Asia-Pacific EMEA Internet of Things (IoT) Market Outlook, 2025–2035
The Asia-Pacific EMEA IoT market encompasses a comprehensive ecosystem of hardware, software, services, platforms, and solutions, driven by smart manufacturing, healthcare, transportation, energy, and city initiatives. IoT involves the interconnection of devices, sensors, and systems that enable real-time data analysis and automation, catalyzing operational efficiencies, reducing costs, and enhancing user experiences across verticals. The market is propelled by rapid 5G rollout, advanced sensor integration, cloud computing, and favorable government policies supporting digital transformation. In 2025, the market is valued at USD 85,000 Million and is projected to reach USD 400,000 Million by 2035, reflecting significant expansion supported by diverse applications and innovative technology integration.
Latest Market Dynamics
Key Drivers
Accelerated 5G Deployment: The widespread adoption of 5G networks across Asia-Pacific enables faster IoT device connectivity and real-time analytics in sectors like manufacturing and smart cities. For example, Huawei Technologies completed major 5G coverage in Southeast Asia, greatly improving IoT capabilities in 2025.
Government Initiatives and Smart Infrastructure: Robust government investments in smart city and digital healthcare projects continue to bolster IoT adoption. India’s Smart Cities Mission, reinforced by partnerships with Siemens and Cisco, expanded IoT infrastructure dramatically in 2025.
Key Trends
Edge Computing Integration: More organizations are deploying edge computing alongside IoT, reducing latency and ensuring faster data processing. For instance, Dell Technologies launched edge-enabled gateways optimized for Asia-Pacific industries in early 2025.
AI-powered IoT Solutions: AI and machine learning are fueling automation and intelligent decision-making in IoT ecosystems. IBM’s rollout of AI-enabled IoT analytics for healthcare systems across Japan exemplifies this trend in 2025.
Key Opportunities
Healthcare IoT Expansion: The demand for remote patient monitoring and telehealth solutions is surging, creating vast opportunities. Philips and Samsung introduced advanced IoT-based health-monitoring devices in Indian and Southeast Asian markets in 2025.
Industrial IoT (IIoT) for Manufacturing: As Industry 4.0 initiatives proliferate, manufacturers in China and Taiwan are rapidly deploying IIoT platforms for production automation, with Bosch and Siemens leading recent collaborations in 2025.
Key Challenges
Data Security & Privacy: With expanding IoT devices, concerns over data breaches and privacy persist. Oracle and Microsoft invested in robust security frameworks in response to 2025 regulatory demands in the Asia-Pacific region.
Integration Complexity: Legacy systems and diverse IoT protocols complicate seamless integration. SAP’s 2025 partnership projects in smart logistics underline ongoing challenges in system interoperability.
Key Restraints
High Initial Implementation Costs: SMEs face significant capital investment barriers when adopting large-scale IoT solutions. Startups in Vietnam and the Philippines, for example, cited high upfront infrastructure costs in 2025.
Fragmented Standards: The lack of unified IoT standards restricts large-scale deployments and cross-vendor compatibility. Efforts from the Asia IoT Alliance and Intel in 2025 are underway but remain ongoing.
In 2025, hardware dominates the Asia-Pacific EMEA IoT market, driven by robust demand for connected devices, sensors, and edge gateways. Hardware accounts for 38% of the market share, reflecting ongoing investments in infrastructure. Software has a 24% share, as integrated platforms, data analytics, and AI-driven applications continue to gain traction. Services contribute 19%, powered by strong managed services and support ecosystems. The remaining market is split among platform (10%), connectivity devices (7%), and solution (2%), underscoring the diversity and maturity of the regional IoT landscape.
Asia-Pacific EMEA IoT Market Share by Application, 2025
Smart manufacturing secures the top spot in the Asia-Pacific EMEA IoT market in 2025, accounting for 27% of applications, thanks to surging demand for automation and real-time analytics in production plants. Smart healthcare follows at 19%, driven by telemedicine and remote monitoring solutions. Smart cities occupy 17%, as more urban centers embrace IoT for intelligent traffic, waste management, and security. Smart transportation (14%), smart energy (12%), and other IoT-driven verticals round out the application share, indicating a balanced, multi-sector adoption landscape across the region.
