Europe IoT Sensor Market Size, Share, and Trends Analysis Report – Industry Overview and Forecast to 2032

Europe IoT Sensor Market Segmentation, By Sensor Type (Temperature Sensors, Pressure Sensors, Humidity Sensors, Flow Sensors, Accelerometers, Magnetometers, Gyroscopes, Inertial Sensors, Image Sensors, Touch Sensors, Proximity Sensors, Acoustic Sensors, Motion Sensors, Occupancy Sensors, CO2 Sensors and Light Sensors and Radar Sensors), Vertical (Consumer, Commercial and Industrial), Technology (Wireless and Wired Technology) - Industry Trends and Forecast to 2032

 IoT Sensor Market Size

• The Europe IoT Sensor Market size was valued at USD 1.46 billion in 2024 and is expected to reach USD 8.81 billion by 2032, at a CAGR of 29.3% during the forecast period[AN1] 
• This growth is driven by factors such as the Rising demand for smart infrastructure, industrial automation, and supportive government initiatives

IoT Sensor Market Analysis

• The IoT sensors are considered to be one of the most vital and prepared with IoT cloud based applications. It is connected wirelessly to the mainframe system that is utilized for identification. The key purpose is to collect data and control the immediate environments through its several sensors including humidity sensors, temperature sensors and others.
• Germany is expected to dominate the IoT Sensors market due to rise in the demand for connected and wearables devices
• France is expected to be the fastest growing region in the IoT Sensor Market during the forecast period due to increasing investments in digital transformation and smart technologies
• Temperature Sensors segment is expected to dominate the market with a market share of 56.32% due to its widespread use in industrial automation, smart homes, and healthcare applications.

Report Scope and IoT Sensor Market Segmentation 

IoT Sensor Market Trends

“Increased Adoption of Smart Cities and Infrastructure”

• As cities worldwide embrace smart technology, IoT sensors are playing a crucial role in transforming urban environments into smarter, more efficient spaces. The increased adoption of smart cities is a key market trend driving growth in the IoT sensor industry. Temperature sensors are becoming essential in managing and optimizing infrastructure such as heating, cooling, and lighting systems. For instance, temperature sensors are helping regulate public transportation systems by monitoring climate control in buses and trains. This is improving comfort and energy efficiency.
• Additionally, smart streetlights equipped with IoT sensors are adjusting their brightness based on environmental factors like weather and time of day. In May 2025, cities like Amsterdam and Barcelona are expanding their use of IoT technologies, integrating temperature sensors into traffic management systems and building automation, significantly increasing demand for these sensors. 

  • For instance, In May 2025, cities like Amsterdam and Barcelona are expanding their use of IoT technologies in transportation and energy management. These sensors help optimize energy consumption and improve public services like lighting and heating. The focus on sustainability and smart city development is fueling demand for IoT sensors. This trend is expected to drive market growth for temperature sensors in the coming years.

IoT Sensor Market Dynamics

Driver

“Rising Demand for Energy Efficiency and Sustainability”

• One of the primary drivers for the growth of the IoT sensor market is the increasing demand for energy efficiency and sustainability across various industries. As businesses and consumers alike look to reduce energy consumption, temperature sensors play a crucial role in helping achieve these goals. The Europe push for sustainability, coupled with stricter environmental regulations, is encouraging the adoption of IoT technologies that help reduce carbon footprints. In commercial and residential buildings, for example, temperature sensors can monitor and adjust temperature settings based on occupancy, ensuring energy is used efficiently.
• Similarly, in industrial sectors, IoT sensors optimize equipment operations and improve energy management. As the demand for sustainable solutions continues to grow, temperature sensors will be integral in helping businesses achieve their energy efficiency goals, driving the market forward.

For instance,

• In May 2025, Schneider Electric is enhancing energy management using IoT temperature sensors. These sensors optimize energy use in smart buildings, grids, and industrial applications, reducing waste and costs. Stricter environmental regulations and a focus on carbon reduction further boost the need for these solutions. As energy efficiency becomes a priority, temperature sensors will continue to fuel market growth.

