Enterprise IoT Market Size, Share, Trends and Analysis by Region, Product (Hardware, Software, Services), Enterprise Size, Vertical (Government, Utilities, Retail, Manufacturing), Application, Connectivity and Segment Forecast to 2026
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Enterprise IoT Market Overview
The Enterprise Internet of Things (IoT) market size revenue will be valued at $674.85 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 12.5% over the forecast period. The adoption of Enterprise IoT will be supported by increasing demand for mobile data connectivity at higher speeds, mainly driven by mobile video consumption, increasing adoption of smart cities, and the development of the mobile 5G.
Although the market is gaining traction, manufacturers of Enterprise IoT devices face major design challenges. The battery life of Enterprise IoT products is a big limitation. Manufacturers face issues in packaging and integration of small-sized chips with less weight and power consumption. Computers are getting smaller, but battery energy remains the same. Manufacturers are now focusing on enhancing the battery life for better implementation of enterprise IoT devices.
Enterprise IoT Market Outlook, 2019-2026 ($ billion)
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The sector has been able to grow rapidly, partly due to a lack of standards. The leading standards body for the Industrial Internet is called the Industrial Internet Consortium (IIC), founded in 2014. The IIC – whose founding members include Intel, Cisco, AT&T, GE, and IBM – aims “to test applications, coming up with best practices and standards, influencing IoT standards for Internet and industrial systems, creating a forum for sharing ideas and in general pushing the ecosystem forward.” It has a broad membership of over 250 firms, including Microsoft, Samsung Electronics, Infosys, SAP, Kuka, Dell, and HP.
Until a broad, open, standardized, industrial-scale platform as a service (PaaS) comes on stream, mass adoption of Enterprise IoT could be constrained. With the formation of the industrial internet consortium (IIC), the march toward universal standards and protocols has begun. Meanwhile, rival platforms will coexist, competing and collaborating.
Another area of concern is Enterprise IoT security. IoT security encompasses a range of threat vectors that can be device-based, app-based, network-based, or data-based. For pervasive IoT to become a reality, the world needs a unified, global IoT security standard.
COVID-19 has highlighted the crucial role IoT has come to play in our lives. Many traditional use-cases like smart city projects were put on hold as businesses coped with the pandemic-driven economic slowdown and governments reprioritized budgets in response to the health crisis. The demand for technologies that can help the workforce get safely back to work is rising and will likely continue to grow. IoT applications such as contact tracing devices and health-monitoring wearables provide critical data to help fight the pandemic.
Enterprise IoT Market Segmentation by Vertical
The Enterprise IoT vertical segment includes Government, Utilities, Manufacturing, Transport and Logistics, Energy, Insurance, Travel and Leisure, Retail, and Healthcare, among others. As of 2022, the Enterprise IoT market in the Government category captured the highest market size, accounting for over 25% of the overall enterprise IoT market size globally.
In addition to this, verticals like Utilities, Manufacturing, Transport and logistics, Energy, and Retail captured over 50% of the market size in 2022. While IoT’s traditional use cases in delivering government public sector services such as smart city and traffic management are witnessing increased adoption, we are also witnessing the evolution of new use cases of IoT in connected vehicles, autonomous driving, smart packaging, and patient monitoring.
Enterprise IoT Market Share by Vertical, 2023 (%)
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Enterprise IoT Market Segmentation by Product Type
Enterprise IoT solution is primarily implemented through three product types, IoT Hardware, IoT Software, and IoT Services. The IoT hardware segment demand is projected to capture more than 60% of the market by 2026.
The Enterprise IoT Software segment captured approximately 25% of the market value in 2022. According to GlobalData’s Emerging Technology Trends Survey 2020, which polled more than 1,700 senior executives worldwide in the summer of 2020, approximately 50% of the respondents showed a positive sentiment towards benefits of enterprise IoT and believed enterprise IoT deployment would help them get through the pandemic.
Enterprise IoT Market Share by Product Type, 2023 (%)
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Enterprise IoT Market Segmentation by Enterprise Size
Based on enterprise size, the Enterprise Internet of Things market is categorized into Micro (Less than 50), Small (51-250), Medium (251-1000), Large (1001-4999), and Very Large (5000+). In 2022, the Very large enterprises market captured a sizeable market share exceeding 25% and the segment is anticipated to witness strong growth, recording a CAGR surpassing 5% from 2022 to 2026. Key factors for growth of Enterprise IoT include digital transformation across enterprises, implementation of industry 4.0 standards, traditional industries looking for sustainable operational practices as well as concurrent technological developments such as introduction of 5G networks and adoption of advanced analytics and AI which allows for fast processing of the data collected at various Enterprise IoT nodes and subsequent action on the same. Several manufacturers are using enterprise IoT manufacturing applications to lower costs, improve facility service, better worker safety etc.
