IoT in Manufacturing Market is estimated to be valued at USD 278.69 Bn in 2025 and is expected to reach USD 909.04 Bn in 2032, exhibiting a compound annual growth rate (CAGR) of 18.4% from 2025 to 2032.
The IoT in manufacturing market continues to grow as factories implement connected sensors, automation, and data-driven systems to boost efficiency, productivity, and safety. Manufacturers actively integrate IoT with robotics, cloud platforms, and analytics to achieve real-time monitoring, predictive maintenance, and smarter decision-making across production lines. Ongoing digital transformation, rising industrial automation needs, and the pursuit of better-quality control and operational visibility further accelerate IoT adoption, solidifying its role as a core component of modern smart manufacturing.
|
Current Events |
Description and its impact |
|
Geopolitical and Trade Dynamics |
|
|
Technological Advancements and Standards |
|
|
Economic and Investment Trends |
|
Uncover macros and micros vetted on 75+ parameters: Get instant access to report
Emergency and Incident Management hold the largest market share of 23.6% in 2025. Manufacturers are driving the adoption of emergency and incident management solutions in the IoT manufacturing market to improve workplace safety and respond swiftly to operational hazards. They deploy IoT-enabled sensors, wearable devices, and connected machinery to monitor equipment and personnel in real time, quickly detecting accidents, malfunctions, or environmental risks. Rising automation, strict safety regulations, and the need to maintain continuous operations prompt manufacturers to implement systems that minimize downtime, safeguard workers, and deliver actionable insights for effective incident response. For instance, in May 2025, Arctic Wolf has launched Incident360 Retainer, a solution that combines incident readiness and response, enabling organizations to handle major security incidents with SLAs as fast as one hour.
The demand for application security software in the IoT manufacturing market grows as manufacturers work to protect connected machines, sensors, and industrial systems from rising cyber threats. As factories digitalize, companies deploy secure applications to safeguard data, prevent unauthorized access, and maintain uninterrupted operations. The integration of cloud platforms, remote monitoring, and complex IIoT systems exposes vulnerabilities, prompting manufacturers to strengthen security frameworks. Compliance requirements, intellectual property protection, and the need for reliable production environments further drive adoption of application-level security solutions. For instance, in July 2025, Black Duck® Software, Inc., a global leader in application security, is strengthening its presence in Saudi Arabia by launching the Black Duck Polaris® Platform—the Kingdom’s first locally hosted application security SaaS.
Manufacturers are increasingly adopting satellite networks in the IoT manufacturing market to ensure reliable connectivity across remote and distributed industrial sites. They use satellite IoT to enable real-time monitoring, asset tracking, and seamless communication where terrestrial networks fail or are unstable. Advances in low-earth orbit satellites, hybrid connectivity solutions, and low-power devices improve accessibility and reduce latency. Growing demand for continuous data flow, operational resilience, and integrated global supply chains further drives manufacturers to implement satellite-based IoT solutions.
Manufacturers are driving the growth of professional services in the IoT manufacturing market as they seek expert guidance to implement complex IoT solutions. They engage consulting, system integration, and managed service providers to design, deploy, and maintain connected devices, platforms, and analytics tools. Rising complexity in industrial environments, limited in-house IoT expertise, and the need for tailored solutions prompt companies to rely on external support. Ongoing digital transformation, cybersecurity demands, and efficiency objectives further encourage the adoption of professional IoT services. For instance, in March 2025, Grid Dynamics Holdings, Inc., a leading technology consulting and engineering firm, has launched IoT Control Tower—an advanced analytics solution that helps manufacturers and equipment providers analyze IoT data and deliver actionable insights to operators.
Manufacturers are driving the adoption of IoT in automotive manufacturing to optimize production, improve quality, and manage increasingly complex assembly processes. They use connected sensors, robotics, and smart machines to monitor operations in real time, perform predictive maintenance, and coordinate production lines precisely. The growth of electric vehicles, demand for mass customization, and implementation of advanced automation encourage manufacturers to deploy IoT solutions. Additionally, they leverage IoT to enhance energy efficiency, strengthen supply chain visibility, and ensure workforce safety in modern automotive operations. For instance, in July 2025, Napino Tech Ventures (NTV) and Teksun Microsys launched Rapidise Technology (RTPL) with $4 million in seed funding to transform the design, engineering, and large-scale manufacturing of AI-enabled connected devices. Such innovations are proliferating the IoT manufacturing market.
