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US Agile IoT Market

ID: MRFR/ICT/11759-HCR
100 Pages
Garvit Vyas
October 2025

US 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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US Agile IoT Market Summary

As per analysis, the US The US Agile IoT Market size was estimated at 15.5 USD Billion in 2024. The US agile iot market is projected to grow from 18.53 USD Billion in 2025 to 110.3 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 19.53% during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The US The US Agile IoT Market is experiencing robust growth driven by technological advancements and increasing demand for real-time data processing.

  • The largest segment in the US agile IoT market is the industrial automation sector, while the fastest-growing segment is smart cities.
  • There is a notable increase in the adoption of edge computing, enhancing data processing capabilities at the source.
  • A strong emphasis on interoperability standards is emerging, facilitating seamless integration across diverse IoT devices.
  • Key market drivers include the rising demand for real-time analytics and the expansion of 5G connectivity, which are propelling market growth.

Market Size & Forecast

2024 Market Size 15.5 (USD Billion)
2035 Market Size 110.3 (USD Billion)

Major Players

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

US Agile IoT Market Trends

The The Agile IoT market is experiencing a transformative phase characterized by rapid advancements in technology and increasing demand for interconnected devices. This market is driven by the need for enhanced efficiency and real-time data processing across various sectors, including manufacturing, healthcare, and smart cities. As organizations seek to leverage the benefits of agile methodologies, the integration of iot solutions is becoming more prevalent. Companies are adopting agile practices to improve their responsiveness to market changes and customer needs, which in turn fosters innovation and accelerates product development cycles. Moreover, the agile iot market is witnessing a surge in investment as businesses recognize the potential for improved operational efficiency and cost savings. The emphasis on data security and privacy is also shaping the landscape, prompting organizations to adopt robust security measures. As the market evolves, collaboration between technology providers and end-users is likely to enhance the development of tailored solutions that meet specific industry requirements. This dynamic environment suggests that the agile iot market will continue to grow, driven by technological advancements and the increasing importance of data-driven decision-making.

Increased Adoption of Edge Computing

The agile iot market is seeing a notable shift towards edge computing, which allows data processing to occur closer to the source of data generation. This trend enhances response times and reduces latency, making it particularly beneficial for applications requiring real-time analytics. As organizations prioritize efficiency, edge computing is becoming integral to their iot strategies.

Focus on Interoperability Standards

Interoperability among devices and platforms is gaining traction within the agile iot market. The push for standardized protocols enables seamless communication between diverse systems, fostering collaboration and integration. This trend is essential for maximizing the potential of iot ecosystems and ensuring that various devices can work together effectively.

Emphasis on Data Security and Privacy

As the agile iot market expands, concerns regarding data security and privacy are becoming increasingly prominent. Organizations are investing in advanced security measures to protect sensitive information and comply with regulatory requirements. This focus on safeguarding data is crucial for building trust with consumers and ensuring the long-term viability of iot solutions.

US Agile IoT Market Drivers

Expansion of 5G Connectivity

The rollout of 5G technology is poised to significantly impact the agile iot market by providing enhanced connectivity and lower latency. This advancement facilitates the deployment of more sophisticated IoT devices that require real-time data transmission. Industries such as automotive and healthcare are likely to benefit immensely from 5G, as it enables the development of applications that rely on instantaneous data exchange. Current projections indicate that the 5G-enabled agile iot market could reach a valuation of $50 billion by 2027, reflecting the growing reliance on high-speed connectivity for IoT applications. This expansion is expected to drive innovation and create new opportunities within the agile iot market.

Increased Focus on Sustainability

Sustainability is becoming a central theme within the agile iot market, as organizations strive to reduce their environmental impact. The integration of IoT solutions can lead to more efficient resource management, energy savings, and waste reduction. For instance, smart grids and connected devices can optimize energy consumption, contributing to a greener future. Recent studies suggest that companies implementing sustainable IoT practices can achieve cost savings of up to 20% in operational expenses. This growing emphasis on sustainability not only aligns with corporate social responsibility goals but also enhances brand reputation, making it a crucial driver in the agile iot market.

Government Initiatives and Funding

Government initiatives aimed at promoting technological innovation are playing a pivotal role in the agile iot market. Various federal and state programs are providing funding and support for IoT projects, particularly in sectors such as transportation and healthcare. These initiatives are designed to foster collaboration between public and private entities, driving advancements in IoT technologies. Recent allocations indicate that federal funding for IoT-related projects could exceed $1 billion in the coming years. This financial backing is likely to accelerate the development and deployment of agile IoT solutions, positioning the market for robust growth and innovation.

