Global IoT Procurement Market Trend By Type (Hardware, Software), By Application (Manufacturing Operations, Asset Management and Maintenance), By Geographic Scope And Forecast

The Global IoT Procurement Market was valued at USD 15.3 billion in 2023 and is projected to surpass USD 41.8 billion by 2031, registering a CAGR of 13.2% during the forecast period of 2023–2031. The growth is driven by the increasing adoption of IoT technologies to enhance procurement processes, optimize supply chains, and improve operational efficiencies. IoT-enabled procurement solutions provide real-time data, predictive analytics, and automation capabilities, empowering organizations to make informed decisions and reduce costs.

Drivers:

Rising Adoption of IoT Across Industries: Organizations are increasingly integrating IoT into their procurement functions to monitor inventory, streamline vendor management, and enhance decision-making processes.

Advancements in Data Analytics: IoT generates large volumes of data. Combined with analytics and AI, it drives actionable insights for optimizing procurement strategies.

Demand for Cost Efficiency: IoT in procurement reduces manual errors, minimizes operational costs, and enhances transparency in supply chains.

Restraints:

High Initial Investment: Implementing IoT infrastructure involves substantial costs, which can be a barrier for small and medium-sized enterprises.

Data Security and Privacy Concerns: The increased connectivity of devices introduces vulnerabilities, making data breaches a significant concern for businesses.

Opportunity:

Emerging Economies: Growing digital transformation in emerging markets presents opportunities for IoT procurement adoption.

Integration with Blockchain: Combining IoT with blockchain enhances data security and provides immutable transaction records, enabling trust in procurement operations.

Market by System Type Insights:

The IoT Hardware segment dominated the market in 2023, owing to the growing demand for sensors, RFID tags, and connected devices. However, the IoT Software segment is expected to witness the fastest growth during the forecast period, driven by advancements in cloud-based platforms and analytics tools.

Market by End-use Insights:

The Retail sector accounted for the largest market share in 2023, with businesses leveraging IoT for inventory management, real-time tracking, and demand forecasting. The Healthcare sector is poised to exhibit significant growth, driven by the need for connected medical devices and efficient supply chain management.

Market by Regional Insights:

North America held the largest market share in 2023, attributed to technological advancements, high IoT adoption rates, and significant investments in digital infrastructure. Asia-Pacific is anticipated to grow at the highest CAGR, driven by rapid industrialization, urbanization, and government initiatives promoting IoT adoption.

Competitive Scenario:

Key players in the market include IBM Corporation, Cisco Systems, Oracle Corporation, SAP SE, Siemens AG, Intel Corporation, and Zebra Technologies. These companies focus on technological innovations, strategic partnerships, and expanding their IoT solutions portfolios.

Scope of Work – Global IoT Procurement Market

Key Market Developments:

2023: IBM launched a blockchain-enabled IoT procurement platform for enhancing supply chain transparency.

2024: Cisco introduced IoT sensors with advanced analytics for real-time supply chain monitoring.

2025: SAP SE partnered with a leading logistics provider to integrate IoT solutions for demand forecasting and inventory optimization.

FAQs:

What is the current market size of the Global IoT Procurement Market?

The market was valued at USD 15.3 billion in 2023.

What is the major growth driver of the Global IoT Procurement Market?

The key driver is the integration of IoT with advanced analytics to optimize procurement and supply chain management.

Which is the largest region during the forecast period in the Global IoT Procurement Market?

North America dominates the market, with Asia-Pacific experiencing the highest growth.

Which segment accounted for the largest market share in the Global IoT Procurement Market?

The IoT Hardware segment held the largest market share in 2023.

Who are the key market players in the Global IoT Procurement Market?

Major players include IBM Corporation, Cisco Systems, Oracle Corporation, SAP SE, Siemens AG, Intel Corporation, and Zebra Technologies.