IoT Procurement Market
Report ID: SQMIG45I2342
Report ID: SQMIG45I2342
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USA +1 351-333-4748
Report ID:
SQMIG45I2342 |
Region:
Global |
Published Date: February, 2026
Pages:
157
|Tables:
93
|Figures:
76
Global Iot Procurement Market size was valued at USD 24.7 Billion in 2024 and is poised to grow from USD 27.02 Billion in 2025 to USD 55.44 Billion by 2033, growing at a CAGR of 9.4% during the forecast period (2026-2033).
The primary driver of the IoT procurement market is the quest for operational visibility that converts raw sensor data into actionable purchasing decisions. IoT procurement encompasses acquisition of connected sensors, network services, analytics platforms and support services that enable procurement teams to track asset health, consumption patterns and supplier performance in real time. This market matters because it reduces stockouts, lowers emergency spend and shortens procurement cycles while supporting sustainability goals through waste reduction. Over the decade procurement moved from catalog orders to automated, event-driven replenishment, exemplified by retailers using RFID-enabled inventory and manufacturers deploying sensors for predictive parts ordering.A central factor propelling growth in the global IoT procurement market is the maturation of connectivity and analytics, because improved network reliability and affordable cloud computation make sensor deployments viable. As connectivity costs fall, procurement teams purchase more devices and subscribe to analytics, which enables predictive maintenance that reduces unplanned downtime and emergency spare parts buying in manufacturing. Similarly, retailers adopt automated replenishment to shrink stockouts and lower carrying costs, creating demand for integrated procurement platforms. In healthcare patient monitoring drives procurement of secure devices, and these use cases create opportunities for global procurement-as-a-service, supplier consolidation and circular procurement models.
How is AI transforming procurement decisions in the IoT market?
AI is reshaping procurement decisions in the IoT market by turning continuous sensor streams into actionable purchasing insight. Key aspects include real time demand sensing, predictive maintenance driven forecasts and AI guided supplier matching that factors in interoperability and lifecycle risk. The current state shows procurement teams shifting from manual sourcing to data driven workflows that prioritize resilience and operational fit. Contextually, buyers across manufacturing and infrastructure are adopting AI assistants that translate machine health and usage signals into spare part recommendations and sourcing alerts, making procurement more proactive and aligned with operational needs.Siemens March 2025, the company expanded Industrial Copilot with a generative AI maintenance offering that turns IoT data into repair and replacement guidance, helping procurement move from reactive buying to anticipatory sourcing and improving efficiency in IoT device and parts acquisition.
Market snapshot - (2026-2033)
Global Market Size
USD 24.7 Billion
Largest Segment
Hardware
Fastest Growth
Software
Growth Rate
9.4% CAGR
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Global iot procurement market is segmented by component, application, end-use industry and region. Based on component, the market is segmented into Hardware, Software and Services. Based on application, the market is segmented into Manufacturing Operations, Asset Management & Maintenance, Field Service and Others. Based on end-use industry, the market is segmented into Retail, Healthcare, Manufacturing, Transportation and Others. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
Hardware segment dominates because procurement in IoT is driven by the tangible need for sensors, gateways and edge devices that enable ecosystem functionality. Physical device supply requirements create procurement complexity, long lead times and vendor qualification demands, which prioritize capital allocation and strategic sourcing. As procurement teams focus on compatibility, ruggedization, interoperability and reliability concerns, hardware purchasing drives volume, contract negotiation and supplier management across IoT deployments.
However, software is witnessing the strongest growth momentum as platforms for device management, analytics and security become central procurement priorities. Increases in subscription models, integration needs and continuous feature rollouts drive ongoing procurement and create opportunities for vendor partnerships, enabling scalable deployments and expanding procurement of service linked software offerings.
Manufacturing Operations segment dominates because factories and production environments demand dense sensor networks, real-time monitoring and control systems that are core to IoT procurement. Procurement prioritizes durable hardware, standardized protocols and integration with existing automation, which increases procurement complexity and strategic sourcing. Reliability, uptime requirements and vendor certification influence long term contracts and supplier consolidation, positioning manufacturing operations as the primary driver of procurement roadmaps and investment decisions, and warranty management.
However, asset management and maintenance is emerging as the high growth area as predictive maintenance, remote diagnostics and condition monitoring drive procurement of sensors and analytics. Demand for lifecycle visibility and reduced downtime encourages recurring procurement and vendor ecosystems, accelerating IoT procurement toward outcome based contracts and aftermarket solutions.
