Global Connected Enterprise Market 2025 – 2034

Reports Description

As per the Connected Enterprise Market analysis conducted by the CMI Team, the global connected enterprise market is expected to record a CAGR of 25.27% from 2025 to 2034. In 2025, the market size will be USD 519.08 Billion. By 2034, the valuation is anticipated to reach USD 3964.15 Billion.

Connected Enterprise Market Overview

Connected enterprise is on the verge of reaching the pinnacle of digital transformation, wherein each facet of business is integrated using digital technology, and that too, seamlessly. The approach, leveraging IoT, makes provisions for invaluable insights, thereby driving operational efficiency across numerous sectors. The connected enterprise facilitates improved innovation and collaboration.

The spur in adoption of cloud computing across verticals such as automotive and healthcare does accelerate the connected enterprise market. Besides, there is a rise in the push for automation in these sectors (with banking to add), along with small- and medium-sized enterprises (SMEs) increasingly adopting connected technologies.

Connected Enterprise Market Key Growth Drivers

The connected enterprise market is bound to experience a stellar growth due to the following growth drivers:

• Growing Demand for Cloud Computing Solutions: Rise in demand for cloud computing solutions is expected to catalyse the connected enterprise market. The basic objective of businesses shifting their operations to the cloud is that of balancing growth, costs, and flexibility. Cloud platforms are known for improving interconnectivity of the business units for enterprises to share and access data. They thus encourage working together, bring about a sea change in cost concerns related to IT structures, and speed up provision of novel services and applications. The new generation comprising hybrid cloud solutions offers the ability to optimize that particular organization’s IT landscapes for leveraging both – public and private resources. Moreover, the companies have begun switching to cloud services in AI as well as ML, as they are designed for giving companies tools necessary for further growth. As per the report released by AAG IT Services, cloud infrastructure services have been vital with regard to growth between 2021 and 2022. It mentions that the revenue reached USD 101 Billion in this 12-month period. It further states that spending with respect to cloud infrastructure services has increased on a significant note, with a 34.0% Y-o-Y growth rate, thereby marking a growth rate between 34 and 40% for the 11th time in 12 quarters.

Connected Enterprise Market Key Threats

• Higher Implementation Costs: Higher implementation costs include the costs of purchasing computers and related software and hardware, along with the costs of training the human resources and providing technical support. Such factors do pose a major risk, as start-ups and new entrants may find this investment unaffordable. Moreover, the need for continuous updates as well as maintenance exerts a burden on the finances. Also, the fact that small businesses and corporations get funded in a different manner can’t be ignored. TThe widening of the digital gap is expected to hinder the growth of the connected enterprise market.

Connected Enterprise Market Opportunities

Growing demand for improved cybersecurity does create a plethora of opportunities for the key market players. The enterprises have begun with the adoption of connected technologies, thereby raising the risk quotient for cyber threats needing better security solutions.

Security issues do transform into competitive requirements, influencing enterprises to go for advanced security solutions protecting their networks and also comply with the standards. Moreover, 66% of cyber threats are more complex and new, which stresses the requirement of continuously upgrading pro-cognitive instruments.

As per a report published by Cobalt Labs, Inc., the cybercrime costs worldwide were expected to be worth USD 9.5 trillion in the year 2024, with a projected rate of 15% every year. The report focuses on the urgent requirement for improved cybersecurity measures, as global cybercrime damage costs are likely to rise to USD 10.5 trillion every year by the year 2025.

What’s trending in Connected Enterprise Market?

• Edge Computing is revolutionizing data processing as well as analysis by moving the computation closer to the data source. This would, in turn, reduce the latency and improve reliability. The enterprises are capable of making real-time decisions without banking on centralized cloud infrastructure by enabling processing of data at the local level or near the edge of the network. Edge computing has proved to be advantageous for applications that need low latency, such as industrial automation, autonomous vehicles, and IoT devices. Businesses, with edge computing, could thus analyze the source of data, thereby allowing for quicker response times, improved privacy, and enhanced security.

• Rollout of 5G networks has ushered in a brand new era pertaining to connectivity, whereby it provides lower latency, faster speeds, and higher capacity for connected enterprise. Businesses, with 5G, can transmit as well as process huge quantities of data more efficiently and quickly, facilitating novel applications along with use cases. The better bandwidth and low latency on the part of 5G render it ideal with regard to the implementation of augmented reality (AR) and virtual reality (VR).

