The Internet of Things (IoT) has been in existence for over two decades.
However, it is only recently that the term has become commonplace.
IoT is used to describe the variety of devices that connect via the internet or a communication network.
In effect, anything that connects to the internet and is capable of exchanging data is part of the Internet of Things.
This includes software and physical devices.
There’s an impressive number of products covered.
For example, homeowners will be accustomed to smart home systems, which allow appliances to be controlled remotely.
As with any development, there are risks. One of the biggest issues with the IoT is privacy.
With data being exchanged it is vulnerable to interception, the right security measures must be in place.
The following Internet of Things statistics will highlight how this science has developed rapidly in recent years.
- As of 2023 there are 15.1 billion IoT devices
- The IoT industry is worth $662.21 billion
- It’s estimated that by 2025, 152,200 IoT devices will be connected every minute
- 83% of businesses have found IoT improves efficiency
- 94% of suppliers feel the benefits outweigh the risks
- By 2025 IoT devices will create 73.1 zb of data
- IoT will face chip supply issues for years to come
- 31% of IoT devices are wi-fi related
- 2020 was the first year IoT devices surpassed non-IoT devices
- One third of IoT spending originates in asia
- Video entertaining is the largest IoT category
- Between 2015 and 2019 consumer spending on IoT increased by 12% a year
- Venture capitalists are increasingly investing in IoT
- Sensor processing is the central area of focus
- Security is the biggest concern to the IoT industry
- 81% of people believe IoT can create smart cities
Top Internet Of Things Statistics in 2024
1. As of 2023 There Are 15.1 Billion IoT Devices
The number of IoT devices is a clear marker of how popular and important the industry is becoming.
As people experience the benefits of IoT they are more inclined to purchase more IoT devices.
As with most new technologies, the rate of takeup starts slow and then figuratively explodes.
In 2019 the industry was already doing well with 8.6 billion IoT devices connected.
Until 2022 the industry saw an increase of approximately 1.2 billion devices per annum.
However, 2023 is expected to outperform this with a 2 billion rise.
By the end of the year it’s predicted there will be 15.1 billion connected IoT devices.
The rate will continue to grow. Studies suggest it will be 19.1 billion in 2025 and an impressive 29.4 billion by 2030.
At this point, IOT devices will dominate the device market. It’s estimated 75% of all devices will be part of the Internet of Things.
2. The IoT Industry Is Worth $662.21 Billion
The statistics show that the global IoT industry had a value of $544.38 billion in 2022. That’s impressive in itself.
However, predictions suggest that this will increase to $662.21 billion by the end of 2023 and, by 2030 it is expected to be worth a staggering $3,352.97 billion!
The CAGR for this period will be an impressive 26.1%.
If you’re looking for an industry to invest in then IoT may be the right one for you.
It’s worth noting that while IoT devices are extremely popular and prevalent in most industries, the expected boost in value is likely to open a variety of new business and revenue opportunities.
These could significantly change the valuation of the industry.
(Fortune Business Insights)
3. It’s Estimated That By 2025 152,200 IoT Devices Will Be Connected Every Minute
At present, hardware accounts for 30 % of the IoT industry value.
However, as the world becomes increasingly digital it’s expected that the IoT reliance on hardware will reduce.
Yet, despite this prediction, there are currently 127,000 devices being connected to the Internet of Things every minute! Estimates suggest this number will rise to 152,200 devices connecting per minute in 2025.
That means, by 2025 there are likely to be over 80 billion devices connected to the internet.
In 2019 there were 8.74 billion connected devices.
In 2023 this has increased to 15.14 and by 2030 it’s expected to reach 29.42 billion connected devices.
In short, within the next few years there will be a dramatic increase in connected devices.
4. 83% Of Businesses Have Found IoT Improves Efficiency
A recent survey by Zippia found that 55% of businesses adopting IoT are doing so because they believe it increases efficiency within their operations.
Most of the rest of their companies adopting IoT believe it will boost employee productivity.
Regardless of the reason for instigating IoT in the workplace, 83% of businesses have found it leads to a significant improvement in efficiency.
It has become particularly popular in factories where IoT streamlines processes and makes it easier to communicate between departments and even sites.
It is also being used to automate communication between suppliers, manufacturers, and retailers.
IoT devices can handle automated ordering and various other communication issues, markedly improving efficiency and helping many businesses build additional profits.
5. 94% Of Suppliers Feel The Benefits Outweigh The Risks
The biggest concern for most users of IoT is security.
As the internet and the Internet of Things becomes increasingly popular, more and more data is stored on the web.
This includes personal details for billions of people and makes the data and IoT devices a prime target for hackers and scammers.
Data breaches already cost the industry billions a year and cause a huge amount of stress and inconvenience to individuals.
It’s a serious risk that needs to be constantly addressed.
However, a recent survey suggested 94% of IoT device suppliers were confident that the benefits outweighed these risks.
It’s certainly true that IoT devices can make lives easier, both for individuals and corporations.