Enterprise IoT Market Share by Enterprise Size, 2023 (%)
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Enterprise IoT Market Segmentation by Application
Based on application, the Enterprise IoT market is categorized into Industrial Internet and Smart cities. In 2022, the Industrial Internet market captured a sizeable market share exceeding 50%, the segment is anticipated to witness strong growth from 2022 to 2026.
Industrial Internet segment comprises condition monitoring, telematics, asset tracking, people & animal tracking, environmental monitoring, advanced automation, and healthcare. Smart cities include smart metering, smart city platforms, smart buildings, smart signage, and smart payment systems.
IT services have become a necessary addition to the Industrial Internet value chain. The need to integrate both IT and operational technology (OT) will require the input of external consulting services companies, especially in the growing use case of predictive maintenance. There is an active market for smart city design and integration services, which stitch together applications for smart buildings, transportation, infrastructure, and power grids.
Enterprise IoT Market Share by Application, 2023 (%)
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Enterprise IoT Market Segmentation by Connectivity
Based on connectivity, the Enterprise IoT market is categorized into Cellular, LoRa, LTE-M, NB-IoT, Satellite, Short Range, Sigfox, and Wireline. In 2022, the Cellular segment dominated the Enterprise IoT market accounting for more than 40% of the overall market share and the segment is anticipated to witness strong growth from 2022 to 2026, recording a CAGR surpassing 8%.
Mobile IoT network standards such as narrowband IoT (NB-IoT) and Long-Term Evolution for Machines (LTE-M) will play a crucial role in the advancement of Enterprise IoT application. The GSMA, which represents the interests of mobile operators worldwide, predicts that by 2025 there will be around 3.1 billion cellular IoT connections, including 1.8 billion on LPWAN.
Enterprise IoT Market Share by Connectivity, 2023 (%)
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Enterprise IoT Market Analysis by Region
The Asia Pacific Enterprise IoT market value was the highest in 2022, capturing over 30% of the overall market size. The regional demand was led by the US and China collectively accounting for over 40% of the Enterprise IoT market in 2022. The adoption of mobile 5G services supported by increasing demand for smart city platforms will drive the regional Enterprise IoT markets.
Asia Pacific is projected to retain the largest share by 2026 accounting for over 30% of the global Enterprise IoT market value, with a forecasted growth rate exceeding 7% from 2022 to 2026. The growing demand and implementation of 5G services will favor the proliferation of the Enterprise IoT market in Asia Pacific. Apart from the Asia Pacific market, the South and Central America Enterprise IoT market is also expected to witness growth over the near future, registering a CAGR of more than 9% from 2022 to 2026.
Asia Pacific Enterprise IoT Market Share by Country, 2023 (%)
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Enterprise IoT Market - Competitive Landscape
The overall competitive landscape for the Enterprise IoT sector is highly fragmented. Numerous venture capital companies are heavily investing in innovative IoT start-ups possessing pioneering expertise. Enterprise IoT ecosystem de-fragmentation through M&A seems like a positive trend for an over-complicated market in which customers still complain that they need to buy and manage separate elements from disparate vendors and may have trouble proving adequate return of investment to key stakeholders. However, IoT connection growth rates were lower than expected in 2022 at 8% (for a total of about 12 billion global connections), but lower growth has been widely attributed to the chip supply shortage and COVID-19 concerns rather than the dampening of demand.
The key players leading the Enterprise IoT market include Microsoft, Alphabet, IBM, Samsung, Intel, Qualcomm, Siemens, Amazon, Huawei, and Cisco, among others.
Leading Players in the Enterprise IoT Market
- Microsoft Corp
- Alphabet Inc
- Samsung Electronics Co Ltd
- Intel Corp
- Qualcomm Inc
- Siemens AG
- International Business Machines Corp
- Amazon.com Inc
- Cisco Systems Inc
- Huawei Investment & Holding Co Ltd
Other Enterprise IoT Market Vendors Mentioned
Schneider Electric SE, Nokia Corp, PTC Inc, SAP SE, NXP Semiconductors NV, STMicroelectronics NV, Accenture Plc, ABB Ltd, NVIDIA Corp, Honeywell International Inc, Dell Technologies Inc, Alibaba Group Holding Ltd, Dassault Systemes SE, and Telefonaktiebolaget LM Ericsson.