Rising Demand for Real-Time Analytics

The agile iot market is experiencing a notable surge in demand for real-time analytics capabilities. Organizations are increasingly recognizing the value of immediate data insights to enhance decision-making processes. This trend is particularly evident in sectors such as manufacturing and logistics, where timely data can lead to improved operational efficiency. According to recent estimates, the market for real-time analytics in the agile iot market is projected to grow at a CAGR of approximately 25% over the next five years. This growth is driven by the need for businesses to respond swiftly to market changes and consumer preferences, thereby fostering a more agile operational framework.

Integration of Artificial Intelligence

The integration of artificial intelligence (AI) technologies into the agile iot market is transforming how data is processed and utilized. AI enables predictive analytics, which allows organizations to anticipate trends and optimize resource allocation. This capability is particularly beneficial in sectors such as healthcare and smart cities, where efficient resource management is crucial. The agile iot market is projected to witness a substantial increase in AI adoption, with estimates suggesting that AI-driven solutions could account for over 30% of the market by 2026. This shift not only enhances operational efficiency but also supports the development of innovative applications that leverage AI for improved user experiences.

Market Segment Insights

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

In the US agile iot market, the component segment showcases a dynamic distribution between hardware and software. Software currently holds the largest market share, driven by its essential role in managing IoT devices and applications. Meanwhile, hardware is experiencing significant traction as more businesses recognize the need for robust physical infrastructure to support the growing number of connected devices. This increasing dependency on both components underscores their pivotal roles in shaping market trends. Growth trends within this segment reflect a rapid evolution driven by technological advancements and increasing demand for smart solutions. Software continues to expand due to ongoing innovations in cloud computing and data analytics, facilitating seamless integration of IoT systems. On the other hand, the demand for hardware components is rising sharply as industries embrace IoT for automation and efficiency, making it the fastest-growing area within the component market.

Components: Software (Dominant) vs. Hardware (Emerging)

In the US agile iot market, software is recognized as the dominant component, characterized by its versatility and adaptability in enhancing IoT functionalities. It provides critical intelligence and analytics capabilities, assisting companies in optimizing their operations and decision-making processes. This dominance is reflected in the continuous innovations and enhancements in software solutions, particularly in areas such as AI and machine learning, which integrate seamlessly with IoT architectures. Conversely, hardware is classified as an emerging segment, rapidly gaining ground as businesses invest in the physical infrastructures necessary for IoT deployments. The increase in sensor technologies and device manufacturing is elevating hardware's importance, making it integral for successful IoT implementations and enabling rich data collection for further analysis.

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

In the US agile iot market, the deployment segment is predominantly occupied by cloud solutions, which hold a significant share of the market. This preference for cloud deployment stems from its scalability, flexibility, and on-demand resources that cater to various business needs. On the other hand, on-premises solutions, while having a comparatively smaller footprint, are increasingly gaining traction among organizations seeking enhanced security and control over their data. The growth trend for on-premises deployments is fueled by greater concerns regarding data privacy and regulatory compliance, prompting enterprises to invest in local infrastructures. Additionally, advancements in on-premises technology and increased reliability are encouraging more companies to explore these options. In contrast, the cloud segment continues to expand due to digital transformation initiatives, fostering a surge in demand for IoT applications that can be efficiently managed and scaled through cloud environments.

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

The characteristics of cloud deployment in the US agile iot market include high scalability, ease of integration, and lower upfront costs, making it the dominant choice for companies looking to implement IoT solutions. Businesses benefit from the ability to quickly adapt to changing market needs without significant investments in hardware. Conversely, on-premises deployment is emerging as a preferred option for organizations requiring stringent security measures and control over their data environment. This trend is particularly prevalent in sectors like healthcare and finance, where data sensitivity is paramount. As companies increasingly balance their needs for flexibility and security, both deployment models are likely to coexist, addressing the diverse requirements of users in the market.

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

The US agile iot market is witnessing a varied distribution in market share across different organization sizes. Large organizations currently hold the largest portion of the market share, leveraging scale and resources to implement comprehensive iot solutions effectively. In contrast, small organizations, although holding a smaller share, are rapidly gaining traction in the market, driven by their flexibility and innovative approaches. Growth trends indicate that the increasing adoption of agile methodologies is particularly favorable for small organizations, allowing them to compete with larger entities. The demand for customized and scalable solutions is pushing more small organizations to integrate iot technologies, leading to their classification as the fastest-growing segment. Additionally, large organizations are investing heavily in iot infrastructure, enhancing their market position but simultaneously facing stiffer competition from agile small players.

