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Market Overview
According to Fortune Business Insight, the global IoT analytics market size was valued at USD 35.51 billion in 2024. The market is projected to grow from USD 42.22 billion in 2025 to USD 154.03 billion by 2032, exhibiting a CAGR of 20.3% during the forecast period.
Fortune Business Insights™ has deep-dived into these insights in its latest research report, titled “IoT Analytics Market, 2025-2032.”
The analysis shows that market growth is driven by the rapid adoption of IoT devices across industrial, commercial, and public-sector environments. Organizations are increasingly relying on IoT analytics platforms to transform high-volume sensor data into actionable insights that improve operational efficiency and reduce downtime. The integration of Generative AI is further propelling growth; for instance, in October 2024, Honeywell partnered with Google to integrate Google’s Gemini generative AI into Honeywell’s Forge industrial data platform to enable autonomous operations.
Major Players Profiled in the Market Report:
Microsoft Corporation (U.S.)
Amazon Web Services, Inc. (U.S.)
Google LLC (U.S.)
IBM Corporation (U.S.)
Oracle Corporation (U.S.)
Cisco Systems, Inc. (U.S.)
Siemens AG (Germany)
Hitachi Ltd. (Japan)
PTC Inc. (U.S.)
Software AG (Germany)
SAP SE (Germany)
General Electric (U.S.)
Teradata Corporation (U.S.)
Schneider Electric SE (France)
Bosch GmbH (Germany)
Segments
Growing Adoption of Integrated IoT Platforms Drives Dominance of Solution Segment
Based on component, the market is bifurcated into solution and services. The solution segment captured the largest market share in 2024, estimated at USD 23.77 billion. This is due to enterprises increasingly adopting integrated IoT analytics platforms combining data management, visualization, and AI-driven insights.
Rising Enterprise Preference for Cloud-Based Analytics Boosts Segment Growth
Based on deployment, the market is categorized into on-premises and cloud. The cloud segment captured the largest market share (USD 24.17 billion in 2024) and is expected to grow at the highest CAGR of 21.8%. This is owing to its scalability, cost-efficiency, and the ability to handle massive IoT data volumes while integrating seamless AI and ML capabilities.
Ease of Implementation and Broad Applicability Propel Descriptive Analytics Growth
Based on analytics type, the market is divided into descriptive, diagnostic, predictive, and prescriptive analytics. Descriptive analytics captured the largest market share (USD 16.22 billion in 2024) as it serves as the foundational layer for IoT data visualization and monitoring across industries.
Industry 4.0 Adoption Drives IoT Analytics Demand in Manufacturing
Based on industry, the market is categorized into BFSI, IT & telecom, manufacturing, retail & e-commerce, healthcare, and others. Manufacturing accounted for the largest market share of USD 9.96 billion in 2024, owing to the widespread adoption of IoT analytics for process optimization, quality control, and predictive maintenance within smart factory initiatives.
Source: https://www.fortunebusinessinsights.com/iot-analytics-market-114206
Report Coverage
The report offers:
Major growth drivers, restraining factors, opportunities, and potential challenges for the market.
Comprehensive insights into regional developments.
List of major industry players.
Key strategies adopted by the market players.
The latest industry developments include product launches, partnerships, mergers, and acquisitions.
Drivers & Restraints
Growing Emphasis on Digital Transformation and Industry 4.0 is Driving Market Growth
The growing emphasis on digital transformation and Industry 4.0 is a major driving factor. Industrial enterprises are leveraging IoT analytics to enhance production efficiency, monitor equipment health, and reduce downtime through predictive insights. Smart factories and connected supply chains are heavily dependent on analytics to manage complex data flows and ensure real-time decision-making.
Data Privacy and Security Concerns Across Diverse IoT Ecosystems May Hinder Market Growth
However, data privacy and security concerns pose a significant restraint. As billions of connected devices transmit sensitive operational and personal data, the risk of breaches can lead to severe financial and reputational damage. The absence of unified global security standards and inconsistent data governance policies across regions further complicates secure deployments.
Regional Insights
North America Holds the Dominant Market Share Due to Advanced Digital Infrastructure and Cloud Investments
North America dominated the IoT analytics market with a market share of 38.52% in 2024, valued at USD 13.68 billion. The region’s growth is attributed to enterprises integrating AI-powered analytics into large-scale industrial operations and significant investments by hyperscalers like AWS, Microsoft Azure, and Google Cloud in localized data centers. The U.S. market specifically is estimated to reach USD 11.32 billion in 2025.
Asia Pacific to Witness Fastest Growth Driven by Rapid Industrialization and Smart City Projects
Asia Pacific is estimated to reach USD 11.40 billion in 2025 and is expected to grow at the highest CAGR of 24.6%. The regional growth is fueled by rapid industrialization, large-scale smart city projects in China and India, and expanding investments in 5G and edge analytics.
IoT Analytics Market Future Growth:
The IoT analytics market is poised for transformative growth, driven by the convergence of Generative AI, Edge Computing, and 5G connectivity. Generative AI is shifting the landscape from traditional monitoring to autonomous decision-making by allowing automated data interpretation and model generation. Simultaneously, the rapid adoption of edge computing allows for real-time processing closer to the source, crucial for mission-critical applications like autonomous vehicles. Additionally, a rise in sustainability analytics is emerging as a key trend, with businesses using IoT data to achieve energy efficiency and carbon reduction targets to meet ESG mandates.
Competitive Landscape
Growing Focus of Key Market Players on Innovation and New Launches Leads to their Dominating Market Positions
The market features prominent players like Microsoft, AWS, and Google. These leading companies are accelerating growth through strategic initiatives such as new product launches, technological advancements in AI integration, and investments in cloud-based analytics solutions. Their focus on creating end-to-end, interoperable platforms helps streamline deployment and lower integration costs for customers.
Key Industry Development
October 2025: Wiliot announced a collaboration with Walmart to deploy ambient IoT sensors across Walmart’s supply chain to feed AI/analytics systems for improved inventory management.
October 2025: AT&T and Ericsson launched a cloud-based IoT Marketplace to simplify IoT service provisioning and device management.
June 2025: Siemens and NVIDIA expanded their partnership to integrate accelerated AI computing with Siemens’ Xcelerator platform for industrial AI analytics.
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