IoT Market to Soar by 2030 – Unlock Business Potential

Explore the business opportunities in the IoT realm, taking advantage of its accelerated growth.

IoT, or the Internet of Things as a technology, is becoming omnipresent across industries like manufacturing, healthcare, agriculture, retail, etc. The widespread adoption can be largely attributed to the functionality that IoT offers in combination with smart devices operating on the same network. Just think about it: the technology allows you to operate your smart TV with a smartphone, operate bulbs remotely, adjust thermostat settings for a comfortable environment, etc. And this is simply its consumer-end application. 

The market for B2B has even more extensive applications that range from controlling smart grids in the energy sector to predictive maintenance in manufacturing.

The facts shared above clearly point toward the multifaceted application of the Internet of Things for diverse connectivity options, sensing real-world data, gathering information, and whatnot. And, if the reports are to be believed, the market of IoT is supposed to reach a hefty market size of $618.37 billion by the end of 2026, growing at a CAGR of 21.95%. And if it continues to grow at a similar pace, the market is expected to reach $1.67 trillion by the end of 2030. This makes IoT a huge opportunity for stakeholders who have a keen interest in innovating and enabling new revenue streams from this novel tech.

However, is making your space in this lucrative and rapidly growing industry that easy? Well, not so much. In fact, there are tonnes of established leaders in the IoT space. For example:

• In Semiconductors: Arm, Intel, Qualcomm, etc.
• In Cloud Platforms: Amazon Web Services (AWS), Microsoft Azure, etc.
• In Connectivity: Verizon, AT&T, Cisco, etc.
• In Solution Providers: Accenture, IBM, etc.

If you really want a competitive edge, you need to have an economic MOAT for your IoT product, i.e., a long-term sustainable advantage. However, most ideas you will discuss today may have already been implemented. So, to disrupt the market, you need to be aware of what will come next and how the currently available tech can be upgraded. And that is what we are trying to solve for you in this editorial. Therefore, let’s help you find your space to fit in and make a mark in the world of connected devices.

Industries That Use IoT - Market Share

As discussed earlier, IoT is being used in multiple industries. So, to learn about its status, we have provided the market size of IoT in different industries and their estimated value by the end of 2030 based on their current CAGR.

Note: The collective sum of figures mentioned below might surpass the global IoT market. These discrepancies arise because of double-counting and inconsistencies from overlapping categories, the dynamic nature of the market, varying market segments, etc.

• Manufacturing: Market size to close at $181.86 billion by 2034, growing at a CAGR of 10.7%, and expected to reach $121.11 billion by the end of 2030.
• Transportation and Logistics: It is predicted to grow to $139.64 billion by the end of 2026, growing at a CAGR of 21.69%, and will reach $372.64 billion by the end of 2030.
• Energy: Expected to reach $34.42 billion by the end of 2026, growing at a CAGR of 13.94%. By the end of 2030, it is expected to reach $66.1 billion with the same CAGR.
• Healthcare: Calculated to reach $286.77 billion at the end of 2026, growing at a CAGR of 26.09%, and will be witnessing a growth of $913.98 at the end of 2030.
• Agriculture: Expected to grow to $17.78 billion in 2026, growing with a CAGR of 9.50% to reach $27.99 billion by the end of 2030.
• Smart Infrastructure: The market is expected to grow to $542.03 billion by the end of 2026, growing with a CAGR of 19.98% and expected to reach $1,347.62 billion by the end of 2030.
• Retail: With a CAGR of 26.1%, the industry is expected to reach $293.18 billion by the end of 2030.
• Smart Homes: Expected growth of $162.27 billion at the end of 2026, at a CAGR of 27.10%, and will be reaching $538.23 at the end of 2030.
• Environmental Monitoring: The global market is expected to reach $646.80 by the end of 2026, with a CAGR of 4.42%, and will be reaching $802.95 at the end of 2030.
• Insurance: The Insurtech market is expected to close on $36.05 billion at the end of 2026, growing with a CAGR of 37.10%, and is expected to reach $174.62 billion in 2030.

Prominent Industries that implement IoT - Exploring the Opportunities

IoT is currently being used in almost every recognized industry and sector. So, the task of sharing opportunities from each of the industries becomes a real challenge.

Sorting this issue to deliver maximum ROTI (Return on Time Invested) to you, we took the top five prominent industries from the section above based on their projected value for 2030. So, let’s explore.

Smart Infrastructure

Smart infrastructure is an infrastructure that uses modern technologies like IoT to improve the efficiency, sustainability, and resilience of a building. IoT being a prime member of the technology consortium used, offers several budding opportunities in the future. These are:

1. Cognitive Factory 

Cognitive factory is an emerging field that aims to create a truly intelligent system in manufacturing using technologies like artificial intelligence (AI), machine learning (ML), IoT, etc. These systems are able to self-diagnose, optimize processes in real-time, and even make autonomous decisions.