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North America leads due to a concentration of large enterprises, innovative vendors, and mature procurement practices that collectively shape demand and supply dynamics. A sophisticated vendor ecosystem offers end to end solutions combining hardware, connectivity, cloud services, and analytics, enabling strategic sourcing and integrated procurement workflows. Strong enterprise adoption across sectors such as manufacturing, healthcare, and utilities creates consistent procurement requirements that favor large scale providers and specialized procurement platforms. Supportive legal frameworks and emphasis on cybersecurity and data governance promote risk aware procurement decisions. The region benefits from deep capital markets and an experienced professional services sector that accelerates procurement transformation and fosters partnerships between procurement teams and technology suppliers.
IoT Procurement Market in United States is characterized by advanced strategic sourcing practices, extensive enterprise scale deployments, and a dense vendor ecosystem offering integrated hardware, connectivity, and analytics. Procurement functions emphasize risk management, security assurance, and supplier consolidation to simplify complex procurement cycles. Public procurement and critical infrastructure requirements introduce formal compliance pathways, while commercial sectors demand flexible contracting, rapid proof of concept, and strong vendor service level commitments overall.
IoT Procurement Market in Canada reflects close alignment with North America supply chains, a strong focus on smart city and energy sector deployments, and collaborative procurement approaches among public and private buyers. Procurement teams prioritize privacy, security, and supplier resilience, favoring solutions that balance innovation with regulatory compliance. Local innovation hubs and cross border vendor partnerships enable tailored procurement strategies that address regional infrastructure needs and support digital transformation initiatives.
Asia Pacific expansion is driven by a convergence of advanced manufacturing ecosystems, dense electronics supply chains, and proactive public policy supporting digitalization. High adoption among telecom, automotive, and industrial sectors creates vigorous demand for procurement solutions that can manage complex supplier networks, local sourcing, and integration with connectivity platforms. Strong domestic vendors and systems integrators offer configurable procurement models that lower implementation friction for buyers. Rapid urbanization and smart city initiatives stimulate municipal procurement of sensor networks and platform services, while a vibrant startup community and competitive vendor pricing encourage experimentation and faster procurement cycles. Investment in high speed connectivity and expanding cloud capacity enables procurement platforms to support distributed operations and advanced analytics. Governments and industry consortia promote standardized procurement frameworks and vendor certification to reduce procurement risk and accelerate adoption.
IoT Procurement Market in Japan emphasizes precision procurement aligned with advanced manufacturing and robotics sectors, prioritizing long term supplier relationships and component quality. Procurement teams integrate planning with factory automation to secure reliable supply of specialized sensors and control systems. Domestic system integrators and established vendors support rigorous validation and compliance processes, while procurement approaches favor modular, interoperable solutions that fit continuous improvement cycles and sustain resilience and maintain performance.
IoT Procurement Market in South Korea is shaped by advanced telecommunications infrastructure and a strong electronics manufacturing base, enabling rapid deployment of connected devices and integrated platforms. Procurement teams work closely with conglomerates and agile startups to source high performance components and connectivity solutions. Government led initiatives and industry partnerships promote supplier certification and interoperability. Procurement emphasizes speed to deployment, supplier accountability, and flexible contracting that supports localized production objectives.
Europe is strengthening its IoT procurement position through a combination of regulatory clarity, focus on interoperability, and strategic public procurement programs that prioritize sustainability and security. Strong industrial hubs and well established engineering firms drive demand for procurement solutions tailored to manufacturing, transport, and energy sectors, while collaborative procurement initiatives across borders encourage vendor standardization and certification. Emphasis on data protection and secure design leads procurement teams to favor vendors with demonstrable compliance and robust cybersecurity practices. Investment in skills development and public private partnerships supports more sophisticated procurement approaches, enabling buyers to balance resilience, local supply continuity, and long term total cost considerations in selecting IoT solutions. Regional consortia advance common procurement frameworks and certification, reducing buyer risk and easing cross border sourcing. Buyers also integrate environmental and circular economy criteria into procurement, increasing demand for transparent, sustainable solutions.
IoT Procurement Market in Germany centers on advanced industrial modernization procurement practices, with strong emphasis on integration of automation, precision engineering, and supplier reliability. Procurement teams favor deep collaboration with OEMs and established industrial suppliers to ensure compatibility with manufacturing execution systems and long term maintenance. Local vendor ecosystems support certified components and modular solutions, while sustainability and energy efficiency considerations increasingly shape procurement requirements across industrial and logistics sectors.
