India IoT Market Outlook to 2030

India IoT Market Overview

• The India IoT (Internet of Things) Market was valued at USD 21 billion in 2023, driven by rapid digitalization, increasing adoption of IoT devices across various sectors, and advancements in communication technologies. The market includes a wide range of IoT solutions, such as smart sensors, connectivity modules, IoT platforms, and data analytics services, serving industries like manufacturing, healthcare, agriculture, and smart cities.

• Key players in the India IoT Market include Tata Communications, Reliance Jio, Bharti Airtel, Bosch India, and Siemens India. These companies maintain strong market positions through innovative IoT solutions, extensive distribution networks, and strategic partnerships with technology providers. They focus on enhancing IoT ecosystem capabilities to support the growing demand for connected devices and smart solutions.
• Major regions such as Maharashtra, Karnataka, Tamil Nadu, and Delhi NCR lead the market due to their advanced technological infrastructure, high industrial activities, and robust IT services sectors. These states also exhibit higher demand for IoT solutions, driven by their diverse industrial base and increasing focus on smart city initiatives.
• In March 2023, Tata Communications announced a strategic investment of USD 200 million over three years to expand its IoT connectivity solutions and services portfolio. The investment aims to enhance Tata Communications' capacity to serve the growing IoT market and strengthen its market presence in India, demonstrating the company's commitment to driving digital transformation in the region

India IoT Market Segmentation

The India IoT Market is segmented by component, connectivity, and region.

• By Component: The market is segmented into Hardware, Software, and Services. In 2023, Hardware held the dominant market share due to the increasing adoption of IoT devices and sensors across various industries. Companies like Bosch India and Siemens India are key players in this segment, offering a range of IoT hardware solutions tailored to different industrial needs and applications.

???????

• By Connectivity: The market is categorized by connectivity into Cellular, LPWAN, Wi-Fi, and Others. Cellular connectivity led the market in 2023, owing to its widespread availability, reliability, and ability to support large-scale IoT deployments, making it a preferred choice among enterprises and smart city projects.
• By Region: The market is segmented by region into North, South, East, and West India. South India, particularly Karnataka and Tamil Nadu, dominates the market in 2023 due to the strong presence of IT services, electronics manufacturing, and smart city initiatives. The North region, including states like Delhi NCR and Haryana, holds a substantial share due to its large industrial base and robust infrastructure.

India IoT Market Competitive Landscape

• Bharti Airtel: In July 2023, Bharti Airtel's B2B division, Airtel Business, became the first ICT service provider in India to connect over 20 million IoT devices. This milestone underscores Airtel's leadership in the IoT space, offering solutions across various sectors such as automobile, energy, logistics, and manufacturing.
• Reliance Jio: At the 2024 Annual General Meeting, Jio introduced its Jio Home IoT platform, designed for home automation, which integrates with Matter-compliant smart devices, allowing users to manage their connected devices from a single interface. This initiative aims to simplify home automation by enabling seamless control over various smart devices, enhancing user convenience and connectivity throughout the home.

India IoT Market Analysis

Growth Drivers

• Increasing Adoption of IoT in Industrial Automation: The India IoT market is driven by the adoption of IoT solutions in industrial automation, particularly in manufacturing and logistics. According to the Ministry of Electronics and Information Technology (MeitY), thousands manufacturing units across India have implemented IoT-based solutions to enhance production efficiency and reduce operational costs in 2023. This trend is further supported by the government's "Make in India" initiative, which aims to boost domestic manufacturing capabilities through technological integration.
• Surge in Smart City Projects: The development of smart cities in India continues to be a major growth driver for the IoT market. The Ministry of Housing and Urban Affairs reported that as of 2024, 70 cities have initiated smart city projects incorporating IoT solutions for smart infrastructure, including smart lighting, waste management, and traffic control systems. These projects are expected to improve urban living standards and reduce costs by optimizing resource use. The Union Budget 2024 allocated USD 28.61 Mn for the Smart Cities Mission for the fiscal year 2024-25.
• Expansion in IoT Healthcare Applications: The healthcare sector in India is increasingly adopting IoT technologies to improve patient care and operational efficiency. According to the National Health Authority, hundreds of hospitals integrated IoT-based patient monitoring systems in 2023, resulting in substantial reduction in patient readmissions and in hospital stays. These systems enable real-time monitoring of patients' vital signs, allowing for timely interventions and better management of chronic diseases.

Challenges

• Data Privacy and Security Concerns: The India IoT Market faces noteworthy challenges related to data privacy and security, as the increasing use of connected devices raises concerns about data breaches and cyber threats. Ensuring data protection and building secure IoT networks is crucial for maintaining consumer trust and compliance with regulatory standards. The implementation of robust cybersecurity measures and encryption protocols is necessary to mitigate these risks and protect sensitive data across IoT platforms.
• Infrastructure and Connectivity Issues: Despite advancements in IoT technologies, infrastructure and connectivity issues, particularly in rural and remote areas, pose challenges for market growth. Limited access to high-speed internet and reliable power supply affects the deployment of IoT solutions, impacting their scalability and effectiveness. Addressing these infrastructural gaps is essential to ensure widespread adoption of IoT technologies, especially in underdeveloped regions.

Government Initiatives

• Smart Cities Mission: The Indian government's Smart Cities Mission aims to develop 100 smart cities across the country by 2025, incorporating IoT technologies to enhance urban infrastructure and services. As of July 2024, 7,188 projects worth 1,44,237 crore have been completed in the 100 selected cities, with 830 more projects worth 19,926 crore in advanced stages of completion. This initiative provides substantial opportunities for IoT solution providers to offer smart solutions for urban management, transportation, and public safety.
• Digital India Initiative: The Digital India Initiative is a transformative program launched by the Government of India on July 1, 2015. Its primary objectives include improving online infrastructure, increasing internet accessibility, and empowering citizens through digital services. The initiative focuses on three key areas: establishing secure digital infrastructure, delivering government services digitally, and ensuring universal digital literacy. It aims to bridge the digital divide and enhance the economy, with projections indicating a potential boost to India's digital economy to USD 1 trillion by 2025.

India IoT Market Future Outlook

The India IoT Market is expected to witness robust growth by 2028, driven by increasing investments in IoT technologies, rising demand for smart solutions, and government initiatives supporting digital transformation.

Future Market Trends

• Growth in Industrial IoT (IIoT) Applications: By 2028, a noteworthy portion of IoT deployments in India is expected to be in the industrial sector, driven by the need for automation, predictive maintenance, and supply chain optimization. Manufacturers are focusing on integrating IoT with AI and machine learning to enhance operational efficiency and reduce costs. This integration will enable more precise monitoring and control of industrial processes, fostering innovation and competitiveness in manufacturing and logistics.
• Expansion of IoT Ecosystem through Partnerships: The IoT ecosystem in India is expected to expand through strategic partnerships between technology providers, telecom operators, and industry stakeholders. This trend is driven by the need for integrated IoT solutions that combine connectivity, hardware, and software to deliver comprehensive value to customers. These collaborations are anticipated to accelerate innovation and facilitate the development of new IoT applications tailored to specific industry needs