As of now, there are several companies like IBM, PTC, Siemens, etc., who are providing solutions in the domain. However, there is enormous room for more stakeholders. In fact, several ongoing opportunities that one can seek in this domain are:

• Interoperability with legacy systems is still a big issue. Connecting all the pieces in a factory requires system integration and data orchestration. And, one can seize this opportunity by becoming a company that helps with the task, as they are very much in demand.
• Companies can develop solutions to enhance the collaboration between humans and machines in manufacturing by developing intuitive interfaces, AR/VR tools, and training programs.
• There are companies in this domain that are well-versed with specific AI/ML techniques such as anomaly detection, predictive modeling, etc. These are in high demand in the cognitive factory niche.
• The niche requires “as-a-service” solutions for software, hardware, and even for the entire cognitive factory platforms. This can be offered as a flexible and scalable service.

2. IT/OT Convergence

New Content: IT/OT convergence in manufacturing is the culmination of integration technology (IT) systems with operational technology systems. Here, IT represents traditional computers, networks, and software, while OT refers to systems (sensors, actuators, etc.) that directly control and monitor physical processes in a factory. As industries adopt IoT product development, seamless IT/OT integration becomes crucial for enhancing automation, real-time data exchange, and overall operational efficiency.

Some of the potential businesses that can emerge from this opportunity include software development companies, consulting services, system integration services, and managed service providers. Here are the key aspects of the business opportunity proposed:

• IT/OT collects vast amounts of operational data that can be used to identify patterns, predict flaws, and optimize production parameters, opening new opportunities to develop data analysis tools and consulting services.
• There is a market for predictive maintenance software and related services to predict equipment failures before they happen.
• As systems become more connected, concerns related to cybersecurity rise, demanding solutions that are tailored to the IT/OT environment.

3. “Servitization” of Manufacturing

“Servitization” in manufacturing is enabled using the Internet of Things (IoT). It is a business model where a manufacturer, instead of just selling products, also provides value-added services (real-time monitoring, personalized recommendations, etc.) in real-time by using the data collected from connected devices. There are several businesses that can be opened around it. For instance:

• An IoT-enabled monitoring and maintenance service.
• Data analytics and optimization.
• Platform for servitization.
• Training and support company for servitization.
• Consulting and strategy for servitization.

Environmental Monitoring

Environmental monitoring is another critical application of IoT that helps in churning out real-time data, which helps in agriculture, emission tracking, waste management, etc. Let’s check out a few opportunities in this domain.

1. Ultra-Precise and Hyperlocal Monitoring

IoT can create a network of sensors that can provide insights into highly localized environmental insights. A dense network of sensors in a local area can provide real-time data on air quality, noise pollution, light pollution, and similar aspects to improve the neighborhood.

There are several companies in the domain like Acoem, Oizom, ATMO, etc. However, there is space for more with solutions like:

• Platforms that integrate and analyze data from diverse sensors, satellites, public data sources, and citizen science initiatives to provide a holistic view of the locality.
• AI models trained on data generated through IoT sensors of the locality, to give a predictive edge to the system.
• Platforms that collect data from specialized sensors for specific pollutants or environmental issues like microplastics, light pollution, etc.

2. Predictive Environmental Modeling

A report by the National Centers for Environmental Information stated that in 2024, in the US alone, there were 27 confirmed weather/climate disaster events that happened. The collective loss exceeded $1 billion. Aside from this globally, there have been events like Cyclone Idai, Heatwaves (in India, Pakistan, and Europe), Flooding in Southeast Asia, etc.

These incidents can be deterred using predictive environmental modeling. Using advanced AI and machine learning to create sophisticated models that can help predict these incidents beforehand. 

So, as a business opportunity, there is scope for an improved AI-powered platform that can be built to ingest all the environmental data and generate accurate predictions. These predictions can be offered to government bodies, businesses, and communities to help them prepare beforehand and even mitigate environmental hazards.

3. Smart Agriculture

Smart agriculture, as a market, is already expected to reach $18.34 billion by the end of 2026, showcasing a growth of 12.8% CAGR. 

In the beginning, it was a collaboration between businesses and farmers, helping each other. However, as of now, it can be a great business opportunity to assist farmers in improving yield, reducing resource usage, optimizing human labor, etc.

Despite the presence of existing companies like Trimble, John Deere, Ag Leader, etc., there are still avenues like smart irrigation, precision farming, livestock monitoring, etc. On the surface level, each of these solutions has been tapped. However, there is more scope to cater to hyperlocal markets in countries like India, with specialized data analytics for specific pests or diseases, integration with existing systems, etc.

Healthcare

The combination of IoT in healthcare is already helping so many people all around the world. With smart wearables, pacemakers, medical devices, etc., that can become a part of the IoT ecosystem, it is possible to collect sensitive patient data and reuse it to help further. However, there can be more advanced applications of the same that can be grabbed by you, as an opportunity. So, let’s explore a few options.

1. Remote Patient Monitoring (RPM) 2.0

As of now, remote patient monitoring is only able to cover basic vital signs such as heart rate, blood pressure, glucose levels, etc. However, RPM can be expanded further. It can be used for more sophisticated and personalized interventions.

