Enterprise IoT market set for 14% annual growth by 2030

The enterprise Internet of Things (IoT) market is anticipated to witness accelerated growth from 2025, with a projected compound annual growth rate (CAGR) of 14% through 2030, according to the latest analysis by IoT Analytics.

The "State of IoT Spring 2025" report indicates that the previous year's market expansion was subdued, registering a 10% growth rate, marking it as the slowest since IoT Analytics began their market analyses. This deceleration was largely influenced by macroeconomic uncertainties, notably within Europe's manufacturing sector.

Despite the overall slowdown, the report highlights that demand for software and connectivity solutions showcased resilience. This stable demand contrasts with harder-hit sectors such as hardware, which faced more significant challenges.

Notable industries at the forefront of enterprise IoT adoption include process manufacturing and automotive. Energy and infrastructure sectors are also increasingly engaging with IoT, driven by needs for enhanced monitoring and optimisation capabilities. Use cases such as real-time tracking and inventory management have shown substantial adoption, aligning with a rising focus on improving supply chain visibility and predictive logistics.

IoT Analytics projects that a rebound in the IoT market will be significantly influenced by advancements in artificial intelligence (AI), cloud computing, and edge computing. Additionally, sustainability-related initiatives in sectors like energy, utilities, and infrastructure are expected to contribute to recovery and growth.

Crystalising future predictions, the report also notes potential uncertainties that could impact this growth, such as tariffs, supply chain disruptions, and pricing volatility. The extent and duration of these potential challenges are currently difficult to estimate.

Knud Lasse Lueth, Chief Executive Officer at IoT Analytics, provided insights into the market situation, stating, "The enterprise IoT market expanded at its slowest pace in over a decade in 2024, but early indicators suggest a rebound in 2025, driven by software and AI-focused solutions. While AI captures most of the attention today, it is important to remember that data—much of it generated by connected devices—is its essential fuel. IoT therefore remains a foundational enabler, even if it no longer dominates the headlines."

Geographically, India emerged as a key player, experiencing a 14% year-over-year growth in IoT spending, while Europe showed slower adoption rates.

The latter part of 2024 saw the introduction of several new IoT products focusing on AI, security, and connectivity, signalling shifts in industry priorities and underscoring the integration of AI in enhancing IoT infrastructure.