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US IoT Communication Technologies Market

ID: MRFR/SEM/15716-HCR
200 Pages
Garvit Vyas
October 2025

US IoT Communication Technologies Market Research Report By Type (Wi-Fi, Bluetooth, Zigbee, Others) and By End User (Aerospace Defense, Automotive, Information and Communication Technology, Automation, Power and Energy, Healthcare) - Forecast to 2035

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US IoT Communication Technologies Market Summary

As per MRFR analysis, the IoT Communication Technologies Market Size was estimated at 2823.4 USD Million in 2024. The iot communication-technologies market is projected to grow from 3001.27 USD Million in 2025 to 5530.0 USD Million by 2035, exhibiting a compound annual growth rate (CAGR) of 6.3% during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The US is poised for substantial growth, driven by enhanced connectivity and security measures.

  • The market is witnessing enhanced connectivity solutions that facilitate seamless communication among devices.
  • There is a growing emphasis on security and privacy, addressing consumer concerns in IoT deployments.
  • Regulatory support and collaboration are becoming increasingly vital for market expansion and innovation.
  • Rising demand for smart devices and advancements in network infrastructure are key drivers propelling market growth.

Market Size & Forecast

2024 Market Size 2823.4 (USD Million)
2035 Market Size 5530.0 (USD Million)

Major Players

Cisco Systems (US), IBM (US), Microsoft (US), Amazon (US), Intel (US), Qualcomm (US), Siemens (DE), Huawei (CN), Ericsson (SE), Nokia (FI)

US IoT Communication Technologies Market Trends

The IoT communication technologies market is currently experiencing a transformative phase. This evolution is characterized by the integration of innovative communication protocols, which enhance the efficiency and reliability of data transmission. As industries such as healthcare, manufacturing, and agriculture embrace these technologies, the demand for seamless connectivity solutions continues to rise. Furthermore, the emphasis on data security and privacy is becoming paramount, prompting stakeholders to invest in robust security measures to protect sensitive information. In addition, the regulatory landscape is evolving, with government initiatives aimed at promoting the development and deployment of iot communication technologies. These initiatives are likely to foster collaboration among public and private entities, thereby accelerating innovation and market growth. The increasing focus on sustainability and energy efficiency is also influencing the direction of the market, as organizations seek to minimize their environmental impact while maximizing operational efficiency. Overall, The market is expected to achieve substantial growth, driven by innovation and strategic investments.

Enhanced Connectivity Solutions

The demand for enhanced connectivity solutions is rising as industries seek to improve operational efficiency. This trend is characterized by the adoption of advanced communication protocols that facilitate seamless data exchange among devices. As organizations increasingly rely on real-time data for decision-making, the need for reliable and fast communication technologies becomes critical.

Focus on Security and Privacy

With the proliferation of connected devices, the focus on security and privacy is intensifying. Stakeholders are prioritizing the implementation of robust security measures to safeguard sensitive data. This trend reflects a growing awareness of potential vulnerabilities and the necessity for comprehensive strategies to mitigate risks associated with data breaches.

Regulatory Support and Collaboration

Regulatory support is playing a crucial role in shaping the iot communication-technologies market. Government initiatives aimed at fostering innovation and collaboration among various stakeholders are emerging. This trend indicates a commitment to creating a conducive environment for the development and deployment of advanced communication technologies.

US IoT Communication Technologies Market Drivers

Rising Demand for Smart Devices

The increasing adoption of smart devices across various sectors is a primary driver for the iot communication-technologies market. As consumers and businesses alike seek to enhance efficiency and convenience, the demand for interconnected devices continues to surge. In 2025, it is estimated that the number of connected devices in the US will reach approximately 30 billion, reflecting a growth rate of around 25% from previous years. This proliferation of smart devices necessitates robust communication technologies to ensure seamless connectivity and data exchange. Consequently, manufacturers and service providers are compelled to innovate and enhance their offerings in the iot communication-technologies market to meet this escalating demand.

