Internet of Things (IoT) Monetization Market Size - By Business Model, By Deployment Type, By Application, – Global Forecast, 2025 – 2034

IoT Monetization Market Size

The global IoT monetization market size was valued at USD 1.01 trillion in 2024 and is estimated to grow at 46.4% CAGR from 2025 to 2034. The extensive usage of IoT devices across all the areas from home appliances to industrial sensors is expected to create the market ripe for monetization form the IoT devices.
 

The imposition of tariffs by the Trump administration on the Chinese goods has indirectly affected the IoT monetization market. It has led to disruption of supply chain of sensors and semiconductors used in IoT devices, in-turn increasing the prices of IoT devices. This has led to squeezing of profits of the hardware companies in turn increasing the prices of the services offered with the hardware. The companies which sell the hardware/software bundle has faced pricing pressure and forced them to absorb it or pass it to consumers slowing down the adoption rate. The companies such as Qualcomm and Siemens however has started local production to avoid duties. This can be beneficial in the long term but in the short term raises the R&D expenses, delaying the ROI to the companies. The trade uncertainty has also shifted attention of the industries on innovation in asset-light monetization such as data marketplaces, and API services to reduce dependency on hardware.
 

According to National Institute of Standards and Technology, by 2025, over 75 billion IoT devices will be deployed around the world enabling businesses to use real-time data for subscription models, usage-based billing, and predictive maintenance services. The omnipresence of the IoT devices would help in transforming the raw data into revenue stream.
 

AI-driven insights unlock new monetization avenues by analyzing IoT-generated data for personalized customer experiences and dynamic pricing. Machine learning algorithms optimize asset utilization, enabling pay-per-use models in manufacturing and logistics. Companies such as Siemens and GE use AI to turn equipment data into predictive maintenance contracts, creating recurring revenue.
 

The rollout of 5G enhances IoT monetization by supporting low-latency, high-bandwidth applications like autonomous vehicles and smart cities. Telecom operators monetize 5G-enabled IoT through tiered data plans and edge computing services. For example, Verizon’s ThingSpace platform offers API-based monetization for developers, fueling innovation in IoT services.
 

Businesses are moving from one-time sales to subscription services (e.g., Tesla’s in-car software upgrades) and outcome-based pricing (e.g., Rolls-Royce’s "Power-by-the-Hour" for jet engines). IoT enables these models by tracking usage, performance, and customer behavior, ensuring steady revenue while aligning costs with value delivered. This trend is reshaping industries from healthcare to agriculture.
 

To capitalize on the IoT monetization boom, players should prioritize developing interoperable platforms that seamlessly integrate diverse IoT devices and data streams, enabling scalable cross-industry solutions. For example, creating open APIs for third-party developers, akin to AWS IoT Core, can unlock new revenue through ecosystem partnerships. Additionally, invest in AI-powered analytics tools that transform raw IoT data into actionable insights for clients, such as predictive maintenance dashboards or dynamic pricing engines, which can command premium subscription fees.
 

IoT Monetization Market Trends

• The shift from cloud to edge computing is transforming IoT monetization by enabling real-time data processing at the source. This reduces latency and bandwidth costs, unlocking new revenue streams like localized ad targeting and instant fault detection. Companies like AWS and Siemens are offering edge-based subscription services, while industries like retail use edge analytics for dynamic pricing.
   
• Blockchain is emerging as a tool to secure IoT transactions and enable micro-payments between devices. Smart contracts automate revenue-sharing in IoT ecosystems, such as EV charging stations paying grid operators autonomously. Startups like IOTA are pioneering feeless machine-to-machine transactions, while enterprises use blockchain to combat IoT data fraud.
   
• Regulatory and consumer demand for green tech is fueling IoT solutions that monetize sustainability. Examples include carbon credit tracking via smart sensors and energy-sharing platforms for renewables. Companies like Schneider Electric offer "Sustainability-as-a-Service" using IoT data to optimize ESG reporting.
   

IoT Monetization Market Analysis

Based on business model, the market is divided into subscription-based, pay-per-use, outcome-based, advertising & sponsorship, data monetization, and licensing & franchising.
 

• The subscription-based business model was valued at USD 363.3 billion in 2024. It is revolutionizing IoT monetization by offering recurring revenue streams through tiered service plans, such as predictive maintenance or remote monitoring for industrial equipment. Companies like Tesla and Philips leverage subscriptions for software-enabled features, transforming one-time hardware sales into ongoing customer relationships. This model ensures steady cash flow while allowing businesses to scale services based on usage data and customer needs. Advanced analytics enable dynamic pricing, where fees adjust based on real-time device performance or demand patterns.
   
• The data monetization business model is expected to grow at a CAGR of 53.2% by 2034. The data monetization model enables businesses to generate revenue by aggregating, analyzing, and selling IoT-generated data to third parties, such as advertisers, insurers, or urban planners. Companies like John Deere monetize agricultural sensor data by providing insights to farmers, while smart city operators sell traffic patterns to logistics firms. AI-driven analytics enhance data value, allowing segmentation into premium offerings like predictive maintenance reports and consumer behavior trends. Privacy-compliant frameworks, such as anonymization and blockchain-based data marketplaces, ensure secure transactions.
   

