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UK Agile IoT Market

ID: MRFR/ICT/57022-HCR
200 Pages
Aarti Dhapte
October 2025

UK 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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UK Agile IoT Market Summary

As per MRFR analysis, the UK Agile IoT Market Size was estimated at 2950.0 $ Million in 2024. The UK agile iot market is projected to grow from 3485.72 $ Million in 2025 to 18500.0 $ Million by 2035, exhibiting a compound annual growth rate (CAGR) of 18.16% during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The UK Agile IoT Market is experiencing robust growth driven by technological advancements and evolving consumer needs.

  • The largest segment in the UK agile IoT market is the industrial automation sector, which is witnessing increased adoption of agile methodologies.
  • The fastest-growing segment is the smart home technology sector, reflecting a strong focus on user-centric design and enhanced user experiences.
  • The UK market is characterized by a rising demand for real-time data processing, which is reshaping how businesses operate.
  • Key market drivers include the integration of AI and machine learning, alongside government initiatives and support that foster innovation.

Market Size & Forecast

2024 Market Size 2950.0 (USD Million)
2035 Market Size 18500.0 (USD Million)
CAGR (2025 - 2035) 18.16%

Major Players

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

UK Agile IoT Market Trends

The Agile IoT market is experiencing a transformative phase, characterized by rapid advancements in technology and increasing adoption across various sectors. Organizations are increasingly recognizing the potential of agile methodologies to enhance the efficiency and responsiveness of their IoT solutions. This shift is driven by the need for real-time data processing and the ability to adapt quickly to changing market demands. As a result, businesses are investing in agile frameworks that facilitate iterative development and continuous improvement, thereby fostering innovation and reducing time-to-market for IoT applications. Moreover, the agile iot market is witnessing a surge in collaboration between technology providers and end-users. This partnership approach enables organizations to leverage the expertise of agile practitioners while ensuring that IoT solutions are tailored to meet specific operational needs. The emphasis on user-centric design and feedback loops is likely to enhance the overall effectiveness of IoT deployments. Additionally, the growing focus on data security and privacy is prompting companies to adopt agile practices that prioritize secure development processes, thereby addressing potential vulnerabilities in IoT systems. Overall, the agile iot market appears poised for sustained growth as organizations continue to embrace agile principles to drive their IoT initiatives.

Increased Adoption of Agile Methodologies

Organizations are increasingly implementing agile methodologies to enhance their IoT projects. This trend reflects a broader shift towards flexibility and responsiveness in development processes, allowing teams to adapt to changing requirements and deliver solutions more efficiently.

Focus on User-Centric Design

There is a growing emphasis on user-centric design within the agile iot market. Companies are prioritizing user feedback and iterative testing to ensure that IoT solutions meet the specific needs of end-users, thereby improving overall satisfaction and engagement.

Enhanced Data Security Practices

As concerns about data privacy and security rise, organizations are adopting agile practices that integrate security measures throughout the development lifecycle. This proactive approach aims to mitigate risks associated with IoT deployments and build trust with users.

UK Agile IoT Market Drivers

Growing Focus on Sustainability

Sustainability is emerging as a key driver in the agile iot market, as organizations seek to reduce their environmental impact. The UK has set ambitious targets for carbon neutrality, prompting businesses to adopt IoT solutions that enhance energy efficiency and resource management. For example, IoT-enabled smart grids and energy management systems are gaining traction, allowing companies to monitor and optimize their energy consumption. This shift towards sustainable practices is likely to encourage the adoption of agile methodologies, as businesses strive to innovate and implement eco-friendly solutions. The agile iot market is thus positioned to benefit from this growing emphasis on sustainability, potentially leading to a more responsible and efficient use of resources.