Connected Enterprise Market Category Wise Insights

By Component

• Services: Organizations need outsourcing solutions for system integration, consulting, and training to achieve their objectives pertaining to connected enterprises. Moreover, organizations are trying to cope with issues concerned with implementing new technologies along with their compatibility with the systems that exist. Out of the professional and managed segments, the latter one dominates the market owing to challenges related to the incorporation of technology and demand for the finest practices regarding the adoption of connected solutions. The professional segment is likely to expand at a rapid pace due to the continuous need to maintain as well as update the complex infrastructure. Outsourcing IT functions to the specialists is one of the ongoing trends, which has enterprises concentrating on core operations while being assured of systems’ security and optimized performance.

• Solution: Remote monitoring solutions dominate the component part of the connected enterprise market due to smart connected devices and IoT gaining popularity in diverse fields. Organizations are making use of remote monitoring systems for assessing productivity and the state of their assets with the objective of reducing unplanned and planned downtimes. This, in turn, would cut down the costs as well as facilitate resources’ effective utilization. Moreover, the use of AI and ML learning features in the remote monitoring tools is gaining traction as well. The manufacturing execution systems (MES) solutions are being implemented by the manufacturing companies for improving the performance of their manufacturing lines, minimizing interruptions, and guaranteeing high-quality products.

• Platform: Expansion of IoT, edge computing, and 5G networks is addressing the need for improved connectivity management for ensuring that the organizations need high-performance connections required for digital transformation. Connectivity management segment holds the largest part of the platform to achieve secure, smooth, and autonomous data transport all through networking. Application enablement & development segment is expected to witness the quickest CAGR in the forecast period due to the requirement of applications fulfilling the exclusive needs of several businesses. Plus, no code/low code development platforms are being used by the organizations for building their applications with minimal coding skills.

By Application

• BFSI: Connected enterprise in BFSI sector implies a digital transformation strategy where numerous departments, systems, and at times even external partners are connected for enhancing efficiency, business agility, and customer experience. This approach facilitates the financial institutions to construct ecosystems that are customer-centric in entirety and also adapt to the altering market conditions. The basic advantages include connecting several touchpoints (branches, web, apps) for offering a consistent and seamless experience all across. Also, monitoring customer interactions becomes feasible with connected enterprise.

• Manufacturing: The manufacturing segment dominates the application arm of the connected enterprise market owing to the adoption of Industry 4.0 technologies followed by an uptrend in the operation necessities. The manufacturers are aiming to optimize the interconnected systems for improving production lines, enhancing the quality of products, and cutting down on losses. Technological advancements, inclusive of realization of the smart factories wherein diverse systems and machines are connected in real-time are catalyzing the market. Also, the need for maintenance, automation, and supply chain has influenced production for developing connected solutions.

• Retail: A connected enterprise does metamorphose the experiences of customers through various personal interactions, optimized supply chain management, and seamless transactions. Retailers can benefit from data analytics in order to gauge consumer behaviour, streamline the management of inventories, and also customize marketing campaigns.

• Healthcare: The healthcare sector benefits from connected enterprise in the form of improved data quality, improved patient outcomes, and fostered flawless collaboration. The electronic health records (EHRs), patient monitoring systems, and connected medical devices help healthcare professionals to deliver personalized care, streamline the administrative tasks, and enhance diagnostic accuracy.

• IT & Telecom: The connected enterprise solutions/services/platforms in the IT & telecom sector accelerate innovation, enrich the customer satisfaction ratio, and expedite the product development cycles. The telecom companies can develop novel services and products and deliver seamless experiences across the digital channels.

• Food & Beverages: The food & beverages segment is likely to expand on a significant note in the connected enterprise market going forward. The sector is gradually incorporating the connected technologies for improving food traceability, safety, and supply chain performance. The consumers are also increasingly asking for sustainable and transparent solutions and products.

• Others: Others include fintech firms, wherein connected enterprise does amplify customer engagement, boost operational resilience, and fortify the risk management protocols. The financial institutions, through connected enterprise, find it easy to detect fraud and automate compliance processes.

Effect of Artificial Intelligence (AI) on Connected Enterprise Market

AI helps organizations in improving the company’s operational efficiency, enhancing the customer experiences, and effective resource management. It also aids in making the organization competitive. Using AI involves receiving a large quantity of data for processing them in real time.

