IoT Monetization Market Outlook:
IoT Monetization Market size was valued at USD 702 billion in 2024 and is projected to reach USD 45.50 trillion by the end of 2034, rising at a CAGR of 46.5% during the forecast period, from 2025 to 2034. In 2025, the industry size of IoT monetization is estimated at USD 935 billion.
The global IoT monetization process hinges on a very complex supply chain around semiconductors and connected devices. The recent Producer Price Index (PPI) patterns highlight the trade-offs in input costs. For instance, in January 2025, China's PPI for industry declined by 2% in February 2025. This represents a reduction of 1.7 % for raw materials and 2.7 % for processing industry goods. In the U.S., the PPI final demand goods decreased by 0.8 % in March 2025. Whereas, the total PPI recorded a monthly decline of 0.3 %. As a result, the component manufacturer can expect some near-term relief in pricing on the bill of materials secured.
Public and private sector investment and trade policy to support infrastructures for IoT would be more impactful, and collaborative government or public sector financing from other industries. In 2020, OECD estimates indicated that venture capital investment into IoT companies peaked at USD 7 billion. The U.S. established the NIST IoT Advisory Board by federal mandate. The guidelines the panel authored gave over 98 recommendations of actionable items for government and industry to work together to encourage the adoption of IoT as a secure technology upgrade. Reports from the Saudi Arabia Ministry of ICT tracked data indicating that global spending on IoT in 2020 reached USD 748 billion. Concerning trade, imports of industrial raw materials and materials, and components that will change prices or supply in changing upstream costs that affect global manufacturing PPI. Anything sold or assigned to be sold and likewise manufactured IoT goods that heavily rely on cross-shore assembly are flowing to and from Asia (China, Korea) to North America/ Europe and vice versa. The deflation of domestic producers' prices in imports is an offset for duties to the extent it finds value for or and limits margins to exporters.
IoT Monetization Market - Growth Drivers and Challenges
Growth Drivers
- Cybersecurity standards & supply chain compliance: The recently updated NIST Cybersecurity Framework 2.0 (2024) places significant importance on the area of supply chain governance and risk management. Companies like utilities and manufacturing have begun to apply the framework. Increases compliance for device manufacturers, increasing costs and time-to-market while increasing trust in the IoT services they offer. Companies need to create a compliance-first architecture using NIST 2.0 and be compliant to differentiate the B2B by applying more rigor in using an architecture compliant first would also increase the rate of adoption.
- Industry standards & interoperability: There are standards like IEEE 802.11, 5G, IEC 62443, and the supply-chain integrity guiding framework O TTPS/ISO 20243, which are used to establish guidelines for cross-border interoperability. Technical compliance is the beginning for global deployment, requiring resources to enable the architecture and partnerships. Invest in a modular design to keep aligned with international harmonized standards and engage ecosystem partners. With the recent high-profile incidents, 47.5% of critical infrastructure organizations now align with NIST CSF and IEC 62443. This helps build a demand for secure IoT solutions sporting industrial-grade resiliency.
Impact of AI and Machine Learning on the Global Market
Companies that are in the monetization space of the IoT industry can thanks from artificial intelligence (AI) and machine learning (ML) for their significant impact. In product development, AI and ML have decreased time to market, made product development cheaper, and allowed for better customization. Industry leaders continue to benefit from AI and ML by significantly improving the efficiency in terms of time and money in development activities. On the operational side of the business, AI-led automation and analytics have provided incredible optimization opportunities in supply chain management, inventory management, demand forecasting, and cost. Another positive use of AI in operational activities exists in predictive maintenance and quality control. These two areas have contributed to improved product reliability, better customer satisfaction, and decreased downtime. As more organizations enter the monetization side of the IoT industry, companies that can better utilize AI and ML to scale, and be profitable will have a marketplace advantage.
|
Company |
Integration of AI & Machine Learning |
Outcome |
|
Siemens |
AI-driven simulations in product design |
Reduced development time by 28% |
|
Amazon Web Services (AWS) |
AI for supply chain optimization and logistics management |
Achieved 21% reduction in logistics costs |
|
General Electric (GE) |
AI-powered predictive maintenance for industrial IoT devices |
Improved product uptime by 14%, reducing unplanned downtime by 14% |
|
Bosch |
Machine learning-based quality control in manufacturing |
Enhanced product quality by 16% |
|
IBM |
AI-driven customer analytics for personalized IoT offerings |
Increased customer retention by 19% |
Cybersecurity Challenges and Responses in the Global IoT Monetization Market
IoT devices and IoT platforms are growing quickly, expanding the attack surface for cyber threats, and putting a huge focus on cybersecurity for the players in the global IoT monet/usability/money-making ecosystem. The sophistication of cyberattacks on IoT infrastructure is continually increasing. This is leading to the number of assaults that produce financial loss, operational disruption, and loss of client trust. The end user and the provider are now heavily investing in advanced cybersecurity practices.
