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South Korea Agile IoT Market

ID: MRFR/ICT/57023-HCR
200 Pages
Aarti Dhapte
October 2025

South Korea Agile IoT Market Research Report By Component (Hardware, Software), By Deployment (On-premises, Cloud), By Organization size (Large, Small, Medium) and By Connectivity (LAN, Wi-Fi, Li-Fi)- Forecast to 2035

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South Korea Agile IoT Market Summary

As per MRFR analysis, the South Korea Agile IoT Market Size was estimated at 2064.65 USD Million in 2024. The South Korea agile iot market is projected to grow from 2474.28 USD Million in 2025 to 15115.0 USD Million by 2035, exhibiting a compound annual growth rate (CAGR) of 19.84% during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The South Korea agile IoT market is experiencing robust growth driven by technological advancements and increasing demand for real-time data solutions.

  • The largest segment in the South Korea agile IoT market is the smart home technology sector, which continues to expand rapidly.
  • The fastest-growing segment is industrial IoT, reflecting a shift towards automation and efficiency in manufacturing processes.
  • There is a notable emphasis on data security and privacy, as organizations prioritize safeguarding sensitive information.
  • Key market drivers include rising demand for real-time data processing and government initiatives supporting IoT development.

Market Size & Forecast

2024 Market Size 2064.65 (USD Million)
2035 Market Size 15115.0 (USD Million)
CAGR (2025 - 2035) 19.84%

Major Players

Amazon (US), Microsoft (US), IBM (US), Google (US), Cisco (US), Siemens (DE), Oracle (US), SAP (DE), GE (US)

South Korea Agile IoT Market Trends

The Agile IoT Market in South Korea is currently experiencing a dynamic evolution, driven by rapid technological advancements and increasing demand for interconnected devices. The government has been actively promoting smart city initiatives, which integrate various iot applications to enhance urban living. This push aligns with the nation's broader digital transformation strategy, aiming to improve efficiency across sectors such as transportation, healthcare, and manufacturing. As a result, businesses are increasingly adopting agile methodologies to develop and deploy iot solutions that can adapt to changing market needs and consumer preferences. Moreover, the agile iot market is witnessing a surge in investment from both public and private sectors. Companies are focusing on developing innovative products that leverage real-time data analytics and machine learning to optimize operations. The emphasis on sustainability and energy efficiency is also shaping the market landscape, as organizations seek to reduce their carbon footprint through smart technologies. This trend indicates a growing recognition of the importance of agility in responding to environmental challenges while meeting consumer demands. Overall, the agile iot market in South Korea appears poised for substantial growth, driven by a combination of government support, technological innovation, and evolving consumer expectations.

Increased Adoption of Smart Technologies

The agile iot market is witnessing a notable rise in the adoption of smart technologies across various sectors. Businesses are increasingly integrating iot solutions to enhance operational efficiency and improve customer experiences. This trend is particularly evident in industries such as manufacturing and logistics, where real-time data collection and analysis are becoming essential for decision-making.

Focus on Data Security and Privacy

As the agile iot market expands, concerns regarding data security and privacy are becoming more pronounced. Organizations are prioritizing the implementation of robust security measures to protect sensitive information. This focus on safeguarding data is crucial for building consumer trust and ensuring compliance with regulatory standards.

Collaboration and Partnerships

Collaboration among stakeholders is emerging as a key trend in the agile iot market. Companies are forming strategic partnerships to leverage complementary strengths and accelerate innovation. This collaborative approach enables organizations to develop more comprehensive solutions that address complex challenges in the iot ecosystem.

South Korea Agile IoT Market Drivers

Expansion of 5G Infrastructure

The rollout of 5G infrastructure in South Korea is poised to significantly impact the agile iot market. With its promise of ultra-fast connectivity and low latency, 5G technology enables a new wave of IoT applications that require real-time data transmission. This advancement is particularly relevant for industries such as autonomous vehicles and smart manufacturing, where seamless communication between devices is essential. Current projections suggest that the 5G market in South Korea could reach $5 billion by 2027, indicating a robust investment in this technology. The expansion of 5G networks is likely to facilitate the deployment of agile iot solutions, allowing businesses to leverage the full potential of IoT devices. As connectivity improves, the agile iot market is expected to flourish, driven by innovations that capitalize on the capabilities of 5G technology.

