U.S. Internet Of Things Market Size & Trends
The internet of things market in the United States was valued at USD 413.22 billion in 2024 and is expected to expand at a compound annual growth rate (CAGR) of 7.6% between 2025 and 2030. The main factors propelling the market are growing government initiatives that support smart cities and infrastructure, the broad implementation of Industrial IoT (IIoT) in manufacturing, and the rising demand for smart devices. The U.S. internet of things (IoT) market is expected to grow in the upcoming years due to the quick integration of IoT solutions by industries including retail, healthcare, and agriculture, which is aided by the presence of significant technological companies in the country.
The combination of cloud/edge computing and artificial intelligence (AI) is a major factor propelling the U.S. IoT market since it allows for scalable IoT deployments, automation, and real-time analytics. Traditional hardware-heavy models are being transformed by this move toward software-centric IoT solutions, which is also speeding up digital transformation across industries. IoT systems may use AI algorithms to evaluate vast volumes of sensor data and make intelligent, autonomous decisions. Such technology helps to forecast maintenance requirements, increase productivity, and enable prompt actions in industries like manufacturing, shipping, and healthcare.
The development of 5G networks and low-power wide-area networks (LPWAN) like NB-IoT and LTE-M are two important developments that are improving the connection of IoT devices in the United States. With their low latency, wide coverage, and energy economy, these technologies open up new applications in connected cars, smart cities, and industrial automation. The extension of private 5G networks and multi-profile eSIM solutions is accelerating the growth of the internet of things sector in the United States, further facilitating scalable and secure IoT deployments.
Furthermore, IoT security has emerged as a key concern in the US industry due to the increasing number of connected devices. To protect IoT ecosystems, trends include the use of multi-factor authentication, blockchain, improved encryption standards, and AI-driven threat detection. These developments tackle growing worries about cyber risks and data privacy, which are essential for speeding up the adoption of IoT in businesses and by consumers. In the upcoming years, it is anticipated that these developments will propel the segmental expansion.
Furthermore, to improve connectivity, security, and real-time data processing, American businesses are making significant investments in 5G and edge computing technology. To increase market reach and boost operational efficiency, U.S. companies prioritize vertically specific IoT solutions and customize products to meet industry demands such as manufacturing, smart infrastructure, and healthcare. They also maximize channel alliances and ecosystem collaborations. In the upcoming years, the U.S. internet of things business is anticipated to grow as a result of these main companies' strategy.
Component Insights
The hardware segment registered the largest market share of over 56%, in 2024. The proliferation of 5G connectivity and edge computing is revolutionizing the IoT hardware landscape in the U.S. 5G's ultra-low latency and high-speed data transfer capabilities enable real-time communication among IoT devices, essential for applications like autonomous vehicles and smart manufacturing. Combined with edge computing, which processes data closer to the source, these technologies enhance responsiveness and reduce reliance on centralized data centers. This synergy is particularly impactful in sectors requiring immediate data processing and decision-making, such as healthcare and industrial automation. These factors are expected to drive segmental growth in the coming years.
The services segment is expected to grow at the fastest CAGR of over 10% from 2025 to 2030, owing to increased integration of AI, cloud, and edge computing, which provide scalable, secure IoT management and analytics solutions. Enterprises are adopting software-as-a-service (SaaS) and infrastructure-as-a-service (IaaS) models to accelerate deployment and improve operational efficiency. Sustainability initiatives and regulatory compliance are also driving demand for sophisticated IoT services in sectors such as energy, utilities, and smart infrastructure, thereby driving the segmental growth.
Report Coverage & Deliverables
The PDF report & online dashboard will help you understand
- Competitive benchmarking
- Historical data & forecasts
- Company revenue shares
- Regional opportunities
- Latest trends & dynamics
Deployment Insights
The on-premises segment registered the largest market share in 2024, driven by the need for stringent data privacy, low latency, and compliance with regulatory requirements, especially in sectors like manufacturing, healthcare, aerospace, and defense. Organizations prefer on-premises deployments to maintain full control over sensitive data and ensure real-time processing without dependence on cloud connectivity. This approach supports mission-critical applications where immediate response and high security are paramount. Important trends are connecting IoT with current business systems, using edge computing to handle data nearby, and creating hybrid models that mix on-premises control with cloud flexibility to improve efficiency and innovation, which helps the growth of this area.