Increased Focus on Data Analytics

The growing emphasis on data analytics is reshaping the iot communication-technologies market. Organizations are increasingly recognizing the value of data generated by IoT devices, leading to a surge in demand for advanced analytics solutions. By 2025, it is anticipated that the market for IoT analytics will exceed $20 billion in the US, as businesses seek to derive actionable insights from vast amounts of data. This trend encourages the development of sophisticated communication technologies that can efficiently transmit and process data, thereby enhancing the overall effectiveness of IoT systems. As a result, the integration of data analytics capabilities into IoT solutions is becoming a critical driver for the iot communication-technologies market.

Emerging Applications in Healthcare

The healthcare sector is increasingly leveraging IoT technologies, which serves as a vital driver for the iot communication-technologies market. With the rise of telemedicine, remote patient monitoring, and smart medical devices, the demand for reliable communication technologies is paramount. By 2025, it is projected that the market for IoT in healthcare will surpass $50 billion in the US, reflecting a growing recognition of the benefits of connected health solutions. This trend necessitates the development of secure and efficient communication protocols to ensure patient data integrity and privacy. As healthcare providers continue to adopt IoT solutions, the iot communication-technologies market is likely to experience substantial growth.

Advancements in Network Infrastructure

The evolution of network infrastructure, particularly with the rollout of 5G technology, is significantly impacting the iot communication-technologies market. The enhanced speed and reduced latency associated with 5G networks facilitate real-time data transmission, which is crucial for the effective functioning of IoT applications. By 2025, it is projected that 5G will cover over 50% of the US population, enabling a more extensive deployment of IoT solutions. This advancement not only supports existing applications but also opens avenues for new use cases, such as smart cities and autonomous vehicles, thereby driving further investment and innovation in the iot communication-technologies market.

Growing Investment in Smart Infrastructure

Investment in smart infrastructure is a pivotal driver for the iot communication-technologies market. As cities and municipalities strive to improve urban living conditions, there is a concerted effort to implement smart technologies in public services, transportation, and utilities. In 2025, it is estimated that the US will allocate over $100 billion towards smart city initiatives, which will significantly boost the demand for IoT communication technologies. This investment not only enhances operational efficiency but also improves the quality of life for residents. Consequently, the iot communication-technologies market is poised to benefit from this influx of funding and the subsequent development of innovative solutions.

Market Segment Insights

By Type: Wi-Fi (Largest) vs. Bluetooth (Fastest-Growing)

In the US iot communication-technologies market, Wi-Fi holds a significant portion of the market share, showcasing its dominance due to its wide-ranging capabilities and established infrastructure. Conversely, Bluetooth has rapidly gained traction among consumers looking for low-energy options, resulting in an impressive growth trajectory fueled by advancements in wireless technology and increasing adoption in IoT applications. The growth trends in this segment are heavily influenced by the expanding IoT ecosystem, where seamless and efficient communication methods become paramount. As smart devices proliferate, the demand for reliable communication protocols like Bluetooth has surged, making it an emerging player in the market. Wi-Fi continues to flourish as businesses utilize it for reliable data transmission, while Bluetooth thrives in personal and small-scale applications, asserting itself as a key driver in market evolution.

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

Wi-Fi remains the dominant communication technology, providing robust connectivity for a wide array of devices across multiple applications. Its high-speed data transmission and ability to support numerous connected devices make it essential in both commercial and residential settings. In contrast, Bluetooth has emerged as a viable alternative, especially for short-range communications, owing to its low power consumption and ease of use. This is especially relevant in the context of wearable devices and smart home technology, which benefit from Bluetooth's efficiency. While Wi-Fi continues to be the preferred choice for high-demand applications, Bluetooth's versatility and convenience position it favorably among new IoT developments.

