As per MRFR analysis, the South Korea Internet of Things Market Size was estimated at 11.58 (USD Billion) in 2023.The South Korea Internet of Things Market is expected to grow from 13.14(USD Billion) in 2024 to 63.94 (USD Billion) by 2035. The South Korea Internet of Things Market CAGR (growth rate) is expected to be around 15.47% during the forecast period (2025 - 2035).
Key South Korea Internet of Things Market Trends Highlighted
The Internet of Things (IoT) industry in South Korea is being shaped by a number of important market factors. By using IoT technologies to improve urban infrastructure, the government has been aggressively supporting smart city programs.
This push, together with the emergence of 5G networks, greatly accelerates the adoption of IoT devices in a number of industries, including manufacturing, transportation, and healthcare. In response to the industry's demand for efficiency and automation, there has been a noticeable increase in investment in smart factories.
There are chances to take advantage of the enormous potential of connected devices in daily life, especially in fields like environmental management, healthcare monitoring, and home automation. Using IoT can improve public services and increase competitiveness in global markets as South Korea continues to concentrate on its digital transformation agenda.
Businesses can explore and gain market share in IoT solutions that are customized to local demands thanks to the nation's high-tech infrastructure and tech-savvy populace. Consumer demand for smart home technology is rising, according to recent trends, which represent a move toward more individualized and effective living spaces.
A trend toward data-driven decision-making is also seen in the growing integration of IoT devices by industries to lower costs and increase operational efficiency.
Additionally, the adoption of IoT systems to track energy usage and lower carbon footprints demonstrates the attention on sustainability. These market dynamics offer both difficulties and great chances for innovation and expansion in the IoT sector as they continue to develop in South Korea.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
South Korea Internet of Things Market Drivers
Government Initiatives and Smart City Development
The South Korean government has actively promoted smart city projects, significantly contributing to the growth of the South Korea Internet of Things Market. The South Korean Ministry of Land, Infrastructure and Transport has reported strong investments and policies aimed at establishing smart urban infrastructures.
For instance, the 'Smart Cities Comprehensive Plan' outlines a framework that targets over 10 cities by 2023, with an expected budget of around 2 trillion South Korean Won.
This initiative is anticipated to accelerate the integration of IoT technologies in public services and urban management, projected to directly influence a robust rise in market potential, fostering innovation and drawing investment from private sectors like Samsung and LG, which are deeply involved in IoT development.
Furthermore, the South Korean leadership has aimed to strengthen the competitiveness of smart city solutions regionally, ensuring a technological ecosystem conducive to the Internet of Things development.
Rising Consumer Demand for Smart Devices
The mounting consumer appetite for smart devices is a decisive driver for the South Korea Internet of Things Market. According to the South Korean Ministry of Science and ICT's recent study, the number of smart home appliance users has surged by over 30% annually, with a noteworthy increase in households adopting connected devices.
Major companies like LG Electronics and Samsung are pivotal in this transformation, rolling out innovative IoT-enabled gadgets designed for seamless connectivity and enhanced user experiences. The increasing consumer reliance on smart devices for convenience, security, and energy efficiency is expected to drive the demand for IoT infrastructure and solutions as home automation evolves in South Korea.
Industrial Automation and Manufacturing Resilience
The focus on industrial automation in South Korea is transforming production capabilities and is expected to substantively boost the South Korea Internet of Things Market. As per the South Korean Ministry of Trade, Industry, and Energy, there has been a significant investment increase in the manufacturing sector, targeting 4.5 billion USD by 2025 towards the adoption of smart factory technologies.
This commitment reinforces the need for IoT solutions to increase efficiency and minimize operational costs in manufacturing.
Major conglomerates, such as Hyundai and Samsung, are leading the charge to implement IoT-based systems that facilitate real-time data insights and streamline processes. Their advancements are likely to cultivate an environment where the South Korea IoT market can thrive in parallel with industrial growth.
South Korea Internet of Things Market Segment Insights
Internet of Things Market Application Insights
The South Korea Internet of Things Market is experiencing significant advancements, particularly within the Application segment, which covers a wide array of technologies and services that enhance everyday experiences and operational efficiency.
Smart Home applications are gaining traction, offering consumers increased convenience, energy efficiency, and improved security. As urbanization continues to rise in South Korea, innovative smart home solutions are becoming integral in modern living, addressing the growing demand for connected lifestyle products.
The Industrial Automation sector benefits from IoT by enhancing manufacturing processes, improving productivity, and minimizing downtime through real-time monitoring and analytics, which is vital as South Korea aims to bolster its manufacturing capabilities in the global market.
