Powered by AI, 5G, and the drive for sustainability, the Internet of Things (IoT) has reshaped the world we know, connecting everything from homes to factories, unlocking real-time insights and unmatched efficiency. With surging demand for IoT solutions across sectors, the entire market has doubled in size since 2018, setting the stage for a groundbreaking milestone in 2025.
According to data presented by AltIndex.com, the Internet of Things (IoT) is set to become a trillion-dollar industry this year.
Consumer and Industrial IoT Fuel the Impressive Market Growth
As one of the technologies driving Industry 4.0, alongside artificial intelligence, Big Data, robotics, and automation, the Internet of Things (IoT) integrated into nearly every market, bridging people, processes, and devices. Despite setbacks from the global semiconductor shortage, the global demand for IoT solutions continues rising.
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 growing by a compound annual growth rate (CAGR) of 12%, with revenues rising by roughly $100 billion per year, launching IoT on the list of trillion-dollar industries.
Statista data show global IoT revenues are expected to jump by 11.8% and hit $1.05 trillion this year, the highest figure this market has ever seen. Industrial and consumer IoT segments will drive much of this growth. The two segments are forecasted to grow by 15% and 13% and hit $275 billion and $235 billion in revenue, respectively.
The automotive IoTs sector, the second-largest in the market, is expected to grow by 9% to reach $274 billion. Looking ahead, Statista expects global IoT revenues to continue growing by roughly $120 billion per year, helping the market to hit over $1.5 trillion value by the end of a decade.
Total Number of IoT Connections to hit over 23 Billion this Year
IoT's core mission is to create a self-reporting network of connected devices that can communicate with each other and users in real time. This cutting-edge technology has taken automation, monitoring and control, and analytics to a whole new level, becoming an essential part of Industry 4.0. These advancements have fueled explosive growth in IoT connections across the sectors.
Since 2021, the number of IoT connections has more than doubled, jumping from 9.2 billion to an expected 23.1 billion this year. By the end of the decade, this number is forecasted to soar by over 70%, reaching nearly 40 billion.
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