Government Initiatives and Support

Government initiatives aimed at promoting digital transformation are playing a crucial role in the agile iot market. The UK government has launched various programs to encourage the adoption of IoT technologies across industries, including funding opportunities and regulatory support. For instance, the UK’s Industrial Strategy aims to boost productivity through advanced technologies, including IoT. Such initiatives are expected to create a conducive environment for businesses to adopt agile methodologies, thereby accelerating the growth of the agile iot market. The financial backing and strategic direction provided by the government may lead to increased investments in IoT solutions, further driving market expansion.

Integration of AI and Machine Learning

The integration of artificial intelligence (AI) and machine learning (ML) technologies is becoming a pivotal driver in the agile iot market. These technologies enable devices to learn from data patterns, leading to smarter and more autonomous operations. In the UK, the AI market is expected to reach £16 billion by 2025, with a significant portion of this growth attributed to its application in IoT systems. The ability to leverage AI and ML not only enhances the functionality of IoT devices but also supports agile methodologies by allowing for adaptive responses to changing conditions. This integration is likely to foster innovation and improve the competitive landscape within the agile iot market.

Increased Connectivity and 5G Deployment

The rollout of 5G technology is set to revolutionize the agile iot market by providing enhanced connectivity and faster data transmission. With 5G networks, IoT devices can communicate more efficiently, enabling real-time data sharing and analysis. This advancement is particularly relevant in urban areas of the UK, where smart city initiatives are being implemented. The increased bandwidth and lower latency associated with 5G are likely to facilitate the deployment of more sophisticated IoT applications, thereby supporting agile methodologies. As organizations leverage the capabilities of 5G, the agile iot market is expected to witness significant growth, driven by the demand for interconnected devices and seamless communication.

Rising Demand for Real-Time Data Processing

The agile iot market is experiencing a notable surge in demand for real-time data processing capabilities. Businesses across various sectors are increasingly recognizing the value of immediate insights derived from IoT devices. This trend is particularly pronounced in industries such as manufacturing and logistics, where timely data can lead to improved operational efficiency. According to recent estimates, the market for real-time data analytics in the UK is projected to grow at a CAGR of approximately 25% over the next five years. This growth is likely to drive investments in agile methodologies that facilitate rapid data processing and decision-making, thereby enhancing the overall agility of organizations within the agile iot market.

Market Segment Insights

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

In the UK agile iot market, the market share distribution for components highlights Hardware as the largest segment, demonstrating its critical role in the infrastructure and functioning of agile IoT solutions. Software, while currently smaller in market share, is rapidly gaining traction and growing due to increasing demand for advanced data analytics and real-time processing capabilities. The growth trends within the component segment show a robust expansion driven by the integration of AI and machine learning into software applications, alongside ongoing advancements in Hardware technologies. As businesses aim to streamline operations and enhance productivity, the adoption of sophisticated software solutions is expected to accelerate. This dual growth signifies the evolving nature of the market, where both Hardware and Software are increasingly interdependent.

Hardware (Dominant) vs. Software (Emerging)

Hardware in the UK agile iot market stands as the dominant force, characterized by its essential contribution to connectivity and data processing capabilities. It comprises various devices such as sensors, actuators, and gateways that form the backbone of agile IoT systems. On the other hand, Software represents an emerging value, focused on providing innovative applications and platforms that leverage the hardware's capabilities. This software segment is essential for managing and analyzing data collected from hardware devices, driving operational efficiency and smarter decision-making. The interconnection between Hardware and Software highlights their complementary nature, with each driving growth in the other to shape a responsive and adaptive market landscape.

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

In the deployment segment of the UK agile iot market, cloud-based solutions have emerged as the dominant force, capturing a significant share due to their flexibility and scalability. Many organizations are increasingly adopting cloud technologies to enhance real-time data processing and improve operational efficiency. On the other hand, on-premises solutions, while traditionally favored for their control and security features, are seeing a surge in interest as businesses look for hybrid models that combine the best of both worlds. The evolving landscape indicates a rising trend towards hybrid deployments, which bridge the gap between the cloud and on-premises setups. The increasing demand for data privacy and compliance is driving organizations to explore on-premises options, labeling them as the fastest-growing segment. As businesses transition to agile methodologies, the ability to seamlessly integrate both modes will be critical for future growth and adaptability in this sector.

