The global consumer IoT market size was valued at USD 220.50 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 12.7% from 2023 to 2030. The growth can be credited to the growing popularity of technologically advanced devices and home appliances. Consumer internet of things (IoT) devices are integrated with multiple microcontrollers and wireless technologies, making it easier to share data without direct interaction between the users or the computer. Consumer IoT refers to an interconnected system of digital and physical objects, such as smartphones, smart wearables, and smart home devices, designed for the consumer markets.
In the past few years, such devices have quickly become an integral part of day-to-day lives. A prominent example of these developments is Echo, a Bluetooth device by Amazon.com, Inc. It is powered by the company’s voice assistant Alexa, which is compatible with various smart home devices. The increasing demand for such devices is expected to create opportunities for the market of consumer internet of things in the coming years. The industry growth is further propelled by the increased adoption of personal wearables for monitoring health parameters.
Consumer IoT applications are playing a vital role in improving personal healthcare through IoT wearables that transmit data to patients and their doctors. In addition, their application is emerging as a common practice in various sports. Many consumer IoT devices help monitor heart rate, sleep, blood sugar, and other variables, thereby positively influencing the overall industry statistics.
The COVID-19 pandemic opened up new growth avenues for the overall market as the global health crisis created a greater need for solutions that can help obtain patient care remotely. The wearable devices, such as smartwatches and biosensors, helped healthcare professionals remotely monitor the ongoing health conditions of the patients, allowing observation and treatment that was earlier possible only in hospitals and clinics. The rising product adoption encouraged the industry players to develop new wearables to fulfill the increased consumer demand during the pandemic. For instance, in May 2020, Koninklijke Philips N.V. received CE marking and FDA approval for its wireless wearable biosensor designed for monitoring patients affected by the coronavirus.
On the basis of components, the global industry has been further categorized into hardware, services, and software. The hardware component segment accounted for the maximum revenue share of more than 38.85% in 2022 owing to the increasing demand for IoT devices. These devices comprise actuators, sensors, gadgets, machines, and appliances that are programmed for specific applications and can transmit data over networks.
Moreover, the ongoing technological developments are expected to favor segmental growth over the forecast period. The services component segment is expected to record the fastest growth rate from 2023 to 2030 on account of the growing need for solutions that support the functioning of consumer IoT devices. The service providers deliver end-to-end software development solutions for consumer IoT, from project planning and testing to deployment. In addition, they also provide consulting services, such as architectural engineering, IoT tech stack, software audit, etc.
The wireless connectivity technology segment is expected to record the fastest growth rate of more than 13.60% from 2023 to 2030, owing to the greater scalability offered by these networks. They do not require hardware installations and can be extended with ease without considering the obstructions in the facility. Most wireless sensors comprise nodes that can be extended by adding extra nodes whenever required. In addition, they are more cost-effective as their prices have reduced due to the ongoing advancements in wireless technology and an increasing number of manufacturers.
The wired connectivity technology segment also accounted for a significant revenue share in 2022 and will expand further at a steady pace as this mode of connectivity is still very popular among consumers. The wired network typically employs Ethernet for network connectivity, making them highly reliable. They are less likely to observe dropped connections. Moreover, they offer a greater data transmission speed as they are not affected by the distance and placement of devices. In addition, wired networks are more secure as they are deployed with a LAN firewall.
The consumer electronics segment accounted for the largest share of more than 37.35% of the overall revenue in 2022, owing to the increasing consumer inclination toward incorporating smart consumer electronics devices in residential spaces. The advent of technologies, such as sensors, digital assistants, advanced networking, and cloud computing, have made home automation possible in day-to-day life. According to credible reports, nearly 15% of homes across the globe are expected to install a smart home appliance by 2023.
The wearable segment is estimated to register the fastest CAGR from 2023 to 2030 owing to the increasing internet penetration, rising disposable incomes, and lower average selling prices of these devices. In addition, wearable devices provide several benefits for healthcare providers as well as patients as they help in glucose monitoring, hand hygiene monitoring, heart-rate monitoring, Parkinson’s disease monitoring, depression monitoring, etc. Thus, the rising adoption of wearable consumer IoT devices for health monitoring is expected to create lucrative growth opportunities for the market.