Opportunity

“Expansion of Industrial IoT (IIoT) Applications”

• The industrial sector is increasingly adopting IoT sensors to improve operational efficiency, predictive maintenance, and asset management. One of the main opportunities is the expansion of Industrial IoT (IIoT) applications, particularly in industries like manufacturing, logistics, and energy.
• Temperature sensors are crucial in these sectors as they help monitor machinery conditions, ensuring that equipment operates within optimal temperature ranges. This leads to a reduction in downtime and costly repairs. With the advent of smart factories, IoT sensors are becoming integral to automating and optimizing industrial processes. Companies are investing heavily in IIoT technologies to collect and analyze data in real time, which leads to improved decision-making and more efficient use of resources.

For instance,

• In April 2025, Honeywell are advancing the integration of IoT sensor solutions in industrial operations. These sensors help monitor machinery conditions, preventing breakdowns and optimizing resource use. With the rise of Industry 4.0, real-time data analysis and automation are key to improving industrial processes. This trend represents a substantial market opportunity for IoT sensor providers.

Restraint/Challenge

“Data Privacy and Security Concerns”

• Data privacy and security concerns present a significant challenge to the widespread adoption of IoT sensors in various applications. Temperature sensors, along with other IoT devices, collect vast amounts of sensitive data, including environmental conditions and potentially personal information in smart homes or healthcare applications.
• With the increased interconnectivity of IoT devices, the potential for cyberattacks also rises, and ensuring robust data protection is vital. Compliance with regional regulations, such as the General Data Protection Regulation (GDPR) in Europe, adds another layer of complexity. As the IoT sensor market grows, these privacy and security concerns will need to be addressed through stronger encryption, secure data storage, and continuous monitoring. Failure to mitigate these risks could limit the market’s potential, especially in sectors where data privacy is critical.

For instance,

• In June 2025, IBM is working to improve security features, but risks of data breaches remain. The sensitivity of data collected by temperature sensors in industries like healthcare and finance increases security concerns. Compliance with regulations like GDPR also adds complexity. Unless these risks are managed, data privacy issues could slow IoT sensor adoption in critical sectors.

IoT Sensor Market Scope

The market is segmented on the basis sensor type, technology and vertical.

In 2025, the Temperature Sensors is projected to dominate the market with a largest share in segment

In 2025, the Temperature Sensors segment is projected to dominate the market, holding the largest share of 56.32%. This dominance is driven by the widespread application of temperature sensors in industries such as automotive, healthcare, and manufacturing. Temperature monitoring plays a crucial role in optimizing energy efficiency, improving system reliability, and ensuring safety across various sectors.

The Pressure Sensors is expected to account for the largest share during the forecast period in market

The Pressure Sensors segment is expected to account for the largest share of 53.65% during the forecast period in the IoT sensor market. This growth is mainly driven by their critical role in applications such as industrial automation, automotive systems, and environmental monitoring. Pressure sensors are essential for detecting fluid and gas pressure, ensuring equipment safety and operational efficiency. Their integration into smart devices and systems enhances real-time monitoring capabilities. As industries continue to automate processes, the demand for reliable pressure sensing technology is expected to rise significantly.

IoT Sensor Market Regional Analysis

“Germany Holds the Largest Share in the IoT Sensor Market”[AN2] 

• Germany holds the largest share in the IoT sensor market, driven by its strong industrial base and early adoption of advanced technologies. As a leader in Industry 4.0, Germany has integrated IoT sensors extensively across manufacturing, automotive, and energy sectors. The country's focus on automation, smart factories, and energy efficiency has significantly boosted demand for temperature, pressure, and motion sensors.
• Government support for digital transformation and smart infrastructure projects further accelerates IoT adoption. German companies are also heavily investing in R&D, pushing the development of innovative sensor technologies.
• Additionally, the presence of major players like Bosch and Siemens gives Germany a competitive edge in both production and implementation. The country’s robust regulatory framework ensures high standards for IoT systems, promoting market trust and growth. As industries continue to modernize, Germany is expected to maintain its leading position in the European IoT sensor market.