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

Cloud solutions remain the dominant player in the deployment landscape, providing businesses with unmatched scalability and remote accessibility. This model allows for rapid innovation, enabling companies to deploy applications swiftly and efficiently respond to market demands. In contrast, on-premises solutions are categorized as emerging, being more appealing to industries with strict compliance and security requirements. While cloud deployments drive rapid growth, on-premises setups offer organizations a sense of control over their data and infrastructures. Companies are increasingly exploring hybrid solutions that incorporate both deployment styles, aiming to leverage the strengths of each to optimize performance and ensure security, which is becoming crucial in the current digital landscape.

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

In the UK agile iot market, the market share distribution reveals that large organizations hold a significant portion, dominating the landscape with innovative solutions and robust infrastructure. Small organizations, while currently holding a smaller share, are rapidly gaining traction, leveraging agility and niche offerings to cater to specific market needs. These dynamics illustrate a competitive yet evolving sector where various size organizations contribute to the overall growth. As we look towards future trends, small organizations are expected to be the fastest-growing segment, driven by their ability to swiftly adapt to technological advancements and consumer demands. This flexibility allows them to introduce novel products and services, capturing the interest of early adopters and tech-savvy customers. Conversely, larger firms are focusing on consolidation and expansion, aiming to enhance their portfolios and maintain their dominant position in the market.

Large (Dominant) vs. Small (Emerging)

Large organizations in the UK agile iot market are characterized by their vast resources and established customer bases, enabling them to invest heavily in research and development. This dominance allows them to provide comprehensive solutions and maintain a competitive edge through innovative technologies. However, small organizations represent an emerging force, attracting attention with their agility and customer-centric approaches. They often fill market gaps left by larger competitors, offering specialized services that resonate well with niche audiences. This dynamic creates a landscape where large firms must adapt to innovative strategies introduced by smaller players, ensuring the market remains vibrant and competitive.

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

In the UK agile iot market, the connectivity segment showcases a dynamic landscape dominated by Wi-Fi, which holds a substantial market share. LAN remains a significant player, but its share is diminishing as newer technologies gain traction. Li-Fi is emerging rapidly with innovations that are reshaping connectivity paradigms and enhancing user experiences. The growth trends in this sector are driven by advancements in wireless technologies and increasing demand for high-speed data transmission. Wi-Fi's versatility and established infrastructure give it an edge, but Li-Fi is capturing attention for its potential to surpass traditional methods in specific applications. Industry players are likely to invest more in Li-Fi to capitalize on its growing recognition and potential market share.

Wi-Fi (Dominant) vs. Li-Fi (Emerging)

Wi-Fi is currently the dominant force in the connectivity segment of the UK agile iot market, characterized by its widespread adoption across various industries and applications. Its ability to support high data rates and numerous simultaneous connections makes it an ideal choice for IoT deployments. On the other hand, Li-Fi, despite being in its nascent stages, is emerging as a noteworthy alternative, utilizing light waves for data transmission. This technology offers significant advantages in speed and security, as it is less susceptible to interference. As businesses explore innovative connectivity solutions, the contrasting positions of Wi-Fi and Li-Fi highlight the evolving nature of the market.

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

In the UK agile iot market, the manufacturing segment holds the largest market share. This sector is heavily reliant on IoT solutions for enhancing operational efficiencies, predictive maintenance, and automation processes, making it a key player. The deployment of smart manufacturing technologies has fueled this growth, resulting in a significant presence within the market. Comparatively, the healthcare segment, while smaller, is experiencing rapid growth thanks to advancements in telemedicine, remote monitoring, and data analytics. These innovative solutions are addressing critical healthcare challenges, thereby capturing an increasing share of the market. The growth drivers for the manufacturing segment include continual advancements in IoT technology, increased investment in automation, and the need for real-time data analytics. These factors are leading to improved production processes and substantial cost savings for manufacturers. Meanwhile, the healthcare segment's growth is propelled by the surge in demand for healthcare innovation, especially in the wake of recent health crises, and the increased focus on patient-centric care. As healthcare providers adapt to these new technological trends, the segment is poised for sustained expansion, making it a focal point in the agile IoT landscape.

