Connected Devices Market Report 2026: Average US Household Use 20+ Devices

Connected Devices: Market Snapshot

The connected devices market is projected to reach USD 650 billion by 2032, growing at a 14.5% CAGR as IoT adoption scales across households, enterprises, and industrial systems. In 2023, the average US household operated 21 connected devices across 13 categories, spending roughly USD 800 annually on device acquisition, reflecting strong consumer demand.

The ecosystem includes 35 200 companies and 1890 startups, employing 3.3 million professionals globally. Innovation remains robust, with 50 200 patent filings from 28 100 applicants and an annual patent growth rate of 11.54%, led by China and the United States.

Investment momentum is equally strong, with an average funding round of USD 34.9 million, more than 20 300 closed rounds, and capital reaching over 5100 companies. The IoT connectivity platform segment alone attracted USD 1.45 billion in 2024 and H1 2025, underscoring sustained investor confidence in scalable device infrastructure, edge computing, analytics, and next-generation wireless ecosystems.

Connected Devices Overview: ~USD 650 Billion Market by 2032

The global connected devices market is projected to reach USD 650 billion by 2032. It is expected to grow at a CAGR of 14.5% between 2025 and 2033. As per our platform data, on a granular level, the market recorded a yearly growth rate of 4.88%.

Also, it includes 1890 startups within a broader ecosystem of 35 200 companies, and the global workforce stands at 3.3 million employees. Geographically, the market concentrates in key innovation hubs: the US, India, the UK, France, and Canada.

Did you know the typical US household operated an average of 21 connected devices across 13 categories in 2023? On average, households spent about USD 800 on acquiring connected devices.

Further, the patent activity reached 50 200 filings from 28 100 applicants. The yearly patent growth rate of 11.54% reflects ongoing R&D investment in connectivity standards, embedded systems, and data integration technologies. China leads patent issuance with 25 680+ filings, followed by the United States with more than 9750.

Moreover, between 2003 and 2018, inventors and corporations filed 53 593 IoT-related patents in the United States. This established connected devices as a major patent domain during that period.

Meet the Top 5 Innovative Connected Devices Startups

Aethernet creates a Connected Devices Cloud Infrastructure Platform

US-based startup Aethernet builds a cloud infrastructure platform that provides secure networking and data transport for connected devices and distributed applications.

It operates as a private, globally available message bus that routes encrypted data over transmission control protocol (TCP), user datagram protocol (UDP), and WebSocket while managing provisioning, identity, routing, and billing in the backend.

The platform supports automatic device onboarding, real-time fleet monitoring, multi-protocol data channels, and end-to-end encryption across technologies such as LoRa, NB-IoT, BLE, GSM, Wi-Fi, and Ethernet.

In addition, it integrates DDoS protection, role-based access control, buffering for connection loss, and stateless protocols optimized for unstable networks.

JP Technet offers an Autonomous IoT Management System

Sri Lankan startup JP Technet provides an AI-powered IoT intelligence platform that monitors, analyzes, and optimizes connected device networks at scale.

It ingests real-time data from multiple IoT protocols into a centralized system, where AI models process metrics, detect anomalies, and generate predictive insights.

The platform supports real-time monitoring, device health scoring, predictive maintenance, and analytics dashboards. It integrates with enterprise systems using APIs and multi-protocol connectivity.

Further, it provides enterprise reliability with automated scaling, low-latency processing, strong security controls, and compliance-ready data management across manufacturing, healthcare, logistics, and energy.

Web3things builds the Connected Device Economy

Indian startup Web3things develops a decentralized IoT platform and Web3-enabled devices that connect real-world data to blockchain networks under user ownership.

It leverages SDKs and device firmware to stream data from smartwatches, tags, and vehicle OBD devices. This process generates on-chain proofs and enables smart contract execution across blockchains.

The platform integrates DePIN contracts and dApps to process health, location, agriculture, and mobility data. It also supports reward distribution, real-time analytics, and controlled data sharing.