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Enterprise IoT Market Research Scope
Market Size (2023) | $674.85 billion |
Market Size (2026) | $970.01 billion |
CAGR | 12.5% from 2022 to 2026 |
Forecast period | 2022-2026 |
Historic data | 2019 – 2021 |
Report scope & coverage | Revenue forecast, competitive index, company landscape, growth trends |
Product Segment | IoT Hardware, IoT Software, IoT Services |
Enterprise Size Segment | Micro (Less than 50), Small (51-250), Medium (251-1000), Large (1001-4999), and Very Large (5000+) |
Vertical Segment | Government, Utilities, Manufacturing, Transport and Logistics, Energy, Insurance, Travel and Leisure, Retail, and Healthcare, among others. |
Application | Industrial Internet (Condition Monitoring, Telematics, Asset Tracking, People & Animal Tracking, Environmental Monitoring, Advanced Automation, Healthcare) and Smart cities (Smart Metering, Smart City Platforms, Smart Buildings, Smart Signage, and Smart Payment Systems) |
Connectivity | Cellular, LoRa, LTE-M, NB-IoT, Satellite, Short Range, Sigfox, and Wireline |
Geography | North America, Europe, Asia Pacific, South & Central America, Middle East & Africa |
Key Companies | Microsoft, Alphabet, IBM, Samsung, Intel, Qualcomm, Siemens, Amazon, Huawei, and Cisco |
Enterprise IoT Market Segments and Scope
GlobalData Plc has segmented the Global Enterprise IoT market report by product, vertical, enterprise size, application, connectivity, and region:
Global Enterprise IoT market Application Outlook (Revenue, USD Million, 2019-2026)
- Industrial Internet
- Condition Monitoring
- Telematics
- Asset Tracking
- People & Animal Tracking
- Environmental Monitoring
- Advanced Automation
- Healthcare
- Smart Cities
- Smart Metering
- Smart City Platforms
- Smart Buildings
- Smart Signage
- Smart Payment Systems
Global Enterprise IoT market Product Outlook (Revenue, USD Million, 2019-2026)
- IoT Hardware
- IoT Software
- IoT Services
Global Enterprise IoT market Vertical Outlook (Revenue, USD Million, 2019-2026)
- Government
- Utilities
- Manufacturing
- Transport and Logistics
- Energy
- Insurance
- Travel and Leisure
- Retail
- Healthcare
- Others
Global Enterprise IoT market Enterprise Size Outlook (Revenue, USD Million, 2019-2026)
- Micro (Less than 50)
- Small (51-250)
- Medium (251-1000)
- Large (1001-4999)
- Very Large (5000+)
Global Enterprise IoT market Application Outlook (Revenue, USD Million, 2019-2026)
- Condition Monitoring
- Telematics
- Asset Tracking
- People & Animal Tracking
- Environmental Monitoring
- Advanced Automation
- Healthcare
- Smart Metering
- Smart City Platforms
- Smart Buildings
- Smart Signage
- Smart Payment Systems
Global Enterprise IoT market Connectivity Outlook (Revenue, USD Million, 2019-2026)
- Cellular
- LoRa
- LTE-M
- NB-IoT
- Satellite
- Short Range
- Sigfox
- Wireline
Global Enterprise IoT Regional Outlook (Revenue, USD Million, 2019-2026)
- North America
- U.S
- Canada
- Europe
- Germany
- U.K.
- Italy
- France
- Spain
- The Netherlands
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- Australia
- Singapore
- South Korea
- Rest of Asia Pacific
- South & Central America
- Brazil
- Mexico
- Argentina
- Rest of South & Central America
- Middle East & Africa
- United Arab Emirates (UAE)
- Kingdom of Saudi Arabia (KSA)
- South Africa
- Rest of Middle East & Africa
The market intelligence report provides an in-depth analysis of the following –
- Enterprise IoT market outlook: analysis as well as historical figures and forecasts of revenue opportunities from the product type, vertical, enterprise size, application, connectivity, and region segments.
- The competitive landscape: an examination of the positioning of leading players in the Enterprise IoT market.
- Company snapshots: analysis of the market position of leading service providers in the Enterprise IoT market.
- Underlying assumptions behind our published base-case forecasts, as well as potential market developments that would alter, either positively or negatively, our base-case outlook.
The market intelligence report provides an in-depth analysis of the following –
- Enterprise IoT market outlook: analysis as well as historical figures and forecasts of revenue opportunities from the type, product, vertical, enterprise size, and region segments.