They can help save money on energy bills and even contribute to reducing environmental damage.
If the benefits materialize without the risks becoming effective, the suppliers are right to be optimistic.
Either way, there is little chance of stopping the explosion of IoT devices now.
Only time will tell if the suppliers are right not to worry.
6. By 2025 IoT Devices Will Create 73.1 ZB Of Data
Smart devices are becoming increasingly popular.
That means there will be a significant increase in the amount on the market and, more importantly, those being used by consumers.
As IoT devices use communication networks they are designed to assist with data movement and storage.
Over the next few years it’s estimated that IoT devices will generate 73.1 ZB.
That number doesn’t sound significant. However, it may help to know that 1 ZB is the same as one billion terabytes or a trillion gigabytes.
It’s still hard to visualize but it’s a huge amount of data and IoT systems will need to be able to cope with it and keep the data secure.
7. IoT Will Face Chip Supply Issues For Years To Come
With the dramatic increase in the size of the IoT industry and heightened interest from consumers, it’s not surprising that there is a chip supply issue.
Smart chips are essential when manufacturing smart devices.
However, there are several factors affecting supply:
The unprovoked attack by Russia on Ukraine caused a variety of sanctions to be put into place.
These didn’t just affect Russia and Russian businesses, China has also faced sanctions as a result of the US limiting exports of specific items.
This includes the semiconductors used to make smart chips.
- Global Pandemic
The global pandemic brought uncertainty to the world and caused the closure of many businesses.
As such, many manufacturers reduced their production levels. This, in conjunction with the sanctions, has meant that manufacturers are unable to keep up with demand.
- Economic Concerns
Of course, many businesses are concerned with the uncertain economic outlook across the globe. It’s a result of the war, environmental concerns, and other events.
This means businesses are treading a fine line and generally avoiding risk whenever possible.
Even a popular industry like this now doesn’t have the manufacturing ability to meet demand.
Supplies will increase as government-backed initiatives help.
However, these are likely to take years to be effective and, during that time, the shortage of chips will cause issues for the industry.
8. 31% Of IoT Devices Are Wi-Fi Related
There are three technologies which dominate the IoT market.
The first is Wi-Fi and it’s considered the dominant force. Bluetooth and cellular IoT make up the other two technologies.
Between these three they account for 80% of the market.
Cellular IoT accounts for roughly 20% of the global IoT market.
Bluetooth is ahead with 27% of the market, but Wi-Fi steals 31% of all new IoT connections.
It’s not surprising, Wi-Fi is constantly being upgraded to ensure it’s as secure as possible.
That translates to efficient communication between devices, useful in smart devices at home, healthcare, and many other industries.
The majority of Wi-Fi devices sold in the last year use Wi-Fi 6 technology, the latest, most reliable, and fastest option.
9. 2020 Was The First Year IoT Devices Surpassed Non-IoT Devices
Ten years ago the majority of devices sold and purchased were non-IoT.
Naturally, some were IoT and a popular option for those with larger budgets.
As usual, the passage of time has changed the way people look at the world and how they spend their money.
Environmental concerns, economic issues, and a volatile international community are all factors pushing people to seek more control over their own lives.
IoT devices can help with this.
It has led to a marked increase in IoT purchases. Significantly, 2020 was the first year more IoT devices were sold than non-IoT devices.
Effectively marking the turning point and the beginning of a new era.
To get a feel for just how popular IoT devices have become, consider this.
In 2010 0.8 billion IoT devices were sold and 8 billion non-IoT devices.
By 2015 3.6 billion IoT devices were sold compared to 9.7 billion non-IoT
In 2019, there were roughly 10 billion of each sold.
Then, in 2020 11.7 billion IoT devices were sold compared to 9.9 billion non-IoT.
It’s estimated that, by 2025, IoT sales will reach 31 billion and be 75% of all devices sold.
10. One Third Of IoT Spending Originates In Asia
In recent years spending has increased on IoT across the globe. What’s surprising is which part of the world is spending the most.
In 2018, Asia spent the most on IoT. In fact, over a third (37%) of market spending originated in Asia.
The Us followed as the second largest consumer, accounting for 29% of the market.
Europe, combined with the Middle East and Africa only made up 23%!
Japan and Latin America took the remaining 11% of the market.
Despite the massive increases in industry spending and interest in IoT, the percentages associated with each region aren’t expected to change by more than one or two percent for the foreseeable future.
11. Video Entertaining Is The Largest IoT Category
Most people would assume that smart home systems are the biggest category within IoT.
It’s certainly a very popular one. However, it’s not the biggest!
Video entertaining accounts for $101.8 billion of total consumer spending on IoT.
That’s not surprising considering this encompasses the main streaming sites as well as gaming apps.
Statistics show that approximately 5 billion people have smartphones.
That’s out of 8 billion people living on the planet. Interestingly, there are approximately 8 billion smartphones in use today.
