India IoT Market Outlook to 2028

India Io T Market Overview

The India Io T (Internet of Things) Market was valued at USD 21 billion in 2023, driven by rapid digitalization, increasing adoption of Io T devices across various sectors, and advancements in communication technologies. The market includes a wide range of Io T solutions, such as smart sensors, connectivity modules, Io T platforms, and data analytics services, serving industries like manufacturing, healthcare, agriculture, and smart cities.

Key players in the India Io T Market include Tata Communications, Reliance Jio, Bharti Airtel, Bosch India, and Siemens India. These companies maintain strong market positions through innovative Io T solutions, extensive distribution networks, and strategic partnerships with technology providers. They focus on enhancing Io T ecosystem capabilities to support the growing demand for connected devices and smart solutions.

Major regions such as Maharashtra, Karnataka, Tamil Nadu, and Delhi NCR lead the market due to their advanced technological infrastructure, high industrial activities, and robust IT services sectors. These states also exhibit higher demand for Io T solutions, driven by their diverse industrial base and increasing focus on smart city initiatives.

In March 2023, Tata Communications announced a strategic investment of USD 200 million over three years to expand its Io T connectivity solutions and services portfolio. The investment aims to enhance Tata Communications' capacity to serve the growing Io T market and strengthen its market presence in India, demonstrating the company's commitment to driving digital transformation in the region

India Io T Market Segmentation

The India Io T Market is segmented by component, connectivity, and region.

By Component: The market is segmented into Hardware, Software, and Services. In 2023, Hardware held the dominant market share due to the increasing adoption of Io T devices and sensors across various industries. Companies like Bosch India and Siemens India are key players in this segment, offering a range of Io T hardware solutions tailored to different industrial needs and applications.

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By Connectivity: The market is categorized by connectivity into Cellular, LPWAN, Wi-Fi, and Others. Cellular connectivity led the market in 2023, owing to its widespread availability, reliability, and ability to support large-scale Io T deployments, making it a preferred choice among enterprises and smart city projects.

By Region: The market is segmented by region into North, South, East, and West India. South India, particularly Karnataka and Tamil Nadu, dominates the market in 2023 due to the strong presence of IT services, electronics manufacturing, and smart city initiatives. The North region, including states like Delhi NCR and Haryana, holds a substantial share due to its large industrial base and robust infrastructure.

India Io T Market Competitive Landscape

Company

Establishment Year

Headquarters

Tata Communications

1986

Mumbai, Maharashtra

Reliance Jio

2007

Mumbai, Maharashtra

Bharti Airtel

1995

New Delhi, Delhi NCR

Bosch India

1951

Bengaluru, Karnataka

Siemens India

1867

Mumbai, Maharashtra

Bharti Airtel: In July 2023, Bharti Airtel's B2B division, Airtel Business, became the first ICT service provider in India to connect over 20 million Io T devices. This milestone underscores Airtel's leadership in the Io T space, offering solutions across various sectors such as automobile, energy, logistics, and manufacturing.

Reliance Jio: At the 2024 Annual General Meeting, Jio introduced its Jio Home Io T platform, designed for home automation, which integrates with Matter-compliant smart devices, allowing users to manage their connected devices from a single interface. This initiative aims to simplify home automation by enabling seamless control over various smart devices, enhancing user convenience and connectivity throughout the home.

India Io T Market Analysis

Growth Drivers

Increasing Adoption of Io T in Industrial Automation: The India Io T market is driven by the adoption of Io T solutions in industrial automation, particularly in manufacturing and logistics. According to the Ministry of Electronics and Information Technology (Meit Y), thousands manufacturing units across India have implemented Io T-based solutions to enhance production efficiency and reduce operational costs in 2023. This trend is further supported by the government's Make in India initiative, which aims to boost domestic manufacturing capabilities through technological integration.

Surge in Smart City Projects: The development of smart cities in India continues to be a major growth driver for the Io T market. The Ministry of Housing and Urban Affairs reported that as of 2024, 70 cities have initiated smart city projects incorporating Io T solutions for smart infrastructure, including smart lighting, waste management, and traffic control systems. These projects are expected to improve urban living standards and reduce costs by optimizing resource use. The Union Budget 2024 allocated USD 28.61 Mn for the Smart Cities Mission for the fiscal year 2024-25.

Expansion in Io T Healthcare Applications: The healthcare sector in India is increasingly adopting Io T technologies to improve patient care and operational efficiency. According to the National Health Authority, hundreds of hospitals integrated Io T-based patient monitoring systems in 2023, resulting in substantial reduction in patient readmissions and in hospital stays. These systems enable real-time monitoring of patients' vital signs, allowing for timely interventions and better management of chronic diseases.

Challenges

Data Privacy and Security Concerns: The India Io T Market faces noteworthy challenges related to data privacy and security, as the increasing use of connected devices raises concerns about data breaches and cyber threats. Ensuring data protection and building secure Io T networks is crucial for maintaining consumer trust and compliance with regulatory standards. The implementation of robust cybersecurity measures and encryption protocols is necessary to mitigate these risks and protect sensitive data across Io T platforms.

Infrastructure and Connectivity Issues: Despite advancements in Io T technologies, infrastructure and connectivity issues, particularly in rural and remote areas, pose challenges for market growth. Limited access to high-speed internet and reliable power supply affects the deployment of Io T solutions, impacting their scalability and effectiveness. Addressing these infrastructural gaps is essential to ensure widespread adoption of Io T technologies, especially in underdeveloped regions.

Government Initiatives

Smart Cities Mission: The Indian government's Smart Cities Mission aims to develop 100 smart cities across the country by 2025, incorporating Io T technologies to enhance urban infrastructure and services. As of July 2024, 7,188 projects worth 1,44,237 crore have been completed in the 100 selected cities, with 830 more projects worth 19,926 crore in advanced stages of completion. This initiative provides substantial opportunities for Io T solution providers to offer smart solutions for urban management, transportation, and public safety.

Digital India Initiative: The Digital India Initiative is a transformative program launched by the Government of India on July 1, 2015. Its primary objectives include improving online infrastructure, increasing internet accessibility, and empowering citizens through digital services. The initiative focuses on three key areas: establishing secure digital infrastructure, delivering government services digitally, and ensuring universal digital literacy. It aims to bridge the digital divide and enhance the economy, with projections indicating a potential boost to India's digital economy to USD 1 trillion by 2025.

India Io T Market Future Outlook

The India Io T Market is expected to witness robust growth by 2028, driven by increasing investments in Io T technologies, rising demand for smart solutions, and government initiatives supporting digital transformation.

Future Market Trends

Growth in Industrial Io T (IIo T) Applications: By 2028, a noteworthy portion of Io T deployments in India is expected to be in the industrial sector, driven by the need for automation, predictive maintenance, and supply chain optimization. Manufacturers are focusing on integrating Io T with AI and machine learning to enhance operational efficiency and reduce costs. This integration will enable more precise monitoring and control of industrial processes, fostering innovation and competitiveness in manufacturing and logistics.

Expansion of Io T Ecosystem through Partnerships: The Io T ecosystem in India is expected to expand through strategic partnerships between technology providers, telecom operators, and industry stakeholders. This trend is driven by the need for integrated Io T solutions that combine connectivity, hardware, and software to deliver comprehensive value to customers. These collaborations are anticipated to accelerate innovation and facilitate the development of new Io T applications tailored to specific industry needs
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