North America IoT Market Outlook to 2030

North America IoT Market Overview

• In 2023, the North American IoT market reached a value of USD 180 billion, showing significant growth driven by increased adoption of connected devices, 5G deployment, and digital transformation across sectors. The market has benefited from rapid advancements in artificial intelligence (AI), edge computing, and machine learning technologies, which are critical in enabling IoT solutions.
• Several major players lead the North American IoT market, including Cisco Systems, IBM Corporation, Microsoft Corporation, Intel Corporation, and Amazon Web Services (AWS). These companies dominate the market with extensive IoT platforms, cloud solutions, and edge computing capabilities. Their strong R&D investments and strategic partnerships with enterprises across various sectors solidify their position as key enablers of IoT ecosystems, supporting smart infrastructure, manufacturing, and healthcare sectors.
• A significant development in the IoT market occurred in 2023, when Verizon launched its IoT-Enabled 5G Edge network, aiming to enhance edge computing capabilities for industries like healthcare, logistics, and smart cities. The rollout covered major metropolitan areas, including New York and Los Angeles, ensuring faster data processing and reduced latency. This initiative marks an important step in accelerating IoT adoption across sectors requiring real-time data processing and decision-making.
• In 2023, cities like San Francisco, New York, and Toronto emerged as dominant players in the North American IoT market. San Francisco's strong presence is driven by its tech ecosystem, with key IoT firms and startups setting up operations in the city. New York has invested heavily in IoT for transportation and public safety, while Toronto's Quayside Smart City project is a flagship initiative that has cemented its position as a leader in IoT-driven urban development.

North America IoT Market Segmentation

By Component Type: The North American IoT market is segmented by component type into hardware, software, and services. In 2023, hardware held the largest market share due to the continued demand for sensors, connectivity devices, and gateways. The hardware segments dominance is primarily driven by the growing adoption of IoT in industries like manufacturing, logistics, and healthcare, where connected devices are critical to operations. For instance, healthcare facilities increasingly rely on IoT-enabled medical devices for patient monitoring and diagnostics, contributing significantly to hardware sales.

By Industry Vertical: The market is also segmented by industry vertical into manufacturing, healthcare, transportation, and retail. In 2023, manufacturing was the largest segment due to the widespread adoption of industrial IoT (IIoT) solutions. Manufacturing firms leverage IIoT for real-time monitoring, predictive maintenance, and automation, which enhances productivity and reduces operational costs. Companies like GE and Siemens have invested heavily in IoT-driven smart manufacturing technologies, further boosting the market for IoT in this vertical.

By Region: The North American IoT market is segmented regionally into the U.S. and Canada. In 2023, the U.S. dominated the market with over 80% market share, attributed to the presence of major IoT technology providers and early adoption across sectors. The U.S. governments focus on smart city initiatives, coupled with 5G rollouts, has fueled IoT growth in key sectors such as healthcare and transportation. Canada follows with significant investments in IoT projects, particularly in smart city initiatives in cities like Toronto and Vancouver.

North America IoT Market Competitive Landscape

• Cisco Systems: In 2023, Cisco expanded its IoT Control Center with new features aimed at supporting private 5G deployments. The solution provides enterprises with seamless management of their IoT devices across both cellular and Wi-Fi networks, improving operational efficiency in sectors like manufacturing and logistics. Additionally, Cisco launched a $100 million fund to accelerate IoT innovation across North America, aiming to support startups and SMEs involved in IoT development.
• IBM Corporation: IBM in 2024 enhanced its Watson IoT platform by integrating advanced AI and edge computing capabilities. The platform now supports more than 5,000 clients globally, including large North American enterprises in sectors like automotive and healthcare. Furthermore, IBM partnered with General Motors to deliver connected car solutions, enabling real-time vehicle diagnostics, predictive maintenance, and automated driving systems powered by IoT.