By End Use: Aerospace & Defense (Largest) vs. Healthcare (Fastest-Growing)

The market share distribution among the segment values in the US iot communication-technologies market shows that Aerospace & Defense is the largest segment, primarily driven by increased investments in defense technology and sophisticated aerospace applications. Meanwhile, Healthcare is emerging as a significant player, driven by the growing need for IoT solutions in patient monitoring and healthcare management, reflecting a shift towards more technologically advanced care. Growth trends in the segment indicate that while Aerospace & Defense maintains its dominant presence, Healthcare is experiencing rapid growth fueled by advancements in telehealth and medical IoT devices. Factors such as increased government spending in defense and healthcare innovation are pivotal in shaping market dynamics, as well as the rising demand for automation and real-time data access across various industries, ensuring robust expansion for both segments in the coming years.

Aerospace & Defense (Dominant) vs. Healthcare (Emerging)

Aerospace & Defense is the dominant force in the US iot communication-technologies market, characterized by high investments in cutting-edge technology and systems designed for national security and advanced aeronautics. This segment is not only robust but also well-established, with firms prioritizing innovation and regulatory compliance. On the other hand, Healthcare is recognized as an emerging category, with a rapidly growing focus on IoT-based solutions aimed at improving clinical outcomes and operational efficiency. This segment capitalizes on the increasing reliance on digital health solutions, driven by the ongoing integration of technology in patient care. The juxtaposition of these segments underscores the interplay of established and evolving demands within the market.

Get more detailed insights about US IoT Communication Technologies Market

Key Players and Competitive Insights

The iot communication-technologies market is characterized by a dynamic competitive landscape, driven by rapid technological advancements and increasing demand for connectivity solutions across various sectors. Major players such as Cisco Systems (US), IBM (US), and Microsoft (US) are strategically positioning themselves through innovation and partnerships, which collectively shape the competitive environment. Cisco Systems (US) focuses on enhancing its IoT security solutions, while IBM (US) emphasizes its cloud-based IoT platform, aiming to integrate AI capabilities for smarter decision-making. Microsoft (US) leverages its Azure cloud services to provide robust IoT solutions, indicating a trend towards cloud integration in the market.

The market structure appears moderately fragmented, with key players employing various business tactics to optimize their operations. Localizing manufacturing and optimizing supply chains are prevalent strategies among these companies, allowing them to respond swiftly to market demands and reduce operational costs. The collective influence of these major players fosters a competitive atmosphere where innovation and technological advancements are paramount.

In October 2025, Cisco Systems (US) announced a partnership with a leading telecommunications provider to enhance its IoT security offerings. This strategic move is significant as it not only strengthens Cisco's market position but also addresses the growing concerns around IoT security vulnerabilities. By collaborating with a telecommunications partner, Cisco aims to provide comprehensive security solutions that cater to the increasing number of connected devices.

In September 2025, IBM (US) unveiled a new AI-driven IoT analytics tool designed to optimize supply chain management for manufacturers. This development is crucial as it reflects IBM's commitment to integrating AI into its IoT solutions, thereby enhancing operational efficiency for its clients. The tool's ability to analyze vast amounts of data in real-time positions IBM as a leader in the IoT analytics space, potentially attracting new customers seeking advanced data-driven insights.

In August 2025, Microsoft (US) expanded its Azure IoT services by introducing new features aimed at improving device management and security. This expansion is indicative of Microsoft's strategy to solidify its presence in the IoT market by offering comprehensive solutions that address the evolving needs of businesses. By enhancing its IoT capabilities, Microsoft is likely to attract a broader customer base, further intensifying competition in the sector.

As of November 2025, current trends in the iot communication-technologies market include a strong emphasis on digitalization, sustainability, and AI integration. Strategic alliances among key players are shaping the landscape, fostering innovation and collaboration. The competitive differentiation is expected to evolve, moving away from price-based competition towards a focus on technological innovation and supply chain reliability. Companies that prioritize these aspects are likely to gain a competitive edge in the increasingly complex market.

