India IoT Market Trends, Forecast & Opportunities | 2035

Posted 2025-10-24 09:33:59

The Indian IoT market is undergoing a period of explosive growth, but this expansion is not a uniform tide; a closer look at the allocation of value reveals a multi-layered capture of market share. A granular analysis of the India Internet of Things Market Growth Share by Company indicates that growth is being captured distinctly across different layers of the IoT stack: connectivity, platform, and services/applications. While global cloud providers are cornering the platform segment and domestic telcos dominate connectivity, the largest share of the overall project and services revenue is being won by India's giant system integrators. The market's overall growth trajectory is one of the most promising globally. The India Internet of Things Market size is projected to grow USD 351.27 Billion by 2035, exhibiting a CAGR of 12.02% during the forecast period 2025-2035. Understanding how this growth is being divided is critical to grasping the market's underlying economics. It highlights a clear trend where the value is shifting from the commoditized sale of individual sensors or connectivity plans towards the high-value, recurring revenue streams generated from integrated platforms and end-to-end managed services that deliver tangible business outcomes. The battle for market share is a battle for control over these higher-value layers.

A significant portion of the platform-level growth share is being consolidated by the three global hyperscale cloud providers: AWS, Microsoft Azure, and Google Cloud. As Indian enterprises and startups build IoT solutions, they are overwhelmingly choosing to build them on top of these established, scalable, and feature-rich cloud platforms. These providers have successfully positioned their IoT services (like AWS IoT Core and Azure IoT Hub) as the central nervous system for any serious IoT deployment, offering services for everything from device onboarding and security to data streaming, analytics, and machine learning. Their growth is fueled by their massive investment in local data centers in India, which addresses data sovereignty concerns, and their deep integration with the broader cloud ecosystem of services. By offering a one-stop-shop for all backend needs, they capture a recurring revenue stream from every device connected and every byte of data processed, making them the primary beneficiaries of the growth in the foundational technology layer of the market. Their business model ensures that as the number of connected devices in India explodes, their platform revenues grow in tandem.

While hyperscalers dominate the platform layer, the largest share of the overall project value and services revenue growth is being captured by India's homegrown IT services behemoths. Companies like TCS, Infosys, and Wipro are the master orchestrators of the large, complex IoT projects that constitute a major part of the market's value. When a large manufacturing company wants to create a "smart factory" or a city administration wants to build a "smart city," they turn to these trusted system integrators. The SIs' role is to bring all the disparate pieces together—the sensors from various hardware vendors, the connectivity from a telco, the backend platform from a cloud provider—and build a cohesive, customized solution that solves the client's specific business problem. Their growth share comes from the high-value consulting, system integration, custom application development, and ongoing managed services contracts associated with these projects. The persistent skills gap in specialized areas like IoT architecture and data science within most Indian enterprises means they are heavily reliant on these service providers, ensuring that a huge chunk of the enterprise IoT budget flows directly to them, making them the biggest winners in terms of overall services revenue.