IoT in Manufacturing Market Size and Share Analysis - Growth Trends and Forecasts (2025-2032)

Market Size and Trends

The IoT in Manufacturing is estimated to be valued at USD 45.7 billion in 2024 and is expected to reach USD 112.9 billion by 2031, growing at a compound annual growth rate (CAGR) of 13.6% from 2024 to 2031. This substantial growth reflects the increasing adoption of IoT technologies in manufacturing processes to enhance operational efficiency, predictive maintenance, and supply chain management. The expanding integration of smart sensors and connected devices across factories is driving market expansion globally.

Current market trends highlight a strong shift towards Industry 4.0, where manufacturers leverage real-time data analytics, AI, and IoT-driven automation to optimize production workflows. There is a growing emphasis on leveraging IoT platforms to achieve greater transparency and agility in manufacturing operations. Moreover, the rise of edge computing and 5G connectivity is accelerating the deployment of IoT solutions, enabling faster decision-making and improved asset management. Sustainability initiatives also push manufacturers to adopt IoT for energy management and waste reduction, further fueling market demand.

Segmental Analysis:

By Solution Type: Dominance of IoT Platforms Driven by Integration and Scalability

In terms of By Solution Type, IoT Platform contributes the highest share of the market owing to its critical role as a centralized framework that enables seamless integration, management, and deployment of IoT devices and applications in manufacturing environments. IoT platforms facilitate the convergence of diverse sensors, actuators, and connectivity solutions, allowing manufacturers to streamline operations, enhance visibility, and improve overall equipment effectiveness. The scalability and flexibility of these platforms support complex manufacturing ecosystems by providing real-time data ingestion, device management, security features, and interoperability with legacy systems. Additionally, the platform's ability to harmonize data from heterogeneous devices ensures predictive maintenance, quality control, and optimized supply chain management, directly addressing key operational challenges in manufacturing industries. The continuous improvement in platform capabilities, including edge computing integration and advanced API offerings, further drives their widespread adoption. Moreover, IoT platforms reduce complexity by offering user-friendly interfaces and analytics tools that enable decision-makers to extract actionable insights, fostering data-driven strategies that improve productivity and reduce downtime. This foundational layer is indispensable in the digital transformation journey of manufacturers, positioning the IoT platform segment as the largest contributor in solution type classification.

By Manufacturing Type: Discrete Manufacturing Leads Due to Customized Production Needs and Automation Focus

In terms of By Manufacturing Type, Discrete Manufacturing accounts for the largest share of the market, primarily due to its significant reliance on automation, precision, and customization, which are inherently supported by IoT technologies. Discrete manufacturing encompasses industries such as automotive, electronics, and machinery production, where products are made as distinct units, often requiring intricate assembly processes and stringent quality control. IoT adoption in this segment is driven by the need to monitor and optimize complex production lines composed of varied machinery and robots. Through sensor integration and real-time analytics, manufacturers gain the ability to track production status, manage asset utilization, and implement predictive maintenance, thus minimizing unplanned downtime and defects. Furthermore, discrete manufacturers benefit from enhanced supply chain transparency and just-in-time inventory management enabled by IoT connectivity. The tailored nature of discrete manufacturing processes, which often involve frequent product changes or batch customizations, makes IoT solutions particularly valuable for improving flexibility and responsiveness. Investments in smart factories and Industry 4.0 initiatives by leading market players in discrete manufacturing continue to amplify IoT deployments, consolidating its leadership position within manufacturing types.

By Deployment Mode: On-Premise Solution Preference Rooted in Data Security and Control

In terms of By Deployment Mode, On-Premise solutions hold the highest market share, largely driven by manufacturers' preference for greater control over their IoT infrastructure and sensitive operational data. Given the strategic importance of production data and the potential risks associated with breaches or downtime, many manufacturers opt to deploy IoT systems within their own secure facilities rather than relying solely on external cloud-based services. On-premise deployments enable organizations to tailor their IoT environments according to specific compliance requirements, internal IT policies, and integration with existing enterprise systems. This deployment mode is often favored by industries with stringent regulatory constraints or those handling highly confidential intellectual property, such as aerospace, pharmaceuticals, and specialized electronics manufacturing. Furthermore, on-premise solutions typically offer lower latency and enhanced reliability, factors critical for time-sensitive manufacturing processes where even minimal delays can result in significant operational losses. While cloud-based and hybrid models are gaining traction due to scalability and flexibility benefits, the ongoing emphasis on cybersecurity, data sovereignty, and mission-critical process stability sustains the predominant role of on-premise deployment within the manufacturing sector's IoT landscape.