IoT Procurement Market in United Kingdom reflects a blend of public procurement modernization and private sector innovation, notably in financial services, transport, and smart city initiatives. Procurement functions emphasize supplier flexibility, outcome based contracting, and rapid prototyping pathways to accelerate adoption. A vibrant services sector and strong technology hubs support managed service offerings and platform centric procurement. Data governance and security practices remain central to supplier selection and procurement governance.
IoT Procurement Market in France is influenced by a strong industrial base in transport, energy, and aerospace, combined with centralized public procurement mechanisms that can drive scale deployments. Procurement teams emphasize vendor reliability, security, and alignment with national industrial strategies, encouraging certified domestic suppliers and strategic partnerships. Research institutions and innovation clusters support proof of concept programs that inform procurement specifications, while environmental and localization considerations increasingly guide procurement decisions.
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Proliferation Of Connected Devices
He growing abundance of connected sensors, endpoints, and smart products across industries increases procurement demand by expanding the variety and volume of items organizations must source and integrate. Procurement teams are required to evaluate compatibility, lifecycle support, and vendor ecosystems, prompting adoption of specialized IoT procurement processes and platforms. This proliferation stimulates suppliers to offer bundled services and standardized procurement options that simplify acquisition, thereby strengthening market activity and creating sustained demand for procurement solutions tailored to complex IoT portfolios.
Demand For Cloud Analytics Services
Adoption of cloud-based platforms and advanced analytics enhances the capability of organizations to manage complex IoT procurement by centralizing device inventories, streamlining vendor interactions, and enabling evidence-based decision making. These capabilities reduce procurement friction, support modular purchasing approaches, and encourage procurement teams to embrace integrated solutions that combine hardware, connectivity, and platform services. As cloud services mature and analytics deliver clearer operational insights, procurement processes shift toward standardized, scalable models that reinforce market expansion for specialized IoT procurement offerings and service providers.
Lack Of Interoperability Standards
Lack of widely accepted interoperability standards complicates procurement by making it difficult for purchasers to ensure that devices, platforms, and services from different vendors will function together seamlessly. Procurement teams face prolonged evaluation cycles, increased reliance on bespoke integration, and higher perceived risk of vendor lock-in, which discourages large-scale purchasing commitments. This uncertainty leads organizations to prefer incremental deployments or standardized vendor ecosystems, thereby limiting broad market uptake and slowing the growth of procurement solutions that depend on cross-vendor compatibility.
Data Privacy Concerns
Lingering concerns about data privacy and device security create significant restraint on IoT procurement by increasing organizational reluctance to onboard unfamiliar vendors and devices without strong assurances of protection. Procurement functions must prioritize privacy impact assessments, vendor security credentials, and compliance alignment, which lengthens procurement cycles and raises perceived implementation risk. This heightened emphasis on data governance steers buyers toward conservative procurement choices and trusted relationships, reducing exploratory purchases and limiting the breadth of suppliers considered for IoT deployments overall.
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Competitive landscape is shaped by incumbent consolidation and specialist entrants competing on design to source intelligence, digital marketplaces and embedded procurement features. Mergers such as Siemens acquisition of Supplyframe and PTC acquisition of Arena illustrate consolidation. Strategic partnerships and product integrations with ERP and PLM vendors and investments in marketplace and digital twin capabilities drive procurement differentiation and speed supplier selection and component sourcing.
Top Player’s Company Profile
Recent Developments
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 global IoT procurement market is driven primarily by the quest for operational visibility that turns continuous sensor data into actionable purchasing decisions and is further accelerated by the maturation of connectivity and cloud analytics which lower deployment costs and enable predictive use cases. However growth is restrained by a lack of interoperability standards that lengthen evaluation cycles and raise integration risk. North America remains the dominant region supported by mature procurement practices and a rich vendor ecosystem, while the hardware component dominates procurement volumes because sensors gateways and edge devices create tangible supply needs and long lead times.
| Report Metric | Details |
|---|---|
| Market size value in 2024 | USD 24.7 Billion |
| Market size value in 2033 | USD 55.44 Billion |
| Growth Rate | 9.4% |
| 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 Procurement 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 Procurement 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.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the IoT Procurement Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the IoT Procurement Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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