The global market for IoT sensors was valued at approximately US$ 9.46 billion in 2018 and is projected to experience a remarkable growth rate of 23.9% CAGR from 2019 to 2027, ultimately reaching around US$ 65.79 billion by 2027.
Several factors are propelling the expansion of the IoT sensors market, notably the increasing prevalence of IoT and connected devices, alongside the burgeoning consumer electronics sector. However, the market's growth is being hindered by rising security concerns associated with IoT technologies. On the other hand, enhanced government initiatives promoting the adoption of IoT present significant opportunities for market growth.
The IoT sensors market is characterized by its fragmentation, with numerous industries participating and competitive dynamics that are expected to evolve in the coming years. The emergence of IoT has facilitated the connectivity of devices over 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 grow at a compound annual growth rate of nearly 40%. This rapid increase in internet data traffic is primarily driven by the rising penetration of smartphones and other internet-enabled consumer electronics, which are gaining popularity due to the IoT movement.
In addition to individual consumers, businesses across various sectors have recognized the critical role of IoT, communications, and sensors, leading to the integration of these technologies into their devices. Consequently, the growth of the IoT sensors market across different end-user industries is expected to accelerate significantly 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 methods. The research process commenced with extensive secondary research utilizing both internal and external sources to gather qualitative and quantitative insights related to the IoT sensors market. This research also includes 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 were conducted with industry participants and experts to validate the data and analysis. Participants in this process typically include industry professionals such as VPs, 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.
Key players in 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.