The cloud segment is expected to register a significant CAGR from 2025 to 2030. Scalability, flexibility, and cost-effectiveness propel this growth across industries like consumer electronics, retail, smart cities, and logistics. The cloud enables centralized device management, big data analytics, AI integration, and seamless software updates, accelerating IoT adoption. Trends include rapid growth in small- and mid-sized enterprises (SMEs) adopting affordable, easy-to-deploy cloud IoT solutions, increasing use of AI-powered analytics for real-time insights, and expanding hybrid cloud-edge architectures, which are driving the segment’s growth.
Connectivity Insights
The Wi-Fi segment registered the largest revenue share in 2024, owing to its widespread infrastructure and growing investments in advanced smart technologies and digitization. It provides seamless, high-speed communication and connectivity for a wide range of IoT devices, enhancing performance and reliability across applications. The increasing adoption of Wi-Fi-enabled consumer electronics, such as wearables, streaming devices, and smart home management systems, is a key driver. Additionally, Wi-Fi’s ability to support large data volumes and real-time communication makes it essential for IoT projects in both residential and commercial sectors, thereby driving the segmental growth.
The Z-wave segment is anticipated to witness significant growth from 2025 to 2030, driven primarily by the rising demand for smart home automation solutions. Z-Wave’s low power consumption, long-range capabilities, and mesh network architecture make it ideal for smart thermostats, locks, lighting, and sensors. Its strong presence in home automation, security systems, and smart city infrastructure supports efficient and reliable device communication. The growth is further fueled by increasing adoption of IoT in residential and commercial buildings, government support for smart city initiatives, and consumer preference for energy-efficient, interoperable smart devices.
End Use Insights
The consumer electronics segment in the market registered the largest share in 2024, driven by rising demand for smart, connected devices that enhance convenience, security, and lifestyle quality. Key factors include widespread adoption of smart home technologies such as thermostats, security cameras, and voice assistants, along with growth in wearables like smartwatches and fitness trackers that support health monitoring. Advances in AI, cloud computing, and 5G connectivity further fuel adoption by enabling smarter, more responsive devices. Additionally, increasing consumer focus on energy efficiency and sustainability through IoT-enabled appliances contributes to market growth.
From 2025 to 2030, we anticipate the aerospace and defense segment to record the fastest growth. This surge is primarily driven by the need for enhanced operational efficiency, real-time asset tracking, predictive maintenance, and improved safety through IoT technologies. The integration of IoT with AI, edge computing, and secure connectivity enables better monitoring of aircraft systems, supply chains, and defense infrastructure. Growing investments in smart manufacturing, autonomous systems, and cybersecurity drive IoT adoption in this sector, supporting mission-critical operations and compliance with stringent regulatory standards. These factors collectively position aerospace and defense as key growth areas within the broader U.S. industrial IoT market.
Key U.S. Internet Of Things Company Insights
Some of the key players operating in the market include Amazon.com, Inc., and Siemens AG, among others.
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Amazon.com, Inc. offers a robust suite of IoT services through AWS IoT, enabling U.S. businesses to efficiently build, manage, and analyze IoT applications at scale. The platform provides device software, connectivity, control, and advanced analytics with a strong emphasis on multi-layered security and AI integration. AWS IoT supports massive device deployments and high message volumes, helping organizations reduce development costs and scale their IoT platforms to meet growing demands.
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Cisco Systems Inc. delivers comprehensive IoT solutions tailored for the U.S. market, including platforms and software that ensure secure connectivity, data processing, and analytics across industries such as industrial, transportation, and smart cities. The company’s industrial networking and automation tools extend connectivity to harsh environments, offering enhanced visibility and control over complex networks. Their solutions streamline data flow from edge devices to multicloud environments, enabling real-time insights, accelerating business outcomes, and supporting scalable, flexible IoT deployments.
AT&T and Celona, Inc., are some of the emerging market participants in the U.S. Internet of Things (IoT) market.
