Internet of Behaviors Market Outlook:
Internet of Behaviors (IoB) Market size was valued at USD 557.6 billion in 2024 and is projected to reach USD 8.4 trillion by 2037, rising at a CAGR of 23.5% during the forecast period, 2025 to 2037. In 2025, the industry size of internet of behaviors (IoB) is assessed at USD 667.8 billion.
The market is reliant on a supply chain that encompasses sensors, connectivity modules, and data processors. To understand the economic indices of the internet of behaviors market, it is imperative to analyze the Producer Price Index (PPI) and the Consumer Price Index (CPI). In terms of shifts, the PPI for ICT manufacturing increased by 3.1% YoY in the first quarter of 2025, and the CPI increased by 2.4% in the same period. The increase is propelled by a rise in the costs of semiconductors and raw materials.
A vital indicator of the competitiveness of the internet of behaviors market is the smooth flow of trade. For instance, the gross trade flow highlights that the U.S. imports of IoT-grade integrated circuits reached USD 54.0 billion in 2024, while the exports of sensors and modules were valued at USD 22.3 billion. The numbers indicate a trade deficit, which has prompted government grants to strengthen the edge-device manufacturing in critical infrastructure sectors. Moreover, as IoB matures from pilot to enterprise deployment, the rate of edge-node unit cost reduction, which is currently 7% per annum, will determine the outcomes of B2B ROI and the velocity of market penetration. All in all, the growth rate of the IoB market is expected to remain steady throughout the anticipated timeline of the internet of behaviors market analysis by leveraging the favorable trends conducive to sustained growth.
Internet of Behaviors (IoB) Market - Growth Drivers and Challenges
Growth Drivers
-
Proliferation of connected devices impacting shifts in behavioral infrastructure: Over 16.0 billion IoT devices were globally active in 2023, and the number is likely to expand exponentially to exceed 30 billion by the end of 2025, as per the International Telecommunication Union (ITU). The proliferation of these devices, from wearables to industrial sensors, has laid the groundwork for the deployment of IoB tools. The devices capture the behavioral patterns and ensure that the IoB market finds its momentum in interpretation and not in surveillance. A supportive trend has been governments across the world leaning into smart city programs that embed behavior-sensitive tech in urban design. Moreover, trends indicate that the physical and digital will become inseparable as digitalization trends permeate all aspects of life, which is poised to ensure the sustained rise of the IoB market.
- Greater embedding of behavioral intelligence and increasing scalability: With a greater percentage of organizations shifting from descriptive analytics to systems that can predict and adapt to behavior, the IoB market is leveraging a lucrative ecosystem ripe for greater deployments. As noted in recent federal AI investment updates, more than USD 3.0 billion has been funneled toward AI applications in behavioral modeling since 2022. The heightened R&D has ensured improvements in the detection of anomalous financial activity to tailoring targeted treatment based on patient sentiments. The tailored end uses have contributed to expanding the scope of deployment across multiple sectors. Moreover, the quiet integration of IoB into line-of-business functions has ensured that the algorithms learn from structured as well as unstructured data.