Manufacturing (Dominant) vs. Healthcare (Emerging)

The manufacturing segment is characterized by its mature presence in the UK agile iot market, leveraging IoT technologies to optimize and automate production lines, enhance supply chain transparency, and enable predictive maintenance. These applications not only foster efficiency but also reduce operational costs significantly. In contrast, the healthcare segment, though emerging, shows immense potential for expansion. It utilizes IoT for monitoring patient health remotely, managing medical equipment, and improving diagnostics. The rapid adoption of wearable health technology and telehealth services exemplifies the sector's shift towards integrated, technology-driven solutions. As patient care becomes increasingly data-oriented, the healthcare segment is expected to grow rapidly, driven by the need for improved healthcare delivery and outcomes.

Get more detailed insights about UK Agile IoT Market

Key Players and Competitive Insights

The agile IoT market is currently characterized by a dynamic competitive landscape, driven by rapid technological advancements and increasing demand for interconnected devices. Key players such as Amazon (US), Microsoft (US), and Siemens (DE) are strategically positioning themselves through innovation and partnerships. Amazon (US) focuses on enhancing its cloud services to support IoT applications, while Microsoft (US) emphasizes its Azure platform to facilitate seamless integration of IoT solutions. Siemens (DE) is leveraging its expertise in industrial automation to provide tailored IoT solutions, thereby shaping a competitive environment that prioritizes technological integration and customer-centric approaches.

In terms of business tactics, companies are increasingly 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 offerings, yet the collective influence of major companies like IBM (US) and Cisco (US) remains significant, as they continue to set industry standards and drive innovation.

In October 2025, Amazon (US) announced the launch of its new IoT device management platform, which aims to streamline the deployment and management of connected devices across various sectors. This strategic move is likely to enhance Amazon's competitive edge by providing businesses with a comprehensive solution that simplifies IoT integration, thereby attracting a broader customer base. The emphasis on user-friendly interfaces and robust security features indicates a response to growing concerns regarding data privacy and device management.

In September 2025, Microsoft (US) unveiled a partnership with a leading automotive manufacturer to develop smart vehicle solutions utilizing its Azure IoT platform. This collaboration is strategically important as it not only expands Microsoft's footprint in the automotive sector but also showcases its commitment to integrating IoT with emerging technologies such as AI and machine learning. The partnership is expected to drive innovation in vehicle connectivity and enhance user experiences, positioning Microsoft as a key player in the automotive IoT landscape.

In August 2025, Siemens (DE) launched a new initiative aimed at promoting sustainable IoT solutions within the manufacturing sector. This initiative focuses on reducing energy consumption and optimizing resource use through advanced IoT technologies. The strategic importance of this move lies in Siemens' ability to align its offerings with the growing demand for sustainability, potentially attracting environmentally conscious clients and enhancing its market reputation.

As of November 2025, current competitive trends in the agile IoT market are heavily influenced by digitalization, sustainability, and AI integration. Strategic alliances are increasingly shaping the landscape, as companies recognize the value of collaboration in driving innovation. The shift from price-based competition to a focus on technological advancement and supply chain reliability is evident, suggesting that future competitive differentiation will hinge on the ability to innovate and deliver integrated solutions that meet evolving customer needs.