“France is Projected to Register the Highest CAGR in the IoT Sensor Market[AN3] ”

• France is projected to register the highest CAGR in the IoT sensor market, driven by increasing investments in digital transformation and smart technologies. The country is rapidly expanding its smart city initiatives, which rely heavily on IoT sensors for energy management, transportation, and infrastructure monitoring. France's strong push toward sustainable development and environmental monitoring has also boosted the demand for temperature, pressure, and air quality sensors. Government-backed programs and funding for industrial innovation are encouraging companies to adopt IoT solutions at a faster pace.
• Additionally, the growth of the healthcare and automotive sectors is fueling demand for advanced sensor technologies. French tech startups and established firms alike are contributing to a dynamic and competitive IoT landscape. Enhanced connectivity infrastructure, including 5G rollout, is further enabling sensor integration across various sectors. As a result, France is set to experience the fastest growth rate in Europe’s IoT sensor market during the forecast period.

IoT Sensor Market Share

The market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, Europe presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to market.

The Major Market Leaders Operating in the Market Are:

• Sierra Wireless, Inc.,
• Moxa Inc.,
• GENERAL ELECTRIC,
• Skyworks Solution Inc.,
• Infineon Technologies AG,
• Honeywell International Inc.,
• Texas Instruments Incorporated,
• Siemens Healthcare GmbH,
• CANON MEDICAL SYSTEMS CORPORATION,
• NXP Semiconductors,
• STMicroelectronics,
• IBM,
• Sensata Technologies, Inc,
• Robert Bosch GmbH,
• TE Connectivity
• Qualcomm Technologies, Inc.

Latest Developments in Europe IoT Sensor Market

• In March 2025, Infineon Technologies announced the launch of its PSOC™ 4 microcontroller family featuring Multi-Sense capabilities. This new offering expands Infineon's capacitive sensing technology, CAPSENSE™, by introducing proprietary inductive sensing and non-invasive liquid sensing solutions. The PSOC 4 enables innovative human-machine interface (HMI) designs, such as touch-over-metal buttons and waterproof touch sensors, catering to applications in consumer electronics and industrial automation. The PSOC 4000T series, including the PSOC 4000T and the upcoming PSOC 4100T Plus, are now available, with the latter expected to launch in Q2 2025.
• In January 2025, Honeywell and NXP Semiconductors announced an expanded collaboration to enhance building energy management. By integrating NXP's neural network-enabled processors into Honeywell's building management systems, the partnership aims to optimize energy consumption and improve sustainability in commercial buildings. The collaboration focuses on leveraging AI and machine learning to enable real-time, autonomous decision-making for energy efficiency. This initiative aligns with the growing demand for smart building solutions and supports Honeywell's commitment to advancing building automation technologies.
• In December 2024, NXP Semiconductors partnered with geo (Green Energy Options Ltd.) to launch the SeeZero home energy management system, a Matter-certified solution designed for mass-market adoption. The SeeZero system allows consumers to monitor and control their energy consumption, integrating with smart home devices to enhance energy efficiency. NXP's integrated system solutions provide the necessary connectivity, processing, and security features to support this innovative energy management platform. This collaboration underscores NXP's commitment to advancing smart energy solutions in the residential sector.
• In January 2025, GE Appliances, a Haier company, was named "Smart Appliance Company of the Year" at the IoT Breakthrough Awards. The company was recognized for integrating advanced technologies, including Generative AI, into their connected home appliances. Notably, GE Appliances introduced the CookCam™ AI, an in-oven camera that identifies the food being cooked and recommends optimal cooking settings. This innovation exemplifies GE Appliances' leadership in smart home technology and its commitment to enhancing consumer experiences through IoT-enabled solutions.
• In March 2025, Canon Medical Systems announced regulatory clearance for major AI enhancements to its Aquilion ONE / INSIGHT Edition CT scanner. The updates include the new PIQE 1024 matrix and SilverBeam technologies, expanding the device's capabilities across a broader range of clinical applications. These advancements enable high-resolution imaging and improved diagnostic accuracy, reinforcing Canon Medical Systems' position at the forefront of medical imaging technology. The cleared enhancements are now available for deployment in healthcare facilities.

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