The global IoT market is forecasted to grow, with the number of connected IoT devices projected to increase by 13% in 2024, reaching 18.8 billion by year-end, according to IoT Analytics’ latest “State of IoT Summer 2024” report.
This detailed analysis provides a market assessment and comprehensive summary of current trends and future forecasts for the global IoT landscape.
40 billion IoT devices projected by 2030: Despite ongoing challenges, including economic uncertainties, extended lead times in chipset supply, and a gradual economic recovery in China, IoT Analytics projects the market will continue its upward trajectory. The report forecasts that the number of connected IoT devices will grow to 40 billion by 2030, reflecting a measured but steady expansion.
Key Insights
- The number of connected IoT devices is expected to grow 13% to 18.8 billion by the end of 2024
- Over 40 billion connected IoT devices by 2030
- 3 technologies make up nearly 80% of the market: Wi-Fi, Bluetooth, and cellular IoT
- Chipset supply to remain a constraint for years to come in the face of surging demand
- The integration of AI in IoT, including generative AI and edge AI, is a key trend in 2024
Select Quotes
Satyajit Sinha, Principal Analyst at IoT Analytics, comments that “Edge AI is fundamentally transforming the IoT landscape by allowing edge IoT devices to process data locally, reducing latency and enabling real-time responses. The integration of AI technologies, including generative AI and edge AI, is a significant trend in 2024, highlighted by increased discussions among corporate leaders. With companies like NVIDIA and AMD heavily investing in edge AI, the convergence of these technologies with IoT will drive the development of more intelligent and autonomous devices, leading to broader adoption of IoT solutions across various sectors.”
Connected IoT device market update—Summer 2024
Number of connected IoT devices to grow 13% by end of 2024. According to IoT Analytics’ 171-page State of IoT Summer 2024 report, there were 16.6 billion connected IoT devices by the end of 2023 (a growth of 15% over 2022). IoT Analytics expects this to grow 13% to 18.8 billion by the end of 2024. This forecast is lower than in 2023 due to continued cautious enterprise spending as inflation and interest rates remain high—though are moderating—alongside continued chipset supply constraints and ongoing geopolitical conflicts in Eastern Europe and the Middle East. Despite the above macro factors, 51% of enterprise IoT adopters plan to increase their IoT budget in 2024 (with 22% of companies expecting a 10%+ budget increase compared to 2023).
Key executive quote on the IoT market outlook
“We expect [Qualcomm’s] IoT revenues to grow sequentially by low to mid-single digit percentage as we continue to see a gradual recovery from the macro factors impacting the industry.” – Akash Palkhiwala, CFO and COO of Qualcomm, May 1, 2024
Methodology
IoT Analytics counts connected IoT devices as active nodes/devices or gateways that concentrate the end-sensors, not every end node (sensor/actuator).
The following are communication technologies considered part of these connected IoT devices by time:
- Wired – ethernet and field buses (e.g., connected industrial PLCs or I/O modules)
- Cellular – 2G, 3G, 4G, and 5G
- Low-power wide-area network (LPWAN) – Unlicensed and licensed low-power networks
- Wireless personal area network (WPAN) – Bluetooth, Zigbee, Z-Wave, and the like
- Wireless local access network (WLAN) – Wi-Fi and related protocols
- Wireless neighborhood area network (WNAN) – Non-short-range mesh, such as Wi-SUN
- Other – satellite and unclassified proprietary networks with any range
Computers, laptops, fixed phones, cell phones, and consumer tablets are not counted, and simple one-directional communications technology (e.g., RFID or NFC) is not considered. IoT connections via more than one communication standard are only counted once.
Connected IoT devices forecast 2024–2030
Image: Global IoT market forecast (in billions of connected IoT devices)
40 billion IoT devices by 2030. The number of connected IoT devices is estimated to grow to 40 billion by 2030. Compared to its last IoT device market update in 2023, IoT Analytics slightly lowered its forecast for the number of IoT device connections after considering new market insights and recent market developments.