Technological Innovations Impact on the Market
The IoB has emerged as a lived infrastructure threading across notable industries. Ranging from the finance industry to telecom, the technological advancements bolstering analytics have recalibrated how behavior is interpreted and acted upon. For instance, the advent of ML-supported fraud detection has been successful in negating fraud for major corporations, as well as in the public sector of major economies such as the U.S. The successful use cases have indicated a market converging on behavior as an actionable asset. The table below highlights the major technological trends impacting the global IoB market:
|
Trend |
Statistics/Example |
Industry Adoption |
Case Study/Company |
|
AI driven fraud detection |
$4.2 b recovery/prevention in FY2024 U.S. Treasury |
Finance, government payment systems |
U.S. Treasury – ML-based screening |
|
Edge analytics in IoT manufacturing |
NIST cites industrial sensor-edge deployments |
Manufacturing efficiency ops |
Various industrial manufacturers via NIST |
|
Telecom behavior analytics |
FHWA study recognizes travel behavior linked tech |
Telecom, transport planning |
Global telcos embedding subscriber analytics |
|
Agentic AI in financial services |
44% projected adoption by 2026 |
Finance personalization, risk |
Leading banks deploying agentic AI systems |
AI & ML Integration Impact on the IoB Market
|
Company |
AI & ML Integration |
Outcome |
|
Pfizer |
ML-driven logistics simulations |
31% faster vaccine roll-out |
|
Nestlé |
AI-powered demand forecasting & shipment prediction |
21% more accurate forecasts; 16% logistics cost savings |
|
Amazon |
Warehouse robots & ML demand systems |
~27% faster fulfillment |
|
Siemens |
Predictive maintenance in manufacturing |
31% less downtime; enhanced product quality |
|
DHL |
ML-powered fleet maintenance |
13% reduction in logistics costs |
5G Deployment Impact on the IoB Market
|
Sector & Company |
5G Integration Details |
Measurable Outcome |
|
Manufacturing – Midea |
Private 5G + 2,000 IIoT devices |
¥32M saved annually (2023) |
|
Telecom – APAC Carriers |
5G rollout focused on Industrial IoT |
12.4% cite IIoT as top 5G driver (2024) |
|
Logistics – World Kinect |
5G-enabled fleet and supply tracking |
20% lower fuel use & emissions (2023) |
|
Aerospace – AE Aerospace |
ERP connected to 5G predictive sensors |
5–10% better utilization; 20% less downtime (2023–24) |
Challenges
- Ethical conundrums and algorithmic consent: The IoB market is reliant on the analysis of behavioral data, and the intrusion into personal data has created ethical concerns. The crux of the challenge is the issue of algorithmic consent, such as users knowingly and often unknowingly contribute to the vast behavioral datasets. The challenge is much more potent in comparison to the data collection via conventional practices, as IoB frameworks aggregate micro-interactions across devices and sensors. The constraint is particularly evident in sectors such as finance and healthcare that deal with sensitive data, where enterprises relying on opt-in architectures can lead to consent fatigue.
Internet of Behaviors (IoB) Market Size and Forecast:
| Report Attribute | Details |
|---|---|
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
23.5% |
|
Base Year Market Size (2024) |
USD 557.6 billion |
|
Forecast Year Market Size (2037) |
USD 8.4 trillion |
|
Regional Scope |
|
Internet of Behaviors (IoB) Market Segmentation:
Organization Segment Analysis
The SME segment is estimated to hold a dominant revenue share of 60.6% throughout the forecast timeline. To describe the future of IoB devoid of SMEs at the core would be to misread the direction of digital behavior. SMEs are not encumbered by the bureaucratic chains of IT, and trends indicate a greater deployment of cloud-native IoB stacks, contributing to the segment’s lucrativeness. For instance, the advent of CRM-linked psychographics as an architecture, and not just as an add-on, highlights the scope of greater use of behavioral analytics by SMEs in mature markets. In 2024, OECD highlighted that SME’s are undergoing rapid digital transformation, with more than 66% of high-growth SMEs proactively investing in behavioral analytics to personalize outreach and bolster the conversion rates. The trends reflect that SMEs will remain the core of the IoB market by the end of 2037.
Application Segment Analysis
The digital marketing segment is slated to maintain a leading revenue share of 37.3% by the end of 2037. Before the proliferation of IoB solutions, digital marketing campaigns used to be static, but in the current times, the campaigns are centered around real-time behavioral loops, where a single user action can lead to a myriad of predictive calculations. The application’s scale can be measured by its higher capacity for immediate orchestration. Additionally, the rise of 5G and edge AI has ensured that marketing systems can interpret user intent in under 300 milliseconds to deploy personalized messages based on the dual understanding of past preferences and on predicting what the user is likely to do next. The trends have increased conversion rates in digital marketing, creating ample opportunities for the greater adoption of IoB tools.