|
Company |
Cyber Attack |
Impact |
Potential Remedies |
|
Colonial Pipeline (2023) |
Ransomware |
USD 4 million ransom paid; 6-day operational shutdown |
AI-driven threat detection; incident response planning |
|
Azure IoT Services (2024) |
Phishing attack |
24% of employees targeted; minor data breach |
Multi-factor authentication, enhanced employee training |
|
T-Mobile (2023) |
Data breach |
35 million customer records compromised; reputational damage |
Data encryption, network segmentation |
|
Schneider Electric (2024) |
Supply chain attack |
Operational delays, financial loss undisclosed |
Vendor risk management, continuous monitoring |
|
Siemens (2023) |
IoT device hacking |
Disruption in industrial IoT deployments |
Secure firmware updates; device authentication |
Challenges
- Complex data privacy and protection regulations: Rigorous data privacy laws can put compliance at risk. For example, in 2022, some ICT suppliers held back product launches in India by 5 months due to the uncertainty of the data localization requirements, which impacted revenue forecasting. The current trade tensions with the WTO is taking their toll on global supply chains. The 2023 tariffs on semiconductor imports caused at least some suppliers to raise their production pricing by 10-14%.
- Pricing pressures and revenue model uncertainty: The market's evolving pricing structures create uncertainty. Small and medium ICT Firms in the U.S. cite the high costs of cybersecurity compliance. Broadband access is also limited, and the uncertainty of IoT infrastructure in emerging markets limits the adoption of IoT monetization solutions. For instance, in Africa, the percentage of broadband penetration of 42% stunts monetization efforts.
IoT Monetization Market Size and Forecast:
| Report Attribute | Details |
|---|---|
|
Base Year |
2024 |
|
Forecast Year |
2025-2034 |
|
CAGR |
46.5% |
|
Base Year Market Size (2024) |
USD 702 billion |
|
Forecast Year Market Size (2034) |
USD 45.50 trillion |
|
Regional Scope |
|
IoT Monetization Market Segmentation:
End User Segment Analysis
Based on the end user, the manufacturing (Industrial IoT) segment is predicted to capture the largest share at 36% in the IoT monetization market over the assessed period. The industrial Internet of Things in manufacturing is the leading end-user segment today, with growing adoption of automation, predictive maintenance, and asset tracking technologies pushing the IIoT market forward. Governments around the globe have a vested interest in accelerating smart manufacturing advancements. For instance, the U.S. Department of Energy describes the role of IoT-enabled smart grids and automation in helping factories reduce energy and maximize efficiency. The IIoT is a way for manufacturers to monetize data from connected equipment grounded in operational metrics rather than product value. Importantly, government support and funding for Industry 4.0 initiatives have further catalyzed IIoT investment around the world.
Technology Segment Analysis
In terms of technology, the 5G network infrastructure segment is anticipated to hold the highest revenue proportion of 33% in the IoT monetization market throughout the discussed timeline. 5G is fundamental to IoT monetization because of its ultra-low latency, coupled with high bandwidth and massive connectivity. The Federal Communications Commission (FCC) indicates that the rollout of 5G infrastructure fosters additional IoT business models. The expansion of 5G networks and rollout across the Asia-Pacific and North American regions will enable more monetization of IoT data across increased connectivity and new service deployments. 5G will also allow for edge computing integration.
Our in-depth analysis of the global market includes the following segments:
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Segment |
Subsegments |
|
Application |
|
|
End User |
|
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Technology |
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Device Type |
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Material Type |
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Vishnu Nair
Head - Global Business DevelopmentCustomize this report to your requirements — connect with our consultant for personalized insights and options.
IoT Monetization Market - Regional Analysis
APAC Market Insights
Asia Pacific is expected to dominate the global IoT monetization market with a share of 33% by the end of 2034. The growth is led by the robust government strategies in digital transformation and ICT infrastructure development. Growth of smart city projects, acceleration of AI-enabled IoT ecosystem, and increase in 5G penetration are driving IoT monetization. Also, collaboration of public and private sectors and growing public sector investment into R&D in IoT monetization technologies is helping to drive market growth. In terms of early adopters, the health and manufacturing sectors are also critical, with IoT monetization enabling real-time data monetization and efficiencies.
China is expected to account for the largest revenue share in the APAC IoT Monetization market in 2034 as a result of large investments by the Chinese government's Ministry of Industry and Information Technology (MIIT). Furthermore, the Chinese government has demonstrated that it was focused on IoT integration as a key aspect of smart cities as well as IoT expansions existent. In 2023, the China Academy of Information and Communications Technology (CAICT) reported that nearly 14 million enterprises had adopted IoT Monetization solutions. Furthermore, overall government expenditure designed to nurture public policy is allowing governments to pursue public-private partnerships that accelerate the growth of IoT ecosystem development. These trends and collaboration elements will help position China as the primary potential market.
