IoT & Connected Devices: Instrumenting Industry and Homes
Falling sensor costs and 5G connectivity are driving IoT adoption across industry, utilities, mobility and homes.
Market Size
~$10 Bn (India IoT, FY26E)
Growth
~20% CAGR (FY26–30E)
Read
6 min
Updated
Apr 2026
Overview
The Internet of Things connects physical assets - machines, meters, vehicles, appliances - to networks and analytics, enabling monitoring, automation and predictive maintenance. In India, industrial IoT, smart metering, connected mobility and smart-home devices are the largest demand pools. Government smart-metering and smart-city programmes provide a sizeable anchor.
Value in IoT is shifting from hardware toward connectivity, platforms and data analytics, where recurring revenue and stickiness are higher. 5G, cheaper sensors and edge computing are expanding feasible use cases. Interoperability, security and data-management remain practical challenges to scaled deployment.
The opportunity is broad but fragmented; monetisation depends on moving up the stack from device sales to platform and analytics subscriptions. Enterprise and utility deployments offer the most durable demand.
Illustrative projection from the report's stated market size (~$10 Bn (India IoT, FY26E)) and growth (~20% CAGR (FY26–30E)).
Key Highlights
- Industrial IoT and smart metering as anchor demand
- Value shifting from hardware to platforms and analytics
- 5G and edge computing expanding use cases
- Security and interoperability as gating challenges
Growth Drivers
- Government smart-metering and smart-city programmes
- Falling sensor costs and 5G rollout
- Industrial automation and predictive-maintenance demand
- Connected mobility and smart-home adoption
Key Players
Investment Outlook
IoT offers broad structural demand, with the most durable returns accruing to platform and analytics layers rather than commodity hardware. We favour players with recurring connectivity or software revenue and strong utility or industrial anchors.
Key Risks
- Hardware commoditisation compressing margins
- Security and data-privacy vulnerabilities
- Fragmentation and interoperability friction
The Neoma View
We prefer IoT exposure at the platform and analytics layer where revenue is recurring and defensible, anchored by utility and industrial deployments.
Talk to an advisor →All figures are indicative and for information only - not investment advice or a recommendation. Market sizes, growth rates and financial metrics are hedged estimates that vary by source and period. Please consult your advisor before investing.
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