Rising smartphone use, smart city investment, and domestic chip innovation propel India’s consumer IoT market from US$9.68 billion in 2025 to US$27.05 billion by 2034.
India’s consumer Internet of Things (IoT) market is projected to expand significantly, rising from US$9678.01 million (roughly US$9.68 billion) in 2025 to US$27,045.64 million (about US$27.05 billion) by 2034, according to a report by IMARC.
The report stated that the sector is expected to grow at a compound annual growth rate (CAGR) of 12.1% between 2026 and 2034, driven by digital transformation, rising smartphone penetration, and government-backed smart infrastructure initiatives.
As of March 2026, hardware leads the market, accounting for 44% of revenue in 2025, supported by demand for processors, sensors and memory devices. Wireless connectivity dominates with an 80% share, reflecting the widespread use of Bluetooth, Wi-Fi and emerging protocols.
Consumer electronics represent the largest application segment at 36%, with strong uptake of smart televisions, connected appliances and intelligent lighting systems. Regionally, South India holds 37% of the market, underpinned by advanced technology infrastructure and the presence of IT hubs in Bengaluru and Chennai.
Government programmes, including the Smart Cities Mission, have accelerated IoT adoption, with all 100 designated cities now operating Integrated Command and Control Centres. In the Union Budget 2024–25, ₹24 billion was allocated to the initiative, reinforcing long-term investment in connected infrastructure.
On the other hand, industry developments include ABB India’s launch of ABB-free@home in September 2024, a smart home automation system compatible with Apple HomeKit, Google Home and Amazon Alexa.
Domestic semiconductor innovation is also shaping the market. Mindgrove Technologies, an IIT Madras-incubated startup, introduced India’s first commercial high-performance IoT chip in May 2024, priced around 30% lower than imported equivalents.
Meanwhile, the rollout of 5G infrastructure, with over 508,000 base transceiver stations installed by October 2025, is enabling advanced applications such as augmented reality, remote healthcare monitoring and sophisticated smart home ecosystems.
With expanding e-commerce channels, growing consumer demand for connected devices, and supportive policy frameworks, India’s consumer IoT market is positioned for sustained growth through the next decade, says IMARC.