North America Market Insights
North America is poised to register the highest pace of growth in the global IoT monetization market by the end of 2034. The growth can be attributed to the heavy government investment in ICT infrastructure. FCC spends about 14% of the federal communication budget on broadband expansion and 5G infrastructure. The NTIA subsidizes digital equity initiatives that have led to growth in the use of IoT devices within the underprivileged areas. In 2023, the U.S government made available to all states of the country a sum of USD 42 billion through its Broadband Equity, Access, and Deployment program (BEAD) to upgrade nationwide broadband access. The Government of Canada is another example as they invest in digital innovations through Innovation, Science and Economic Development Canada (ISED), which improves the use of IoT on a sectoral basis (ised-isde.canada.ca). The Canadian Radio-television and Telecommunications Commission (CRTC) also regulates the policies towards the development of IoT monetization by managing the spectrum (crtc.gc.ca). The emergence of smart cities and 5G adoption is encouraged by the government's incentives to promote the growth of private investments.
Europe Market Insights
The Europe IoT monetization market is estimated to garner a notable industry value from 2025 to 2034. In the UK, the ratio of ICT spending on IoT Monetization in 2023 will be 12% which is an increase of 9.7% from 2020, as the government is promoting digital infrastructure upgrade programs and innovation. The market in Germany is excellent, with spending of 4 billion euros in 2024 and 14% growth in demand since 2021 due to significant use of industrial IoT in manufacturing and automotive. France is right behind, with 11% of its ICT budget allocated to IoT Monetization. The EU helps such growth with the Digital Innovation Hubs program, which enables it to allocate 1 billion euros in 2023 to the IoT R&D and innovation, broadening the capabilities of member states and advancing market growth. Coupled EU policies and funding lead to an increase in investment in GaN RF devices, making possible 5G and edge computing. A combination of these actions is essential in the fight against fragmentation in the digital ecosystem of Europe, which will create a competitive playing field that will allow IoT Monetization technologies to achieve a competitive situation.
|
Country / Region |
Notable IoT Monetization Developments (2024–25) |
Investment / Market Size |
|
France |
IoT Valley ecosystem supports startups via Connected Camp incubator |
– |
|
Italy |
National Industry 4.0 Plan driving IIoT in manufacturing and logistics |
Industrial IoT revenue projected at USD 4.52 bn in 2025 |
|
Spain |
Vodafone España launching its own IoT platform leveraging NB‑IoT to connect >9.3 million devices |
Platform supports over 9.3 M NB‑IoT connections |
|
Russia |
Focus on automotive IoT and smart‑city/industrial automation deployments |
IoT market size estimated at €10.5 bn in 2024 |
|
Nordic countries |
Nordic Semiconductor (Norway) leading NB‑IoT |
Finland/Sweden/Norway region sees strong B2B SaaS and hardware growth |
Key IoT Monetization Market Players:
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
The market has many participants. Cisco, Ericsson, and Nokia are leading players that have built partnerships with industry partners. Many actors focus on strategic aims, identifying countries and partners to establish IoT services, and discovering global partnerships for IoT service monetization. The emerging markets, with India and Malaysia, have companies like Infosys and Dialog Axiata, which also focus on their digital transformation projects. Foundational areas still play an important role in competitiveness, including innovation, scale, and partnerships with governments.
|
Company Name |
Country of Origin |
Market Share (%) |
|
Cisco Systems, Inc. |
USA |
12 |
|
Ericsson |
Sweden |
9.1 |
|
Nokia Corporation |
Finland |
8.5 |
|
Huawei Technologies Co., Ltd. |
China (included for context) |
8.2 |
|
IBM Corporation |
USA |
7.7 |
|
Samsung Electronics |
South Korea |
xx |
|
Siemens AG |
Germany |
xx |
|
NEC Corporation |
Japan |
xx |
|
Infosys Limited |
India |
xx |
|
Fujitsu Limited |
Japan |
xx |
|
Telstra Corporation Limited |
Australia |
xx |
|
Keysight Technologies |
USA |
xx |
|
Tata Consultancy Services (TCS) |
India |
xx |
|
Dialog Axiata Group |
Malaysia |
xx |
|
AT&T Inc. |
USA |
xx |
Below are the areas covered for each company in the market:
Recent Developments
- In February 2024, Cisco Systems, Inc. announced a new monetization software with integrated AI analytics for IoT, with the launch resulting in a 14% y/y increase in revenue in Q1 2024.
- In January 2024, Siemens AG announced another edge computing hardware for IoT devices, and after launching, Siemens saw a 28% improvement in latency in industrial IoT applications. Furthermore, this facilitates wider edge adoption for the manufacturing segment.
- Report ID: 1747
- Published Date: Jul 15, 2025
- Report Format: PDF, PPT
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