Lionel Sujay Vailshery
Research expert covering cloud computing and emerging tech industries
Internet of Things (IoT) in Europe - statistics & facts
The Internet of Things (IoT) is not just a buzzword, it's a revolution in how we interact with our digital world. Imagine your refrigerator telling you when you're out of milk, or you’re navigating through traffic delays by choosing the best routes. This is the power of IoT, a network of devices that collect and share data, enabling them to react to real-time data. Sometimes known as connected things or smart devices, although subtle differences exist among these consumer electronics.
The apotheosis of connectivity
Over the last years, IoT has had a powerful development, boosting the so-called fourth industrial revolution. In 2023, the IoT market in Europe recorded a revenue of over 225 billion U.S. dollars and was expected to increase to 411 billion U.S. dollars by 2028. Companies in almost all industries are adopting and investing in IoT solutions in order to increase efficiency, productivity, and security across their business activities.
However, a successful IoT deployment strategy must take into consideration market impediments as much as benefits. The more devices a company adds to its business environment, the higher the number of different solutions required to connect everything and ensure a smooth data flow between all connected devices. This can be mitigated to some extent by deployment of 5G connectivity as a supporting infrastructure.
Therefore, it is not surprising that smart home and wearable device manufacturers and consumer IoT service and voice assistant providers perceived the cost of technology investment to be the most important barrier when entering or expanding the IoT market in Europe.
Smartphones are not the only smart thing nowadays
The IoT market in Europe promises to become omnipresent soon. Its development over the last years led to the emergence of smart cars, smart homes, as well as smart cities. Smart homes have become a common application of IoT in people’s everyday lives, with the market revenue in Europe forecast to double from 2020 to 2024. Revenues of various segments, such as smart security and home entertainment, are also expected to increase dramatically, with the smart home security market in Europe projected to equal as much as 5.3 billion U.S. dollars by 2025.
In the end, IoT is more than just connected devices, it's a vision of a smarter, more efficient future. And as this technology continues to evolve, we can expect even more exciting innovations that will reshape the way we live, work, and play.