Large (Dominant) vs. Small (Emerging)

Large organizations in the US agile iot market are characterized by their substantial resource allocation and ability to execute complex iot strategies. Their dominance stems from established market presence and extensive customer bases, enabling them to invest extensively in innovation and technology. Conversely, small organizations represent an emerging segment that is increasingly vital due to their adaptability and rapid innovation cycles. These smaller entities tend to focus on niche markets and are more attuned to changing consumer needs, which grants them a competitive edge. As agile methodologies become more mainstream, the distinctive advantages of small organizations—such as speed and agility—are likely to enhance their market presence and impact.

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

In the US agile iot market, the connectivity segment is primarily driven by Wi-Fi, which has established itself as the largest player, holding significant market share due to its widespread adoption in various applications. LAN follows as a stable choice for intra-network connectivity, while Li-Fi is emerging as a viable alternative, particularly in environments requiring high-speed communication without radio frequency interference. Growth trends indicate that while Wi-Fi continues to dominate, Li-Fi is gaining traction as it addresses specific needs for higher data rates and improved security. Factors such as increased IoT device deployment, advancements in technology, and rising demand for wireless connectivity solutions are propelling this segment forward. The agility of Li-Fi in providing faster and more reliable connections positions it as the fastest-growing segment within this landscape.

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

Wi-Fi remains the dominant force in the connectivity segment, attributed to its extensive infrastructure and user-friendly integration capabilities. Its reliability and versatility make it ideal for various IoT applications, from home automation to industrial solutions. Conversely, Li-Fi, though still in its infancy, is being recognized for its potential to revolutionize data transmission by using light to transmit information. This emerging technology promises faster speeds and enhanced bandwidth, particularly in high-density environments where traditional Wi-Fi struggles. As the demand for high-speed and secure connections grows, Li-Fi's innovative approach positions it favorably for future expansion in the market.

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

The US agile iot market exhibits a varied distribution among its verticals, with the manufacturing sector holding the largest market share. This sector benefits significantly from the integration of IoT technologies, optimizing production processes and enhancing operational efficiency. In contrast, the healthcare sector is experiencing rapid growth as IoT solutions address critical needs such as remote patient monitoring and health data management. This sector's ability to provide real-time insights is reshaping patient care dynamics and operational workflows. Growth trends within these segments indicate that while manufacturing remains stable, healthcare is on an upward trajectory driven by technological advancements and increasing demand for smart healthcare solutions. The rising adoption of wearable devices, telemedicine, and IoT-enabled diagnostics is propelling healthcare to the forefront. Moreover, the regulatory push for improved healthcare outcomes further fuels investment in IoT solutions, making healthcare the fastest-growing segment in the market.

Manufacturing: Dominant vs. Healthcare: Emerging

Manufacturing stands as the dominant force in the US agile iot market, characterized by its extensive experience in utilizing IoT technologies to streamline operations. This sector leverages real-time data analytics and automation to enhance productivity and reduce operational costs. Additionally, key players in manufacturing are increasingly adopting advanced IoT systems to enable predictive maintenance and supply chain optimization. Conversely, healthcare represents an emerging opportunity within the market, rapidly integrating IoT applications to enhance patient outcomes and healthcare delivery. The sector is marked by a surge in innovation, with a focus on improving remote patient monitoring and facilitating real-time data access for healthcare professionals. As investments in healthcare IoT solutions grow, the sector's agility and responsiveness to market needs position it as a promising area for future developments.

Get more detailed insights about US 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. Major players such as Amazon (US), Microsoft (US), and IBM (US) are at the forefront, each adopting distinct strategies to enhance their market positioning. Amazon (US) focuses on expanding its cloud services, leveraging its AWS platform to integrate IoT solutions seamlessly. Microsoft (US) emphasizes partnerships and collaborations, particularly in the realm of AI and machine learning, to enhance its Azure IoT offerings. IBM (US), on the other hand, is heavily investing in research and development, particularly in edge computing, to provide innovative solutions that cater to diverse industry needs. Collectively, these strategies contribute to a competitive environment that is increasingly centered around innovation and technological integration.

In terms of business tactics, companies are 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 a diverse range of solutions, although the influence of key players remains substantial, shaping industry standards and customer expectations.

In October 2025, Amazon (US) announced the launch of a new IoT service aimed at enhancing smart home integration, which is expected to streamline user experiences across various devices. This strategic move not only reinforces Amazon's commitment to the smart home segment but also positions it to capture a larger share of the growing consumer IoT market. The integration of advanced AI capabilities into this service may further enhance its appeal, suggesting a potential shift in consumer preferences towards more intelligent home solutions.