Our in-depth analysis of the global IoB market includes the following segments:
|
Segment |
Subsegments |
|
Organization Size |
|
|
Application |
|
|
End user |
|
Vishnu Nair
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Internet of Behaviors Market - Regional Analysis
North America Market Insights
The North America IoB sector is slated to maintain a leading position with a 32.3% revenue share during the anticipated timeline. The regulatory maturity of North America and the support by a comprehensive digital infrastructure have ensured the regional market’s dominance. In 2023, the North America IoB market generated a revenue of around USD 450 billion. The growth was supported by the favorable investments led by the U.S. and Canada. Additionally, as the data policies of enterprises tighten, the IoB adopters' trust is reinforced. A convergence of these trends has ensured an increase in the rate of IoB tool adoption in the regional market.
The economic strength of the U.S. market remains in the integration of IoB into enterprise-grade systems. The integrations open a newer scope of deployment, ranging from connected vehicles to personalized banking solutions. Additionally, the U.S. market’s ecosystem is backed by behavioral AI pipelines and scalable cloud platforms. Moreover, the U.S. firms are leading the way by combining industrial-grade security with consumer-grade insights, setting the foundation for greater integration of behavioral intelligence.
Asia Pacific Market Insights
The APAC IoB market is expanding at a CAGR of 25.7%, registering the fastest expansion during the forecast timeline, owing to large-scale penetration of smartphones and mass urbanization. The convergence of these trends has ensured a large-scale behavioral digitization at scale. The public and private players in South Korea, India, China, Australia, etc., are at the forefront of building IoB into smart-city frameworks, fintech platforms, and retail ecosystems to bolster services. Moreover, with a consumer base buoyed by the rising disposable income, the scope of behavioral analytics remains high in APAC.
The China IoB market is slated to emerge with a lucrative share in APAC. The expansion of the internet of behaviors market is supported by the rising demand for consumer behavior analytics solutions. The country has a robust consumer base, with the per capita income increasing YoY, highlighting a rise in the disposable income. The trend has contributed to the heightened demand for IoB tools in digital marketing applications. Moreover, leading companies such as Tencent and Alibaba have pioneered in-domain IoB applications to provide hyper-localized predictions on consumer behavior.
APAC Spending Trends
|
Country / Region |
Govt ICT IoB Spending & Adoption |
|
Japan |
In 2024, METI allocated 2.8% of the national ICT budget to IoB, up from 1.9% in 2022; AMED funded ¥12 billion for behavior-based health data systems. |
|
China |
MIIT/CAICT reports a +145% rise in central IoB ICT spending over 2019- 2024; 1.2 million enterprises adopted IoB solutions in 2023, per NMPA data. |
|
India |
MeitY/DoT figures show a 220% increase in IoB tech funding from 2015-2023-now at US$1.2 billion/year—with 650,000 companies onboarded in 2023, per NASSCOM. |
|
Malaysia |
MDEC/KKD data: IoB adoption doubled from 1,200 to 2,400 firms (2013–2023); public IoB budgets rose +85% over the same period. |
|
South Korea |
MSIT/NIPA: US$900 million spent on IoB infrastructure in 2023; 45% YoY growth in private-sector deployments. |
|
Australia |
Digital Transformation Agency: AU$450 million invested in IoB pilots in 2023; 150 local councils adopting behavior analytics tools. |
|
Indonesia |
Kominfo reports +78% growth in IoB startup activity from 2022–2023; national e-health IoB rollout funded with IDR 1.1 trillion. |
|
Taiwan |
IDB: US$320 million IoB ICT grants 2022–2024; 320 firms supported in smart manufacturing projects. |
|
Thailand |
DEPA: 40% YoY rise in IoB program participation; KRW-equivalent US$85 million allocated to civic IoB initiatives in 2023. |
|
Singapore |
IMDA: SG$520 million in IoB R&D 2023–2025; 30% of media-tech firms deploying behavior APIs in 2023. |
|
Philippines |
DICT: PH₱15 billion in grants for IoB-enabled public services; 25% annual growth in private digital behavior startups. |
|
Vietnam |
MIC: +60% in IoB patent filings 2022–2023; US$230 million in behavioral data infrastructure funding. |
|
New Zealand |
MBIE: NZ$200 million committed to IoB in smart agriculture and health; 500 SMEs engaged in pilot deployments by 2023. |
Europe Market Insights
The Europe IoB market is shaped by structural reforms and investments in citizen-centric digital services. The growth is further driven by the scalable deployment of behavioral tools across multiple sectors. Much of the favorable trends can be attributed to the European Commission’s Digital Europe Programme, which allotted €250 million to projects that are leveraging behavioral data for digital identity and trust services between 2021 and 2027. Additionally, a rising percentage of SMEs based in Europe are expected to pilot IoB-linked solutions in the current decade, which will favorably contribute to market growth.
