The global IoT monetisation market was valued at $1.01 trillion in 2024 and is estimated to grow at a CAGR of 46.4% to reach $45.46 trillion by 2034, according to a recent report by Global Market Insights.
As IoT devices continue to embed themselves deeply into daily life-from smart homes and wearables to industrial automation and connected vehicles-the scope for monetising data and connectivity is growing at a significant pace. The rise of digital ecosystems across residential, urban, and enterprise domains is transforming how organisations think about revenue generation. No longer limited to one-time hardware sales, the focus has rapidly shifted to recurring income streams, value-added services, and outcome-based pricing models.
Businesses are harnessing IoT-generated data to contribute to smarter decision-making, tailored user experiences, and develop dynamic pricing structures that respond to real-time usage. As AI and Edge computing gain traction, companies are moving beyond reactive service models toward predictive and prescriptive monetisation strategies. Enterprises are investing in robust Cloud infrastructure, AI-driven analytics, and low-code platforms to create scalable IoT applications.
Meanwhile, the emergence of digital marketplaces that facilitate service bundling and cross-platform integration is unlocking new revenue channels and deepening customer engagement.
But while the IoT monetisation landscape is thriving with innovation, it’s also navigating complex international trade dynamics. Tariffs on essential components such as semiconductors and sensors laid out by earlier US trade policies disrupted global supply chains. These disruptions subsequently pushed up production costs for IoT hardware, putting companies in a tight spot-either pass those costs to customers or absorb losses. Both options impacted profitability and slowed the rate of adoption, especially among small and mid-sized vendors.
In response, some major players opted to localise production to sidestep import duties. While this shift helps reduce exposure to future trade volatility, it comes with short-term hurdles like increased R&D spending and longer timelines for return on investment. To remain competitive, a growing number of companies are leaning into asset-light business models. These models focus more on software, platforms, and services, allowing companies to monetise IoT ecosystems without depending heavily on physical hardware.
The subscription-based model took the lead in 2024 with a market valuation of $363.3 billion. By offering customisable, tiered service plans packed with features like real-time diagnostics, remote monitoring, and predictive maintenance, companies are turning one-time device sales into long-term revenue generators. This model provides businesses with the ability to scale according to usage, allowing for flexible pricing while also boosting customer loyalty.
Predictive analytics plays a crucial role in optimising these pricing models, helping companies align charges with actual performance and consumption trends. The ability to deliver proactive support and consistent value strengthens brand loyalty and drives recurring revenue, making this model one of the most preferred across verticals.
The Cloud-based segment generated $564.9 billion in 2024, dominating the IoT monetisation market due to its agility and cost-efficiency. Cloud infrastructure allows businesses to roll out connected services globally without investing in expensive on-premises infrastructure. It enables real-time data collection, remote asset control, and automatic software updates-all essential for modern IoT applications.
Enterprises adopting AI-powered solutions are using Cloud platforms to implement smart billing systems, enable usage-based pricing, and customise services for individual users. These capabilities enhance customer satisfaction while reducing overhead, giving companies the ability to pivot quickly and scale without disruption.
The United States led the IoT monetisation market with a value of $301.8 billion in 2024. The country benefits from widespread 5G connectivity, mature Cloud infrastructure, and supportive policy frameworks. Laws like the California Consumer Privacy Act (CCPA) are setting clear standards for data usage while opening doors for monetising anonymized and aggregated data streams. Industries such as automotive and healthcare are driving momentum.
In the automotive industry, connected vehicles are creating revenue through features like navigation services, maintenance alerts, and media subscriptions. In healthcare, meanwhile, remote monitoring devices support outcome-based models where providers are paid based on patient health improvements, not just services rendered.
To gain a stronger foothold in this high-growth market, companies are doubling down on Cloud expansion, enhancing low-code development tools for faster integration, and establishing cross-industry partnerships that enable bundled service offerings.
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