Government Initiatives and Support

The South Korean government plays a pivotal role in fostering the agile iot market through various initiatives and support programs. With a strategic focus on enhancing the nation's technological infrastructure, the government has allocated substantial funding to promote IoT innovation. Recent reports indicate that public investment in IoT technologies is expected to reach $1 billion by 2026, aimed at bolstering research and development. This support not only encourages startups and established companies to explore agile iot solutions but also creates a conducive environment for collaboration between public and private sectors. Furthermore, government policies aimed at standardizing IoT protocols are likely to enhance interoperability among devices, thereby accelerating the adoption of agile methodologies. Such initiatives are crucial for positioning South Korea as a leader in the agile iot market, fostering a vibrant ecosystem that nurtures innovation and growth.

Integration of Artificial Intelligence

The integration of artificial intelligence (AI) into the agile iot market is transforming how businesses operate in South Korea. AI technologies enhance the capabilities of IoT devices, enabling them to learn from data and make autonomous decisions. This synergy is particularly beneficial in sectors such as healthcare and smart cities, where predictive analytics can optimize resource allocation and improve service delivery. Recent studies suggest that the AI market in South Korea is projected to grow by 30% annually, which could significantly impact the agile iot market. As companies increasingly adopt AI-driven solutions, the demand for agile methodologies that support rapid deployment and iteration is likely to rise. This integration not only streamlines operations but also enhances the overall user experience, making it a critical driver for growth in the agile iot market.

Rising Demand for Real-Time Data Processing

The agile iot market in South Korea experiences a notable surge in demand for real-time data processing capabilities. As industries increasingly rely on instantaneous data for decision-making, the need for agile solutions becomes paramount. This trend is particularly evident in sectors such as manufacturing and logistics, where operational efficiency hinges on timely information. According to recent statistics, the market for real-time data analytics is projected to grow by approximately 25% annually, indicating a robust appetite for agile iot solutions that can facilitate rapid data processing. Companies are investing heavily in technologies that enable seamless integration of IoT devices, thereby enhancing their ability to respond to market changes swiftly. This rising demand for real-time insights is likely to drive innovation and competition within the agile iot market, compelling businesses to adopt more agile methodologies to stay ahead.

Focus on Sustainability and Energy Efficiency

Sustainability has emerged as a crucial driver in the agile iot market, particularly in South Korea, where environmental concerns are at the forefront of public discourse. Companies are increasingly adopting IoT solutions that promote energy efficiency and reduce carbon footprints. The agile iot market is witnessing a shift towards technologies that enable smart energy management, such as smart grids and connected devices that optimize energy consumption. Recent data indicates that the market for energy-efficient IoT solutions is expected to grow by 20% over the next five years. This focus on sustainability not only aligns with global environmental goals but also resonates with consumers who prioritize eco-friendly practices. As businesses strive to meet regulatory requirements and consumer expectations, the demand for agile iot solutions that support sustainable practices is likely to intensify.

Market Segment Insights

By Component: Software (Largest) vs. Hardware (Fastest-Growing)

In the South Korea agile iot market, the component segment is predominantly led by software solutions, which capture the largest share of the market. This dominance is attributed to the increasing demand for cloud-based applications and analytics tools that support agile methodologies across various industries. On the other hand, hardware components are gaining traction as businesses invest in IoT devices and infrastructure to enhance connectivity and data processing capabilities. Growth trends in this segment indicate a robust shift towards integrated solutions that combine both software and hardware. The rise in smart devices and automation technologies acts as a catalyst for hardware adoption, while software continues to evolve to meet complex organizational needs. Major drivers include advancements in technology and a growing emphasis on digital transformation across enterprises, positioning the South Korea agile iot market for a dynamic future.

Software (Dominant) vs. Hardware (Emerging)

Software in the South Korea agile iot market is marked by its capabilities in enhancing operational efficiency and streamlining project management. Companies leverage software applications to implement agile methodologies more effectively, which allows for rapid development cycles and adaptive planning. In contrast, hardware is emerging as a crucial component, especially with the trend of integrating IoT devices that facilitate seamless data exchange and improved connectivity. While software remains the dominant force, the increase in demand for hardware solutions signifies a shift towards comprehensive systems that support both software applications and physical devices, indicating a balanced approach in future developments.

