In 2018, the global market for IoT sensors was valued at approximately US$ 9.46 billion, with projections indicating a robust growth rate of 23.9% CAGR from 2019 to 2027, potentially reaching US$ 65.79 billion by 2027.
The expansion of the IoT ecosystem and the increasing prevalence of connected devices, alongside the booming consumer electronics sector, are key factors propelling the growth of the global IoT sensors market. Conversely, rising security issues pose challenges to the market's expansion. Nevertheless, enhanced governmental initiatives promoting IoT adoption present significant opportunities for the IoT sensors market's development.
The IoT sensors market is characterized by its fragmentation, featuring numerous players and evolving competitive dynamics, which are expected to shift in the coming years. The emergence of IoT technology has facilitated the connectivity of devices via the internet, leading to a surge in global adoption that is projected to connect billions of devices online. Supporting this trend, global data traffic has escalated at an annual growth rate exceeding 65% over the past five years. Furthermore, from 2018 to 2023, data traffic is forecasted to increase at a compound annual growth rate nearing 40%. This remarkable surge in internet data traffic is primarily driven by the rising adoption of smartphones and other internet-enabled consumer electronics, fueled by the growing interest in IoT.
Moreover, not only individuals but also enterprises across various sectors have acknowledged the significance of IoT, communication technologies, and sensors, leading to the integration of sensors into their devices. Consequently, the growth of the IoT sensors market across diverse end-user industries is expected to accelerate significantly in the forthcoming years as IoT continues to gain traction.
The overall size of the IoT sensors market has been determined through a combination of primary and secondary research methodologies. The research process initiates with comprehensive secondary research utilizing both internal and external sources to gather qualitative and quantitative insights related to the IoT sensors market. This research also encompasses an overview and forecast of the global IoT sensors market segmented by five key regions: North America, Europe, Asia-Pacific, the Middle East and Africa, and South America. Additionally, primary interviews with industry stakeholders and experts are conducted to validate the data and analysis. Participants in this process typically include industry professionals such as vice presidents, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the IoT sensors sector. Notable companies operating within the IoT sensors market include Analog Devices, Inc., ARM Holdings PLC, Broadcom, Inc., Honeywell International, Inc., Infineon Technologies AG, NXP Semiconductors N.V., Omron Corporation, Robert Bosch GmbH, STMicroelectronics N.V., and Texas Instruments Incorporated, among others.