The Germany IoB sector reflects precision merged with cautiousness. The internet of behaviors market is poised to potentially expand its revenue share in Europe by the end of 2037. The Federal Ministry for Economic Affairs and Climate Action (BMWK) has allocated over €110 million in 2023 to AI-powered behavioral analytics via its Digital Now investment program. The investment has ensured the ease of behavior mapping implementation in mid-sized manufacturing firms in Germany. With the rise in private-public coordination and EU-supported funding, the internet of behaviors market is poised to offer steady opportunities in enterprise-grade IoB systems.
Europe Spending Trends
|
Country |
IoB Market Demand (2024) |
% of National ICT Budget Allocated to IoB (2023) |
Budget Allocation Trend (2020–2023) |
IoB-Specific Spending (2024) |
|
United Kingdom |
€3.1 billion |
7.8% |
Increased from 5.2% in 2020 to 7.8% in 2023 |
€3.4 billion |
|
Germany |
€4.7 billion |
8.3% |
Increased from 6.1% in 2020 to 8.3% in 2023 |
€5.2 billion |
|
France |
€3.9 billion |
7.2% |
Increased from 5.5% in 2020 to 7.2% in 2023 |
€4.1 billion |
Key Internet of Behaviors (IoB) Market Players:
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
The global IoB market is poised to remain competitive throughout the forecast timeline. The internet of behaviors market is characterized by the presence of tech giants such as IBM, Microsoft, Google, etc. A key trend that the internet of behaviors market players are set to leverage is the proliferation of smartphones across the world and the push by national governments to create supportive regulatory mandates on data analysis. Additionally, the companies that are able to seamlessly integrate AI capabilities and provide AI-supported platforms for improved behavioral tracking are expected to expand their revenue shares. The table below highlights the major players in the global IoB market:
|
Company Name |
Country |
Revenue Share (2024) |
|
IBM Corporation |
United States |
11.8% |
|
Microsoft Corporation |
United States |
10.4% |
|
SAP SE |
Germany |
9.9% |
|
Oracle Corporation |
United States |
8.8% |
|
Google LLC (Alphabet Inc.) |
United States |
7.5% |
|
Samsung SDS |
South Korea |
xx% |
|
Accenture PLC |
Ireland |
xx% |
|
Amazon Web Services, Inc. (AWS) |
United States |
xx% |
|
Capgemini SE |
France |
xx% |
|
Infosys Limited |
India |
xx% |
|
TIBCO Software Inc. |
United States |
xx% |
|
Wipro Limited |
India |
xx% |
|
NEC Corporation |
Japan |
xx% |
|
Fujitsu Limited |
Japan |
xx% |
|
Hitachi Vantara |
Japan |
xx% |
|
NTT Data Corporation |
Japan |
xx% |
|
SoftBank Group Corp. |
Japan |
xx% |
|
Telstra Corporation Limited |
Australia |
xx% |
|
Telekom Malaysia Berhad |
Malaysia |
xx% |
|
HCL Technologies |
India |
xx% |
Below are the areas covered for each company that is a key player in the IoB market:
Recent Developments
- In June 2024, Samsung SDS announced the launch of the Brightics AI Video Analytics Suite. The suite embeds behavioral insights for smart retail and facilities management.
- In April 2024, Oracle introduced the Fusion Cloud Customer Experience with IoB analytics. The new experience has enabled real-time behavioral tracking across customer touchpoints.
Author Credits: Abhishek Verma
- Report ID: 3983
- Published Date: Jun 30, 2025
- Report Format: PDF, PPT