Furthermore, the Healthcare sector is witnessing a transformation with IoT-enabled devices that promote remote patient monitoring and telemedicine, offering significant implications for enhancing operational efficiencies and ensuring quality patient care. With a rapidly aging population, these health solutions are increasingly significant in maintaining a high standard of care while managing resources effectively.
Transportation applications of IoT facilitate smarter logistics, optimize traffic management, and improve supply chain efficiency, aligning with South Korea's commitment to advancing its transport infrastructure to ensure seamless connectivity.
Lastly, the Wearables segment, including fitness trackers and smartwatches, plays a crucial role in promoting health awareness and activity tracking among consumers, further driving the acceptance of IoT devices in daily routines.
The continuous development and deployment of these technologies are supported by various government initiatives aimed at fostering innovation and enhancing the digital economy. As the South Korea Internet of Things Market evolves, growth in these application areas underscores the vital role of IoT in shaping a smart, efficient, and connected society.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Internet of Things Market Component Insights
The Component segment of the South Korea Internet of Things Market encompasses crucial elements that contribute to the advancement of connected technologies. This segment is pivotal in enhancing interoperability and functionality across various devices and systems.
Hardware, primarily comprising sensors, processors, and communication modules, plays a significant role as it directly impacts device performance and efficiency. Software solutions provide essential analytics and management capabilities, enabling seamless integration and data utilization, therefore facilitating smarter applications.
Services, which include installation, maintenance, and consulting, help organizations optimize their IoT ecosystems, enhancing overall productivity. The growth of smart cities and the rapid expansion of 5G networks in South Korea drive the demand in this segment, indicating a shifting focus towards automation and advanced connectivity.
Moreover, government initiatives supporting technological development, along with a strong emphasis on Research and Development, further bolster the significance of the Component segment in achieving higher operational efficiencies.
The increasing reliance on connected devices in sectors like healthcare, transportation, and energy illustrates the vital role that components play in the broader South Korea Internet of Things Market, shaping the industry's future landscape and influencing market dynamics.
Internet of Things Market End-use Insights
The South Korea Internet of Things Market exhibits significant growth potential across various End-use segments. In the realm of Consumer Electronics, the integration of IoT technologies is reshaping user experiences and enhancing connectivity.
Moreover, the Manufacturing sector is increasingly adopting IoT solutions to streamline processes, improve operational efficiency, and reduce costs, thus playing a crucial role in the nation's industrial advancement. In Retail, IoT applications facilitate enhanced customer engagement and supply chain management, driving innovation in how products are marketed and sold.
The Healthcare sector demonstrates a strong need for IoT-driven solutions, such as remote patient monitoring and smart medical devices, highlighting the technology’s importance in improving patient care and outcomes. Additionally, Transportation is evolving with IoT applications that enhance logistics management and smart traffic systems, aiming to improve safety and efficiency in urban environments.
The synergistic adoption of IoT technology across these sectors not only fuels growth but also addresses the unique challenges faced by the South Korean economy, exemplifying the transformative impact of the South Korea Internet of Things Market in various industries.
Internet of Things Market Network Technology Insights
The South Korea Internet of Things Market is witnessing substantial growth, primarily driven by advancements in Network Technology, which is pivotal for seamless communication between devices. The segment encompasses various technologies, including Wireless and Wired solutions, each playing a critical role in enhancing connectivity and data transmission.
Wireless technologies hold significant importance due to their flexibility and ease of deployment, facilitating the rapid expansion of connected devices across urban and rural landscapes. Meanwhile, Wired technologies continue to serve essential functions in environments requiring stable and high-speed connections, such as industrial applications and smart infrastructures.
Government initiatives in South Korea, aimed at bolstering digital transformation through investments in infrastructure, strongly support these technologies. The emergence of 5G networks is further propelling growth, offering enhanced speed and lower latency, which are crucial for the effective functioning of Internet of Things applications.
Overall, the Network Technology segment represents a vital component of the broader South Korea Internet of Things Market, contributing to improved efficiency and innovation across various industries.
South Korea Internet of Things Market Key Players and Competitive Insights
The South Korea Internet of Things market is characterized by rapid growth and significant competitive dynamics, driven by technological advancements and increasing adoption of IoT applications across various sectors. As industries continue to integrate IoT solutions for enhanced efficiency and connectivity, a diverse range of companies are vying for market share.
Key players leverage advanced technologies, strategic partnerships, and a focus on customer-centric solutions to establish themselves in this competitive landscape. The government’s initiatives to promote smart cities, healthcare advancements, and industrial automation further intensify the competition, fostering an environment ripe for innovation and growth.
Hanwha Corporation stands out in the South Korea Internet of Things market with its robust presence and a focus on developing IoT solutions that cater to various industries such as energy, construction, and defense.
