The India IoT in Manufacturing market size was valued at USD 2,570.62 Million in 2025 and is forecast to reach USD 9,060.13 Million by 2034, growing at a CAGR of 5.02% during 2026-2034. Growth is driven by government-led Production Linked Incentive (PLI) schemes targeting fourteen manufacturing sectors, promoting smart factories and industrial IoT integration for predictive maintenance and real-time analytics in Indian manufacturing enterprises.The report presents a thorough review featuring the India IoT in Manufacturing Market Analysis, share, trends, and research of the industry.

STUDY ASSUMPTION YEARS

• Base Year: 2025

• Historical Year/Period: 2020-2025

• Forecast Year/Period: 2026-2034

INDIA IOT IN MANUFACTURING MARKET KEY TAKEAWAYS

• Current Market Size: USD 2,570.62 Million in 2025

• CAGR: 5.02%

• Forecast Period: 2026-2034

• The Indian government’s PLI scheme spans fourteen key sectors, generating Rs 1.46 lakh crore in investments and creating 950,000 jobs by August 2025.

• Major companies such as Foxconn, Reliance Industries, and Mahindra and Mahindra have received PLI approvals, demonstrating industry confidence.

• Indian manufacturers are adopting industrial IoT platforms for predictive maintenance, real-time equipment monitoring, and data-driven decision-making.

• Cloud computing and 5G expansion enables scalable IoT infrastructure, with 5G rolled out nationwide by October 2025 covering 779 of 783 districts.

• IoT adoption is democratized by declining costs, allowing small and medium enterprises access previously limited to large corporations.

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MARKET TRENDS

The Indian government’s Production Linked Incentive scheme is a cornerstone trend driving smart manufacturing uptake. Launched across fourteen sectors—including automobiles, electronics, pharma, textiles, and drones—the PLI scheme incentivizes incremental sales with financial rewards. As of August 2025, it generated Rs 1.46 lakh crore in investments, created approximately 950,000 jobs, and produced sales worth Rs 12.50 lakh crore. Companies like Foxconn, Reliance Industries, and Mahindra and Mahindra illustrate the strong industry buy-in and confidence, accelerating industrial IoT adoption for advanced manufacturing capabilities.

Manufacturing enterprises in India are integrating industrial IoT platforms enabling predictive maintenance and real-time monitoring. Sensors on production machinery gather operational data such as temperature, vibration, and energy consumption, processed via advanced analytics to detect anomalies and optimize maintenance. The case for predictive maintenance is strong as it prevents unexpected equipment failures and improves resource allocation. Recent indigenous developments, such as the Mindgrove IoT system on chip, mark milestones in building India's self-sufficiency in industrial IoT hardware.

The expansion of cloud computing and 5G networks underpins the scalable infrastructure necessary for industrial IoT growth. By October 2025, India achieved near nationwide 5G coverage with over 460,000 base transceiver stations, facilitating low-latency, high-bandwidth IoT applications like autonomous robots and AR-assisted maintenance. Cloud platforms provide elastic computing and analytic tools, reducing upfront investment for manufacturers. Telecom operators, including Reliance Jio and Bharti Airtel, are deploying private 5G networks for industry, enhancing security and performance to meet the demands of smart factories.

MARKET GROWTH FACTORS

The PLI scheme’s targeted financial incentives stimulate modernization of manufacturing by enhancing localization and technology transfer, leading to increased investment in Industry 4.0 technologies such as industrial IoT sensors and connected machinery. The government’s increased budget allocations in 2025-26 reaffirm commitment to strengthening manufacturing infrastructure that underpins growth of the India IoT in manufacturing market.

Industrial IoT integration supports operational efficiency and quality improvement by enabling real-time visibility into production. Manufacturers gain insights into bottlenecks, equipment utilization, and quality deviations, optimizing processes and reducing scrap. IoT platforms’ compatibility with enterprise resource planning and manufacturing execution systems fosters comprehensive digital ecosystems connecting factory floors with strategic planning and customer delivery, driving digital transformation across automotive, chemical, electronics, pharmaceuticals, and food processing sectors.

The convergence of affordable cloud services, widespread 5G connectivity, and declining sensor and edge computing device costs is making industrial IoT accessible beyond large enterprises. Small and medium manufacturing firms can now implement IoT solutions previously inaccessible due to capital constraints. This democratization broadens market adoption, encouraging modernization of legacy plants and development of greenfield smart factories using connected technologies, propelling growth over the forecast period.

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MARKET SEGMENTATION

Software Insights:

• Application Security

• Data Management and Analytics

• Monitoring

• Network Management

• Others

The software segment covers security, analytics, monitoring, network management, and various other applications essential for IoT ecosystems.

Connectivity Insights:

• Satellite Network

• Cellular Network

• RFID

• NFC

• Wi-Fi

• Others

Connectivity options include satellite, cellular, RFID, and Wi-Fi technologies facilitating device communication within manufacturing IoT implementations.

Services Insights:

• Professional

• System Integration and Deployment

• Managed

• Others

Service segments encompass professional services, system integration, deployment support, managed services, and additional offerings to support IoT solution lifecycle.

Application Insights:

• Process Optimization

• Predictive Maintenance

• Asset Management

• Workforce Management

• Emergency and Incident Management

• Logistics and Supply Chain Management

• Inventory Management

Applications focus on optimization, maintenance, asset and workforce oversight, emergency handling, logistics, and inventory control leveraging IoT data.

End User Insights:

• Automotive

• Food and Agriculture Equipment

• Industrial Equipment

• Electronics and Communication Equipment

• Chemicals and Materials Equipment

• Others

End users include manufacturers across automotive, food/agriculture, industrial machinery, electronics, chemicals, and other industries.

Regional Insights:

• North India

• South India

• East India

• West India

These regions represent the key geographic markets analyzed for IoT adoption trends and growth potential within India.

REGIONAL INSIGHTS

The report does not explicitly specify a dominant region by market share or CAGR for the India IoT in manufacturing market. All four major Indian regions—North India, South India, East India, and West India—are analyzed comprehensively. Specific regional statistics such as market share and CAGR are not provided in the sourced text.

RECENT DEVELOPMENTS & NEWS

In March 2025, Ennoconn, a subsidiary of Foxconn, began operations at its new industrial automation facility in Tamil Nadu, focusing on introducing industrial IoT and embedded technology solutions targeting markets including Smart Manufacturing and Smart City sectors. In September 2025, Zoho launched its IoT platform alongside Vikra, a seller app on the ONDC network, to facilitate real-time industrial IoT device data management for process automation and data-driven decision-making.

KEY PLAYERS

• Foxconn

• Reliance Industries

• Mahindra and Mahindra

• Ennoconn (subsidiary of Foxconn)

• Zoho

• Mindgrove

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