Internet of Behavior (IoB) Market Size - By Application (Advertising campaign, Digital Marketing, Content Delivery, Brand Promotion, Fraud Detection), By Enterprise Size (Large Enterprise, SME), By Technology, By Industry Vertical & Forecast, 2024 – 2032

Internet of Behavior Market Size

Internet of Behavior (IoB) Market size was valued at USD 432.2 billion in 2023 and expected to grow at over 23% CAGR between 2024 and 2032, owing to the proliferation of IoT devices across the globe. The growing adoption of IoT devices, such as smartwatches, connected cars, and smart home systems, generates vast amounts of data on user behavior. This data is important for understanding user habits and preferences.
 

According to Ericsson Mobility Report 2023, the total number of cellular IoT connections reached 3.4 billion at the end of 2023 and is expected to reach 6.7 billion by 2032. Combining IoT with AI enhances the ability to analyze and interpret behavioral data, driving the IoB market. Additionally, IoT devices often operate in interconnected ecosystems, allowing for behavioral analysis across different touchpoints, enhancing the use of IoB applications.
 

Increasing focus of businesses on enhancing the customer experience is also contributing to the growth of the market. Companies are investing heavily in technologies and strategies to enhance the overall customer experience, which includes understanding and influencing customer behavior. Enhanced understanding of customer behavior allows business to create more engaging and relevant interactions, leading to higher customer satisfaction and loyalty. Analyzing behavioral data helps businesses identify pain points, preferences, and expectations, allowing them to improve customer interactions and satisfaction. Additionally, businesses can customize experiences based on individual behavior patterns, making interactions more meaningful and impactful.
 

IoB involves the collection and analysis of extensive behavioral data, which includes sensitive personal information. Poor management of this data can lead to privacy breaches and legal issues. Additionally, complying with strict data privacy regulations such as GDPR, CCPA, and others is complex. Non-compliance can result in heavy fines and damage to reputation. High-value data is a prime target for cyber-attacks. Ensuring robust security measures is critical to protect against data breaches and unauthorized access. Additionally, businesses should conduct regular audits to ensure compliance with data protection regulations. By taking these steps, companies can mitigate risks and build trust with their customers.
 

Internet of Behavior Market Trends

The growing advancements in data analytics and AI are transforming the market. Techniques including machine learning, deep learning, and natural language processing allow the analysis of complex data sets. These methods uncover hidden patterns and correlations in consumer behavior. AI automates the analysis of large amounts of data, providing real-time insights and predictive analytics. AI algorithms predict future behaviors based on historical data, allowing businesses to tailor their strategies effectively.
 

AI-driven predictive models can anticipate user needs and preferences, leading to more proactive and personalized engagement. Decision-makers can use these to make more informed choices regarding marketing strategies, product development, and customer engagement.
 

Companies operating in the market are forming strategic partnerships to develop new analytics solutions to provide information on real consumer behavior. For instance, in March 2024, Orange partnered with Intent HQ, a customer personalization and analytics platform to develop and commercialize the new Market Explorer service, an analytics solution based on Big Data and AI technologies that offer detailed and high-quality information on real consumer behavior in Spain.
 

Internet of Behavior Market Analysis

Based on enterprise size, the market is segmented into large enterprises and SME. The large enterprises segment held around 65% of the market share in 2023 and is expected to cross USD 1.6 trillion by 2032. Large enterprises are increasingly using IoB as a part of their digital transformation strategies to improve efficiency, enhance customer experience, and data-driven decision-making.
 

As part of their digital transformation, large enterprises invest heavily in advanced technologies, including IoT, AI, and data analytics, which are essential components of IoB. The use of IoB technologies helps large enterprises gain a competitive edge by streamlining their operations and offering personalized experiences.
 

Based on industry vertical, the IoB market is divided into BFSI, IT & telecom, media & entertainment, tourism & travel, retail & e-commerce, healthcare, manufacturing and others. The BFSI segment held around 24% of the market in 2023. The adoption of IoB technologies in the BFSI industry is driven by the need to enhance customer experience, manage risks, comply with regulations, and stay competitive. IoB allows financial institutions to analyze customer behavior and preferences enabling them to offer highly personalized financial products, services, and advice.
 