Based on deployment type, the market is divided into cloud-based, on-premises, and hybrid.
 

• The cloud-based deployment type was valued at USD 564.9 billion in 2024. Cloud-based deployment accelerates IoT monetization by providing scalable, on-demand infrastructure for data storage, processing, and analytics. Leading platforms such as AWS IoT Core and Microsoft Azure IoT enable businesses to offer subscription-based services, such as remote asset monitoring or real-time dashboards, without heavy upfront hardware costs. Cloud solutions support global accessibility, allowing seamless integration of IoT data across supply chains, smart cities, and healthcare systems. Advanced features such as AI-driven predictive insights and automated billing further enhance revenue opportunities.
   
• The hybrid deployment type is expected to grow at a CAGR of 44.6% by 2034. Hybrid (cloud + on-premises) deployment is gaining traction in IoT monetization by combining the scalability of cloud platforms with the security and low latency of on-premises infrastructure. Industries like manufacturing and healthcare leverage hybrid models to monetize sensitive operational data locally while using the cloud for analytics and global service delivery. Solutions such as IBM Hybrid Cloud for IoT enable dynamic pricing models, where critical data stays on-site for compliance, while non-sensitive data fuels subscription-based insights. This approach reduces bandwidth costs and downtime, enhancing ROI for predictive maintenance and real-time monitoring services.
   

Based on application, the IoT monetization market is divided into smart home & consumer IoT, industrial IoT, smart cities, healthcare IoT, Agriculture IoT, retail technology, connected vehicles & telematics, and energy & utility management.
 

• The smart home & consumer IoT as an application was valued at USD 212.3 billion in 2024. The smart home & consumer IoT segment is a key driver of IoT monetization, fueled by demand for connected devices like smart speakers, security systems, and energy management tools. Companies such as Amazon (Alexa), Google (Nest), and Philips (Hue) leverage subscription models for premium features such voice-activated automation or 24/7 security monitoring. Data monetization opportunities arise from anonymized usage analytics, sold to advertisers or insurers for personalized offerings. Integration with AI assistants and 5G enhances user experiences, enabling upsells like predictive maintenance or energy-saving tips.
   
• The connected vehicles & telematics as an application is expected to grow at a CAGR of 51.8% by 2034. The IoT monetization market is fuelled due to real-time data services such predictive maintenance, usage-based insurance, and fleet management. Automotive manufacturers such as Tesla and BMW offer subscription-based features like autonomous driving upgrades and in-car entertainment, to generate revenue. Telematics service providers such as Verizon Connect and Geotab generate revenue streams by monetizing the fleet data by optimizing routes which in-turn reduces fuel cost for the logistics companies. Smart city traffic management and dynamic toll pricing is made possible by integrating 5G and V2X (vehicle-to-everything) technology in cars.
   

The U.S. IoT monetization market was valued at USD 301.8 billion in 2024. The IoT monetization market is leaded by U.S. due to robust 5G infrastructure, strong venture capital funding, and early adoption of AI-driven analytics. The companies headquartered in the U.S. such as Amazon, Google, and Microsoft have high market share in the IoT monetization due to their cloud-based IoT platforms, offering subscription models for smart homes and industrial IoT. The privacy regulations such as California Consumer Privacy Act (CCPA) help shaping the data sharing norms involved in IoT monetization, which makes possible revenue stream from anonymized data sales to third parties. Sectors such as automotive and healthcare are the major revenue generators due to connected cars and remote patient monitoring.
 

• The IoT monetization market in Germany is expected to grow at a CAGR of 43.5% by 2034. Germany is one of the major European countries to monetize IoT with its Industry 4.0 framework used for generating revenue stream from manufacturing IoT through predictive maintenance and asset-as-a-service models. Companies like Siemens and Bosch offer hybrid cloud-edge solutions for secure, real-time industrial data monetization. Strict General Data Protection Regulation (GDPR) compliance drives trust in data-sharing ecosystems, enabling premium B2B analytics services. Automotive telematics and energy management (e.g., smart grids) are high-growth segments.
   
• The internet of things (IoT) monetization market in UK is expected to be valued at USD 1.14 trillion in 2034. The U.K. focuses on smart cities and fintech-driven IoT monetization, with projects like London’s IoT-enabled traffic management generating data-as-a-service revenue. Telecom providers like Vodafone monetize 5G-connected devices, while startups pioneer IoT-based insurance models (e.g., pay-as-you-drive). Post-Brexit data sovereignty laws are shaping localized cloud IoT platforms. The healthcare sector adopts IoT for remote monitoring, creating subscription revenue streams.
   