In September 2025, Microsoft (US) unveiled a significant upgrade to its Azure IoT platform, incorporating advanced analytics and machine learning features. This enhancement is likely to attract more enterprise customers seeking to leverage data-driven insights for operational efficiency. By focusing on AI integration, Microsoft appears to be solidifying its position as a leader in the enterprise IoT space, potentially outpacing competitors who may not prioritize such technological advancements.

In August 2025, IBM (US) entered into a strategic partnership with a leading automotive manufacturer to develop IoT solutions for connected vehicles. This collaboration is indicative of IBM's strategy to penetrate high-growth sectors, such as automotive, where IoT applications are becoming increasingly critical. The partnership not only enhances IBM's portfolio but also reflects a broader trend of cross-industry collaborations aimed at driving innovation and expanding market reach.

As of November 2025, current trends in the agile IoT market are heavily influenced by digitalization, sustainability, and the integration of AI technologies. Strategic alliances are becoming increasingly vital, as companies recognize the need to collaborate to stay competitive. Looking ahead, it is anticipated that competitive differentiation will evolve, shifting from traditional price-based competition to a focus on innovation, technological advancements, and supply chain reliability. This transition underscores the importance of agility and adaptability in a rapidly changing market landscape.

Key Companies in the US Agile IoT Market market include

Industry Developments

The US Agile IoT Market has recently witnessed notable developments, particularly with major companies enhancing their strategies and portfolio. In October 2023, SAP announced a strategic partnership with Cisco to improve enterprise connectivity through IoT solutions, indicating increased collaboration in the industry. Furthermore, in September 2023, Dell Technologies expanded its IoT edge portfolio by acquiring a startup specializing in AI-driven IoT solutions, which reflects the growing demand for intelligent systems.

In terms of mergers and acquisitions, in June 2023, Oracle acquired a well-established IoT platform provider to bolster its cloud capabilities, aligning with the trend of integrating IoT with cloud services. The growth in the market valuation of companies like IBM and Microsoft is exemplified by their efforts in fostering innovation, leading to significant investments in Research and Development. Over the past few years, the Agile IoT Market has notably accelerated, driven by the push for smart infrastructure and automation, with the US government committing billions to IoT initiatives aimed at improving infrastructure and public services.

This sector's evolution indicates a robust future shaped by significant technological advancements and strategic collaborations among the leading companies in the market.

Future Outlook

US Agile IoT Market Future Outlook

The agile IoT market is projected to grow at a 19.53% 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 ecosystems with interoperable devices and services.

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

Market Segmentation

US Agile IoT Market Vertical Outlook

  • Manufacturing
  • Healthcare

US Agile IoT Market Component Outlook

  • Hardware
  • Software

US Agile IoT Market Deployment Outlook

  • On-premises
  • Cloud

US Agile IoT Market Connectivity Outlook

  • LAN
  • Wi-Fi
  • Li-Fi

US Agile IoT Market Organization Size Outlook

  • Large
  • Small
  • Medium

Report Scope

MARKET SIZE 2024 15.5(USD Billion)
MARKET SIZE 2025 18.53(USD Billion)
MARKET SIZE 2035 110.3(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR) 19.53% (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 Billion
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 responsiveness 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 US

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FAQs

What is the projected market size of the US Agile IoT Market by 2035?

The US Agile IoT Market is projected to be valued at 93.0 billion USD by the year 2035.

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

The expected CAGR for the US Agile IoT Market from 2025 to 2035 is 18.406 percent.

What was the market size of the US Agile IoT Market in 2024?

In 2024, the US Agile IoT Market was valued at 14.5 billion USD.

Which component of the US Agile IoT Market is expected to grow the fastest?

The Software component of the US Agile IoT Market is set to grow significantly, reaching 53.0 billion USD by 2035.

What are the major hardware and software market sizes in 2024?

In 2024, the Hardware segment is valued at 6.5 billion USD and the Software segment at 8.0 billion USD.

Who are the key players in the US Agile IoT Market?

Major players in the US Agile IoT Market include SAP, Dell Technologies, PTC, and Oracle, among others.

What are some of the key applications driving growth in the US Agile IoT Market?

Key applications driving growth in the US Agile IoT Market include smart manufacturing, supply chain management, and connected healthcare solutions.

How will the market size of the Hardware component change by 2035?

The Hardware component of the US Agile IoT Market is expected to increase to 40.0 billion USD by 2035.

What impact do emerging trends have on the US Agile IoT Market?

Emerging trends such as increased adoption of AI and machine learning are creating numerous opportunities in the US Agile IoT Market.

How does the competitive landscape look in the US Agile IoT Market?

The competitive landscape in the US Agile IoT Market is characterized by major players with substantial market shares, primarily focusing on technological advancements.

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