Key Companies in the UK Agile IoT Market market include

Industry Developments

The UK Agile Internet of Things (IoT) Market has seen significant developments recently, with companies like Vodafone Group and BT Group increasing their focus on IoT solutions to enhance connectivity and support smart city initiatives. In September 2023, Schneider Electric announced its partnership with Arm to develop next-generation energy management systems leveraging IoT technologies. Meanwhile, in August 2023, Honeywell launched its new IoT platform in the UK, aimed at improving efficiency in industrial processes. Notably, in July 2023, Siemens made headlines with its acquisition of a small IoT analytics company to expand its software capabilities. 

Growth in the market is evident, with major players such as Microsoft and Amazon Web Services significantly investing in IoT infrastructure, indicating a move towards more integrated and agile solutions in numerous sectors. Over the past few years, the UK has made strides in regulatory frameworks supporting IoT deployment, with the UK government emphasizing its commitment to digital innovation. The Agile IoT Market is anticipated to continue its upward trajectory, fueled by advancements in 5G technology and increasing demand for smart solutions across various industries.

Future Outlook

UK Agile IoT Market Future Outlook

The Agile IoT Market is projected to grow at 18.16% CAGR from 2024 to 2035, driven by advancements in connectivity, data analytics, and automation technologies.

New opportunities lie in:

  • Development of AI-driven predictive maintenance solutions for industrial IoT applications.
  • Integration of blockchain technology for enhanced security in IoT transactions.
  • Expansion of smart home automation systems targeting energy efficiency and user convenience.

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

Market Segmentation

UK Agile IoT Market Vertical Outlook

  • Manufacturing
  • Healthcare

UK Agile IoT Market Component Outlook

  • Hardware
  • Software

UK Agile IoT Market Deployment Outlook

  • On-premises
  • Cloud

UK Agile IoT Market Connectivity Outlook

  • LAN
  • Wi-Fi
  • Li-Fi

UK Agile IoT Market Organization Size Outlook

  • Large
  • Small
  • Medium

Report Scope

MARKET SIZE 2024 2950.0(USD Million)
MARKET SIZE 2025 3485.72(USD Million)
MARKET SIZE 2035 18500.0(USD Million)
COMPOUND ANNUAL GROWTH RATE (CAGR) 18.16% (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), Cisco (US), Google (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 responsiveness in the agile iot market.
Key Market Dynamics Growing demand for agile IoT solutions driven by regulatory changes and technological advancements in the UK.
Countries Covered UK

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FAQs

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

The UK Agile IoT Market is expected to be valued at 2.12 billion USD in 2024.

What are the projected market values for hardware and software components in 2024?

In 2024, hardware is valued at 0.85 billion USD while software is valued at 1.27 billion USD.

What is the expected market size of the UK Agile IoT Market by 2035?

The market is projected to reach 16.83 billion USD by 2035.

What is the expected compound annual growth rate (CAGR) for the UK Agile IoT Market from 2025 to 2035?

The expected CAGR for the UK Agile IoT Market from 2025 to 2035 is approximately 20.708%.

Which companies are considered major players in the UK Agile IoT Market?

Major players in the market include SAP, Vodafone Group, Schneider Electric, Honeywell, Arm, Dell Technologies, Siemens, SoftBank Group, Cisco Systems, Red Hat, Microsoft, Oracle, IBM, BT Group, and Amazon Web Services.

What will be the market value for hardware in 2035?

By 2035, the market value for hardware in the UK Agile IoT Market is expected to reach 7.05 billion USD.

What will be the market value for software in 2035?

The market for software within the UK Agile IoT Market is expected to be valued at 9.78 billion USD by 2035.

What are the key growth drivers of the UK Agile IoT Market?

Key growth drivers for the market include increasing demand for connected devices, advancements in technology, and efficiency improvements across various industries.

What are the current trends affecting the UK Agile IoT Market?

Current trends include the rise of smart cities, industrial automation, and enhanced connectivity solutions.

How does the regional outlook for the UK Agile IoT Market compare with other regions?

The UK Agile IoT Market is expected to show robust growth, outperforming many regions due to its strong technology focus and innovation.

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