The average smartphone user spends seven hours on their mobile devices every day.
Much of this time is on social media or watching videos, hence video entertainment is the largest IoT category.
Other industries that contribute to the success of IoT are:
- Connected vehicles with a revenue of nearly $74 billion
- Payment systems which total $39 billion
- Asset monitoring with $17 billion
- Inventory management systems, accounting for $11.3 billion
(Tech Business News)
12. Between 2015 And 2019 Consumer Spending On IoT Increased By 12% A year
The true test of any industry, including the Internet of Things, is not how much is invested in the industry, although that’s interesting.
It’s how much consumers are spending.
Strategy Analytics recently analyzed the spending patterns of consumers between 2015 and 2019.
They discovered a year-on-year increase of 12%.
In financial terms this took consumer spending from a little under $50 billion to almost $100 billion.
While the 2020 global pandemic saw a dip in purchases, it’s since rebounded and the growth continues.
In 2022 consumer spending on IoT surpassed $134 billion.
It’s expected to reach $159 billion in 2023 and around $173 billion in 2025.
Don’t forget, that’s just consumer spending on smart home devices.
13. Venture Capitalists Are Increasingly Investing In IoC
Venture capitalists provide the funds for startup companies, provided the company seems like a worthwhile investment.
The business doesn’t usually repay the venture capitalist with money.
Instead, they gain equity shares in the business which can prove very lucrative if the business does well.
As a sign of how important the IoT industry is becoming, there has been a marked increase in investment in this sector.
During the period 2013-2016 total investment in the industry transformed from $450 million to $1.03 billion!
While this may not all be due to venture capitalists, statistics show that the number of deals with venture capitalists in this period doubled from 170 to 340.
That’s impressive. However, in 2017 investment jumped again, from $1.03 billion to $1.46 billion.
Interestingly, studies show that the number of deals made by venture capitalists dropped to 300, but each deal was significantly larger than in previous years.
The rate of investment hasn’t been quite so impressive since 2017, but it’s still showing significant increases year after year.
14. Sensor Processing Is the Central Area Of Focus
Demand for IoT devices has been steadily increasing for years and shows no sign of abating.
This is because technology and the associated possibilities are continuing to evolve.
Naturally, there are several fields that IoT can develop into.
While it’s likely it will gradually influence every area of our lives, at present most people feel sensor processing is the way forward.
This will allow smart systems to collect and process all relevant data to make the best possible decisions.
48% of survey respondents felt this is the main area to be focused on for now.
Other areas that the survey found important included computer vision, with 38% of respondents, and voice recognition, taking 13% of respondents.
15. Security Is The Biggest Concern To The IoT Industry
This isn’t a surprising statistic! Anyone who uses the internet is aware that billions of dollars worth of funds are stolen and scammed every year by people hacking the internet.
The greater the number of devices connected to communications networks, the more attractive the network is to hackers.
In other words, the higher the risk of a security breach.
All recent surveys looking at IoT challenges confirm that security is the biggest concern.
However, the Thales Group took the survey a stage further and looked at the various security risks.
It found the biggest concern was attacks on IoT devices resulting in operational issues.
33% of respondents were worried about this.
This risk was closely followed by concerns over the lack of skilled professionals to implement and maintain security systems. 32% of those surveyed were concerned over this.
The other major areas of concern were the protection of sensitive data, specifically when created by an IoT device.
Theft of IoT devices was also a big concern, as was the lack of framework within this industry.
25% of those surveyed called for better industry standards as they felt there is currently a lack of them.
16. 81% Of People Believe IoT Can Create Smart Cities
There is no doubt that smart appliances can make things easier in the home.
The systems create a convenient way to power on and off any device.
In the process they can help homeowners save a significant amount of funds.
The savings also translate to a reduced environmental impact.
But, this isn’t the only area where IoT can make a big difference.
A 2019 survey by Telecoms.com asked respondents if the Internet of Things could be used to create smart cities. 81% of those that responded said yes.
Smart cities would be able to gather data from all sources and manage the assets effectively.
This includes traffic light controls to help traffic keep moving, public transport systems, energy allowances and consumption, and even minimizing waste issues.
The smart system would assist schools, libraries, and even hospitals, providing the information they need to work effectively and efficiently.
The theory is this is desirable as it will minimize the environmental impact of a city and improve its ability to respond to any challenge or disaster.
The Internet of Things statistics paint a clear story.
It’s an industry that has enjoyed steady growth and is about to see a significantly higher rate of growth.
While there are risks associated with IoT, the currently perceived benefits appear to outweigh these risks.
However, one thing that these statistics don’t look at is how the IoT will relate to AI.
They are considered separate industries but there is a significant amount of overlap.
Handled properly AI can massively boost the power and potential of IoT.
However, the risk of serious issues is far greater.
Right now, the main takeaway should be that the IoT industry is vital to the continuation of the digital revolution.
The only questions are how far will it go and how much will you engage with this industry and the associated products?