IoT In Manufacturing Market (2026 - 2035)

IoT in Manufacturing Market Summary

The global IoT in manufacturing market size was valued at USD 141.2 billion in 2025 and is projected to grow from USD 172.7 billion in 2026 to USD 1,398.8 billion in 2035, at a CAGR of 26.2% from 2026 to 2035. North America dominated the market, accounting for the largest revenue share of 30.0% in 2025. The growth of this market is primarily driven by the increasing adoption of automation technologies and by multiple manufacturing companies' focus on reducing costs through improved processes and the use of advanced technologies such as internet of things (IoT). Significant advancements and innovations in sensors, manufacturing equipment, connectivity networks, and data processing platforms are likely to create lucrative growth opportunities for this market during the forecast period.

Industrial IoT, or IIoT, along with artificial intelligence (AI), cloud platforms, edge computing, digital twins, and tools such as digital twins and advanced analytics, has been playing a critical role in the transformation of the manufacturing industry. IoT devices are increasingly used to monitor machine performance, production lines, energy consumption, and logistics, enabling manufacturers to reduce costs and improve output. For instance, in June 2026, Amazon.com, Inc. announced its latest collaboration between Amazon Web Services (AWS) and ArcelorMittal aimed at providing advanced AWS cloud and AI capabilities to ArcelorMittal's manufacturing operations, while converging some operational technology (OT) and information technology (IT) on AWS infrastructure. Such developments are likely to support market growth in the coming years.

Significant growth in demand for predictive maintenance technologies and real-time asset monitoring solutions also presents key growth opportunities for this market. An increasing number of manufacturers have been relying on connected assets to gather operational data, which is then used to detect potential failures and mitigate the risks associated with equipment downtime.

The growing demand for efficient predictive maintenance solutions has also spurred product innovation and new solution development in the market. For instance, in June 2026, Verosoft, a key provider of Enterprise Asset Management (EAM) solutions, launched its new IoT-powered maintenance solution, TAG Mobi IoT. The newly developed solution is specifically designed to address the requirements of asset-intensive organizations and to assist in translating equipment signals into prioritized maintenance actions. Such developments highlight the growth potential of this industry.

The IoT in manufacturing market in the U.S. plays a vital role in the global industry's growth. The pace of Industry 4.0 transformations, the emergence of smart factory technologies, and the growing adoption of industrial automation across the U.S. have been critical in novel technology innovation and the launch of new products and solutions for the manufacturing sector. These aspects are likely to facilitate the growth of global IoT in the manufacturing industry over the forecast period.

Analyst Perspective

The IoT in manufacturing market is expected to experience significant growth over the forecast period. The growing availability of IoT devices, the emergence of novel technologies, the integration of existing systems with modern platforms, and the inclination toward embracing automation and technology-powered solutions to reduce costs, improve processes, and reduce safety risks are expected to support market growth. The increase in the use of IoT devices and associated solutions for functions such as asset management, predictive maintenance, and machine performance management is likely to create growth opportunities. Solutions providers in this industry have been offering scalable, flexible solutions tailored to industry-specific requirements. The key companies in this market have been focusing on establishing long-term partnerships and collaborations to deliver tailored solutions, innovation-driven offerings, and access to co-developed platforms and services.

Component Insights

The solution segment accounted for the largest market share of over 50.0% in 2025. The use of IoT-powered platforms, solutions, and devices for real-time facility monitoring, asset management, and predictive maintenance is one of the key factors driving market growth. Shifts in the manufacturing industry, the use of precision components, and the integration of automation into processes are likely to drive growing demand for complementary software technologies. In addition, the increased adoption of modern technology-driven tools, such as Industrial IoT (IIoT) sensors, Predictive Maintenance (PdM) Systems, Industrial IoT Gateways, Programmable Logic Controllers (PLCs), and others, also contributes to segment growth.

The hardware segment is expected to experience considerable gain over the forecast period. Some of the key hardware components that are increasingly adopted in manufacturing units are sensors, industrial controllers, gateways, routers, RFID tags, actuators, and others. Use of these components is the foundation of IoT technology in the manufacturing industry. Hardware components such as sensors and tags are used to gather real-time data. The growing adoption of IoT in manufacturing has been driving new product development and launches worldwide. For instance, in June 2026, Quectel Wireless Solutions, one of the key companies in IoT solutions industry, launched the FCM665D, featuring edge AI processing capabilities and compatibility with industrial IoT devices. Such developments highlight the role of innovation and the launch of novel hardware components in the projected growth of this segment.

Deployment Insights

The cloud-based segment accounted for the largest market share of over 50.0% in 2025 and is expected to grow at the fastest CAGR during the forecast period. Factors such as scalability and flexibility enabled by IoT in manufacturing and the use of the technology for tasks such as remote monitoring and extensive production data analysis primarily contribute to the segment growth. Strategies embraced by the key companies highlight the growth opportunities in this market. In March 2025, Siemens expanded its collaboration with Microsoft by integrating Siemens Industrial Edge with Microsoft Azure IoT Operations, making operational technology and informational technology interoperable for manufacturing, reflecting the advancements in the market.

The on-premises segment is expected to grow significantly over the forecast period. The growth is driven by manufacturers who handle sensitive production data and operate in regulated industries. In addition, some procedures are performed with local data controls and full task authority, where on-premises deployment plays a critical role. Most enterprises with IoT require that critical data be stored on-premises, where you must control access from an information security, low-latency, or compliance standpoint, and integrate with an existing legacy system.

