The global Internet of Things (IoT) market is projected to witness substantial growth, increasing by an estimated USD 1,036.83 billion from 2022 to 2027, with a remarkable CAGR of nearly 15.12% throughout the forecast period. This surge is attributed to the widespread adoption of industrial automation, where the integration of digital and physical systems enhances machine-to-machine (M2M) communication and human-machine interfaces (HMI). The industrial sector, valued at USD 168.54 billion in 2017, foresees significant market share growth driven by IoT technology, enabling enhanced productivity and global competitiveness.

Technavio has segmented the market based on application (Industrial, Retail, Healthcare, ICT, and Others), technology (RFID, Sensors, NFC, Cloud services, and Others), and geography (APAC, North America, Europe, Middle East and Africa, and South America). The industrial sector, with its focus on IoT technology, is anticipated to drive substantial market share growth, fostering global competitiveness through enhanced productivity.

Geographically, the Asia-Pacific (APAC) region is poised to contribute 38% to the global market growth during the forecast period. Government infrastructure investments in countries like India, China, and the Philippines, coupled with Small and Medium-sized Enterprise (SME) modernization initiatives, are key drivers of IoT adoption in the region. APAC governments are advocating embedded sensor deployment in smart city projects, enhancing urban governance and public services.