Europe IoT Market Set to Surge by 234%, Hitting USD 312.1 Billion by 2031

Dublin, July 01, 2026 (GLOBE NEWSWIRE) -- The "Europe IoT Market" has been added to ResearchAndMarkets.com's offering.

The Europe IoT Market is a pivotal regional ecosystem, characterized by strict data protection laws, industrial digitization, and growing enterprise adoption of cloud and edge IoT solutions. Estimated at USD 133.4 billion in 2024, this market is poised to soar to USD 312.1 billion by 2031. This growth, at a CAGR of approximately 13.22%, is fueled by expanding software platform usage, increasing Manufacturing & Automotive IoT deployment, and a rise in IoT adoption across sectors like IT & Telecommunications, Government & Public Sector, and Energy & Utilities. The regional focus is increasingly on scalable, intelligent IoT solutions to ensure operational efficiency and compliance with GDPR, the EU Cyber Resilience Act, and other regulations.

Drivers:

• Software Component Growth: Software is the fastest-growing component in Europe, at a 20.41% CAGR, indicative of a shift to intelligent IoT platforms and analytics solutions. Its market share is expected to climb from 20.99% in 2024 to 32.33% by 2031.
• 5G/Cellular Connectivity Surge: The 5G/Cellular sector, growing at an 18.27% CAGR, is propelled by 5G infrastructure expansion in major economies like Germany, UK, and France, with share growth expected from 20.01% in 2024 to 27.01% by 2031.
• Healthcare Demand: With a 16.50% CAGR, the healthcare sector's demand is driven by digitized patient care, connected devices, remote monitoring, and stringent EU data regulations.
• Diverse Industry Expansion: Non-traditional sectors such as education, logistics, and smart building management show rapid IoT adoption, growing at 16.54% CAGR, as enterprises explore beyond typical industrial uses.

Challenges:

• Decreasing Services Component Share: Although services hold a significant 46.03% share in 2024, growth lags at 9.89% CAGR, with a projected decline to 37.68% by 2031 as software investments rise.
• On-Premise Deployment Decline: On-Premise deployment is expected to decrease from 31.03% in 2024 to 28.00% by 2031, with a shift to cloud and edge solutions for better data processing capabilities.
• Media & Entertainment Slow Growth: With a modest 7.20% CAGR, this segment's share is expected to drop from 3.90% in 2024 to 2.72% by 2031, due to lesser adoption relative to other sectors.
• Germany's Declining Dominance: Germany is set to experience a slight decline from 25.41% in 2024 to 24.86% by 2031, as countries like the Netherlands rise at a 14.19% CAGR.

What This Report Covers:

• Detailed regional analysis of the European IoT ecosystem, emphasizing the interplay of digitization, compliance frameworks, and connectivity advancements across industries.
• Inspection of the component landscape, highlighting the swift move from services to intelligent software platforms.
• Framework analysis of deployment modes like Cloud and Edge Computing, detailing preference shifts in data processing practices.
• Exploration of connectivity technologies, identifying trends and growth within Europe's evolving 5G landscape.
• Sector-specific IoT adoption insights spanning numerous industries, showcasing high-growth opportunities.
• Country-level analysis pinpointing growth differentials and opportunities, highlighting the Netherlands as a leading contributor.

Key Highlights:

• The Europe IoT Market is set to expand from USD 133.4 billion in 2024 to USD 312.1 billion by 2031, propelled by IoT's industrial adoption and 5G rollout.
• Services lead initially, but software rapidly gains, indicating a shift toward advanced IoT platforms.
• Cloud deployment sees increasing preference, with Edge Computing also gaining traction due to distributed data processing requirements.
• Wi-Fi leads by technology, but 5G/Cellular quickly approaches parity, driven by expansive 5G deployment.
• Manufacturing & Automotive sectors remain dominant, while emerging industries see rapid growth in IoT implementation.
• While Germany leads in market share, the Netherlands and countries like France, Spain, and Italy show robust growth.

