IoT in Manufacturing Market Poised for Strong Growth at 14.2% CAGR Through 2030

NEW YORK - Dec. 17, 2025 - PRLog -- The global IoT in manufacturing market generated USD 87.9 billion in revenue in 2024 and is projected to expand at a robust CAGR of 14.2% from 2024 to 2030, driven by rapid industrial automation, growing adoption of artificial intelligence (AI), and increasing demand for higher production efficiency across manufacturing facilities worldwide.

AI-Enabled IoT Emerges as a Key Market Trend

The convergence of AI and IoT is redefining industrial operations by enabling intelligent machines capable of autonomous decision-making with minimal human intervention. AI-powered industrial IoT solutions analyze vast volumes of data in real time, helping manufacturers optimize performance, predict failures, and improve operational outcomes.

As manufacturers recognize the full potential of connected ecosystems, investments in advanced technologies such as digital twins, smart surveillance, and cloud-based IoT platforms continue to rise.

Industrial Automation and Smart Inventory Management Drive Growth

Rapid industrial automation remains a primary growth driver, with IoT playing a critical role in creating responsive, scalable, and cost-effective system architectures. IoT-enabled inventory management solutions provide end-to-end visibility, automate tracking and reporting, and significantly reduce inventory holding costs—making them indispensable for modern manufacturing operations.

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Key Market Insights

• By Component:
• Solutions segment dominated the market with a 75% revenue share in 2024, driven by demand for IoT software platforms and integrated manufacturing solutions.
• By Deployment:
• On-premises held the larger share, while cloud deployment is expected to grow faster at a CAGR of 14.7%, owing to scalability and lower upfront investment.
• By Application:
• Predictive maintenance leads the market and is the fastest-growing segment, enabling proactive asset management and improved worker safety.
• By End User:
• Automotive remains the largest segment, while medical device manufacturing is projected to witness the fastest growth due to rising demand for IoT-enabled healthcare equipment.

Regional Highlights

• North America accounted for the largest market share (35% in 2024), supported by advanced IT infrastructure, high technology investments, and strong adoption of Industry 4.0 practices.
• Asia-Pacific (APAC) is expected to register the fastest growth, driven by rapid industrial transformation in China, India, and Japan.
• Europe continues to show strong momentum, particularly in Germany, the U.K., and France, supported by manufacturing expansion and growing 5G adoption.

Competitive Landscape

The IoT in manufacturing market is moderately fragmented, with key players focusing on strategic partnerships, product launches, and mergers & acquisitions. Major companies operating in the market include:

• General Electric Company
• Cisco Systems Inc.
• IBM Corporation
• Microsoft Corporation
• Siemens AG
• Robert Bosch GmbH
• Huawei Technology Co. Ltd.
• Oracle Corporation
• SAP SE