North America accounted for the largest share of more than 23.35% of the overall revenue in 2022 and is expected to grow significantly during the forecast period. This can be credited to the increased product demand, especially fitness tracking devices, in the region. According to a 2022 survey conducted by ValuePenguin on over 1,500 consumers, while 45% of Americans are already using smartwatches such as Fitbits and Apple Watches, 69% of respondents are willing to use a fitness tracker to get discounts on health insurance. Asia Pacific is expected to record a substantial CAGR from 2023 to 2030 with the growing popularity of smart home solutions in the region.
According to 2021 data released by the China Business Industry Research Institute, the smart home market in China expanded from USD 40.96 billion in 2016 to USD 91.08 billion in 2021. Moreover, the IoT developments across the Middle East and Africa (MEA) region, attributed to the government-initiated smart city projects to leverage long-term sustainability, are expected to propel the growth of the market across the MEA region. The regional market is estimated to grow at a significant rate during the forecast period.
The key companies are focusing on introducing innovative offerings and enhancing their existing product portfolio to gain a competitive edge. In June 2022, SAMSUNG launched SmartThings Home Life, offering consumers a more holistic smart home experience. The new offering is an addition to the SmartThings app that provides users with integrated and centralized control over the company’s appliances through their smartphones. It combines the convenience of six SmartThings services - SmartThings Cooking, Clothing Care, Energy, Home Care, Pet Care, and Air Care. Some of the prominent players in the global consumer IoT market are:
Cisco Systems, Inc.
Honeywell International Inc.
Market size value in 2023
USD 240.94 billion
Revenue forecast in 2030
USD 555.92 billion
CAGR of 12.7% from 2023 to 2030
Base year for estimation
2018 - 2021
2023 - 2030
Revenue in USD billion and CAGR from 2023 to 2030
Revenue forecast, company ranking, competitive landscape, growth factors, and trends
Component, connectivity technology, application, region
North America; Europe; Asia Pacific; Latin America; MEA
U.S.; Canada; U.K.; Germany; China; India; Japan; Brazil; Mexico
Key companies profiled
Alphabet Inc.; Amazon.com, Inc.; Apple Inc.; AT&T, Cisco Systems, Inc.; Honeywell International Inc.; IBM Corp.; Intel Corp.; LG Corp.; Microsoft; Samsung; Schneider Electric; Sony Corp.; Texas Instruments; TE Connectivity
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This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For the purpose of this study, Grand View Research has segmented the global consumer IoT market report based on component, connectivity technology, application, and region:
Component Outlook (Revenue, USD Billion, 2018 - 2030)
Inertial Measurement Unit
Others (Magnetic, Motion & Position, etc.)
Real-time Streaming Management
Others (Application Management, Device Management)
Support & Maintenance
Connectivity Technology Outlook (Revenue, USD Billion, 2018 - 2030)
Others (BLE, WLAN, GNSS)
Application Outlook (Revenue, USD Billion, 2018 - 2030)
Others (Dryer, Oven, Cooktop, Kettle, etc.)
Blood Pressure Monitor
Fitness & Heartrate Monitor
Blood Glucose Meter
Others (Programmable Syringe Pump, Fall Detector, etc.)
Others (AI Hearing Aids, VR Headsets, etc.)
Regional Outlook (Revenue, USD Billion, 2018 - 2030)
Middle East & Africa
b. The global consumer IoT market size was estimated at USD 220.50 billion in 2022 and is expected to reach USD 240.94 billion in 2023.
b. The global consumer IoT market is expected to grow at a compound annual growth rate of 12.7% from 2023 to 2030 to reach USD 555.92 billion by 2030.
b. Asia-Pacific dominated the consumer IoT market with a share of more than 40% in 2022. This attributed to the growing popularity of smart home solutions in the region.
b. Some key players operating in the consumer IoT market include Alphabet Inc., Amazon.com, Inc., Apple Inc., Cisco Systems, Inc., IBM Corporation, among others.
b. Key factors that are driving the consumer IoT market growth include the growing popularity of technologically advanced devices and home appliances. The market growth is further propelled by the increased adoption of personal wearables for monitoring health parameters.
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