US iot market size, share, growth drivers, trends, opportunities & forecast 2025–2030

US IoT Market Overview

• The US IoT market is valued at USD 169 billion, based on a five-year historical analysis. This growth is primarily driven by the increasing adoption of smart devices, rapid expansion of 5G networks, convergence of IoT with artificial intelligence and machine learning, and the rising demand for automation across industries. The integration of IoT solutions in sectors such as healthcare, manufacturing, and transportation has significantly contributed to the market's expansion, supported by robust digital infrastructure and strategic investments in innovation .
• Key players in this market include major cities such as San Francisco, New York, and Chicago, which lead due to their advanced technological infrastructure, high concentration of technology companies, and substantial investments in smart city initiatives. These urban centers drive IoT innovation by attracting skilled talent and fostering collaboration between startups and established firms, further accelerating the adoption of connected technologies .
• The IoT Cybersecurity Improvement Act of 2020, issued by the United States Congress, mandates that IoT devices procured by federal agencies comply with minimum security standards as defined by the National Institute of Standards and Technology (NIST). The Act requires federal contractors to ensure their IoT devices are capable of patching, secure authentication, and configuration management, thereby strengthening the security posture of connected devices and promoting consumer trust .

US IoT Market Segmentation

By Type:The IoT market can be segmented into Consumer IoT, Industrial IoT (IIoT), Infrastructure IoT, Healthcare IoT, Automotive & Transportation IoT, Agricultural IoT, Retail & E-Commerce IoT, and Others. Each of these segments is shaped by distinct drivers: Consumer IoT is propelled by smart home adoption and wearable devices; Industrial IoT benefits from automation and predictive maintenance; Infrastructure IoT is driven by smart city and utility applications; Healthcare IoT leverages remote monitoring and telemedicine; Automotive & Transportation IoT is advanced by connected vehicles and fleet management; Agricultural IoT focuses on precision farming; Retail & E-Commerce IoT is enabled by inventory and supply chain automation .

By End-User:The end-user segmentation of the IoT market includes Residential, Commercial, Industrial & Manufacturing, Government & Utilities, Healthcare & Life Sciences, and Others. The Residential segment is driven by smart home devices and personal wearables; Commercial applications include building automation and retail analytics; Industrial & Manufacturing is focused on process automation and asset tracking; Government & Utilities leverage IoT for smart grids and infrastructure monitoring; Healthcare & Life Sciences utilize IoT for patient monitoring and connected medical devices .

US IoT Market Competitive Landscape

The US IoT market is characterized by a dynamic mix of regional and international players. Leading participants such as Cisco Systems, Inc., IBM Corporation, Microsoft Corporation, Amazon Web Services, Inc. (AWS), Google LLC (Google Cloud), Siemens AG, GE Digital (General Electric Company), Intel Corporation, PTC Inc., Oracle Corporation, Honeywell International Inc., Schneider Electric SE, SAP SE, Arm Holdings plc, Verizon Communications Inc., AT&T Inc., Dell Technologies Inc., Texas Instruments Incorporated, Celona, Inc. contribute to innovation, geographic expansion, and service delivery in this space.

US IoT Market Industry Analysis

Growth Drivers

• Increasing Adoption of Smart Devices:The US market is witnessing a surge in smart device adoption, with over 400 million smart devices expected to be in use in future. This growth is driven by consumer demand for convenience and connectivity, as evidenced by a 20% increase in smart home device sales in recent periods, reaching approximately $36 billion. The proliferation of smart devices enhances the IoT ecosystem, facilitating seamless integration and data exchange across various applications, thereby driving market expansion.
• Expansion of 5G Networks:The rollout of 5G networks is a significant growth driver for the US IoT market, with an estimated 70% of the population projected to have access to 5G in future. This technology enables faster data transmission and lower latency, which is crucial for real-time IoT applications. The investment in 5G infrastructure is expected to exceed $150 billion, fostering innovation and enhancing connectivity for IoT devices across various sectors, including transportation and healthcare.
• Rising Demand for Automation in Industries:The demand for automation in industries is accelerating, with the US manufacturing sector projected to invest over $250 billion in automation technologies in future. This trend is driven by the need for efficiency and cost reduction, particularly in logistics and production. The integration of IoT solutions in industrial automation is expected to enhance operational efficiency, reduce downtime, and improve supply chain management, thereby propelling market growth in the IoT sector.

Market Challenges

• Data Security Concerns:Data security remains a critical challenge for the US IoT market, with cyberattacks on IoT devices increasing by 40% in recent periods. The potential for breaches poses significant risks to consumer privacy and corporate data integrity. As organizations adopt IoT solutions, the need for robust cybersecurity measures is paramount, with estimated spending on IoT security solutions expected to reach $15 billion in future, highlighting the urgency of addressing these vulnerabilities.
• High Implementation Costs:The high costs associated with implementing IoT solutions present a significant barrier to entry for many businesses. Initial investments in hardware, software, and infrastructure can exceed $1.5 million for mid-sized companies. Additionally, ongoing maintenance and operational costs can strain budgets, particularly for small and medium enterprises. This financial burden can hinder widespread adoption, limiting the potential growth of the IoT market in the US.

US IoT Market Future Outlook

The US IoT market is poised for transformative growth, driven by technological advancements and increasing integration across sectors. As industries embrace digital transformation, the demand for IoT solutions will rise, particularly in healthcare and smart cities. The convergence of AI and IoT will enhance data analytics capabilities, enabling more informed decision-making. Furthermore, as regulatory frameworks evolve, businesses will adapt to new compliance requirements, fostering innovation while addressing security and privacy concerns in the IoT landscape.

Market Opportunities

• Growth in Smart City Initiatives:The US government is investing over $70 billion in smart city projects in future, creating opportunities for IoT solutions in urban planning, traffic management, and public safety. This investment aims to enhance urban living through improved infrastructure and services, driving demand for IoT technologies that facilitate real-time data collection and analysis.
• Development of Edge Computing:The edge computing market is expected to grow to $25 billion in future, driven by the need for real-time data processing in IoT applications. This technology reduces latency and bandwidth usage, making it ideal for industries like manufacturing and healthcare. The integration of edge computing with IoT will enhance operational efficiency and enable faster decision-making, presenting significant growth opportunities.