From 2020 to 2035, the Asia-Pacific EMEA IoT market revenue demonstrates a robust growth trajectory, surging from USD 40,000 Million in 2020 to USD 400,000 Million in 2035. Key inflection points include rapid scale-up in 5G coverage, exponential IoT device integration, and major digital infrastructure projects across China, India, and Southeast Asia. The market’s compound annual growth rate remains strong through the forecast period, underpinned by smart manufacturing, healthcare, and city initiatives. The upward revenue curve reflects increasing enterprise, government, and consumer adoption of advanced IoT technologies.
Year-on-year growth in the Asia-Pacific EMEA IoT market averages between 16% and 22% through 2030, peaking at 26% as digital transformation accelerates mid-decade. The post-2030 period shows a gradual normalization of growth rates towards 10–12% as the market matures and IoT adoption nears saturation in leading countries. The pronounced growth spikes reflect expanded industry IoT adoption, policy support, and innovative technology rollouts, contributing to a healthy and sustainable long-term upward market trend.
Asia-Pacific EMEA IoT Market Share by Regions, 2025
China leads the regional market with 41% share in 2025, attributed to aggressive IoT infrastructure deployment and industrial digitalization. India follows with 18%, propelled by government smart initiatives and rising device penetration. Japan (11%), South Korea (8%), and Australia (7%) also play significant roles, while the remaining 15% includes Southeast Asian countries and Taiwan. The diversity of regional contributions signifies a dynamic and competitive Asia-Pacific IoT environment with both developed and emerging markets rapidly embracing technology.
Asia-Pacific EMEA IoT Market Top Players Share, 2025
The competitive landscape is led by Huawei Technologies (15%) and Cisco Systems (13%), both instrumental in networking and cloud solutions expansion. Siemens AG and IBM Corporation hold 10% each, focusing on industrial and AI-driven IoT applications, respectively. Samsung (8%), Intel (7%), SAP SE (6%), and others collectively comprise 31%, as collaborative innovation and new entrants intensify competition across verticals. The market share distribution indicates a diverse and competitive vendor ecosystem, where partnerships and domain expertise drive differentiation.
Asia-Pacific EMEA IoT Market Top Buyers Share, 2025
In 2025, large enterprises constitute the largest share of IoT market buyers at 47%, leveraging the technology for major digital transformation projects. Medium-sized organizations account for 35%, reflecting increased affordability and tailored vertical solutions. Small businesses (18%) continue expanding adoption with the help of managed services and cloud solutions. These patterns illustrate the broadening of the IoT user base, spanning from multinational corporations to SMEs exploring competitive advantages through digitization.
Study Coverage
Metrics
Details
Years
2020-2035
Base Year
2025
Market Size
Revenue (USD Million)
Regions
China, India, Japan, Taiwan, Vietnam, Philippines, Singapore, Australia, South Korea, Rest of APAC
June 2024: Huawei and China Mobile announce partnership to expand 5G-powered IoT infrastructure across new manufacturing zones in western China.
July 2024: Siemens AG reveals launch of a region-specific IIoT analytics platform tailored for Southeast Asia's automotive industry.
August 2024: Samsung Electronics debuts IoT-enabled healthcare wearables for the APAC elderly care market.
September 2024: Indian government accelerates Smart Cities Mission with an additional USD 1 billion investment in IoT and AI-enabled city solutions.
October 2024: IBM unveils a cloud-based IoT security service focused on data privacy compliance for Asia-Pacific enterprises.
Frequently Asked Questions
About the Author
Sophia
Lead Industry Analyst
Sophia is a Lead Industry Analyst specializing in market research, industry analysis, and business consulting across Information & Technology. Sophia brings a commercially grounded perspective to sectors shaped by changing demand, innovation, and competitive dynamics, helping turn complex market trends into clear strategic insights for business decision-makers. With 10+ years of experience across research, analytics, and strategic advisory roles, Sophia has helped organizations translate data into actionable growth strategies.
Information & TechnologyMarket ResearchIndustry AnalysisStrategic Consulting
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