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IoT Engineering Services Market Poised To Hit $140.74 Billion By 2030 With A 24.9% CAGR
The iot engineering services market has recently seen significant growth in its size. This market is expected to expand from $46.46 billion in 2025 to $57.85 billion in 2026, exhibiting a compound annual growth rate (CAGR) of 24.5%. The historical development of the market can be linked to the rise of digital transformation initiatives, increasing adoption of connected devices, greater demand for enterprise automation, the expansion of remote operations, and an early focus on improving operational efficiency.
The iot engineering services market is projected to experience rapid expansion over the coming years. Its valuation is set to reach $140.74 billion by 2030, driven by a compound annual growth rate (CAGR) of 24.9%. This anticipated growth during the forecast period stems from factors such as the expanding deployment of connected infrastructure, a heightened need for secure IoT environments, increased capital allocation towards smart industries, the spread of enterprise-wide automation, and a greater emphasis on predictive performance analytics. Key trends expected during this period involve an intensified focus on overseeing business performance, a surge in the embrace of connected enterprise solutions, a heightened call for optimizing operational expenses, the broadening of remote monitoring and automation functionalities, and a greater utilization of integrated engineering and deployment services.
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IoT Engineering Services Market Growth Factors: What’s Supporting Expansion?
The anticipated growth of the IoT engineering services market is linked to the increasing need for IoT solutions within smart manufacturing. Smart manufacturing encompasses a wide range of manufacturing processes that leverage computer-integrated programs for designing, developing, monitoring, and streamlining supply chain functions. Businesses employ IoT solutions in their smart manufacturing divisions to automate tasks, facilitating asset enablement and monitoring, managing production workflows, and offering valuable insights into operational activities. As an illustration, in August 2025, data from Eurostat, the Luxembourg-based statistical office of the European Union, indicated that 70.9% of individuals in the EU utilized internet-connected devices in 2024, with the Netherlands recording the highest adoption rate at 94.8%. Consequently, the heightened demand for IoT solutions in smart manufacturing is a primary catalyst for the expansion of the IoT engineering services market.
IoT Engineering Services Market Segmentation: How Does The Market Break Down By Category?
The iot engineering services market covered in this report is segmented –
1) By Service Type: Product Engineering, Cloud Engineering, Experience Engineering, Analytics Services, Maintenance Services, Security Engineering, Other Service Types
2) By Size Of Organization: Small Enterprises, Mid-Size Enterprises, Large Enterprises
3) By End Users: Healthcare, Automotive, Information Technology And Telecom, Building Automation, Agriculture, Public Utility, Retail, Other End Users
Subsegments:
1) By Product Engineering: Hardware Development, Firmware Development, Software Development
2) By Cloud Engineering: Cloud Infrastructure Setup, Cloud Application Development, Cloud Migration Services
3) By Experience Engineering: User Experience (UX) Design, User Interface (UI) Development, Prototyping And Testing
4) By Analytics Services: Data Collection And Integration, Data Analytics And Visualization, Predictive Analytics
5) By Maintenance Services: System Monitoring, Technical Support, Software Updates
6) By Security Engineering: IoT Device Security, Network Security, Data Encryption
7) By Other Service Types: Consulting Services, Training And Development, Custom Solutions
IoT Engineering Services Market Industry Trends: What’s Reshaping Demand?
Leading companies in the IoT engineering services market are innovating with new on-device connectivity software solutions to secure a competitive advantage. On-device connectivity software solutions encompass applications and technologies that enable devices to establish and oversee network connections, facilitating communication and data exchange independently of relying solely on cloud-based or external servers. For instance, in January 2023, Eseye, a UK-based IoT solutions company, unveiled AnyNet SMARTconnect, an on-device connectivity software solution tailored for IoT devices. This solution is engineered to substantially reduce development time, enhance resilience, and lower engineering costs. AnyNet SMARTconnect embeds intelligent global IoT connectivity directly into devices, speeding up time-to-market by as much as nine months. The solution draws on Eseye’s extensive connectivity expertise and is offered as an independent plug-in software module, providing the flexibility needed to address current and future supply chain complexities while supporting global deployments.
IoT Engineering Services Market Competitive Overview And Top Companies
Major companies operating in the iot engineering services market report are Tata Consultancy Services Limited, Infosys Limited, Cognizant Technology Solutions Corporation, Happiest Minds Technologies Limited, Capgemini SE, IBM Corporation, Innowise Group, Integra Sources LLC, Softeq Development Corporation, Accenture plc, Wipro Limited, HCL Technologies Limited, Tech Mahindra Limited, Mindtree Limited, Virtusa Corporation, NTT Data Corporation, Luxoft Holding Inc., EPAM Systems Inc., Coforge Limited, Lochbridge Inc.
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IoT Engineering Services Market Regional Split: Which Areas Are Fueling Growth?
North America was the largest region in the IoT engineering services market in 2025.Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the iot engineering services market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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Wasay has over a decade of experience in market research, data modelling, and analytics, with prior experience at GlobalData and Decision Tree Consulting Services. At The Business Research Company , he leads research operations across syndicated studies, customized consulting engagements, and the Global Market Model platform. His professional experience includes supporting organizations such as Boston Consulting Group, KPMG, and Ernst & Young. Wasay holds a degree in Electronics and Communications Engineering, postgraduate management qualifications from International Management Institute Belgium and Indian School of Business and Entrepreneurship, and completed the Integrated Program in Business Analytics from Indian Institute of Management Indore.