IoT industry to hit $1.5trn by 2029 amid soaring global adoption

Joy Agwunobi

The global  Internet of Things (IoT) is rapidly transforming the technological landscape, with the global market expected to hit $1.5 trillion in revenue by 2029,  fueled by ongoing technological advancements, broad industry adoption, and an intensified focus on security, standards, and sustainability, according to a new report by Stocklytics.com, a leading stock and ETF market data analysis firm.

Stocklytics’ report provides a detailed analysis of the IoT market’s revenue growth over the years, showing a consistent upward trend. The report noted that in 2018, the market generated $424.8 billion, and by 2019, it crossed the $500 billion mark,a 19 per cent  increase. The momentum continued with revenues exceeding $552.9 billion in 2020 and surging past $632 billion in 2021.

By 2022, the IoT market earned $741 billion, marking an impressive 74 per cent  increase since 2018 and a 17 per cent  jump from the previous year. The growth continued in 2023, with the market closing in on $850 billion.

According to the report,  analysts project that the market will exceed $947 billion by the end of 2024 and cross the $1 trillion milestone in 2025. By 2029, revenues are expected to reach $1.56 trillion, reflecting a compound annual growth rate (CAGR) of 13 per cent  since 2018.

According to the Stocklytics report, the growing integration of IoT with blockchain technology is one of the key factors driving market appeal and growth.

The report identifies the growing adoption of IoT solutions in key sectors such as healthcare, manufacturing, transportation, and smart homes as significant drivers of market expansion. It noted that these industries are increasingly leveraging IoT to optimise operations, boost efficiency, and enhance service delivery, which in turn broadens the market’s scope and influence.

Urbanisation is also highlighted in the report as a crucial factor driving IoT adoption, with the World Economic Forum estimating that around 1.3 million people migrate to urban areas each week with projections indicating that by 2028, over 5 billion people are expected to live in cities.

According to the report, this rapid urban migration is fueling demand for smart city solutions. IoT technology is pivotal in developing smart homes, advanced transportation systems, smart grids, and air quality controllers all of which are essential for managing the complexities of urban life.

While the market shows strong growth potential, the Stocklytics report brings to light the challenges faced by the technology sector related to data privacy, cybersecurity, and the need for standardised regulations across industries.

Edith Reads, Stocklytics’ financial analyst noted that the IoT market’s future looks promising, with companies and industries increasingly turning to connected devices to drive efficiency and innovation. As the world becomes more interconnected, the IoT sector is set to play an even more pivotal role in shaping the future of technology.