IoT-Market 2025 and beyond: Between Growth, Consolidation and new Technologies

By 2025, the Internet of Things (IoT) is no longer a vision – it’s real, measurable, and economically significant. According to precedenceresearch.com, the global IoT market is expected to reach approximately USD 76.97 billion in 2025 (2024: USD 64.80 billion) – and grow to an impressive USD 356 billion by 2034 (CAGR ~18.6%).

Other sources, such as thebusinessresearchcompany.com, forecast even higher figures: from USD 535.97 billion (2024) to USD 629.5 billion (2025), projecting USD 1.52 trillion by 2029 (CAGR 24.7%). These discrepancies are not unusual and reflect the challenges in defining the market – depending on whether only devices, also platforms, services or entire ecosystems are considered. Even conservative estimates, such as those by mordorintelligence, foresee growth of around 15–18% starting in 2025.

A look at IoT hardware shows a similar trend: in 2024, devices worth USD 70.3 billion were produced according to grandviewresearch.com. Annual growth of 16.8% is expected by 2030 – driven by the availability of 5G, developments in edge computing, and increasing use of real-time analytics.

Global Market Drivers and Growth Factors

The “IoT Market Report 2025” by Research and Markets confirms the optimistic outlook with USD 629.5 billion market volume for 2025 – aiming to double to USD 1.52 trillion by 2029. Mordor Intelligence even projects USD 1.35 trillion for 2025 – a higher number than many other sources.

The core trends behind this momentum:

• 5G coverage as a technological foundation for high-frequency industrial communication
• Edge computing and AI integration as new standards for real-time analytics
• Expanding application fields – from smart cities to connected healthcare and autonomous logistics
• Rising demand for scalable security solutions for cloud-based infrastructures

IoT Market in Germany: Focus on Industrial Applications and Platform Logic

The German market is also growing – but with a distinct sectoral focus: According to iotmag.de, Germany’s IoT volume is expected to reach USD 35.9 billion in 2025, with projections up to USD 49.35 billion by 2029. At the center of this development is the Industrial Internet of Things (IIoT): already in 2023, around USD 7.6 billion were invested in the segment in Germany. By 2033, this figure is expected to rise to USD 19.7 billion – a clear sign that Industry 4.0 is becoming a reality.

Technologies such as predictive maintenance, digital twins, or smart production lines are the main drivers. The trend is clear: companies are no longer focusing solely on hardware, but increasingly on platform solutions and analytics tools.

IoT Platforms as the Infrastructure Backbone

The IoT platform market is also growing steadily: According to grandviewresearch.com, the volume in Germany was USD 798.8 million in 2024 – expected to double to USD 1.525 billion by 2030, at an annual growth rate of 10.6%. The key players are well known: Microsoft, AWS, Google, Siemens, SAP, Cisco – all striving to provide the digital infrastructure backbone for industry, municipalities, and utilities.

IoT Platform Market Germany, Horizon Grand View Research

IoT Connectivity: Mobile Networks, LPWAN, and Satellite Solutions

The type of connectivity remains a crucial competitive factor:

• Mobile networks/5G (NB-IoT, LTE-M, 5G SA) continue to be both a technical and economic driver – especially in industrial settings.
• RF chip market as a demand indicator: expected at USD 44.9 billion in 2025 (2024: USD 37.6 billion).
• LPWAN technologies like LoRaWAN and Sigfox remain important supplements – for example in agriculture, municipal utilities, or monitoring of distributed systems.
• Satellite IoT remains a niche market with an estimated volume of USD 2 billion and about 23% annual growth – applied in maritime logistics and remote regions.

Despite promising growth prospects, caution is advised when assessing the IoT market. Market volume estimates vary greatly depending on definitions – ranging from USD 64 billion to over USD 1 trillion. This variance stems largely from differing valuation approaches: some market analyses focus exclusively on hardware, while others include software and services, making direct comparisons difficult. Added to this is a significant technological shift.

Edge Computing and AI Becoming More Relevant

Edge computing and artificial intelligence are becoming increasingly important – traditional network technologies alone are no longer sufficient to meet the demands for real-time analytics, security, and scalability. At the same time, the market is consolidating. Major players such as IBM and Intel have withdrawn from certain IoT areas or strategically realigned themselves, while platform providers are increasingly taking the lead.

Germany in particular shows a clear sectoral focus: The Industrial Internet of Things (IIoT) is experiencing significantly higher growth rates than the consumer sector – especially in industries like logistics, manufacturing, energy, and automotive.

The IoT market in 2025 presents a twofold picture: on the one hand, strong, accelerated growth; on the other, increasing maturity, standardization, and consolidation. The technology is shifting towards edge, AI, and platform logic. Germany is well positioned with its focus on industrial IoT but remains dependent on international platform players.

The key question for the years ahead remains: will the IoT ecosystem stay as fragmented – or will overarching platform standards, regulatory frameworks, and interoperable services emerge to structure the market? Only those who think in terms of connectivity, security, analytics, and business model together will benefit in the long run.