- The competitive landscape: an examination of the positioning of leading players in the enterprise IoT market.
- Company snapshots: analysis of the market position of leading service providers in the enterprise IoT market.
- Underlying assumptions behind our published base-case forecasts, as well as potential market developments that would alter, either positively or negatively, our base-case outlook.
Reasons to Buy
- This market intelligence report offers a thorough, forward-looking analysis of the global enterprise IoT market by product, vertical, enterprise size, application, connectivity, region, and key opportunities in a concise format to help executives build proactive and profitable growth strategies.
- Accompanying GlobalData’s Forecast products, the report examines the assumptions and drivers behind ongoing and upcoming trends in Enterprise IoT markets.
- The report also highlights key application segments (Industrial Internet (Condition Monitoring, Telematics, Asset Tracking, People & Animal Tracking, Environmental Monitoring, Advanced Automation, Healthcare) and Smart Cities (Smart Metering, Smart City Platforms, Smart Buildings, Smart Signage, and Smart Payment Systems))
- The report also highlights key product segments (IoT Hardware, IoT Software, IoT Services)
- The report also highlights key vertical segments (Government, Utilities, Manufacturing, Transport and Logistics, Energy, Insurance, Travel and Leisure, Retail, Healthcare, and Others).
- The report also highlights key enterprise size segments (Micro, Small, Medium, Large, and Very large)
- The report also highlights key Connectivity segments (Cellular, LoRa, LTE-M, NB-IoT, Satellite, Short Range, Sigfox, and Wireline).
- With more than 20 charts and tables, the report is designed for an executive-level audience, boasting presentation quality.
- The report provides an easily digestible market assessment for decision-makers built around in-depth information gathered from local market players, which enables executives to quickly get up to speed with the current and emerging trends in Enterprise IoT markets.
- The broad perspective of the report coupled with comprehensive, actionable detail will help Telecom, Media, and Technology (TMT) stakeholders, service providers, and other enterprise IoT players succeed in growing the Enterprise IoT market globally.
Key Players
Microsoft CorpAlphabet Inc
Samsung Electronics Co Ltd
Intel Corp
Qualcomm Inc
Siemens AG
International Business Machines Corp
Amazon.com Inc
Cisco Systems Inc
Huawei Investment & Holding Co Ltd
Table of Contents
Table
Figures
Frequently asked questions
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What will be the global enterprise IoT market size in 2023?
The enterprise IoT market size globally will be valued at $674.85 billion in 2023.
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What is the Enterprise IoT market growth rate?
The enterprise IoT market is expected to grow at a CAGR of 12.5% during the forecast period (2022-2026).
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What are the key enterprise IoT market drivers?
The adoption of enterprise IoT will be supported by increasing demand for mobile data connectivity at higher speeds, mainly driven by mobile video consumption, increasing adoption of smart cities, and the development of the mobile 5G.
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What are the key enterprise IoT market segments?
Product Type Segment: IoT Hardware, IoT Software, IoT Services
Vertical Segment: Government, Utilities, Manufacturing, Transport and Logistics, Energy, Insurance, Travel and Leisure, Retail, Healthcare, Others
Enterprise Size Segment: Micro, Small, Medium, Large, Very large
Application Segment: Industrial Internet (Condition Monitoring, Telematics, Asset Tracking, People & Animal Tracking, Environmental Monitoring, Advanced Automation, Healthcare) and Smart cities (Smart Metering, Smart City Platforms, Smart Buildings, Smart Signage, and Smart Payment Systems.)
Connectivity Segment: Cellular, LoRa, LTE-M, NB-IoT, Satellite, Short Range, Sigfox, and Wireline
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Which are the leading enterprise IoT companies?
The leading enterprise IoT companies are Microsoft, Alphabet, IBM, Samsung, Intel, Qualcomm, Siemens, Amazon, Huawei, and Cisco.
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Is there a third level of segmentation in the report?
GlobalData’s focus is on providing reliable and accurate data that is supported by robust research methodology. Our reports undergo rigorous quality checks and are based on primary and secondary research sources, ensuring that the numbers and insights provided are trustworthy. However, despite the best efforts to gather comprehensive data, there could be instances where the available data is limited, making it challenging to provide third level segmentation. In such cases, GlobalData may choose to provide high-level insights and general trends rather than forcing segmentation that may not be backed by sufficient data. This approach ensures that the report’s overall quality and credibility are maintained.
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