Market overview
The global internet of things market is worth USD 672 bn in 2026 and is forecast to reach USD 1.9 tn by 2036, growing at a 11.0% CAGR. China is the largest country market and Hardware and modules is the largest by component segment.
| Scope | Internet of Things hardware, connectivity, platforms and services: connected sensors and modules, gateways, IoT connectivity plans, device and application platforms, and integration services. |
|---|---|
| Industry | Technology |
| Value 2025 | USD 600 bn |
| Value 2026 | USD 672 bn |
| Value 2036 | USD 1.9 tn |
| CAGR 2026-2036 | 11.0% |
| Volume 2026 | 3,920 million connected devices |
| Volume 2036 | 11,131 million connected devices |
| Average price 2026 | USD 171 per connected device |
| Report price | Starts from USD 1,999 |
| Published | November 2026 |
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Internet of Things market size and forecast, 2026-2036
Source: Compare Market Research analysis.
© 2026 Compare Market Research. All rights reserved.
| Year | Market value |
|---|---|
| 2026 | USD 672 bn |
| 2027 | USD 746 bn |
| 2028 | USD 828 bn |
| 2029 | USD 919 bn |
| 2030 | USD 1.0 tn |
| 2031 | USD 1.1 tn |
| 2032 | USD 1.3 tn |
| 2033 | USD 1.4 tn |
| 2034 | USD 1.5 tn |
| 2035 | USD 1.7 tn |
| 2036 | USD 1.9 tn |
Internet of Things market segmentation
By component
Source: Compare Market Research analysis.
© 2026 Compare Market Research. All rights reserved.
| Segment | Share 2026 | Share 2036 | Value 2026 | CAGR 2026-36 |
|---|---|---|---|---|
| Hardware and modules | 34.0% | 25.7% | USD 228 bn | 7.9% |
| Connectivity | 16.0% | 15.9% | USD 108 bn | 10.9% |
| Platforms and software | 20.0% | 25.9% | USD 134 bn | 13.9% |
| Services | 30.0% | 32.6% | USD 202 bn | 11.9% |
By application
Source: Compare Market Research analysis.
© 2026 Compare Market Research. All rights reserved.
| Segment | Share 2026 | Share 2036 | Value 2026 | CAGR 2026-36 |
|---|---|---|---|---|
| Industrial IoT | 30.0% | 31.2% | USD 202 bn | 11.4% |
| Smart buildings and cities | 18.0% | 17.1% | USD 121 bn | 10.4% |
| Connected vehicles | 16.0% | 16.7% | USD 108 bn | 11.4% |
| Consumer and smart home | 14.0% | 11.1% | USD 94.1 bn | 8.5% |
| Healthcare | 10.0% | 11.4% | USD 67.2 bn | 12.4% |
| Energy and utilities | 12.0% | 12.5% | USD 80.6 bn | 11.4% |
By end use
| Segment | Share 2026 | Share 2036 | Value 2026 | CAGR 2026-36 |
|---|---|---|---|---|
| Manufacturing | 30.0% | 31.7% | USD 202 bn | 11.6% |
| Transportation and logistics | 16.0% | 16.9% | USD 108 bn | 11.6% |
| Energy and utilities | 12.0% | 12.7% | USD 80.6 bn | 11.6% |
| Healthcare | 10.0% | 11.5% | USD 67.2 bn | 12.6% |
| Retail | 10.0% | 8.8% | USD 67.2 bn | 9.6% |
| Consumer | 14.0% | 11.3% | USD 94.1 bn | 8.6% |
| Other industries | 8.0% | 7.1% | USD 53.8 bn | 9.6% |
By connectivity
| Segment | Share 2026 | Share 2036 | Value 2026 | CAGR 2026-36 |
|---|---|---|---|---|
| Cellular | 34.0% | 36.0% | USD 228 bn | 11.6% |
| Wi-Fi | 22.0% | 20.0% | USD 148 bn | 9.9% |
| Bluetooth and Zigbee | 16.0% | 15.0% | USD 108 bn | 10.3% |
| LPWAN | 16.0% | 18.0% | USD 108 bn | 12.3% |
| Wired and other | 12.0% | 11.0% | USD 80.6 bn | 10.0% |
By deployment
| Segment | Share 2026 | Share 2036 | Value 2026 | CAGR 2026-36 |
|---|---|---|---|---|
| Cloud | 54.0% | 60.0% | USD 363 bn | 12.2% |
| Edge | 14.0% | 18.0% | USD 94.1 bn | 13.8% |
| On-premise | 32.0% | 22.0% | USD 215 bn | 6.9% |
Top 25 countries for internet of things by revenue
Countries are ranked by revenue earned from sales in the country, not by where the product is made. The ten largest hold 81.8% of 2026 revenue and the 25 countries below together hold 96.3%.
Source: Compare Market Research analysis.