Banks and insurers can use behavioral data to provide real-time insights and recommendations, improving customer engagement and satisfaction. Additionally, IoB technologies analyze transaction patterns and user behavior to detect unusual activities that may indicate fraud or security breaches. This data helps in assessing customer risk profiles accurately, leading to better risk management and mitigation strategies.
 

North America holds around 38% of the internet of behavior market share in 2023.  North America has a highly developed technology sector with a strong focus on innovation. The presence of well-established technological infrastructure with widespread high-speed internet and advanced data centers, supports the deployment and scalability of IoB solutions. Companies in the region are increasingly leveraging IoB technologies to differentiate themselves from competitors and offer cutting-edge solutions. High levels of investment in research and development drive the also drives adoption and integration of advanced IoB technologies in the region.
 

U.S. consumers expect personalized experiences in digital services and products. IoB technologies help companies meet these expectations by providing tailored recommendations based on detailed behavioral insights. In a competitive market, U.S. businesses use IoB to offer more personalized and engaging customer experiences.
 

Rapid urbanization in Asia Pacific countries leads to the development of smart cities that utilize IoB technologies to manage urban infrastructure, services, and resources effectively. Many governments in the region support smart city projects and digital transformation, driving the adoption of IoB solutions.
 

The rapid growth of the digital economy and high mobile penetration in Latin America creates a strong foundation for IoB technologies, which leverage mobile and digital data for behavioral insights. Also, the rise in e-commerce and digital payments drives the need for IoB solutions in the region to enhance customer experiences and optimize operations.
 

Internet of Behavior Market Share

Microsoft Corporation and Google LLC hold a significant market share of around 10% in the IoB industry in 2023. Microsoft integrates advanced AI and machine learning capabilities into its Azure cloud platform to support IoB applications. These technologies enable businesses to analyze vast amounts of behavioral data and derive actionable insights. The company has also formed strategic partnerships with various companies to enhance its IoB offerings.
 

Google uses its expertise in data analytics and AI through platforms like Google Analytics, Google Cloud AI, and TensorFlow to power IoB applications. These tools help businesses analyze behavioral data at a scale and gain deeper insights into consumer behavior. Google’s expertise in AI and data analytics makes it a major player in the IoB market, allowing businesses to deliver personalized experiences and optimize decision-making.
 

Internet of Behavior Market Companies

Major companies operating in the internet of behavior industry are:

• Amazon Web Services (AWS)
• Google LLC
• IBM Corporation
• Microsoft Corporation
• NICE Ltd.
• OpenText Corporation
• Oracle Corporation
• Riverbed Technology LLC
• Salesforce
• SAP SE
   

Internet of Behavior Industry News

• In January 2024, Mitsubishi Electric Corporation launched a behavioral-analysis AI designed to assess the efficiency of manual tasks on production sites within minutes, eliminating the need for operators to prepare AI-training data in advance. Using a probabilistic generative model, the new AI addition to the company's Maisart lineup analyzes videos of workers performing repetitive tasks and provides visualizations to suggest improvements for enhanced productivity.
   
• In August 2023, Qualtrics, an U.S. based Experience Management company launched Digital Experience Analytics (DXA), a digital tool to help create visual replays of consumer behavior during online experiences.  The tool uses AI to identify relevant session replays of customer experiences and uses the information to help improve customer’s digital experiences.
   

The internet of behavior (IoB) market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) from 2021 to 2032, for the following segments:

Click here to Buy Section of this Report

Market, By Application

• Advertising campaign
• Digital marketing
• Content delivery
• Brand promotion
• Fraud detection
• Others

Market, By Enterprise Size

• Large enterprises
• SME

Market, By Technology

• Data collection
  • Sensors
  • Wearables
  • Mobile apps
  • IoT devices
• Data analysis
  • Machine Learning
  • Artificial Intelligence
  • Big Data Analytics
• Data storage & management
  • Cloud computing
  • Data warehouses
  • Data lakes

Market, By Industry Vertical

• BFSI
• IT & telecom
• Media & entertainment
• Tourism & travel
• Retail & e-commerce
• Healthcare
• Manufacturing
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• MEA
  • South Africa
  • UAE
  • Saudi Arabia
  • Rest of MEA