IoT in BFSI Market
Report ID: SQMIG45A2680
Report ID: SQMIG45A2680
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Report ID:
SQMIG45A2680 |
Region:
Global |
Published Date: December, 2025
Pages:
178
|Tables:
146
|Figures:
78
Global IoT in BFSI Market size was valued at USD 37.12 Billion in 2024 and is poised to grow from USD 45.32 Billion in 2025 to USD 223.89 Billion by 2033, growing at a CAGR of 22.1% during the forecast period (2026–2033).
Key trends driving the IoT in BFSI market include increasing sales of rooftop solar systems among residential customers, a growing requirement for power backup during outages, government subsidies and incentives for residential energy storage solutions, high electricity costs leading to increased demand for energy independence among homeowners, and advancements in battery technologies that are extending battery lifespan.
As it has become more common for home owners to utilise rooftop solar systems, the demand for residential energy storage has increased. With increasing electricity prices, and regular grid outages, achieving energy independence has become more popular and many more households are looking to invest in backup power options. Government rebates and financial assistance have also helped drive this change, making home battery storage systems more affordable and accessible. At the same time, technological progress in batteries in terms of longer life, quicker charging and greater efficiency has also given consumers a new sense of confidence.
However, the relatively high initial cost of home battery systems as well as installation, lack of awareness about this product in developing parts of the world, absence of consistent policies or schemes in some countries, recycling and environmental issues associated with batteries and structural and space issues in historically old homes that can inhibit installation of batteries is likely to slow down the growth of home battery market over the next few years.
Market snapshot - 2026-2033
Global Market Size
USD 30.4 billion
Largest Segment
Large Enterprises
Fastest Growth
SMEs
Growth Rate
22.1% CAGR
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Global IoT in BFSI Market is segmented by Offering, Business Function, Deployment Type, Organization Size, Vertical and region. Based on Offering, the market is segmented into Hardware, Software and Services. Based on Business Function, the market is segmented into Customer Onboarding, Payments, Transaction Processing, Risk Management and Wealth Management. Based on Deployment Type, the market is segmented into On-premises, Cloud-based and Hybrid. Based on Organization Size, the market is segmented into SME and Large Enterprises. Based on Vertical, the market is segmented into Retail Banking, Commercial Banking, Investment Banking and Insurance. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
Large enterprises are slated to hold the highest global IoT in BFSI market share. High emphasis on large-scale digital transformation in large enterprises is helping bolster the dominance of this segment. The ability of large enterprises to invest heavily in advanced IoT technologies allows them to automate complex workflows and improve decision-making processes.
SMEs are slated to witness a robust hike in demand for IoT in BFSI solutions in the long run. The need for scalable and affordable IoT platforms helps SMEs compete with larger players by streamlining their processes, which is turn is forecasted to create new opportunities for market players through 2032.
Cloud-based deployment is leading the IoT in BFSI market revenue generation over the coming years. Shift towards cloud solutions and demand for scalable banking solutions are helping bolster the high share of this segment. Banks and insurers prefer cloud platforms for their scalability, flexibility, and lower operational costs. Quick deployment and low infrastructure costs are also helping cement the dominance of this segment.
Hybrid deployment is emerging as the fastest-growing segment by offering a balanced approach. Financial institutions are adopting hybrid models to enjoy cloud scalability while maintaining sensitive data on-premises for better control and security. This setup allows firms to innovate with cloud tools while complying with strict data regulations. Hybrid systems are gaining traction as BFSI companies seek flexibility without compromising on security.
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Strong digital infrastructure, high fintech adoption, and cyber security norms are some of the drivers responsible for the growth of North America IoT in BFSI market. The banking ecosystem in the region is well developed and is fast to adapt IoT powered solutions for fraud detection, real time customer service and more so branch automation. By addressing their data privacy concerns, regulatory bodies make it possible and easier for BFSI enterprises to invest in IoT and invest with innovation. Rapid technological advancements in North America are the major factors fueling IoT adoption, since this region is home to some of the leading IoT solution providers and a high number of tech-savvy customers.
Security continues to be of prime importance for IoT in BFSI, the U.S. accounts as the super power lead in investments in IoT thanks to its advanced banking systems, extensive use of mobile banking and active collaboration amongst stakeholders which are driving strong industry segments such as insurance and asset/investment management. IoT is making its way through major banks that helps in smart ATMs, biometric authentication and real-time asset tracking. With support from regulators (e.g., Federal Reserve), digital innovation can flourish by protecting customers' information. With the increasing rate of detection regarding threats at banks, they are driven to adopt IoT enabled monitoring systems to enable them for timely threat identification and cybersecurity measures.
The growth of the IoT in BFSI market is fueled by digital-first banking strategies and smart branch initiatives. Province-wide policies facilitate the growth of fintech and encourage banks to optimize customer experience with IoT-driven automation. The most deployed use cases include fraud management, customer analytics, and contactless payments with the top cities including Toronto and Vancouver. The market in Canada is supported by stringent financial regulations, which balances innovation with data protection.