Connectivity Insights

The wireless technology segment held the largest market share of around 55.0% and is expected to grow fastest in the forecast period, driven by the increasing deployment of Wi-Fi 6, private 5G, low-energy (LE) Bluetooth, and LPWAN across industrial enterprises for smart factory applications. Compared to their wired counterparts, wireless solutions reduce total deployment cost, allow increased flexibility in installation, and have the capacity to scale rapidly; therefore, they are perfectly suited for the demands of connected manufacturing operations and the increasing application of mobile assets such as autonomous guided robots and industrial communication applications.

The wired technology segment is expected to grow significantly over the forecast period. Reliability of high-desirability services, low latency for real-time processing, as well as predictable, stable communication for critical, mission-control functions, place wired solutions at high importance, as well as the necessity for many automation needs for high-level control performance in manufacturing automation, are the reasons boosting the growth of the market.

Application Insights

The predictive maintenance segment held the largest market share of more than 25.0% in 2025. The segment is witnessing growth owing to the focus of manufacturers on reducing costs and improving processes through preventing equipment failures, optimizing asset utilization, and more. IoT devices constantly monitor the operational health of the machinery, preventing them from potential breakdowns, hence reducing costs related to maintenance and minimizing production interruption. Application of advanced, AI-driven analytics into the diagnostic field makes the adoption of predictive maintenance in the manufacturing environment even higher.

The process optimization segment is expected to grow at the fastest CAGR over the forecast period. The segment is experiencing growth driven by increasing inclination toward energy efficiency, cost reduction, and process improvement. The IoT technology assists manufacturing companies through enabling real-time data collection, automating routine tasks, and powering predictive maintenance.

Regional Insights

North America dominated the IoT in manufacturing market, accounting for over 30.0% of revenue in 2025. The presence of multiple technology companies, manufacturers of hardware components for IoT manufacturing, and software technology providers in the region primarily contributes to the growth of this market. Partnerships, collaborations among companies, and the launch of novel solutions highlight the growth opportunities in this regional market.

Asia Pacific IoT in Manufacturing Market Trends

The IoT in manufacturing market in the Asia Pacific is expected to grow at the fastest CAGR over the forecast period. The region is experiencing growth due to the pace of industrialization, growth in manufacturing operations, and increasing government spending towards the promotion of smart manufacturing sectors. Governments of countries such as China, India, Japan, and South Korea are major contributors towards the growth of this sector with the high investment in automation technologies and the introduction of new technological innovations through government-led smart manufacturing programs. The presence of booming electronic and semiconductor companies, along with automotive giants, is expected to spur up this sector.

Key IoT in Manufacturing Company Insights

The IoT in manufacturing market is highly competitive and characterized by the presence of multiple global players and regional companies as well. Numerous companies in this industry focus on partnerships, collaborations, mergers, acquisitions, and strategic agreements to strengthen the market position and expand their offerings. For instance, in June 2026, Siemens Energy announced the acquisition of Camlin Group, acquiring its digital grid, analytics and asset monitoring solutions, expanding its portfolio in IoT in manufacturing market.

Key IoT in Manufacturing Companies

The following key companies have been profiled for this study on the IoT in manufacturing market.

• Siemens

• ABB

• Schneider Electric

• Honeywell International Inc.

• Rockwell Automation, Inc.

• Cisco Systems, Inc.

• IBM Corporation

• Emerson Electric Co.

• PTC

• Robert Bosch GmbH

Recent Developments

• In June 2026, Schneider Electric announced the acquisition of Cognite Holding B.V., an industrial and AI software solutions provider, expanding its portfolio in IoT in manufacturing market.

• In March 2025, Siemens announced the acquisition of Altair Engineering Inc., industrial simulation and analysis solutions provider, aiming to develop an AI-powered portfolio of industrial software.

IoT in Manufacturing Market Report Scope

Global IoT in Manufacturing Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2021 to 2035. For this study, Grand View Research has segmented the global IoT in manufacturing market report based on component, deployment, connectivity, application, and region:

• Component Outlook (Revenue, USD Billion, 2021 - 2035)

  • Solution

    • Remote Monitoring

    • Data Management

    • Analytics

    • Security Solutions

    • Others

  • Services

    • Professional

    • Managed

  • Platform

    • Connectivity Management

    • Application Management

    • Device Management

• Deployment Outlook (Revenue, USD Billion, 2021 - 2035)

  • On-premises

  • Cloud-based

• Connectivity Outlook (Revenue, USD Billion, 2021 - 2035)

  • Wired Technology

  • Wireless Technology

• Application Outlook (Revenue, USD Billion, 2021 - 2035)

  • Predictive Maintenance

  • Asset Tracking & Management

  • Remote Monitoring

  • Process Optimization

  • Safety & Security

  • Supply Chain & Management

• Regional Outlook (Revenue, USD Billion, 2021 - 2035)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • UK

    • France

    • Germany

    • Italy

    • Spain

  • Asia Pacific

    • China

    • Japan

    • India

    • Australia & New Zealand

    • South Korea

  • Latin America

    • Brazil

    • Argentina

  • Middle East and Africa

    • South Africa

    • Saudi Arabia

    • UAE