The Internet of Things (IoT), fueled by AI, 5G advancements, and the global push for sustainability, has revolutionized industries by connecting everything from smart homes to industrial operations. Delivering real-time insights and unprecedented efficiency, the IoT market has doubled in size since 2018, and 2025 marks a pivotal year as it is set to exceed $1 trillion.
Data from AltIndex.com highlights this remarkable growth, positioning IoT as a cornerstone technology of Industry 4.0. Alongside AI, Big Data, robotics, and automation, IoT has permeated nearly every market, seamlessly linking people, processes, and devices.
Despite challenges such as the global semiconductor shortage, the demand for IoT solutions continues to soar, driven by both consumer applications and industrial use cases. This expanding adoption underscores the transformative potential of IoT in shaping the future of connectivity and efficiency.
According to a Statista Market Insights survey, 2025 marks the fifth consecutive year of double-digit growth in the IoT segment. Since 2021, the market has been expanding at a compound annual growth rate (CAGR) of 12%, with revenues increasing by roughly $100 billion annually, positioning IoT as one of the world’s trillion-dollar industries.
Statista data indicates global IoT revenues are projected to grow by 11.8%, reaching $1.05 trillion this year—the highest figure the market has ever achieved. Industrial and consumer IoT sectors are expected to lead this growth, with forecasted increases of 15% and 13%, reaching $275 billion and $235 billion in revenue, respectively.
The automotive IoT sector, the second-largest in the market, is anticipated to grow by 9% to $274 billion. Looking to the future, Statista expects IoT revenues to continue growing by approximately $120 billion annually, with the market projected to surpass $1.5 trillion by the end of the decade.
Total IoT connections are also set to surpass 23 billion this year. Since 2021, the number of IoT connections has more than doubled, from 9.2 billion to an expected 23.1 billion. By the decade’s end, IoT connections are predicted to increase by over 70%, reaching nearly 40 billion.