AI, with the IoT devices as well as the cloud, improves an organization’s connectivity in internal mechanized structures, which, in turn, facilitates smooth interconnectivity of business functions. This technological combination results in creating smart products and services, redefining industries, and providing novel sources of revenue for the enterprises.

Report Scope

Connected Enterprises Market Regional Perspective

The connected enterprises market is classified into North America, Europe, Asia Pacific, and LAMEA.

• North America: North America led the connected enterprise market in 2024, and the status quo is expected to remain the same during the forecast period. This could be attributed to liberalization on the part of technological growth across various commercial segments in this region. Organizations herein are deploying connected enterprise solutions for supporting business operations, exercising information control, and striving for customer satisfaction. Additionally, North America is an innovation hub that is known for the adoption of the Internet of Things (IoT) and artificial intelligence (AI) in the first place. Their awareness regarding compliance with regulations and the requirement of stronger security is greatly contributing to the popularity of the connected enterprise solutions.

• Europe: Focus of multiple businesses in Europe on advanced manufacturing, digital transformation, and stringent regulations are among the primary factors driving the connected enterprise market. Cutting-edge technologies such as cloud computing, AI, and IoT are strengthening the expansion of the connected enterprise market herein. Plus, the region’s commitment to upscaling digital sustainability and digital technology, such as the Europe’s Internet of Things Policy and European Urban Initiative, does encourage businesses to go for smart technologies to enhance quality of life and help in regional growth.

• Asia Pacific: Asia Pacific’s connected enterprise market is expected to witness the highest CAGR during the forecast period due to rapid industrialization, urbanization, and growing inclination regarding adoption of digital innovation. Plus, competitors and governments are collaborating with various companies to drive connected enterprise solutions. For example, in September 2023, Huawei unleashed three product portfolios designed exclusively for multiple industry scenarios. These products comprise high-quality SME offices, high-quality smart wards, and high quality simplified data centers.

• LAMEA: Latin America, the Middle East, and Africa are expected to witness constructive disruption in the connected enterprise market during the forecast period. The oil and gas companies are incorporating connected enterprise to improve on working processes and cut down on unnecessary expenses.

Connected Enterprise Market Key Developments

The connected enterprise market is witnessing a constructive turbulence with respect to organic as well as inorganic growth. Some of the developments include –

• In April 2024, AVEVA (one of the leaders in industrial software driving sustainability and digital transformation) announced that it had chosen Hannover Messe for unveiling CONNECT (the fastest-growing industrial intelligence platform across the globe). It does empower leaders with their businesses’ deeper understanding along with an intelligent digital twin unifying insights across the industrial ecosystem.

• In March 2023, Wipro Ltd. (a leading technology services and consulting company) announced the launch of its 5G Def-i platform. This platform does empower businesses to seamlessly transform the networks, infrastructure, and services. The platform debuted during the ‘MWC Barcelona panel ‘Realizing the Ambitions of the Connected Enterprise.’

• In May 2022, Honeywell announced that its Honeywell Forge came with the inclusion of new services and features for helping consumers in accelerating their businesses’ digital transformation. The category is inclusive of Honeywell Forge Connected Warehouse, offering real-time analytics, enhanced data visibility, automation, and monitoring.

The Connected Enterprise Market is highly competitive, with a large number of product providers globally. Some of the key players in the market include:

• UiPath
• Rockwell Automation Inc.
• PTC
• L&T Mindree
• IBM Corporation
• Honeywell International Inc.
• GE Digital
• Cisco Systems
• Bosch GmbH
• Accelerite
• Wipro Limited
• Jacobs Engineering Group
• MachineShop Inc.
• Others

These firms apply a sequence of strategies to enter the market, including innovations, mergers and acquisitions, as well as collaboration.

The global connected enterprise market is shaped by the presence of diversified players that compete based on product innovation, regional reach, vertical integration, and cost efficiency.

The Connected Enterprise Market is segmented as follows:

By Component

• Services
• Managed
• Professional
• Solution
• Customers Experience Management
• Business Analytics
• Remote Monitoring
• Manufacturing Execution System (MES)
• Application Value Management
• Platform
• Application Enablement & Development
• Device Management
• Connectivity Management 

Application

• BFSI
• Manufacturing
• Retail
• Healthcare
• IT & Telecom
• Food & Beverages
• Others

Regional Coverage:

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Russia
• Italy
• Spain
• Netherlands
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Taiwan
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America