North America IoT Market Analysis

Growth Drivers

• Increasing 5G Adoption and Expansion of IoT Networks: The deployment of 5G networks across North America in 2024 is significantly accelerating IoT adoption, especially in sectors like manufacturing, healthcare, and smart cities. The U.S. Federal Communications Commission (FCC) reported that by mid-2024, 85% of the U.S. population had access to 5G networks, enabling faster data transmission and real-time monitoring for IoT devices. The low latency and high bandwidth provided by 5G are crucial for the seamless operation of IoT devices, particularly in industrial and healthcare applications where real-time data processing is vital.
• Increased Government Investment in Smart City Projects: Governments in North America, particularly in the U.S. and Canada, are heavily investing in smart city infrastructure, driving IoT adoption. The U.S. Department of Transportation allocated $1 billion in 2023 to smart transportation initiatives that incorporate IoT technologies for traffic management and public safety. Similarly, in Canada, cities like Toronto and Vancouver are receiving federal funding of over $500 million for smart energy grids and IoT-enabled public services by 2024. This government backing supports the widespread implementation of IoT technologies across urban landscapes.
• Growth of Industrial IoT (IIoT) in Manufacturing: The industrial IoT (IIoT) segment has seen robust growth in North America, driven by the need for operational efficiency and automation in manufacturing sectors. By 2024, over 75% of large-scale manufacturers in the U.S. and Canada had adopted IoT-based automation and predictive maintenance solutions, leading to reduced downtime and enhanced productivity. The adoption of IIoT solutions has been further boosted by strategic government initiatives aimed at supporting the manufacturing sectors digital transformation, such as the U.S. National Manufacturing Strategy for 2024.

Challenges

• Data Security and Privacy Concerns: As the number of connected devices rises, data security and privacy remain major challenges for IoT adoption in North America. In 2024, the U.S. Cybersecurity and Infrastructure Security Agency (CISA) reported an increase in IoT-related cyberattacks. The sheer volume of data generated by IoT devices, coupled with the interconnected nature of these networks, creates vulnerabilities that can be exploited by cybercriminals, making security a critical issue that must be addressed to maintain market growth.

• High Implementation Costs for Small and Medium Enterprises (SMEs): While large corporations are embracing IoT, many small and medium-sized enterprises (SMEs) face challenges due to the high initial costs of IoT implementation. The high expenses related to hardware, software, and maintenance make it difficult for smaller businesses to compete in a rapidly digitizing marketplace.

Government Initiatives

• IoT Cybersecurity Improvement Act of 2020: In 2020, the U.S. government enacted the IoT Cybersecurity Improvement Act, which mandates baseline cybersecurity standards for IoT devices used by federal agencies. This law is designed to protect government infrastructure from cyberattacks targeting connected devices, ensuring that all IoT devices comply with strict authentication and encryption protocols. This initiative will likely have a ripple effect across the private sector as companies dealing with the federal government will need to adhere to these standards.

• Canadas Smart Cities Challenge Program: The Canadian government, under its Smart Cities Challenge Program, allocated $300 million in 2024 to cities like Toronto, Montreal, and Vancouver to enhance IoT-based urban services such as traffic management, public safety, and energy management. This program is driving significant investment in IoT technologies, particularly in public infrastructure, aiming to make Canadian cities more efficient, sustainable, and livable through the integration of connected devices.

North America IoT Market Future Outlook

The North America IoT Market is projected to grow exponentially by 2028. This growth will be driven by increasing 5G adoption and expansion of IoT networks, increased government investment in smart city projects and growth of Industrial IoT (IIoT) in manufacturing.

Future Trends

• Continued Expansion of IoT in Smart Cities: By 2028, North America will see significant growth in smart city IoT projects, driven by government funding and urbanization initiatives. The U.S. government is expected to allocate an additional investment over the next five years to smart transportation and public safety projects, integrating IoT solutions to enhance urban efficiency. This growth will be supported by advancements in AI and edge computing, which will enable faster and more reliable data processing for IoT devices.

• Increased IoT Adoption in Healthcare for Remote Patient Monitoring: The healthcare sector will continue to embrace IoT solutions, with the number of IoT-enabled medical devices expected to triple by 2028. Hospitals and clinics will increasingly rely on remote patient monitoring solutions to reduce healthcare costs and improve patient outcomes. Healthcare providers are projected to use IoT-based monitoring solutions by 2028, supported by government policies encouraging the use of digital health technologies for improved public health management.