The IoT infrastructure provides connectivity and ensures seamless communication between devices over a wireless network. It comprises hardware components like sensors, RFID tags, IoT hubs, IoT gateways, network switches and routers that together help collect and transfer data. The integration of these components helps various organizations implement IoT solutions for applications across different industry verticals. The growing adoption of IoT solutions in industries like manufacturing, healthcare, transportation and logistics is accelerating the demand for connectivity infrastructure. The global IoT infrastructure allows manufacturers to remotely monitor equipment performance, predict maintenance needs and ensure operational efficiency of production lines. In the healthcare sector, IoT devices help provide round-the-clock patient monitoring, predict epidemics and enable remote delivery of medical services.
The global IoT Infrastructure Market is estimated to be valued at US$ 703.88 Bn in 2024 and is expected to exhibit a CAGR of 8.4% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
The increasing number of connected devices and IoT applications is expected to drive the growth of the global IoT infrastructure market over the forecast period. As per estimates, the number of connected IoT devices is expected to grow from 26 billion in 2022 to 75.4 billion by 2030. This massive proliferation of connected devices will generate humongous volumes of data that needs to be collected, stored and analyzed in real-time. Effective data transmission over a robust IoT infrastructure is critical to unlock the full potential of IoT solutions. Moreover, with growing IoT adoption, organizations are implementing advanced applications around predictive maintenance, supply chain visibility, autonomous operations etc. that require high-speed connectivity with low latency. Reliable IoT connectivity infrastructure is therefore imperative for organizations to capitalize on opportunities arising out of IoT revolution.
The IoT infrastructure market is dominanted by the hardware segment which accounts for over 55% of the total market share. Hardware components like sensors, connectivity modules, gateways help connect IoT devices. Within hardware, the connectivity modules sub-segment dominates due to growing adoption of technologies like WiFi, Bluetooth, Zigbee, NBIoT for connecting devices.
Political: Regulations around data privacy and security are increasing globally which drives companies to enhance their security infrastructure to comply with the rules.
Economic: Large investments are being made by governments and businesses to build 5G networks which will boost applications in areas like smart manufacturing and autonomous vehicles propelling the IoT infrastructure demand.
Social: Rising usage of smart home devices and wearables demonstrates customers’ increasing acceptance of technology in daily lives driving the infrastructure requirements.
Technological: Emerging technologies like edge computing, 5G, and AI enable new use cases which necessitate advanced infrastructure components with higher performance and lower latency. This fuels innovation in the infrastructure area.
The Global Iot Infrastructure Market Size is expected to witness high growth over the forecast period supported by widespread 5G deployment and increasing IoT adoption across industries.
Regional analysis: North America dominates currently due to heavy investments in connectivity infrastructure by communication service providers and cloud providers in the region. However, Asia Pacific is expected to grow at the fastest pace led by China, India, and Japan on account of government initiatives and increasing smart city projects.
Key players: Key players operating in the IoT infrastructure market are Belden Inc., Alpha Wire, General Cable Corporation, L-Com Global Connectivity, LS Cable & System, Southwire, TE Connectivity Ltd, Nexans S.A., Amphenol Corporation, and Coleman Cable Inc. The market has witnessed considerable M&A activity over the past few years with leading players focusing on building end-to-end IoT capabilities and solutions.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it