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IoT in Manufacturing Market

Pages: 200 | Base Year: 2024 | Release: October 2025 | Author: Versha V.

Market Definition

IoT in manufacturing refers to the integration of internet of things (IoT) devices and sensors into manufacturing processes to collect, exchange, and analyze real-time data from industrial equipment and production systems.

It enables smart manufacturing by optimizing operations, enhancing productivity, predicting equipment failures, reducing downtime and supporting data-driven decision-making across the production lifecycle. The market encompasses the development, deployment, and maintenance of connected devices, industrial sensors, software platforms, and network infrastructure.

IoT in Manufacturing Market Overview

The global IoT in manufacturing market size was valued at USD 93.68 billion in 2024 and is projected to grow from USD 103.71 billion in 2025 to USD 234.15 billion by 2032, exhibiting a CAGR of 12.34% over the forecast period.

This growth is attributed to the expansion of cloud computing and edge analytics capabilities, which are improving real-time data collection, analysis, and decision-making in manufacturing operations. The rising demand for smart manufacturing practices to improve efficiency, productivity, and flexibility in production workflows is further driving the adoption of IoT in manufacturing.

Key Highlights:

  1. The IoT in manufacturing market industry size was recorded at USD 93.68 billion in 2024.
  2. The market is projected to grow at a CAGR of 12.34% from 2024 to 2032.
  3. North America held a share of 35.43% in 2024, valued at of USD 33.19 billion.
  4. The hardware segment garnered USD 39.65 billion in revenue in 2024.
  5. The on-premises segment is expected to reach USD 128.42 billion by 2032.
  6. The supply chain management segment is anticipated to witness the fastest CAGR of 14.55% over the forecast period.
  7. The automotive segment held a share of 37.65% in 2024
  8. Asia Pacific is anticipated to grow at a CAGR of 13.97% over the forecast period.

Major companies operating in the IoT in manufacturing market are Siemens, Robert Bosch GmbH, ABB Ltd, Schneider Electric SE, Honeywell International Inc., SAP SE, Cisco Systems, Inc., Amazon Web Services, Inc., Microsoft Corporation, IBM Corporation, Rockwell Automation Inc., Telit Cinterion, Advantech Co., Ltd, Wipro Limited, and Ericsson.

IoT in Manufacturing Market Size & Share, By Revenue, 2025-2032

Growing investments by market players in IoT in manufacturing is accelerating the adoption of smart and connected factories. Additionally, the expansion of technology development centers to advance IoT solutions is enhancing operational efficiency and real-time monitoring.

  • In June 2024, Tata Consultancy Services (TCS) launched the Bringing Life to Things Lab in Ohio, to advance AI, GenAI, and IoT engineering solutions for manufacturing and other industries. The lab deploys TCS’ Clever Energy, Digital Manufacturing Platform (DMP), and Digifleet platforms to enable rapid prototyping and optimize operations of manufacturing facilities.

Market Driver

Growing Focus on Operational Efficiency and Process Optimization

A major driver in the IoT in manufacturing market is the growing focus on operational efficiency and process optimization. Manufacturers are increasingly adopting IoT-enabled devices, sensors, and advanced analytics to monitor equipment, track production performance, and identify bottlenecks in real time. 

This allows companies to reduce downtime, minimize waste, and optimize resource utilization across factories. The rising demand from manufacturers for streamlined operations and data-driven decision-making is prompting investments in connected systems and predictive maintenance technologies.

  • In March 2025, Industrial Networking Solutions (INS) acquired Source Inc. to expand its wireless networking and IoT capabilities. The acquisition allows INS to provide secure, scalable, and future-ready connectivity solutions for industrial and enterprise clients.

Market Challenge

Data Security and Privacy Concerns

A key challenge in the IoT in manufacturing market is the growing concern over data security and privacy. Connected machines, sensors, and devices can now transmit vast amounts of operational and production data across networks. This rising connectivity exposes manufacturers to cyberattacks, data breaches, and unauthorized access risks, leading to operational disruptions and potential loss of critical intellectual property.

To address this challenge, market players are investing in advanced cybersecurity frameworks, end-to-end encryption, and multi-factor authentication to safeguard industrial data. They are also deploying AI-driven threat detection systems to identify anomalies in real time. Players are also collaborating with IT security providers to design tailored solutions for industrial IoT sector.

Market Trend

Integration of AI and Machine Learning

A notable trend in the IoT in manufacturing market is the growing integration of artificial intelligence (AI) and machine learning (ML) into industrial operations. Manufacturers are deploying AI-driven analytics and ML algorithms to monitor equipment, analyze IoT data, and optimize production workflows. 

These technologies are enabling predictive maintenance, real-time anomaly detection, and prescriptive guidance for operators, reducing downtime and operational costs. Companies are adopting AI and ML to enhance decision-making, improve process efficiency, and support smarter manufacturing.

  • In March 2025, Grid Dynamics launched its IoT Control Tower, an advanced analytics solution for manufacturers and equipment providers. The platform continuously analyzes IoT data streams from production facilities and field deployments using AI/ML models and agentic AI assistants.