Key Companies in the US IoT Communication Technologies Market market include

Industry Developments

In the US IoT Communication Technologies Market, significant developments are occurring, particularly among key players like Verizon Communications, IBM, and Oracle, who continue to enhance their service offerings with advanced data analytics and security protocols. In recent months, a notable acquisition took place as Microsoft acquired Nuance Communications in April 2021, enhancing its AI and machine learning capabilities for healthcare IoT applications. Similarly, SAP is focusing on integrating IoT solutions into its business management software, while Qualcomm has announced new partnerships aimed at improving connectivity and data processing for IoT devices.

There has also been growth in market valuations, with companies such as Cisco Systems and Amazon witnessing increased investments in their IoT technologies, indicating a rising trend in the demand for smart and connected devices. This uptick is further bolstered by government initiatives promoting the adoption of IoT to enhance operational efficiencies across industries. Developments over the past two to three years, including the rapid expansion of 5G networks, have also significantly impacted the market, making real-time data transmission more efficient and reliable for various applications.

Future Outlook

US IoT Communication Technologies Market Future Outlook

The IoT communication-technologies market is projected to grow at a 6.3% CAGR from 2024 to 2035, driven by advancements in connectivity, increased data demand, and smart device proliferation.

New opportunities lie in:

  • Development of low-power wide-area network (LPWAN) solutions for smart agriculture applications.
  • Integration of AI-driven analytics in IoT platforms for enhanced decision-making.
  • Expansion of secure communication protocols for critical infrastructure protection.

By 2035, the market is expected to achieve substantial growth, driven by innovation and strategic investments.

Market Segmentation

US IoT Communication Technologies Market Type Outlook

  • Wi-Fi
  • Bluetooth
  • Zigbee
  • Others

US IoT Communication Technologies Market End Use Outlook

  • Aerospace & Defense
  • Automotive
  • Information and Communication Technology
  • Automation
  • Power and Energy
  • Healthcare

Report Scope

MARKET SIZE 2024 2823.4(USD Million)
MARKET SIZE 2025 3001.27(USD Million)
MARKET SIZE 2035 5530.0(USD Million)
COMPOUND ANNUAL GROWTH RATE (CAGR) 6.3% (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 Cisco Systems (US), IBM (US), Microsoft (US), Amazon (US), Intel (US), Qualcomm (US), Siemens (DE), Huawei (CN), Ericsson (SE), Nokia (FI)
Segments Covered Type, End Use
Key Market Opportunities Integration of advanced security protocols enhances trust in the iot communication-technologies market.
Key Market Dynamics Rapid advancements in connectivity technologies drive competitive dynamics in the IoT communication technologies market.
Countries Covered US

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FAQs

What is the expected market size of the US IoT Communication Technologies Market in 2024?

In 2024, the market is expected to be valued at 2.5 USD Billion.

What is the projected market size for the US IoT Communication Technologies Market by 2035?

By 2035, the market is projected to reach a value of 5.0 USD Billion.

What is the expected compound annual growth rate (CAGR) for the US IoT Communication Technologies Market from 2025 to 2035?

The expected CAGR for the market from 2025 to 2035 is 6.504%.

Which segment of the US IoT Communication Technologies Market holds the largest share in 2024?

In 2024, the Wi-Fi segment is expected to be the largest, valued at 1.0 USD Billion.

What is the anticipated value of the Bluetooth segment in the US IoT Communication Technologies Market by 2035?

The Bluetooth segment is anticipated to be valued at 1.5 USD Billion by 2035.

Who are the key players in the US IoT Communication Technologies Market?

Major players in the market include SAP, Oracle, Verizon Communications, and Microsoft.

What challenges does the US IoT Communication Technologies Market face?

Challenges in the market include cybersecurity issues and integration complexities among different technologies.

What growth opportunities exist in the US IoT Communication Technologies Market?

Growth opportunities lie in the expansion of smart home devices and industrial IoT applications.

What is the value of the Zigbee segment in the US IoT Communication Technologies Market in 2024?

The Zigbee segment is valued at 0.5 USD Billion in 2024.

What is the estimated market value for the Others segment in the US IoT Communication Technologies Market by 2035?

The Others segment is estimated to reach 0.5 USD Billion by 2035.

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