United States Internet of Things Market By Component, By Connectivity, By End-User, By Region, Competition, Forecast and Opportunities, 2020-2030F

United States Internet of Things (IoT) Market was valued at USD 142.86 billion in 2024 and is expected to reach USD 399.73 billion by 2030 with a CAGR of 18.53% during the forecast period.

The United States Internet of Things (IoT) Market refers to the ecosystem of interconnected devices, sensors, and software platforms that collect, transmit, and analyze data across various applications, enabling smarter decision-making, automation, and operational efficiency. This market encompasses a wide range of components, including hardware such as sensors, actuators, and gateways; software platforms for data management, analytics, and security; and services that facilitate deployment, integration, and maintenance. IoT applications in the United States span multiple sectors, including smart homes, healthcare, manufacturing, transportation, energy, retail, agriculture, and government infrastructure. In the smart home segment, IoT devices such as connected thermostats, lighting systems, security cameras, and voice assistants enhance convenience, energy efficiency, and user comfort.

In industrial and manufacturing environments, Industrial IoT (IIoT) solutions optimize production processes, reduce downtime through predictive maintenance, and improve supply chain visibility. In healthcare, IoT-enabled wearable devices, remote monitoring systems, and connected medical equipment support patient care, real-time diagnostics, and data-driven treatment decisions. The market is also witnessing significant growth in smart city initiatives, where IoT solutions streamline traffic management, waste management, public safety, and energy usage. Key factors driving the growth of the United States IoT market include rapid advancements in wireless connectivity such as 5G, increased adoption of cloud computing and edge analytics, rising demand for automation and efficiency, and the proliferation of artificial intelligence and machine learning for predictive and prescriptive insights.

Key Market Drivers

Advancements in 5G Technology Driving the United States Internet of Things Market

In the rapidly evolving landscape of the United States Internet of Things Market, advancements in 5G technology stand as a pivotal driver, fundamentally transforming connectivity, data transmission speeds, and operational efficiencies across diverse sectors. The deployment of 5G networks enables ultra-low latency, massive device connectivity, and enhanced bandwidth, which are essential for supporting the proliferation of Internet of Things devices in applications ranging from autonomous vehicles to smart factories and remote healthcare monitoring.

Businesses in the United States are leveraging 5G to unlock new revenue streams through innovative services, such as real-time analytics and edge computing, which minimize data processing delays and improve decision-making processes. For instance, manufacturing enterprises are integrating 5G-enabled sensors to optimize supply chain logistics, reducing downtime and enhancing predictive maintenance capabilities, thereby achieving significant cost savings and productivity gains. In the healthcare sector, 5G facilitates seamless telemedicine and wearable device integration, allowing for continuous patient monitoring and rapid response to medical emergencies, which not only improves patient outcomes but also reduces healthcare expenditures.

Moreover, the agricultural industry benefits from 5G-driven precision farming, where Internet of Things sensors monitor soil conditions, weather patterns, and crop health in real time, enabling farmers to make data-driven decisions that boost yields and resource efficiency. The retail sector is also witnessing a paradigm shift with 5G-powered smart shelves and inventory management systems that provide instant stock updates and personalized customer experiences, driving customer loyalty and sales growth. From a strategic perspective, companies investing in 5G infrastructure are positioning themselves for long-term competitive advantages, as the technology supports scalable Internet of Things ecosystems that can handle billions of connected devices without compromising performance.

Government policies and private sector collaborations are accelerating 5G rollout, with spectrum auctions and infrastructure investments ensuring nationwide coverage, particularly in underserved rural areas, thus bridging the digital divide and fostering inclusive economic growth. The synergy between 5G and Internet of Things is also catalyzing innovation in smart cities, where interconnected traffic systems, energy grids, and public safety networks enhance urban living standards and sustainability efforts. Enterprises must navigate challenges such as cybersecurity threats and interoperability issues, but the overarching benefits of 5G in enabling robust, reliable Internet of Things deployments far outweigh these hurdles.

As businesses continue to adopt 5G, the United States Internet of Things Market is poised for exponential expansion, with enhanced connectivity serving as the backbone for digital transformation initiatives that drive operational excellence, innovation, and economic prosperity. Furthermore, the integration of 5G with emerging technologies like artificial intelligence amplifies its impact, allowing for intelligent data processing at the edge, which is crucial for mission-critical applications in defense and emergency services. In summary, the advancements in 5G technology are not merely incremental improvements but a foundational shift that propels the United States Internet of Things Market toward a future of unprecedented connectivity and efficiency, empowering businesses to thrive in a hyper-connected world.