To learn more about this report, Download Free Sample
North America dominates the overall market with an estimated share of 38.5% in 2025. Manufacturers in North America are rapidly transforming the IoT in manufacturing market by adopting connected sensors, automation, cloud and edge computing, and data analytics to modernize production operations. Companies across the U.S. and Canada are heavily investing in smart‑factory initiatives, robotics, and IIoT systems to enhance efficiency, reduce downtime, and optimize asset management. They are also leveraging private 5G networks, AI‑driven monitoring, and digital‑twin technologies to achieve real‑time visibility and operational flexibility. Additionally, reshoring efforts, sustainability targets, and the need for resilient supply chains drive demand for intelligent and secure manufacturing infrastructures. For instance, in September 2025, Sensolus launched its NextGen tracking hardware and platform in the US, Canada, and Mexico, offering IoT solutions that improve supply chain visibility, optimize inventory, and reduce time spent locating assets.
Manufacturers in the Asia‑Pacific region are actively adopting IoT in manufacturing to modernize factories with connected sensors, automation, cloud‑edge computing, and real‑time analytics. Companies in countries such as China, Japan, India, and South Korea are accelerating IIoT deployment through increased automation and robotics to enhance production efficiency and quality. Governments support smart‑factory initiatives, while manufacturers digitize supply chains and build interconnected production networks. Rising labor costs, the need for supply‑chain resilience, and a focus on resource optimization drive companies to implement IoT‑enabled manufacturing solutions.
U.S. manufacturers are actively transforming their factories by implementing IoT, integrating connected sensors, automation, edge computing, and real‑time analytics to modernize operations. They deploy smart devices, robotics, and industrial edge platforms to monitor equipment, anticipate maintenance needs, and streamline workflows. Companies are also adopting private 5G and industrial connectivity, using digital twins, and focusing on sustainability and energy efficiency. Growing demand for supply‑chain visibility, stricter quality control, and flexible production is driving U.S. manufacturing toward fully connected, data‑driven factories. For instance, in December 2025, Myriota has launched its HyperPulse™ network, a global, scalable connectivity platform that helps industry partners build, deploy, and expand IoT solutions worldwide.
Indian manufacturers are actively adopting IoT to modernize production by deploying connected sensors, automation, edge computing, and real‑time analytics to increase efficiency and reduce costs. Companies in automotive, textiles, electronics, and heavy industries use smart sensors and predictive‑maintenance systems to minimize downtime and maintain equipment health. They are leveraging 5G networks and expanded cloud adoption to achieve real‑time visibility, implement digital‑twin simulations, and ensure factory‑wide connectivity. Rising labor costs, energy‑efficiency goals, and supply‑chain challenges further drive firms to implement IoT‑enabled manufacturing solutions.
Factories are increasingly using edge computing to process data directly at the source — on machines or IoT devices — rather than relying solely on distant cloud servers. This shift lowers latency, enables real‑time decision‑making, and supports critical tasks like immediate anomaly detection or automated shutdowns. By combining edge computing with IoT, manufacturers boost responsiveness, improve operational agility, and reduce dependence on continuous internet connectivity.
Manufacturers are integrating AI and machine learning with IoT sensor data to predict machine failures and maintenance needs before issues arise. These predictive maintenance systems help anticipate wear or failure, reducing unplanned downtime and extending equipment lifecycles. Similarly, AI-driven inspections and analytics enhance quality control by detecting defects automatically — enabling faster, more accurate production oversight without extensive manual checks.
As manufacturers modernize plants into “smart factories,” there’s growing opportunity for IoT providers to supply integrated sensor networks, automation systems, edge‑cloud platforms, and analytics tools. These turn traditional factories into digitally connected environments, improving efficiency, responsiveness, and agility. IoT vendors can offer turnkey smart‑factory solutions, helping firms upgrade operations without starting from scratch. This shift to smart manufacturing opens large potential for widespread IoT adoption across legacy and new plants.
| Report Coverage | Details | ||
|---|---|---|---|
| Base Year: | 2024 | Market Size in 2025: | USD 278.69 Bn |
| Historical Data for: | 2020 To 2024 | Forecast Period: | 2025 To 2032 |
| Forecast Period 2025 to 2032 CAGR: | 18.4% | 2032 Value Projection: | USD 909.04 Bn |
| Geographies covered: |
|
||
| Segments covered: |
|
||
| Companies covered: |
Cisco Systems Inc., SAP SE, General Electric, Microsoft Corporation, Intel Corporation, Siemens AG, IBM Corporation, Qualcomm, Verizon Communication Inc., and AT&T Inc. |
||
| Growth Drivers: |
|
||
| Restraints & Challenges: |
|
||
Uncover macros and micros vetted on 75+ parameters: Get instant access to report
Share
Share
About Author
Monica Shevgan has 9+ years of experience in market research and business consulting driving client-centric product delivery of the Information and Communication Technology (ICT) team, enhancing client experiences, and shaping business strategy for optimal outcomes. Passionate about client success.
Missing comfort of reading report in your local language? Find your preferred language :
Transform your Strategy with Exclusive Trending Reports :
Frequently Asked Questions
Joining thousands of companies around the world committed to making the Excellent Business Solutions.
View All Our Clients
Schedule a meeting with report Author