Rising adoption and increasing installment of cashless payments, triggered by the regulatory impositions especially in developed nations from North America have left Europe as an opportunistic region with maximum installed infrastructure for the automation process boosting acceleration in IoT in BFSI market. IoT solutions are seeing the greatest uptake in the UK, Germany and France where fraud detection using IoT is being implemented over 50% of the time as banks there increasingly turn to deploy smart ATMs and offer their clients personalized experiences. Europe (Open Banking, PSD2 regulations) has become a significant driver for traditional financial institutions to adopt IoT solutions improving customer engagement and operational efficiency.
The UK is at the forefront of IoT adoption in BFSI, driven by its advanced digital banking infrastructure. Financial institutions are using IoT for real-time fraud detection, asset tracking, and improving branch automation. The rise of challenger banks and government-backed Open Banking initiatives is accelerating IoT integration. The customer expectation to have personalized, secure and seamless banking is driving traditional banks to invest in IoT technologies. Meanwhile, in London, new cooperation deals with banks are being forged by IoT solution providers from the finTech capital.
The emergence of Germany as an established country focusing on Cybersecurity and smart banking operation would drive the IoT in BFSI market. In automated branch services, biometric ATMs and predictive maintenance of banking equipment with the help of IoT. The strong industrial IoT ecosystem of the country is supporting BFSI applications such as smart vaults and connected payment devices. Secure IoT frameworks are being adopted by financial institutions under the influence of Germany data privacy laws (GDPR). Banks and tech companies coming together are also driving innovation in automation when it comes to customer service.
In France, the IoT in BFSI market is likely to grow with the emphasis on increasing customer interaction via smart devices and applications. IoT is being used by financial institutions for real-time customer data collection to provide customized financial products. Fintech startups are encouraged through government initiatives such as La French Tech and this is leading to the adoption of IoT in banking services. In France, banks are deploying IoT to enhance the efficiency of branches and turn them into energy saving operations. There is an increasing consumer awareness regarding digital financial services, and hence the banks have now turned to adopting IoT based solutions.
IoT in BFSI market in Asia Pacific is seeing rapid growth due to rising digital banking, fintech innovations, and a tech-savvy population. Governments are pushing smart city projects, which include digital payments and smart insurance services. Countries like Japan and South Korea are leading with strong internet infrastructure, 5G rollout, and regulatory support for open banking. The region’s large unbanked population is also a major driver, with IoT helping banks reach rural and underserved areas through mobile-based financial services.
In Japan, IoT in BFSI is growing due to the country's aging population and need for automated financial services. Banks and insurers are adopting IoT to provide remote customer assistance, automated ATMs, and AI-based insurance claim processing. Japan’s advanced IoT ecosystem, along with government initiatives for cashless transactions, supports this growth. Key players like Mitsubishi UFJ Financial Group are integrating IoT with blockchain to improve payment security and fraud detection.
In South Korea, the IoT in BFSI market is booming as banks and fintech focus on smart branch automation and mobile-first services. The government’s digital finance roadmap encourages IoT-driven solutions for e-payments, robo-advisory, and digital insurance. South Korean firms like KB Kookmin Bank are leveraging IoT for personalized customer experiences using data from smart devices. The country’s high smartphone penetration and 5G infrastructure further accelerate IoT adoption in financial services.
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Growing Demand for Personalized Financial Services
Rising Adoption of Smart ATMs and Branch Automation
Data Privacy and Security Concerns
High Integration Costs and Infrastructure Gaps
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Manufacturers and solution providers in the IoT in BFSI market need to focus on delivering secure, scalable, and user-friendly IoT platforms that integrate smoothly with existing banking and insurance systems. With digital banking on the rise and customers expecting instant, personalized services, financial institutions are seeking robust IoT solutions that enhance customer experience while maintaining data security and compliance.
The competitive landscape is driven by innovations in smart banking devices, AI-driven analytics, and real-time monitoring solutions. Leading companies like IBM, Cisco Systems, and Oracle are at the forefront of this market. IBM is enhancing its position by offering IoT-enabled cognitive banking solutions that help banks predict customer needs and automate workflows. Cisco Systems is focusing on secure IoT network architectures for financial institutions, ensuring safe data flow across devices.
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, the IoT in BFSI market is taking off in light of a combination of increasing electricity prices, electricity outages and a trend for energy self-sufficiency. The IoT in BFSI market penetration is being driven by homeowners looking to rooftop solar with battery storage to reduce dependence on the grid and maintain power reserves. Government subsidies and declining battery prices are beginning to make such systems more affordable. The extension of battery life, safety and smart system integration is also encouraging adoption. The biggest is lithium ion, but flow and second-life batteries are making inroads, on account of safety, recyclability and longevity. Grid connected systems continue to be the most popular, particularly where policies support them, but off grid systems continue to grow in remote locations. North America is in the lead, boosted by rebates, weather and solar-friendly policies. Europe is the fastest-growing region due to climate goals, high power prices and robust solar adoption.
| Report Metric | Details |
|---|---|
| Market size value in BFSI | USD 37.12 Billion |
| Market size value in 2033 | USD 223.89 Billion |
| Growth Rate | 22.1% |
| Base year | 2024 |
| Forecast period | 2026-2033 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
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| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
Methodology
For the IoT in BFSI Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the IoT in BFSI Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
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Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the IoT in BFSI Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the IoT in BFSI Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
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Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
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