The corporation leverages its strong research and development capabilities to enhance its IoT offerings, giving it a competitive edge in the market. Its commitment to sustainability and smart technology further strengthens its market position as companies and clients increasingly prioritize green solutions.
Hanwha Corporation's strategic investments and partnerships within the IoT ecosystem allow it to stay ahead of emerging trends, thereby enhancing its appeal to a wider customer base and solidifying its reputation in the South Korean market.
Mando Corporation also plays a significant role in the South Korea Internet of Things market, primarily focusing on automotive technologies and smart mobility solutions. The company specializes in advanced driver assistance systems (ADAS), connected vehicle systems, and integrates IoT technologies into automotive applications.
Mando Corporation is known for its innovations in smart braking systems and steering technologies, which incorporate IoT for real-time data analysis and vehicle performance. With an increasing emphasis on creating connected and autonomous vehicles, Mando Corporation continuously invests in research and development, enhancing its competitive stance.
Recent strategic mergers and acquisitions have enabled Mando Corporation to expand its technological capabilities and market reach within South Korea, further solidifying its position as a leader in the IoT arena.
Key Companies in the South Korea Internet of Things Market Include
South Korea Internet of Things Market Developments
The South Korea Internet of Things Market has been witnessing considerable advancements recently. In August 2023, LG Electronics announced its strategic partnership with Naver Corporation aimed at enhancing smart home solutions through integrated IoT technologies.
Mando Corporation is also expanding its efforts in the automotive IoT space to improve connected vehicle features. Additionally, in July 2023, POSCO and Hyundai Motor Company made headlines by collaborating on smart manufacturing processes that employ IoT for greater efficiency in production lines.
In terms of market dynamics, the growth of the South Korean IoT sector has been notably influenced by governmental policies promoting digitalization and smart city initiatives, significantly enhancing local technology infrastructure. Major companies, including Samsung Electronics and SK Telecom, are investing heavily in Research and Development to innovate new IoT applications.
In September 2022, the Daegu Gyeongbuk Institute of Science and Technology unveiled IoT-enabled agricultural technologies aimed at improving crop management. The overall market valuation continues to rise, bolstered by increased adoption of IoT solutions across various industries, including automotive, manufacturing, and consumer electronics.
South Korea Internet of Things Market Segmentation Insights
Internet of Things Market Application Outlook
Internet of Things Market Component Outlook
Internet of Things Market End-useOutlook
Internet of Things Market Network Technology Outlook
| Report Attribute/Metric Source: | Details |
| MARKET SIZE 2023 | 11.58(USD Billion) |
| MARKET SIZE 2024 | 13.14(USD Billion) |
| MARKET SIZE 2035 | 63.94(USD Billion) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 15.47% (2025 - 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 Billion |
| KEY COMPANIES PROFILED | Hanwha Corporation, Mando Corporation, Sungrow Power Supply, Daegu Gyeongbuk Institute of Science and Technology, LG Electronics, Hyundai Motor Company, POSCO, Naver Corporation, SK Telecom, Seoul Semiconductor, Lotte Group, Kia Corporation, KT Corporation, Samsung Electronics, Cypress Semiconductor |
| SEGMENTS COVERED | Application, Component, End Use, Network Technology |
| KEY MARKET OPPORTUNITIES | Smart home automation solutions, Industrial IoT applications, Healthcare monitoring devices, Smart city infrastructure development, Agriculture precision technology. |
| KEY MARKET DYNAMICS | Government initiatives supporting IoT adoption, Increasing demand for smart appliances, Growth in industrial automation, Rising investments in IoT startups, Enhanced focus on cybersecurity measures |
| COUNTRIES COVERED | South Korea |
Frequently Asked Questions (FAQ) :
The South Korea Internet of Things Market is expected to be valued at 13.14 billion USD in 2024.
The market is expected to grow at a CAGR of 15.47 percent from 2025 to 2035.
The market is projected to reach a value of 63.94 billion USD by 2035.
The Industrial Automation segment is expected to be a dominant application segment in the market.
The Smart Home application is estimated to be valued at 3.5 billion USD in 2024.
Key players include LG Electronics, Samsung Electronics, Hyundai Motor Company, and SK Telecom.
The Healthcare application segment is expected to be valued at 12 billion USD by 2035.
The Transportation application segment is projected to reach 2 billion USD in 2024.
Key challenges include data security and interoperability among different IoT devices.
The Wearables market is projected to grow to 4.94 billion USD by 2035.
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Team Lead - Research she holds an experience of about 6+ years in market research and business consulting, working under the spectrum of information communication technology, telecommunications and semiconductor domains. aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.
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