For example, a patient who has suffered heart failure might use a connected medical device later on. This device will not only track the heart rate but can also monitor fluid levels and other key indicators, helping doctors adjust the medication remotely.

2. AI-Powered Diagnostics and Treatment

AI is already being used for medical image analysis, genomic analysis, diabetes management, etc. However, the level of accuracy can be increased by using AI for diagnostic accuracy to provide more personalized treatment. 

One can create a solution that connects to wearable sensors and medical imaging devices. And by using AI-powered algorithms, they can facilitate the early detection of medical issues like cancer. This will not only help enable better care but will also improve the chances of getting it cured.

3. Smart Hospitals and Connected Care

Smart hospitals and connected care are already a thing in the IoT and healthcare market, but the level of implementation is still limited. However, IoT as a tech can transform hospitals by creating an ecosystem where all the devices are connected and communicating with each other. This will significantly improve efficiency, reduce errors, and even enhance patient care. Here are some examples of advanced smart hospitals and connected care that can be an opportunity for you.

• AI-powered predictive alerts for patient’s deteriorating health.
• Autonomous robots for streamlined logistics.
• Personalized medication, along with smart dispensers.
• Smart operating rooms with the capability to integrate real-time data.
• AI-powered triage and resource allocation.

Smart Homes

Smart homes are one of the easiest examples to understand what IoT is. There are numerous applications like controlling temperature, lighting, security systems, etc. However, there are several issues that are not addressed, as of yet. For example:

• Appliances of different brands, in many cases, still don’t work in unison.
• Smart home appliances react to the command but don’t understand the context behind it.
• For non-technical people, it is difficult to set up IoT home appliances by themselves.
• Smart homes can save electricity, but the devices' incapability to work together doesn’t let this happen.
• Customization options today are limited. For instance, sensor options in smart security cameras, previous HVAC (Heating, Ventilation, and Air-Conditioning) device compatibility issues with smart thermostats, etc.

In fact, there is an entire list of issues that still need to be corrected with smart home appliances. Gladly, it is an opportunity that can be filled by your efforts. Some of the proposed solutions that one can come up with are:

• A unified platform that supports products from multiple brands and can be used to connect all the devices via an app.
• Home lights and air conditioning can be connected together through IoT detecting data from external sensors to regulate light and temperature for optimum comfort and reduced energy consumption.
• Voice-controlled appliances that understand all the prominent languages and dialects used by people.

Transportation and Logistics

Transportation and logistics is another industry where inclusion was direly needed, and that happened. Issues like real-time visibility, inefficient route planning, warehouse inefficiencies, etc., were tackled with the help of IoT technology. However, there is room for more improvement.

Some of the possible opportunities you can tap in the domain are:

1. Hyper-Personalized Logistics and Delivery

There are certain companies like Amazon, Matternet, Flytrex, etc., who provide drone delivery services. However, that is just the beginning. With better IoT solutions, it is possible to create an in-home delivery platform. These drones will connect with the smart home devices communicating to unlock space to make the delivery, remotely controlled by you. Also, IoT can enable autonomous delivery trucks that, as of now, are being widely tested and, in some years, might become a reality. 

2. The Rise of the "Physical Internet"

A lot of people in the tech domain have envisioned a “Physical Internet,” quite similar to the Internet, we know, but for logistics. It will comprise standardized containers across carriers and different modes of transportation. With the help of IoT, tracking and managing these containers will become seamless, helping to optimize the flow of goods across the logistical network.

3. Smart Warehouses and Automated Fulfillment

Optimization of warehouse operations and automated fulfillment processes are not new to the niche. However, there are constant improvements being made in the tech that is used. For example: 

• IoT-enabled Robots: As of now, there are several issues associated with IoT-enabled robots, such as cost, complexity in programming and deployment, perception and manipulation challenges, etc., which can be challenged to create a business opportunity.
• Automated Guided Vehicles (AGVs): Automated guided vehicles are used in companies like Alibaba, Target, Walmart, Ford, etc. However, as of now, they have limited navigation capabilities, lack of real-time awareness, and limited communication, and the data collection & analysis aspect is not up to par. This aspect can be used as an opportunity to create a business.
• Smart Shelves: These are shelves used to optimize and streamline inventory, especially in retail stores. There are several issues with it, too. For instance, infrastructural cost, interference in RFID signals, limited tag read ranges, etc. Each of these issues can be seen as a business opportunity to disrupt the existing market.

Final Words

IoT, at its inception, showcased a lot of promises that it fulfilled over the years. Its increased adoption across industries for a variety of use cases is a testament to it. However, for disruption, the tech even today offers a lot of space. Why? Well, the tech is flexible enough to be integrated with other technologies like artificial intelligence, machine learning, Augmented Reality (AR), Blockchain, etc., making it flexible for integration. With this editorial, our goal was to highlight those spaces, helping you provide ample opportunities that can be tapped. 

We hope we may have been of little help to you in your mission to transform the current IoT landscape. Stating this, if you want more of similar resources then you can check out our IoT blog section. And if you want more updates on tech, then stay tuned to MobileAppDaily.