State of Industrial IoT & Connectivity 2026
The connected factory is no longer aspirational — the number of connected devices crossed 21 billion in 2025, the industrial slice of that market is a multi-hundred-billion-dollar category, and most of the economic value sits inside factory operations. This report pulls together the public figures on where industrial IoT and connectivity stand in 2026, and flags where analyst estimates diverge sharply.
Connected devices crossed 21 billion in 2025
Source: IoT Analytics — State of IoT 2025 — Number of connected IoT devices (2025)
The global installed base of connected IoT devices grew about 14% to roughly 21.1 billion by the end of 2025, and is forecast to reach around 39 billion by 2030 — a compound growth rate near 13%. The curve is steep but no longer exponential: IoT Analytics trimmed its 2025 estimate against an earlier forecast, citing capital-expenditure deferrals and softer demand. For a plant operator the signal is that connectivity is becoming default infrastructure rather than a special project.
Most IoT value sits inside the factory
Source: McKinsey & Company — IoT value set to accelerate through 2030: Where and how to capture it (2021)
Where IoT creates value is more useful than how many devices exist. McKinsey estimates IoT could enable USD 5.5 trillion to USD 12.6 trillion of value globally by 2030, and the factory setting accounts for the single largest slice — around 26% of the total, or roughly USD 1.4 trillion to USD 3.3 trillion. The bulk of that comes not from novel products but from optimising day-to-day operations: condition monitoring, energy management and throughput. The wide range is a deliberate scenario spread, not a precise forecast, and should be treated as approximate.
Market sizing depends heavily on definition
| Source | 2024/25 size | Forecast | CAGR |
|---|---|---|---|
| MarketsandMarkets | $119B (2024) | $286B (2029) | 8.1% |
| Grand View Research | — | $1,693B (2030) | 23.3% |
| IoT Analytics (devices) | 21.1B (2025) | 39B (2030) | ~13% |
Source: MarketsandMarkets — Industrial Internet of Things Market (2024)
The industrial-IoT market itself is large but slippery to measure. MarketsandMarkets put it at about USD 119 billion in 2024, rising to roughly USD 198 billion in 2025 and USD 286 billion by 2029, an 8.1% compound rate. Other reputable firms model the same category at two to three times that base and growth rates above 23% — the gap is almost entirely about scope, namely whether hardware, connectivity and platform services are bundled together. On connectivity, cellular technologies now carry about 22% of all IoT connections, reaching roughly 4.7 billion in 2025, with low-power wide-area standards leading new growth.
FAQ
How many IoT devices are connected worldwide?
Roughly 21.1 billion connected IoT devices were in use at the end of 2025, up about 14% on the year, according to IoT Analytics. The figure is forecast to reach around 39 billion by 2030. Estimates differ between research firms because of differing definitions of what counts as a connected device.
Why do industrial-IoT market figures vary so much?
Because firms define the market differently. Some count only platform and software spend, others bundle in sensors, gateways, connectivity and services. That is why 2030 forecasts range from under USD 300 billion to well over USD 1.5 trillion. Compare like-for-like scope before relying on any single number, and treat the headline value as approximate.
Sources
- IoT Analytics — State of IoT 2025 — Number of connected IoT devices
- McKinsey & Company — IoT value set to accelerate through 2030
- MarketsandMarkets — Industrial Internet of Things Market
- Grand View Research — Industrial Internet of Things (IIoT) Market
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