IoT in Manufacturing Market Report Snapshot

Segmentation

Details

By Component

Hardware, Software, Services

By Deployment Mode

On-Premises, Cloud-Based

By Application

Predictive Maintenance, Asset Tracking and Management, Quality Control, Supply Chain Management, Others

By Industry Vertical

Automotive, Electronics and Semiconductors, Food and Beverage, Pharmaceuticals, Others

By Region

North America: U.S., Canada, Mexico

Europe: France, UK, Spain, Germany, Italy, Russia, Rest of Europe

Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific

Middle East & Africa: Turkey, U.A.E., Saudi Arabia, South Africa, Rest of Middle East & Africa

South America: Brazil, Argentina, Rest of South America

Market Segmentation:

  • By Component (Hardware, Software, and Services): The hardware segment earned USD 39.65 billion in 2024 due to rising adoption of sensors, IoT devices, and industrial equipment for smart manufacturing.
  • By Deployment Mode (On-Premises and Cloud-Based): The on-premises segment held 58.76% of the market in 2024, driven by a high demand for secure, internally managed IoT infrastructure.
  • By Application (Predictive Maintenance, Asset Tracking and Management, Quality Control, Supply Chain Management, and Others): The predictive maintenance segment is projected to reach USD 75.79 billion by 2032, owing to a growing demand for minimizing equipment downtime and optimizing operational efficiency.
  • By Industry Vertical (Automotive, Electronics and Semiconductors, Food and Beverage, Pharmaceuticals, and Others): The pharmaceuticals segment is anticipated to witness the fastest CAGR of 14.07% over the forecast period , due to increasing adoption of IoT for quality control and regulatory compliance.

IoT in Manufacturing Market Regional Analysis

Based on region, the market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and South America.

IoT in Manufacturing Market Size & Share, By Region, 2025-2032

North America IoT in manufacturing market stood at 35.43% in 2024, valued at USD 33.19 billion in the global market. This dominance is primarily due to the rising adoption of Industry 4.0 technologies, enabling the integration of smart sensors and automation to optimize manufacturing processes. Increasing demand for real-time monitoring and predictive maintenance in manufacturing operations is helping reduce downtime and improve efficiency. 

Expansion of cloud computing and edge analytics is supporting seamless data collection, analysis, and decision-making across factories in the region. Additionally, advancements in technologies such as asset-tracking solutions by market players are enhancing operational visibility and optimizing cost efficiency, further driving the expansion of the market.

  • In September 2025, Sensolus launched its NextGen Industrial IoT tracking solution in the U.S., Canada, and Mexico, offering smart trackers, gateways, and a digital asset-tracking platform. The solution enables manufacturers and logistics operators to monitor assets, optimize inventory, and reduce downtime.

Asia Pacific IoT in manufacturing industry is set to grow at a robust CAGR of 13.97% over the forecast period, propelled by rapid industrialization and a high demand for smart manufacturing in the region. Expanding investments by governments and regional players in digital infrastructure and automation are enabling the deployment of cost-effective IoT solutions at scale. 

Government initiatives, such as South Korea's Smart Factory Initiative and Japan's Society 5.0, aim to integrate IoT, AI, and robotics into manufacturing processes, which is also fueling market growth. Additionally, the integration of connected manufacturing solutions is strengthening production capabilities and supporting the adoption of IoT in manufacturing.

  • In April 2025, Sasken acquired Borqs Enterprises to strengthen its IoT capabilities. The acquisition expands Sasken’s portfolio in high-demand areas such as connected consumer devices and industrial IoT.

Regulatory Frameworks

  • In the U.S., the Federal Communications Commission (FCC) regulates the market by overseeing device compliance with electromagnetic compatibility standards and cybersecurity labeling under the Cyber Trust Mark. It mandates testing and certification of IoT devices to prevent network interference, enhance security, and ensure reliable industrial and consumer operations.
  • In the UK, the Department for Science, Innovation and Technology (DSIT) regulates IoT in manufacturing under the Product Security and Telecommunications Infrastructure Act 2022. It enforces security standards requiring robust device protection, unique passwords, and secure software updates, ensuring IoT adoption in industrial environments maintains cybersecurity and operational reliability.
  • The Ministry of Industry and Information Technology (MIIT) regulates IoT in manufacturing in China by setting national policies, technical standards, and industrial guidelines. It oversees network security, device interoperability, and industrial IoT platform deployment.
  • In India, the Department of Telecommunications (DoT) regulates IoT in manufacturing through the Mandatory Testing and Certification of Telecom Equipment (MTCTE) scheme. It ensures device interoperability, network security, and compliance with Machine-to-Machine (M2M) communication guidelines.

Competitive Landscape

Major players operating in the IoT in manufacturing industry are actively strengthening their competitive position through technological innovation and strategic acquisitions. Key players are investing in research and development to enhance predictive maintenance, real-time monitoring, and AI-driven analytics capabilities. 

They are also focusing on expanding their portfolios with wireless IoT devices, secure connectivity platforms, and advanced asset monitoring systems to meet growing demand for smart and connected factories.

  • In October 2024, IMI Plc acquired TWTG Group B.V. (TWTG) to strengthen its process automation and digital transformation capabilities. The acquisition expands IMI’s portfolio with TWTG’s wireless IoT and LoRaWAN-enabled solutions. It enhances asset monitoring, efficiency, and safety across industries such as energy, utilities, and heavy manufacturing.

Top Companies in IoT in Manufacturing Market:

  • Siemens
  • Robert Bosch GmbH
  • ABB Ltd
  • Schneider Electric SE
  • Honeywell International Inc.
  • SAP SE
  • Cisco Systems, Inc.
  • Amazon Web Services, Inc.
  • Microsoft Corporation
  • IBM Corporation
  • Rockwell Automation Inc.
  • Telit Cinterion
  • Advantech Co., Ltd
  • Wipro Limited
  • Ericsson

Recent Developments

  • In September 2025, Mitsubishi Electric acquired Nozomi Networks for USD 1 billion. The acquisition enhances Mitsubishi Electric’s industrial automation portfolio and expands its capabilities in operational technology and IoT cybersecurity.
  • In September 2025, Avery Dennison expanded its strategic partnership with Wiliot to scale the manufacturing and market reach of ambient IoT technologies. The collaboration focuses on producing next-generation Bluetooth-enabled IoT sensors with improved performance and lower costs.

Frequently Asked Questions