In an era characterized by interconnectedness and digital innovation, Europe is at the forefront of cellular Internet of Things (IoT) technology adoption. As businesses and governments seek to leverage the power of IoT to drive efficiency, sustainability, and innovation, understanding the dynamics of the European cellular IoT market is critical.
The European cellular IoT market is defined by rapid growth, technological advancements, and a wide range of applications across industries. One of the defining trends in Europe’s cellular IoT market is the proliferation of connected devices across various industries.
Demand for IoT solutions powered by cellular connectivity is increasing across a range of industries, including smart cities, industrial automation, healthcare, and agriculture. This trend is being driven by advancements in cellular technologies such as 5G, which promise faster data speeds, lower latency, and increased network reliability, facilitating new possibilities for IoT deployments.
Europe stands tall as a significant player in the global IoT scene. What sets Europe apart is not just its burgeoning market size but also the diverse array of opportunities it presents in both consumer and industrial IoT sectors across numerous verticals and industries. As the European IoT market experiences annual growth rates surpassing 10%, the continent emerges as a hotspot for innovation and investment.
According to recent studies, the Internet of Things (IoT) is growing exponentially and will continue to do so. Gartner predicts that the IT services for IoT market will be worth USD 58 billion in 2025. The Asia Pacific is expected to have the highest IoT spending market share at 35%. North America is expected to account for 27% of total spending, while the EMA (Europe, Middle East, and Africa) region will account for 25%.
European IoT Market Flourishes Amid Global Challenges
Despite global challenges such as the COVID-19 pandemic, which many anticipated would stifle IoT growth temporarily, the European IoT market has demonstrated resilience. On the contrary, IoT has proven more indispensable than ever in overcoming pandemic-related hurdles.
In 2021, European IoT spending reached a staggering EUR 184 billion, with double-digit growth expected to continue through 2025. These figures demonstrate Europe’s significant contribution to the global IoT spending landscape. In 2019, Europe accounted for 23% of the world’s IoT spending, trailing behind the Asia Pacific and North American regions but maintaining a solid foothold in the market.
Germany, the United Kingdom, and the Netherlands emerged as vanguards of IoT adoption in Europe, with Eastern European countries and the Nordics closely following suit. While the manufacturing, home automation, healthcare, and finance sectors lead the charge in IoT adoption, remarkable growth has also been witnessed in the retail and agriculture domains.
Europe’s Current IoT Investment Surge
According to the latest findings from the Worldwide Internet of Things Spending Guide by the International Data Corporation (IDC), European entities are poised to invest USD 260 billion in IoT-related solutions in 2024 alone. This projection signals a booming market, with IoT spending expected to surge further, reaching almost USD 368 billion by 2027, marking a five-year compound annual growth rate (CAGR) of 11.8%.
Despite experiencing a slight deceleration in growth over the past two years due to geopolitical and macroeconomic factors impacting the European economy, the IoT market remains a cornerstone for digital transformation initiatives across industries. IoT has emerged as a pivotal tool for enhancing operational efficiency, cutting costs, and delivering superior customer experiences.
Organizations are prioritizing software investment, particularly to harness process condition monitoring and production asset management for boosting efficiency gains. Additionally, investments in modules, sensors, and related services such as industrial maintenance, vertical business process outsourcing, infrastructure as a service (IaaS), and data as a service (DaaS) are poised for growth.
Low-power wide area networks (LPWANs) are also set to witness significant growth, offering power-efficient, long-range connectivity solutions for IoT devices. These networks cater to devices requiring infrequent transmission of small data packets, making them ideal for smart meters, asset trackers, environmental monitors, and smart agriculture tools.
As Europe continues to position itself as a key player on the global IoT stage, the surge in investment underscores the region’s commitment to driving digital transformation and innovation across industries. With IoT expected to revolutionize business operations and unlock new growth opportunities, organizations stand to benefit from leveraging IoT solutions to stay competitive and future-ready in an increasingly connected world.