Besides, its hardware products embed Web3 capabilities on top of standard IoT features. Users are able to monitor assets, vehicles, and personal metrics while retaining data sovereignty.

MedKitDoc advances Device-supported Telemedicine

German startup MedKitDoc creates a device-supported telemedicine platform that connects patients, caregivers, and doctors using integrated software, diagnostics, and medical expertise.

It enables secure video consultations, encrypted messaging, and digital patient files while transmitting vital data from connected medical devices via Bluetooth into the care platform.

The startup’s platform integrates certified diagnostic equipment, supports coordination between on-site and remote physicians, and links with existing practice and care systems using managed workflows.

It also provides access to medical experts, contract management, training, and billing services. These features reduce hospital admissions and ease the workload of nursing staff.

Neue develops Sensor as a Service Platform

Swedish startup Neue makes an IoT platform and sensor-as-a-service solution that supports connected product prototyping and industrial-scale deployment.

It combines industrial-ready hardware, integrated connectivity, and a no-code software platform. The users are able to configure devices, generate firmware, manage data, and deploy applications within one environment.

The platform includes modular sensors and multi-network connectivity such as LTE Cat-M, NB-IoT, BLE, Wi-Fi, and satellite. It also offers the Neue Playground no-code interface, which enables rapid iteration, real-time testing, and scalable production workflows.

In addition, it reduces development time, lowers deployment costs, and simplifies technical complexity. It supports data collection, device management, and cloud integration without requiring specialized expertise.

Major Connected Devices Trends: IoT & 6G Takes the Lead

Using firmographic signals such as company volume, workforce scale, and growth momentum, we identified three connected devices trends that stand out.

The IoT Edge Device segment includes 280 companies focused on processing data near connected assets and endpoints. These firms employ 5400 people. The trend records annual growth of 16.45%, driven by demand for low-latency processing, reduced bandwidth use, and localized decision-making.

6G-enabled Connected Devices covers 1200 companies developing next-generation wireless communication for connected device ecosystems. These companies have over 68 900 employees, reflecting ongoing research and infrastructure development. The annual trend growth rate stands at 3.25%, which is supported by early-stage standardization and experimental deployments.

IoT Analytics involves 1000 companies analyzing data generated by connected devices across industrial, enterprise, and consumer environments. The workforce includes 79 900 employees. The trend records annual growth of 11.6%, supported by demand for actionable insights, monitoring, and optimization across connected systems.

Funding Landscape of the Connected Devices Market

Investment momentum in the connected devices market remains resilient, reflecting sustained confidence in IoT infrastructure and device-driven ecosystems.

Based on our data, the sector records an average funding round of USD 34.9 million, supported by a broad base of more than 16 800 investors. To date, over 20 300 funding rounds have closed, channeling capital to more than 5100 companies across hardware, connectivity, and platform layers.

Within this landscape, the IoT connectivity platform segment has emerged as a key capital magnet, attracting USD 1.45 billion in investments during 2024 and the first half of 2025.

The average deal size reached USD 91 million, signaling growing investor preference for scalable, recurring-revenue connectivity models that support device lifecycle management, edge intelligence, and cross-border deployments.

Capital concentration is also visible at the top end of the market, where leading investors have collectively deployed more than USD 12 billion into major connected devices innovators.

For example, SoftBank participated in 1NCE’s USD 60 million funding round in April 2025, underscoring strategic backing for global IoT connectivity infrastructure providers.

Data Sourcing & Research Method

This report leverages proprietary insights from the AI-powered StartUs Insights Discovery Platform, which tracks 9 million companies, 25K+ technologies and trends, and 150M patents, news articles, and market reports.

It examines the evolution of connected devices over the past five years, analyzing company activity, industry growth, patent trends, search interest, funding patterns, leading geographies, and key subtrends.

The findings are complemented by trusted external sources to provide broader market context and forward-looking perspectives on the connected devices ecosystem.