Regional Insights:

Dominating Region: North America

In North America, the dominance in the IoT in Manufacturing market is driven by a robust industrial ecosystem, advanced technological infrastructure, and well-established manufacturing bases, particularly in the United States and Canada. The presence of leading technology firms such as General Electric, Honeywell, and Cisco has accelerated the integration of IoT solutions in manufacturing processes, allowing for enhanced automation, predictive maintenance, and supply chain optimization. Government initiatives like the U.S. Industrial Internet Consortium and supportive policies around innovation and digital manufacturing further reinforce this region's leadership. In addition, strong collaboration between private enterprises and research institutions fosters innovation, ensuring North America remains at the forefront of IoT adoption in manufacturing.

Fastest-Growing Region: Asia Pacific

Meanwhile, the Asia Pacific exhibits the fastest growth in the IoT in Manufacturing market, primarily due to rapid industrialization, expanding factory automation, and rising government support across developing countries. Nations such as China, India, and South Korea are heavily investing in smart manufacturing technologies to modernize their industrial sectors and improve productivity. Government policies like China's "Made in China 2025," India's "Digital India" initiative, and South Korea's "Smart Factory" programs actively promote IoT adoption. The manufacturing hubs in this region benefit from a large labor force, increasing investments in R&D, and the emergence of major IoT players including Huawei, Samsung, and Fanuc, who contribute to driving innovation and scaling IoT implementations in factories.

IoT in Manufacturing Market Outlook for Key Countries

United States

The United States' market for IoT in Manufacturing benefits from its advanced technological infrastructure and a strong concentration of industrial giants. Companies such as GE Digital and Honeywell are pioneering IoT-driven solutions that enhance operational efficiency and predictive maintenance. Federal government programs encourage digital transformation, enabling early adoption of Industry 4.0 technologies. The well-established industry ecosystem, combined with high investment capabilities, positions the U.S. as a global leader pushing the boundaries of smart manufacturing.

China

China is rapidly advancing in the IoT manufacturing space with heavy investment in industrial automation and smart factory development. Chinese tech firms like Huawei and ZTE are key contributors, developing IoT platforms and connectivity solutions tailored to manufacturing needs. Government policies such as "Made in China 2025" provide strong incentives for adopting IoT technologies to enhance competitiveness and reduce labor-intensive processes. The vast manufacturing base offers fertile ground for the widespread integration of IoT devices, sensors, and analytics tools.

Germany

Germany continues to lead in Europe with its strong emphasis on precision engineering and high-quality manufacturing. Siemens and Bosch are instrumental players driving IoT adoption with sophisticated automation and data analytics solutions. The government's Industry 4.0 initiative supports digital transformation by facilitating partnerships between industry and academia. Germany's mature manufacturing sector—with its automotive, machinery, and electronics industries—propels the demand for IoT technologies that improve efficiency and product customization.

India

India's market is witnessing rapid expansion, supported by government programs such as "Digital India" and "Make in India" that encourage the modernization of manufacturing operations. Key industry players including Tata Consultancy Services (TCS) and Infosys are contributing by offering IoT platforms and smart factory consulting services. India's large manufacturing base, especially in automotive and textiles, is embracing IoT to enhance productivity and reduce operational costs, despite challenges like infrastructural gaps and skill shortages.

South Korea

South Korea's market is marked by accelerated IoT adoption driven by strong government initiatives and technology-driven manufacturing sectors. Companies like Samsung and Hyundai are leading efforts to integrate IoT into manufacturing lines to foster automation and real-time data management. The country's emphasis on rebuilding smart factories and an efficient supply chain underscores its commitment to leveraging IoT to maintain global competitiveness in electronics, automotive, and steel industries.

Market Report Scope

Market Segmentation

Solution Type Insights (Revenue, USD, 2020 - 2032)

• IoT Platform
• Sensors & Actuators
• Connectivity & Network Solutions
• Analytics & Insights
• Others

Manufacturing Type Insights (Revenue, USD, 2020 - 2032)

• Discrete Manufacturing
• Process Manufacturing
• Automotive
• Electronics
• Pharmaceuticals
• Others

Deployment Mode Insights (Revenue, USD, 2020 - 2032)

• On-Premise
• Cloud-Based
• Hybrid

Regional Insights (Revenue, USD, 2020 - 2032)

• North America
• U.S.
• Canada
• Latin America
• Brazil
• Argentina
• Mexico
• Rest of Latin America
• Europe
• Germany
• U.K.
• Spain
• France
• Italy
• Russia
• Rest of Europe
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• ASEAN
• Rest of Asia Pacific
• Middle East
• GCC Countries
• Israel
• Rest of Middle East
• Africa
• South Africa
• North Africa
• Central Africa

Key Players Insights

• Siemens AG
• Schneider Electric SE
• General Electric Company (GE)
• Honeywell International Inc.
• Bosch Rexroth AG
• Cisco Systems, Inc.
• ABB Ltd.
• IBM Corporation
• PTC Inc.
• Rockwell Automation, Inc.
• FANUC Corporation
• Hitachi Ltd.
• Mitsubishi Electric Corporation
• Intel Corporation
• Cognex Corporation