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AT&T specializes in secure and reliable IoT connectivity and comprehensive solutions that enable organizations to connect, manage, and optimize devices and applications across industries such as manufacturing, transportation, and healthcare. Its IoT platform includes advanced management tools, edge computing solutions, and a large catalog of pre-certified devices, supporting real-time decision-making and operational efficiency.
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Celona, Inc., is an emerging U.S.-based company specializing in private 5G solutions tailored for IoT applications requiring reliable, secure, and low-latency wireless connectivity. The company offers turnkey private 5G networks that enable enterprises to deploy wireless infrastructure optimized for industrial automation, smart buildings, and other IoT use cases. Celona’s technology supports seamless integration with existing IT environments and provides enhanced network control, security, and performance.
Key U.S. Internet Of Things Companies
- AT&T
- Celona, Inc.
- SAP SE
- PTC Inc.
- Cisco Systems, Inc.
- IBM Corporation
- Microsoft Corporation
- Intel Corporation
- Siemens AG
- Amazon Web Services (AWS)
- Oracle Corporation
- General Electric Company (GE)
Recent Developments
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In May 2025, Cisco Jasper (Cisco Systems, Inc.) expanded its IoT platform, Control Center 7.0, by adding support for low-power wide-area network (LPWAN) standards such as narrowband IoT (NB-IoT) and LTE-M, addressing the growing need for scalable and manageable IoT deployments.
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In April 2025, IBM Corporation announced a USD 150 billion investment in America over the next five years to accelerate technological advancement and reinforce its leadership in computing and artificial intelligence. The investment aims to drive economic growth, create jobs, and maintain IBM’s pivotal role in powering critical industries and national infrastructure.
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In March 2025, Alcatel-Lucent Enterprise (ALE) launched an innovative Private 5G solution powered by Celona, aimed at expanding IoT connectivity in complex industrial environments. This turnkey solution integrates seamlessly with ALE’s existing networking portfolio, including OmniVista, OmniSwitch, and OmniAccess Stellar, to provide secure, high-quality wireless coverage across large outdoor spaces and challenging settings such as manufacturing plants, refineries, logistics warehouses, ports, and airport apron areas.
U.S. Internet Of Things Market Report Scope
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Report Attribute |
Details |
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Market size value in 2025 |
USD 463.10 billion |
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Revenue forecast in 2030 |
USD 667.01 billion |
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Growth rate |
CAGR of 7.6% from 2025 to 2030 |
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Actual data |
2018–2024 |
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Forecast period |
2025-2030 |
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Quantitative units |
Revenue in USD million/billion and CAGR from 2025 to 2030 |
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Report Deployment |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
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Segments covered |
Component, deployment, connectivity, end use |
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Country scope |
U.S. |
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Key companies profiled |
AT&T; Celona Inc.; SAP SE; PTC Inc.; Cisco Systems Inc.; IBM Corporation; Microsoft Corporation; Intel Corporation; Siemens AG; Amazon Web Services (AWS); Oracle Corporation; and General Electric Company (GE). |
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Customization scope |
Free report customization (equivalent to up to 8 analysts' working days) with purchase. You can include or modify the scope of the country, region, and segment. |
|
Pricing and purchase options |
Avail yourself of customized purchase options to meet your exact research needs. Explore purchase options |
U.S. Internet Of Things Market Report Segmentation
This report forecasts revenue growth at the country level and provides an analysis of the latest industry trends in each of the subsegments from 2018 to 2030. For this study, MIR has segmented the U.S. internet of things market report based on component, deployment, connectivity, and end use
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Component Outlook (Revenue, USD Billion, 2018-2030)
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Hardware
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Software
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Services
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Deployment Outlook (Revenue, USD Billion, 2018-2030)
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On-premise
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Cloud
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Connectivity Outlook (Revenue, USD Billion, 2018-2030)
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Zigbee
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Bluetooth
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Z-Wave
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Others
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End Use Outlook (Revenue, USD Billion, 2018-2030)
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Consumer Electronics
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Wearable Devices
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Automotive & Transportation
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BFSI
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Healthcare
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Retail
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Building Automation
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Oil & Gas
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Agriculture
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Aerospace & Defense
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Others
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