© 2026 Compare Market Research. All rights reserved.
| # | Country | Value 2026 | Share 2026 | Value 2036 | CAGR 2026-36 |
|---|---|---|---|---|---|
| 1 | China | USD 181 bn | 27.0% | USD 599 bn | 12.7% |
| 2 | United States | USD 168 bn | 25.0% | USD 424 bn | 9.7% |
| 3 | Japan | USD 40.3 bn | 6.0% | USD 93.5 bn | 8.8% |
| 4 | Germany | USD 40.3 bn | 6.0% | USD 101 bn | 9.6% |
| 5 | United Kingdom | USD 26.9 bn | 4.0% | USD 66.8 bn | 9.5% |
| 6 | South Korea | USD 23.5 bn | 3.5% | USD 64.9 bn | 10.7% |
| 7 | India | USD 23.5 bn | 3.5% | USD 101 bn | 15.7% |
| 8 | France | USD 20.2 bn | 3.0% | USD 51.5 bn | 9.8% |
| 9 | Canada | USD 13.4 bn | 2.0% | USD 34.3 bn | 9.8% |
| 10 | Brazil | USD 12.1 bn | 1.8% | USD 36.3 bn | 11.6% |
| 11 | Spain | USD 11.6 bn | 1.7% | USD 32.2 bn | 10.7% |
| 12 | Italy | USD 10.6 bn | 1.6% | USD 26.3 bn | 9.5% |
| 13 | Australia | USD 9.6 bn | 1.4% | USD 25.8 bn | 10.4% |
| 14 | Netherlands | USD 8.7 bn | 1.3% | USD 21.8 bn | 9.6% |
| 15 | Mexico | USD 8.0 bn | 1.2% | USD 24.4 bn | 11.8% |
| 16 | Indonesia | USD 7.3 bn | 1.1% | USD 22.1 bn | 11.8% |
| 17 | Saudi Arabia | USD 6.6 bn | 1.0% | USD 20.0 bn | 11.8% |
| 18 | Turkey | USD 6.0 bn | 0.9% | USD 18.1 bn | 11.7% |
| 19 | Russia | USD 5.4 bn | 0.8% | USD 13.5 bn | 9.6% |
| 20 | Poland | USD 5.0 bn | 0.7% | USD 15.1 bn | 11.7% |
| 21 | Thailand | USD 4.5 bn | 0.7% | USD 13.7 bn | 11.8% |
| 22 | Vietnam | USD 4.1 bn | 0.6% | USD 12.4 bn | 11.7% |
| 23 | Malaysia | USD 3.8 bn | 0.6% | USD 11.4 bn | 11.8% |
| 24 | South Africa | USD 3.4 bn | 0.5% | USD 10.5 bn | 11.8% |
| 25 | United Arab Emirates | USD 3.1 bn | 0.5% | USD 9.3 bn | 11.7% |
| Rest of world | USD 24.6 bn | 3.7% | USD 59.0 bn | 9.1% |
Source: Compare Market Research analysis.
© 2026 Compare Market Research. All rights reserved.
Competitive landscape
Group 1: Global leaders
- Microsoft
- Amazon Web Services
- Cisco
- Bosch
- Siemens
- Huawei
- Alibaba Cloud
- IBM
Group 2: Regional and specialist players
- PTC
- Honeywell
- Samsara
- Qualcomm
- Telit Cinterion
- u-blox
- Quectel
- Vodafone
- Tuya Smart
- China Mobile
Group 3: Emerging and niche players
- Particle
- Hologram
- Eseye
- Soracom
- KORE Wireless
- Fibocom
- Nordic Semiconductor
- Ayla Networks
- Semtech
Research methodology
Every figure on this page comes from the research framework that we apply to all of the markets we cover. The 2025 base for the internet of things market is built from the volume sold and the price that buyers pay, and is cross-checked against the size of the wider industry the market belongs to. Where a market can be sized in more than one way, the routes are compared before a figure is set.
The forecast runs year by year from the 2025 base to 2036. Growth in each year reflects demand from the industries that buy the product, adoption of new technology, pricing, regulation and replacement cycles. Volume and price are modelled together, so revenue in each year equals volume multiplied by average price. The 2026 to 2036 compound annual growth rate of 11.0% is calculated from the resulting values.
The market is divided by component, by application, by end use, by connectivity, by deployment. The 25 largest countries are ranked by revenue earned from sales to buyers in each country, not by where the product is made. Segment values and country values add up to the market total in every year, and every report is checked for consistency before it is published.
Companies are placed in three groups: global leaders, regional and specialist players, and emerging and niche players. The groups describe how companies compete in the market. They are not a ranking and they are not market shares.
Our analysts also carry out primary research. Customized reports add interviews with key opinion leaders, such as senior executives, technical specialists and buyers, to test the assumptions behind the numbers for the question being asked.
Frequently asked questions
How big is the internet of things market?
The global internet of things market is estimated at USD 600 bn in 2025 and USD 672 bn in 2026.
How fast will the internet of things market grow?
It is forecast to reach USD 1.9 tn by 2036, a compound annual growth rate of 11.0% from 2026, an increase of USD 1.2 tn.
Which country is the largest market for internet of things?
China is the largest market by revenue at USD 181 bn in 2026, 27.0% of the global total. The three largest countries together hold 58.0%.
Which country is growing fastest?
Among the ten largest markets, India is growing fastest at 15.7% a year from 2026 to 2036.
Which internet of things segment is largest?
In the by component split, Hardware and modules is the largest segment with 34.0% of 2026 revenue.
Who are the leading internet of things companies?
Global leaders include Microsoft, Amazon Web Services, Cisco, Bosch.
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