By Deployment: Cloud (Largest) vs. On-premises (Fastest-Growing)

In the South Korea agile iot market, the deployment segment is characterized by a dynamic distribution between cloud and on-premises solutions. Currently, cloud deployment holds the largest market share, driven by its scalability, flexibility, and cost-effectiveness. Organizations are increasingly opting for cloud solutions due to their ability to streamline operations and enhance data accessibility, which speaks volumes about the shift towards digital transformations. Conversely, on-premises deployment is recognised as the fastest-growing segment within this market, as various enterprises prioritize data security and regulatory compliance. With the increasing demand for customized solutions that cater to specific organizational needs, on-premises deployments are gaining traction. This growth is primarily fueled by sectors that demand strict data governance and those investing in local infrastructure to optimize performance and reliability.

Deployment: Cloud (Dominant) vs. On-premises (Emerging)

The cloud deployment model stands out as the dominant force in the South Korea agile iot market, primarily due to its extensive benefits such as reduced upfront costs and enhanced collaboration capabilities. Cloud solutions allow businesses to leverage advanced analytics and automation tools seamlessly, making them a preferred choice for many companies looking to innovate. On the other hand, on-premises deployment is emerging strongly, appealing to organizations that prioritize control over their data and infrastructure. This model is especially favored in industries where compliance is critical, enabling businesses to tailor their systems to meet specific requirements. The competitive landscape is thus shaped by the balancing act between these two deployment types, with each addressing distinct needs and preferences.

By Organization Size: Large (Largest) vs. Medium (Fastest-Growing)

The market share distribution in the South Korea agile iot market reveals that large organizations hold a significant portion of the total market, capitalizing on their extensive resources and established operational frameworks. In contrast, medium-sized organizations are gaining traction and are becoming increasingly important as they leverage agile practices to enhance efficiency and innovation. Growth trends indicate that while large organizations continue to dominate the market landscape, medium organizations are emerging as the fastest-growing segment. This growth is driven by medium-sized firms adopting agile methodologies to remain competitive in a rapidly changing market. Their ability to innovate quickly and adapt to new technologies is propelling them forward, suggesting a dynamic shift in market dynamics.

Large (Dominant) vs. Medium (Emerging)

Large organizations in the South Korea agile iot market are characterized by their extensive resources, allowing them to implement complex IoT solutions and support large-scale operations. These entities typically have the infrastructure in place to manage data and leverage IoT technologies effectively. On the other hand, medium organizations are emerging as key players, characterized by agility and adaptability, making them well-suited to respond to market changes and innovate quickly. Their growing capabilities are making them crucial in the overall landscape, as they increasingly adopt agile practices to drive efficiency and meet the demands of a technology-driven marketplace.

By Connectivity: LAN (Largest) vs. Wi-Fi (Fastest-Growing)

In the South Korea agile iot market, the connectivity segment is primarily dominated by LAN technologies, which hold the largest market share due to their reliability and high speed, essential for many industrial applications. Wi-Fi follows closely as a popular choice, particularly among consumer applications, while Li-Fi, though emerging, occupies a niche position due to its innovative technology and potential for high-speed data transmission. Growth trends in this segment are heavily influenced by the rising demand for high-speed internet and the proliferation of IoT devices. LAN continues to see steady growth as industries seek robust solutions, while Wi-Fi is rapidly advancing with the rollout of newer standards, making it the fastest-growing technology. Li-Fi, although in its early stages, shows promise due to its unique advantages in specific environments where radio frequencies pose challenges.

Connectivity: LAN (Dominant) vs. Li-Fi (Emerging)

LAN, as a dominant technology in the South Korea agile iot market, is characterized by its robustness and established presence across various sectors, including manufacturing and logistics. It offers reliable, high-speed connections critical for IoT deployments. In contrast, Li-Fi is an emerging technology that utilizes light for data transmission, offering potential advantages in environments where traditional radio technologies may struggle. While still developing, Li-Fi's ability to transmit data at greater speeds and with enhanced security presents a compelling case for its application in settings requiring secure and rapid data transfers, such as healthcare and smart environments.

