern digital technologies. The benefits of integrating IIoT in medical Insurance include improving efficiency, reducing administrative cost, enables personalized policies and real-time health tracking and also to enable remote patient monitoring. As a result of these benefits, the IIoT market in this sector was valued at 14.1 billion USD in 2022 and by 2032 it is estimated to reach 70.3 billion USD.

• Construction: In the construction industry the use of IIoT has increased tremendously in recent years. The growth is mainly fueled the need for efficient construction management and adoption of smart technologies. The market for IIoT in construction was valued at 16.85 billion USD in 2024 and by 2032 it is projected to reach 50.1 billion USD. Some of the key applications of IIoT in construction include assets monitoring, fleet management, predictive maintenance and also in construction wearables.

• Others: Some of the other industries that employ IIoT include the retail industry, in which the IIoT is used to optimize inventory management and to improve supply chain efficiency. In the livestock industry they are used in heard management and to improve the productivity.

MARKET DYNAMICS

Market dynamics includes driving and restraining factor, opportunities and challenges stating the market conditions.

DRIVING FACTORS

Advancement in Technology is Driving the Market Growth

Integration of modern technologies such as AI, machine learning and automation are fueling the growth of the IIoT market in the industries. These technologies when integrated help with improving efficiency, reduce wastage, provide real-time monitoring to reduce accidents and for tracking and also in reducing carbon footprint and equipment failures. All these benefits are playing a crucial role in the industrial internet of things (IIoT) market growth.

Predictive Maintenance Factor is Fueling the Market Growth

One of the frequently used applications for IIoT is predictive maintenance, as this application helps with reducing the downtime in the industries. Predictive maintenance is also employed to schedule maintenance, this helps with reducing errors and accidents that are very common in the industries. Hence by employing these application industries are able to increase their accuracy and efficiency. These benefits are playing a vital role in the growth of the IIoT market.

RESTRAINING FACTORS

High Cost Factor is Restraining the Market Growth

The cost needed for the purchasing and integrating IIoT devices can be quite expensive and this could become a barrier for the small and medium sized industries, as they already work on tight revenue margins. This restricts the purchase and growth of IIoT. Furthermore, the maintenance of the IIoT infrastructure and the hardware and software integration can be quite costly as well. This will lead to financial burden and will deter the industries from adopting the IIoT technologies thereby restraining the market growth.

CHALLANGES

Cyber Security Risks is Challenging the Market Growth

IIoT devices are quite vulnerable to cyber-attacks and hacks. When these attacks are successful they result in confidential data leakage, System disruption and even permanent damage to the IIoT devices. It should be noted that since the IIoT devices are interconnected, when there is a cyber-attack on one device it can lead to attack on all the connected as well. This will further lead to large data leakage. Hence easy cyber-attacks from 3rd party networks are challenging the IIoT market growth.

OPPORTUNITIES

Sustainable Practices in the Industries is Expanding New Opportunities for the IIoT Services

IIoT allows the businesses to optimize their resource consumption thereby reducing the environmental impact and waste. By optimizing the energy usage IIoT can save significant amount of energy and this helps with reduction of cost and carbon footprint. With the development of closed loop systems, IIoT help with the reuse and recycle of resources and this helps with promoting sustainable economy. All these factors are opening new opportunities for the growth of the IIoT in industrial sectors.

INDUSTRIAL INTERNET OF THINGS (IIoT) MARKET REGIONAL INSIGHT

• NORTH AMERICA (US)

The United States industrial Internet of things (IIoT) market is a significant and rapidly growing market across the world. The need for predictive maintenance, growing preference for cloud computing and integration of modern technologies are the key driving factors of the IIoT market in the US region. As a result of all these driving factors the US market in the year 2024 was valued at 135.6 billion USD and by the year 2033 it is projected to reach 568.9 billion USD. North America also dominates the IIoT integrated energy and electronics, logistics and transportation industry.

• EUROPE

The Europe IIoT market is growing at a steady rate. Digitization of the various industries, growing demand to reduce carbon footprint and the growing need to improve the efficiency and productivity are the key driving factors of the market in the Europe region. Currently the market in this region is valued at 50.72 billion USD and by 2029 the market value is estimated to reach 81.34 billion USD. Germany is considered as the prominent market player in this region whereas Italy is projected to show the fastest growth in this region.

• ASIA

The Asia-Pacific region has a rapidly growing IIoT market. Increasing adaptation of modern technologies, growing demand to improve the equipment efficiency and strong support and funding from the government are the major factors driving the IIoT market growth in this region. In 2025, the market was valued at 102.63 billion USD and as the demand remains consistent the market is estimated to reach 175.56 billion USD. Due to strong government backing China has become a prominent player and holds significant shares in the global Industrial Internet of Things (IIoT) Market shares.

KEY INDUSTRY PLAYERS

Key Industry Players Shaping the Market Through Innovation and Market Expansion

The key industry players in the IIoT market can be also termed as the prominent players or dominant players in the market. These prominent players keep up with the latest trends that took place in the market which resulted in the boost of sales. They are known to invest continuously or find funding to conduct research, thereby developing upgraded or new versions of the IIoT technologies for the industries. They are also known for smooth distribution and supply of the IIoT technologies to the end users. Key players often come up with new strategies to promote the market when there is a decline or stagnation in growth.

LIST OF KEY INDUSTRIAL INTERNET OF THINGS (IIoT) COMPANIES

• IBM (U.S.)
• Cisco (U.S.)
• Microsoft (U.S.)
• Dell (U.S.)
• Siemens (Germany)
• Intel (U.S.)
• Google (U.S.)
• SAP (Germany)
• ABB (Switzerland)
• Bosch (Germany)
• Hitachi (Japan)
• Vodafone (U.K.)
• Schneider Electric (France)
• Panasonic (Japan)
• Honeywell (U.S.)
• GE (U.S.)
• AT&T (U.S.)
• Huawei (China)
• Ericsson (Sweden)
• Toshiba (Japan)
• NEC (Japan)
• Dassault Systèmes (France)
• Belden (U.S.)
• Digi International (U.S.)
• Haier (China)
• PTC (U.S.)
• Midea (China)
• Foxconn Industrial Internet (China)
• Boe Technology Group (China)
• Kyland Technology (China)
• Tsinghua Tongfang (China)
• Fujian Star-net Communication (China)
• CIMC IOT Technology (China)

KEY INDUSTRY DEVELOPMENT

October 2024: Honeywell International Inc., a multinational conglomerate from the US and Google Cloud announced their collaboration. This collaboration was done to integrate AI into Honeywell's industrial Operations, aiming to enhance autonomy, workflow efficiency and productivity.

REPORT COVERAGE

This report covers the basis of the Industrial internet of things (IIoT) and its market in the global platforms. It also briefly covers the latest trends in the market and the impact of tariffs on the growth of the IIoT market.

The report describes the segmentation of the industrial internet of things (IIoT) market on the basis of type and application and each segment's contribution to the market growth. It also covers the role of driving factors and opportunities in the growth of the market and the impact of restraining factors and challenges in the decline of the market.

The report also dives into the regional insight of the IIoT market. The role of key industry players and the key industry development that took place recently in the market.