Key Topics Covered:

1. Introduction
1.1. Key Take Aways
1.2. Report Description
1.3. Markets Covered
1.4. Stakeholders

2. Research Methodology
2.1. Research Scope
2.2. Research Methodology
2.2.1. Market Research Process
2.2.2. Research Methodology
2.2.2.1. Secondary Research
2.2.2.2. Primary Research
2.2.2.3. Models for Estimation
2.3. Market Size Estimation
2.3.1. Bottom-Up Approach
2.3.2. Top-Down Approach

3. Executive Summary

4. Market Overview
4.1. Introduction
4.2. Market Drivers
4.3. Restraints & Challenges
4.4. Market Opportunities
4.5. Technology & Innovation Analysis

5. Europe IoT Market By Component
5.1. Hardware
5.2. Software
5.3. Services

6. Europe IoT Market By Deployment
6.1. Cloud
6.2. On-Premise
6.3. Edge Computing

7. Europe IoT Market By Technology
7.1. Wi-Fi
7.2. 5G / Cellular
7.3. Bluetooth
7.4. RFID
7.5. Others

8. Europe IoT Market By End User
8.1. IT & Telecommunications
8.2. BFSI (Banking, Financial Services & Insurance)
8.3. Government & Public Sector
8.4. Healthcare
8.5. Retail & E-Commerce
8.6. Manufacturing & Automotive
8.7. Energy & Utilities
8.8. Media & Entertainment
8.9. Other Industries

9. Europe IoT Market By Country
9.1. Key Points
9.2. UK
9.3. Germany
9.4. Netherlands
9.5. Nordics
9.6. France, Spain & Italy (FSI)
9.7. Others

10. Competitive Landscape
10.1. Introduction
10.2. Recent Developments
10.2.1. Mergers & Acquisitions
10.2.2. New Product Developments
10.2.3. Portfolio / Production Capacity Expansions
10.2.4. Joint Ventures, Collaborations, Partnerships & Agreements

11. Company Profiles
11.1. Siemens AG
11.1.1. Company Overview
11.1.2. Product/Service Landscape
11.1.3. Financial Overview
11.1.4. Recent Developments
11.2. Ericsson
11.2.1. Company Overview
11.2.2. Product/Service Landscape
11.2.3. Financial Overview
11.2.4. Recent Developments
11.3. Bosch (Robert Bosch GmbH)
11.3.1. Company Overview
11.3.2. Product/Service Landscape
11.3.3. Financial Overview
11.3.4. Recent Developments
11.4. SAP SE
11.4.1. Company Overview
11.4.2. Product/Service Landscape
11.4.3. Financial Overview
11.4.4. Recent Developments

12. Technology and Innovation Trends
12.1. AI and Machine Learning in IoT Analytics & Automation
12.2. Edge Computing and Fog Architecture Evolution
12.3. 5G-Enabled IoT Connectivity and Network Slicing
12.4. Digital Twin Technology and Industrial IoT Integration
12.5. IoT Security Frameworks and Zero Trust Architecture

13. Regulatory and Standards Framework
13.1. GDPR and IoT Data Protection Compliance Requirements
13.2. EU Cyber Resilience Act and Connected Device Standards
13.3. ISO/IEC 27001 and IoT Information Security Management
13.4. Sector-Specific Compliance (HIPAA, IEC 62443, PCI-DSS)
13.5. National IoT Policies and EU Digital Regulatory Mandates

14. Macro-Economic Factors
14.1. Europe IoT Investment and Enterprise Digital Spending
14.2. Geopolitical Tensions and Supply Chain Disruptions
14.3. Digital Transformation and Cloud Migration Trends
14.4. IoT Talent Shortage and Managed Service Adoption
14.5. Economic Conditions and IT Budget Prioritization

15. Market Opportunities and Future Outlook
15.1. SME Adoption of IoT-as-a-Service Models
15.2. Healthcare and Critical Infrastructure IoT Expansion
15.3. Smart City and Industrial IoT Growth Opportunities
15.4. Emerging Country Markets and Regional IoT Adoption
15.5. Strategic Recommendations for Market Participants

16. Challenges and Risk Analysis
16.1. IoT Device Security and Vulnerability Management
16.2. Integration Complexity with Legacy Infrastructure
16.3. Intense Competition and Pricing Pressure Among Providers
16.4. Data Privacy and Sovereignty Concerns
16.5. Regulatory Divergence Across European Markets

17. Conclusion and Strategic Insights
17.1. Key Market Takeaways
17.2. Growth Trajectory Overview
17.3. Investment Attractiveness Assessment
17.4. Long-Term Market Outlook

18. Appendix
18.1. Glossary of Terms
18.2. Abbreviations
18.3. Additional Data Tables

Companies Featured

• Siemens AG
• Ericsson
• Bosch (Robert Bosch GmbH)
• SAP SE

For more information about this report visit https://www.researchandmarkets.com/r/lg35h5

About ResearchAndMarkets.com
ResearchAndMarkets.com is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.