By Vertical: Manufacturing (Largest) vs. Healthcare (Fastest-Growing)

In the South Korea agile iot market, the manufacturing sector holds a dominant share, capitalizing on the ongoing industrial automation trends and enhanced operational efficiencies. This segment benefits from a robust infrastructure, facilitating the integration of IoT solutions that streamline production processes and reduce downtime. In contrast, the healthcare segment, while currently smaller in market share, is rapidly expanding due to increasing investments in digital health technologies and patient monitoring systems that leverage IoT capabilities. The growth trends for these sectors highlight the manufacturing domain leveraging established technologies to maximize output while minimizing costs. Meanwhile, the healthcare sector is witnessing an influx of innovative solutions aimed at improving patient care and operational efficiencies. Factors driving the growth in healthcare include a rising elderly population, increasing prevalence of chronic diseases, and an urgent demand for telemedicine, positioning this segment as the fastest-growing area within the South Korea agile iot market.

Manufacturing: Dominant vs. Healthcare: Emerging

The manufacturing segment stands as the dominant force in the South Korea agile iot market, characterized by its extensive adoption of IoT technologies aimed at optimizing production lines and enhancing supply chain management. Key players utilize smart sensors and real-time analytics to achieve operational excellence, reducing waste and improving efficiency. On the other hand, the healthcare sector is emerging as a vital area for IoT application, focusing on innovative solutions like remote patient monitoring and telehealth services. The rapid evolution within healthcare is driven by technological advancements and increased awareness of patient data management, indicating a substantial opportunity for growth in this segment. As both sectors continue to evolve, their market positions reflect the broader trends of technological integration and demand for efficiency.

Get more detailed insights about South Korea Agile IoT Market

Key Players and Competitive Insights

The agile IoT market in South Korea is characterized by a dynamic competitive landscape, driven by rapid technological advancements and increasing demand for interconnected devices. Major players such as Amazon (US), Microsoft (US), and IBM (US) are strategically positioned to leverage their extensive cloud services and AI capabilities. These companies focus on innovation and partnerships to enhance their offerings, thereby shaping a competitive environment that emphasizes agility and responsiveness to market needs. The collective strategies of these firms indicate a trend towards digital transformation, with an emphasis on integrating IoT solutions into various sectors, including manufacturing, healthcare, and smart cities.

Key business tactics employed by these companies include localizing manufacturing and optimizing supply chains to enhance operational efficiency. The market structure appears moderately fragmented, with a mix of established players and emerging startups. This fragmentation allows for diverse solutions and innovations, although the influence of key players remains substantial, as they set benchmarks for technology and service delivery.

In October 2025, Amazon (US) announced the launch of its new IoT platform, designed to streamline device management and enhance data analytics capabilities for businesses. This strategic move is likely to strengthen Amazon's position in the market by providing customers with more robust tools for managing their IoT ecosystems, thereby fostering greater customer loyalty and retention.

In September 2025, Microsoft (US) unveiled a partnership with a leading South Korean telecommunications company to develop smart city solutions. This collaboration aims to integrate IoT technologies into urban infrastructure, enhancing efficiency and sustainability. The strategic importance of this partnership lies in its potential to position Microsoft as a key player in the burgeoning smart city sector, aligning with global trends towards urbanization and digitalization.

In August 2025, IBM (US) expanded its IoT services by acquiring a local startup specializing in AI-driven analytics. This acquisition is indicative of IBM's commitment to enhancing its IoT capabilities and underscores the importance of AI integration in driving value from IoT data. By incorporating advanced analytics, IBM aims to offer more comprehensive solutions that address complex business challenges, thereby differentiating itself in a competitive market.

As of November 2025, current trends in the agile IoT market include a strong focus on digitalization, sustainability, and the integration of AI technologies. Strategic alliances are increasingly shaping the competitive landscape, enabling companies to pool resources and expertise to deliver innovative solutions. Looking ahead, competitive differentiation is expected to evolve, with a shift from price-based competition towards innovation, technology, and supply chain reliability. This transition suggests that companies that prioritize these aspects will likely gain a competitive edge in the agile IoT market.

Key Companies in the South Korea Agile IoT Market market include

Industry Developments

In recent developments within the South Korea Agile IoT Market, LG Uplus has been actively enhancing its IoT offerings, particularly in smart home and industrial applications. Samsung Electronics continues to push innovation with its SmartThings platform, aiming to integrate various IoT devices seamlessly. SK Telecom is expanding its 5G IoT solutions, launching new services that underscore the company’s commitment to becoming a leader in the 5G ecosystem. In terms of mergers and acquisitions, SK Hynix has announced plans to acquire specific IoT-related technologies from international firms in March 2023, strengthening its position in the semiconductor space for IoT applications. 