Projections indicate that 5G penetration among United States subscribers will surge to 68 percent by 2025, up from 15 percent in 2021, highlighting the rapid adoption driving Internet of Things connectivity. Additionally, fixed wireless access subscribers are expected to reach 11 million or more by 2025, with major carriers like T-Mobile and Verizon contributing 11 to 13 million customers, underscoring the infrastructure's role in supporting massive Internet of Things device ecosystems and enabling high-speed, low-latency applications across industries. These figures reflect the momentum in network expansion, fostering economic opportunities and technological innovation in the United States Internet of Things Market.

Key Market Challenges

Data Security and Privacy Concerns

One of the primary challenges facing the United States Internet of Things Market is ensuring robust data security and protecting user privacy. Internet of Things devices continuously generate vast amounts of sensitive data, ranging from personal health information in wearable devices to operational data in industrial applications. As the adoption of connected devices increases across industries, the potential for cyberattacks, data breaches, and unauthorized access grows substantially. Companies deploying Internet of Things solutions must implement comprehensive security protocols, including encryption, secure authentication, and regular software updates, to safeguard data integrity. However, the complexity of the Internet of Things ecosystem, which often involves multiple manufacturers, service providers, and cloud platforms, makes maintaining end-to-end security a significant challenge.

Furthermore, privacy regulations such as the California Consumer Privacy Act and other federal guidelines require organizations to adhere to strict data protection standards, increasing the compliance burden for businesses. Failure to address these concerns can lead to reputational damage, financial losses, and legal liabilities, which may hinder the overall adoption of Internet of Things technologies. Consumers and enterprises alike are increasingly cautious about sharing data, and any security vulnerabilities can result in reduced trust and slower market growth. Therefore, companies in the United States Internet of Things Market must invest heavily in advanced cybersecurity measures, continuous monitoring, and risk mitigation strategies to build confidence among end users and ensure sustainable growth.

Key Market Trends

Expansion of Smart Home and Consumer IoT Devices

The expansion of smart home and consumer Internet of Things devices represents a significant trend in the United States Internet of Things Market. Consumers are increasingly adopting connected devices such as smart thermostats, lighting systems, security cameras, smart speakers, and wearable health trackers, driven by the desire for convenience, energy efficiency, and improved quality of life. The trend is supported by growing awareness of the benefits of home automation and the integration of artificial intelligence for personalized experiences. Internet of Things devices in the consumer segment are becoming more intuitive, interoperable, and easy to install, lowering barriers to adoption. Companies are also focusing on creating ecosystems that allow seamless interaction between multiple devices, providing users with a unified experience.

The proliferation of high-speed internet and affordable connectivity options further accelerates adoption, enabling real-time monitoring and remote control of home appliances and personal devices. Additionally, partnerships between technology providers and service companies are facilitating bundled offerings, where consumers can purchase devices along with subscription-based services, further enhancing market penetration.

As the trend continues, manufacturers are investing in research and development to create energy-efficient, secure, and multifunctional devices, which will drive revenue growth for the United States Internet of Things Market. The expansion of smart homes also has ripple effects on related industries, such as energy management, security services, and entertainment, creating additional opportunities for businesses to develop innovative solutions and capture market share. Overall, the rising adoption of consumer Internet of Things devices is expected to remain a key driver of the United States Internet of Things Market, reflecting changing consumer preferences and advancing technological capabilities.

Key Market Players

• Amazon Web Services, Inc.
• Microsoft Corporation
• International Business Machines Corporation (IBM)
• Cisco Systems, Inc.
• Oracle Corporation
• GE Digital, a subsidiary of General Electric Company
• Particle Industries, Inc.
• Konstant Infosolutions Private Limited
• Samsara Networks, Inc
• Honeywell International Inc.

Report Scope:

In this report, the United States Internet of Things (IoT) Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

United States Internet of Things (IoT) Market, By Component:

• Hardware
• Software
• Services

United States Internet of Things (IoT) Market, By Connectivity:

• Cellular
• Wi-Fi
• Bluetooth
• Zigbee
• Others

United States Internet of Things (IoT) Market, By End-user:

• Manufacturing
• Healthcare
• Retail and E-commerce
• Information Technology and Telecommunications
• Transportation and Logistics
• Government and Public Sector
• Energy and Utilities
• Others

United States Internet of Things (IoT) Market, By Region:

• South US
• Midwest US
• North-East US
• West US

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the United States Internet of Things (IoT) Market.

Available Customizations:

United States Internet of Things (IoT) Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).