• The IoT monetization market in China was valued at USD 118.5 billion in 2024. China’s IoT monetization growth is propelled by state-backed 5G rollout and massive smart city deployments, generating data for urban planning and retail analytics. Tech giants like Huawei and Alibaba dominate with low-cost IoT hardware and AI-powered monetization platforms. Government mandates push industrial IoT adoption, with manufacturers selling equipment usage data to global clients. Privacy concerns are balanced by centralized data governance, enabling large-scale B2B monetization.
   
• The IoT monetization market in India is expected to grow at a CAGR of 50.8% by 2034. India’s IoT monetization market thrives on affordable connectivity (Jio 5G) and smart agriculture/healthcare solutions, with startups like Sigfox and CropIn selling farmer analytics. Government initiatives (e.g., Smart Cities Mission) drive demand for traffic and utility management data services. Challenges include fragmented regulations, but sectors such as logistics (e.g., GPS fleet tracking) show strong subscription revenue potential.
   

IoT Monetization Market Share

The internet of things (IoT) monetization market is highly competitive, with the top 5 players, Microsoft, Amazon Web Services, Inc., Google LLC, IBM, and Siemens collectively accounting for a significant share of 22.4% of the market. These companies are deploying diverse strategies to strengthen their market position and adapt to evolving industry demands. Leading firms are investing in AI-driven analytics platforms and edge computing solutions to enhance real-time data monetization capabilities. Additionally, they are expanding their offerings to include subscription-based models for predictive maintenance, smart home automation, and industrial IoT services.
 

To gain a competitive edge, key players are integrating blockchain for secure data transactions and 5G-enabled IoT solutions to improve connectivity and scalability. There is also a growing focus on industry-specific monetization platforms, such as healthcare remote monitoring and connected vehicle telematics, to cater to niche markets. Companies are increasingly forming strategic partnerships with telecom providers, hardware manufacturers, and software developers to create end-to-end IoT ecosystems.
 

Sustainability is emerging as a critical differentiator, with firms developing energy-efficient IoT devices and carbon footprint tracking solutions to meet regulatory and consumer demands. Automation and low-code IoT platforms are being leveraged to reduce deployment costs and accelerate time-to-market for monetizable services. The market is also witnessing a surge in demand for customizable IoT solutions, where businesses can tailor data insights and pricing models to specific client needs.
 

IoT Monetization Market Companies

Some of the prominent market participants operating in the internet of things (IoT) monetization industry include:

• Microsoft
• Amazon Web Services, Inc.
• Google LLC
• IBM
• Siemens
   

Microsoft is a significant player in the IoT monetization market, leveraging its Azure IoT platform to offer scalable cloud-based solutions for industries such as manufacturing, healthcare, and smart cities. The company monetizes IoT through subscription models, such as Azure IoT Central, which enables predictive maintenance and real-time analytics. Microsoft integrates AI and edge computing to enhance data-driven services, such as Dynamics 365 Connected Field Service.
 

Amazon Web Services (AWS) is competing in the market space with AWS IoT Core, providing secure device connectivity and data processing for millions of endpoints. The platform enables monetization via pay-as-you-go pricing for services such as fleet management and smart home automation. AWS leverages machine learning (e.g., SageMaker) to turn IoT data into actionable insights, sold as premium analytics. Its partner network, including Tesla and Philips, fuels cross-industry solutions.
 

IoT Monetization Industry News

• In August 2024, Samsung and IBM announced a partnership to integrate Samsung Knox's mobile security features with IBM's QRadar Suite. This collaboration aims to provide enterprises with centralized visibility into mobile device vulnerabilities and on-device threat intelligence. The integrated solution is expected to enhance risk mitigation for mobile endpoints and will be available later this year.
   
• In March 2025, Siemens unveiled advancements in industrial AI, software-defined automation, and digital twin technology to drive digital transformation and sustainability across industries. The company introduced its first industrial foundation model aimed at optimizing engineering and automation processes. Collaborations with partners like Audi, Accenture, NVIDIA, Microsoft, and AWS were highlighted to accelerate the adoption of AI-driven solutions in manufacturing.
   

The IoT monetization market research report includes an in-depth coverage of the industry with estimates and forecast in terms of revenue (USD Million) from 2021 to 2034, for the following segments:

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Market, By Business Model

• Subscription-based
• Pay-per-use
• Outcome-based
• Advertising & sponsorship
• Data monetization
• Licensing & franchising

Market, By Deployment Type

• Cloud-based
• On-premises
• Hybrid

Market, By Application

• Smart home & consumer IoT
• Industrial IoT
• Smart cities
• Healthcare IoT
• Agriculture IoT
• Retail technology
• Connected vehicles & telematics
• Energy & utility management

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

• North America 
  • U.S.
  • Canada
• Europe 
  • Germany
  • UK
  • France
  • Spain
  • Italy
  • Netherlands
• Asia Pacific 
  • China
  • India
  • Japan
  • Australia
  • South Korea
• Latin America 
  • Brazil
  • Mexico
  • Argentina
• Middle East and Africa 
  • Saudi Arabia
  • South Africa
  • UAE