Additionally, Seoul Robotics is collaborating with various local governments to deploy smart city solutions using IoT technologies, while LG Electronics is focusing on sustainable IoT applications in energy management. The market valuation of the South Korea Agile IoT Market has seen significant growth, estimated at over USD 3 billion by mid-2023, which is positively influencing investment in related technologies and infrastructure. Over the last two years, initiatives by Korea Electric Power Corporation and Hyundai Mobis to develop smart grid solutions have also showcased the increasing integration of IoT in critical industries, further driving market expansion.

Future Outlook

South Korea Agile IoT Market Future Outlook

The Agile IoT Market is projected to grow at a 19.84% CAGR from 2024 to 2035, driven by advancements in connectivity, data analytics, and automation technologies.

New opportunities lie in:

  • Development of smart manufacturing solutions for real-time monitoring and optimization.
  • Integration of AI-driven analytics for predictive maintenance in IoT devices.
  • Expansion of IoT security services to safeguard connected infrastructure.

By 2035, the agile IoT market is expected to achieve substantial growth and innovation.

Market Segmentation

South Korea Agile IoT Market Vertical Outlook

  • Manufacturing
  • Healthcare

South Korea Agile IoT Market Component Outlook

  • Hardware
  • Software

South Korea Agile IoT Market Deployment Outlook

  • On-premises
  • Cloud

South Korea Agile IoT Market Connectivity Outlook

  • LAN
  • Wi-Fi
  • Li-Fi

South Korea Agile IoT Market Organization Size Outlook

  • Large
  • Small
  • Medium

Report Scope

MARKET SIZE 2024 2064.65(USD Million)
MARKET SIZE 2025 2474.28(USD Million)
MARKET SIZE 2035 15115.0(USD Million)
COMPOUND ANNUAL GROWTH RATE (CAGR) 19.84% (2024 - 2035)
REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR 2024
Market Forecast Period 2025 - 2035
Historical Data 2019 - 2024
Market Forecast Units USD Million
Key Companies Profiled Amazon (US), Microsoft (US), IBM (US), Google (US), Cisco (US), Siemens (DE), Oracle (US), SAP (DE), GE (US)
Segments Covered Component, Deployment, Organization Size, Connectivity, Vertical
Key Market Opportunities Integration of advanced analytics and machine learning enhances operational efficiency in the agile iot market.
Key Market Dynamics Rapid technological advancements drive competitive forces in the agile IoT market, reshaping consumer behavior and regulatory frameworks.
Countries Covered South Korea

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FAQs

What is the expected market size of the South Korea Agile IoT Market in 2024?

The expected market size of the South Korea Agile IoT Market in 2024 is 2.06 USD Billion.

What is the projected market value of the South Korea Agile IoT Market in 2035?

In 2035, the projected market value of the South Korea Agile IoT Market is expected to reach 12.3 USD Billion.

What is the expected CAGR for the South Korea Agile IoT Market from 2025 to 2035?

The expected CAGR for the South Korea Agile IoT Market from 2025 to 2035 is 17.615 %.

Which component of the South Korea Agile IoT Market is projected to have the highest value in 2035?

The hardware component of the South Korea Agile IoT Market is projected to be valued at 5.12 USD Billion in 2035.

What will be the value of the software segment of the South Korea Agile IoT Market in 2024?

The software segment of the South Korea Agile IoT Market is expected to be valued at 1.24 USD Billion in 2024.

What are the key players in the South Korea Agile IoT Market?

Key players in the South Korea Agile IoT Market include LG Uplus, Samsung Electronics, and SK Telecom among others.

What opportunities exist in the South Korea Agile IoT Market?

The South Korea Agile IoT Market presents opportunities in innovation and expanding applications across various sectors.

What are the major challenges facing the South Korea Agile IoT Market?

Challenges in the South Korea Agile IoT Market include competition among key players and the need for consistent technology updates.

What are some key applications of Agile IoT technology in South Korea?

Key applications of Agile IoT technology in South Korea include smart cities, healthcare, and industrial automation.

How does the growth rate of the South Korea Agile IoT Market compare regionally?

The growth rate of the South Korea Agile IoT Market is competitive regionally, driven by high technological adoption and infrastructure improvements.

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