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Internet of Things Report

2021 Annual

Internet of Things Report

March 22, 2022

Smart homes and connected vehicles drive IoT VC funding to new highs

End user spending for internet of things (IoT) technology hit an estimated $423.4 billion in 2021, including high market sizes for use cases across manufacturing, supply chain, and connected vehicles.

VC funding growth for IoT startups was muted in 2021, growing nearly 76% to $33.5 billion in 2021. In context, US software VC funding increased 130% in the past year. 

Our 2021 Annual Internet of Things Report breaks down the key trends behind the maturing vertical across our comprehensive taxonomy of product segments, including hardware, networking, and connected buildings.


Table of contents
Vertical overview 3
2021 timeline 5
H2 2021 VC ecosystem market map 6
VC activity 8
Segment overview 9
Hardware 10
Networking 19
Software 27
Industrial IoT 36
Connected buildings 42
Connected services 52
Appendix 60