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Global IoT to grow to 24.1 billion devices, generating $1.5 trillion annual revenues

June 11, 2020  

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June 11, 2020 – At the end of 2019 there were 7.6 billion active IoT devices, reports Transforma Insights, and that figure is expected to grow to 24.1 billion by 2030, a compound annual growth rate of 11%.

According to new research published by Transforma, short-range technologies—such as Wi-Fi, Bluetooth and Zigbee—will dominate connections, accounting for 72% in 2030, largely unchanged compared to the 74% it accounts for today.

Public networks, which are dominated by cellular networks, will grow from 1.2 billion connections to 4.7 billion in 2030, growing market share from 16% to 20%. Private networks account for the balance of connections, 10% in 2019 and 8% in 2030.


In revenue terms, the total IoT market in 2019 was worth $465 billion US, a figure which will rise to $1.5 trillion US in 2030. Services, including connectivity, will account for 66% of spend, with the remainder accounted for by hardware in the form of dedicated IoT devices, modules and gateways.

The consumer sector will dominate in terms of connected devices, accounting for 65% of all connections, up from 62% in 2019. Of the enterprise segment in 2030, 34% of devices will be accounted for by “cross-vertical” use cases, such as generic track-and-trace, office equipment and fleet vehicles, 31% by utilities (most prominently smart meters), 5% by transport and logistics, 4% by government, 4% for agriculture, and 3% each for financial services and retail/wholesale.

The single biggest use case is Consumer Internet & Media devices, accounting for 1/3 of all devices in 2030. The next largest is smart grid, including smart meters, representing 14% of connections. Connected vehicles, dominated by connected cars, is the third biggest category, representing 7% of the global installed base.

In financial terms, the biggest vertical sector is Consumer, generating $652 billion US in revenue, or 43% of the total market value. Cross-vertical applications account for 24%. The remaining 33% is sector-specific applications across sectors such as energy, transport, retail and healthcare.

Geographically, China, North America and Europe dominate, accounting for 26%, 24% and 23%, respectively, of the total value of the IoT market in 2030.

The forecasts are taken from Transforma Insights’ Total Addressable Market (TAM) Forecast Database, which provides a quantitative view of the market opportunity associated with digital transformation and all of the associated technologies.

Led by IoT analysts Jim Morrish and Matt Hatton, Transforma Insights is a research firm focused on digital transformation.