The industry analysis firm Transforma Insights has released its latest report ‘Global IoT Forecast Report, 2023-2033’, which provides a detailed overview of the global Internet of Things (IoT) market. According to the report, global IoT connections will reach 39.9 billion by 2033, representing a Compound Annual Growth Rate (CAGR) of 10%.
Device Growth: By the end of 2023, there were 16.1 billion active IoT devices. This figure is expected to grow to 39.9 billion by 2033. Annual device sales will increase from 4.1 billion in 2023 to 8.7 billion by 2033, with a CAGR of 8%.
Connection Technologies: Short-range technologies will dominate connections, accounting for 73% in 2033, a slight decrease compared to the current 79%. Cellular connections will grow from 1.9 billion at the end of 2023 to 7.5 billion in 2033. Of these, 5.5 billion will be ‘5G’, but only 1.1 billion will be ‘full’ 5G New Radio (NR). The rest will be mMTC technologies such as NB-IoT and LTE-M.
IoT Market Revenue: In terms of revenue, the total IoT market, including connectivity modules, value-added connectivity, and associated core applications, reached $335 billion in 2023. This figure is expected to rise to $934 billion by 2033. Value-added connectivity will account for 10% of spending in 2033, while connectivity modules will represent 4%.
Consumer and Enterprise Segment: In 2033, the consumer sector will represent 61% of all connections. Within the enterprise segment, 35% of devices will correspond to ‘cross-vertical’ use cases, such as general tracking, office equipment, and fleet vehicles. 24% will be in utilities, mainly smart meters, 22% in retail (primarily payment processing devices and electronic shelf labels), 7% in government, 4% in transportation and logistics, and 3% in agriculture.
Geographical Distribution: China, North America, and Europe will dominate the IoT market, accounting for 32%, 21%, and 19% respectively of the total market value in 2033.
Analysts’ Comments
Matt Arnott, a senior analyst at Transforma Insights, commented: “The growth in IoT adoption continues at a steady pace, reflecting the diversity of use cases encapsulated within the concept. It’s not a sharp rise and it never has been, but a series of micro-markets each with their own dynamics, some growing faster than others. There are micro-level factors that can massively accelerate growth, such as the requirement in Spain to adopt distress beacons, and there are macro trends that will also have collateral effects, such as the aging population faster than expected. To forecast the IoT market, it is necessary to understand both, and much more.”
Matt Hatton, co-founder of Transforma Insights, added: “Transforma Insights analysts have been forecasting the IoT market opportunity for over a decade. In 2011, our expectations of 12 billion IoT devices for 2020 were near the bottom of the predictions table, but turned out to be the most accurate. Today, as Transforma Insights, our team continues to provide the most extensive and thoroughly researched IoT forecasts, making ours the benchmark against which all IoT market growth predictions must be compared.”
About the Report
This report provides a snapshot of the IoT market in 2023 and forecasts up to 2033. It is compiled from data extracted from Transforma Insights’ IoT forecast database, specifically the ‘Connected Things’ forecasts. The forecasts are constantly updated and cover over 250 applications in 21 vertical sectors and 196 countries.
The report includes analysis of connections and revenues, broken down by geography, technology, vertical sector, and use case/application. This includes analysis of cellular connections and divisions by generations (2G, 3G, 4G, and 5G), LPWA connections, public and private network divisions, and many more. It also contains tables with high-level data. For a complete set of data, subscribers must access the IoT forecast database.
The report also provides details on the methodology, segmentation, and definitions that will be useful for anyone using the forecasts.
About Transforma Insights
Transforma Insights is a leading research firm focused on the world of Digital Transformation (DX). Led by experienced analysts from the technology industry, we provide advice, recommendations, and decision-making support tools for organizations looking to understand how new technologies will change the markets in which they operate.
Source: Transforma Insights