Smart Connected Assets and Operations Market Size, Share, Growth, and Industry Analysis, By Type (Hardware, APM Software & Platform, Service) By Application (Automotive & Transportation, Energy & Power, Healthcare, Smart Agriculture, Factory Automation, Others), and Regional Insights and Forecast to 2035

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SMART CONNECTED ASSETS AND OPERATIONS MARKET OVERVIEW

The global Smart Connected Assets and Operations Market was USD 153.10 billion in 2026 and is projected to reach USD 254.30 billion by 2035, exhibiting a CAGR of 5.8% during the forecast period.

The smart connected assets and operations market is moving into a phase where real-time visibility, predictive insights, and intelligent automation have become essential rather than optional. What this really means is that companies across industries are shifting away from reactive maintenance and manual oversight and leaning into ecosystems where machines, sensors, and software talk to each other constantly. Hardware continues to sit at the foundation of this market, but the real momentum comes from asset performance management software, advanced platforms, and service layers that help businesses monitor assets, streamline operations, and avoid expensive downtime. Industries like automotive, energy, healthcare, and agriculture are adopting connected solutions because they see the operational clarity, faster decision cycles, and long-term cost benefits. As companies chase smarter production lines, safer environments, and higher operational efficiency, demand keeps climbing. This market is becoming a core pillar of modern industrial transformation, tying together IoT, analytics, automation, and cloud-based intelligence.

COVID-19 IMPACT

Smart Connected Assets and Operations Market Had a Positive Effect Due to Supply Disruptions Occurred During COVID-19 war

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

COVID-19 created the biggest and most persistent impact on the smart connected assets and operations market. Here’s the thing: while the pandemic disrupted supply chains and slowed hardware deployment at first, it ultimately pushed organizations to accelerate digital adoption because physical monitoring was no longer reliable. The impact was overwhelmingly positive, with demand rising sharply as industries realized they needed remote asset visibility, predictive maintenance, and automation to keep essential operations running. Energy, manufacturing, logistics, and healthcare facilities leaned heavily on connected systems to reduce on-site workforce requirements and maintain uptime during restrictions. Companies that had been exploring IoT integration suddenly made it a priority, leading to upgraded infrastructure, new sensor networks, and broader cloud integration. Once organizations saw the efficiency gains and operational resilience these connected systems offered, the shift became long term, not temporary.

LATEST TRENDS

AI-driven predictive intelligence becomes the center of connected operations to Drive Market Growth

A major trend shaping this market now is the move toward intelligent automation powered by AI and machine learning. Instead of simply collecting data, companies want systems that can interpret patterns, predict failures, and automatically adjust operations before issues snowball. The combination of AI-enhanced analytics, digital twins, and self-optimizing algorithms is creating a new layer of value where assets essentially learn from their own data. At the same time, the rise of edge computing is speeding up decision-making by processing sensitive operational data closer to the asset rather than relying entirely on cloud systems. Industries are now leaning toward hyper-connected ecosystems where hardware, software, and services blend into a continuous feedback loop. This shift is reducing downtime, improving safety, and helping companies plan maintenance based on data rather than guesswork.

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SMART CONNECTED ASSETS AND OPERATIONS MARKET SEGMENTATION

By Type

Based on Type, the global market can be categorized into Hardware, APM Software & Platform, Service:

• Hardware: Hardware remains the backbone of connected operations, covering sensors, controllers, edge devices, connectivity modules, and embedded systems that allow assets to communicate and capture real-time performance data. What stands out with hardware is how it has evolved from being simple components to becoming intelligent nodes capable of local processing, security enforcement, and seamless connectivity with both cloud and enterprise systems. Companies in manufacturing, energy, logistics, and healthcare rely heavily on robust and durable hardware that can survive harsh environments while still delivering accurate, high-frequency data. As industries upgrade legacy equipment, hardware demand continues to rise, especially for sensorized machinery, smart controllers, and IoT-ready industrial devices.

• APM Software & Platform: Asset performance management software and intelligent platforms sit at the center of strategic decision-making in connected operations. These platforms interpret data coming from machines, compare it with historical and real-time benchmarks, and help organizations understand when and why performance shifts occur. Here’s the thing: companies no longer want dashboards that only visualize data. They want systems that predict failures, recommend maintenance steps, optimize resource allocation, and integrate with enterprise planning tools. APM platforms are becoming smarter as AI and predictive models improve, creating a bridge between operational technology and business strategy. This segment is expanding fast because companies see clear gains in uptime, cost reduction, and productivity.

• Service: Service plays a critical role as companies need help deploying, integrating, and maintaining their connected ecosystems. From consulting and system integration to managed services and remote monitoring, the service layer ensures that technologies don’t just get installed but deliver measurable value over time. Many organizations lack internal IoT and data expertise, so service providers step in to configure platforms, design analytics workflows, train teams, and ensure cybersecurity across connected assets. As more industries modernize and migrate to cloud-based operational systems, demand for specialized implementation and long-term support keeps expanding. Service offerings are increasingly tied to outcome-based models, where providers focus on measurable improvements rather than one-time installations.

By Application

Based on application, the global market can be categorized into Automotive & Transportation, Energy & Power, Healthcare, Smart Agriculture, Factory Automation, Others:

• Automotive & Transportation: Automotive and transportation companies lean on connected assets to maintain fleet health, track vehicle performance, optimize routes, and reduce downtime. These industries rely heavily on automation and real-time data because even small inefficiencies ripple across fuel consumption, maintenance budgets, and customer commitments. Smart systems help operators detect wear before failures happen and coordinate maintenance across large, distributed fleets. On the manufacturing side, automakers use connected equipment to keep production lines stable and error-free. Connected operations also support autonomous technologies, electric vehicle infrastructure, and safety-driven analytics. The shift toward mobility services and connected vehicles is only making this application area more strategic.

• Energy & Power: In the energy and power sector, connected assets enable operators to monitor grids, substations, turbines, and transmission systems with far greater accuracy than manual inspections ever allowed. Smart sensors and APM platforms give operators real-time insights into equipment stress, load patterns, and system stability. With renewable energy expanding, managing variable production from solar and wind sources requires connected intelligence to balance supply, anticipate failures, and stabilize distributed networks. Companies are leaning on digital twins, predictive maintenance, and remote operations to boost efficiency and reduce risk. This segment continues to grow because the energy ecosystem depends on resilient and highly reliable infrastructure.

• Healthcare: Healthcare providers rely on connected systems to monitor critical medical equipment, optimize workflows, and maintain uptime in environments where delays can be life-threatening. Smart connected assets help hospitals track device performance, manage asset usage, predict maintenance needs, and ensure compliance with strict safety standards. The rising use of interconnected imaging equipment, diagnostic systems, and smart hospital infrastructure has increased the need for platforms that unify operational data across different departments. Connected operations also support remote monitoring and telemedicine devices, helping both clinicians and facility managers maintain consistent and reliable performance. This application continues to expand as healthcare facilities modernize and move toward data-rich operational ecosystems.

• Smart Agriculture: Agriculture is undergoing its own digital shift as farmers adopt connected equipment, automated irrigation, smart tractors, soil sensors, and predictive crop-management tools. These technologies help monitor soil moisture, nutrient levels, equipment health, and weather patterns with precision that manual assessment can’t match. The goal is simple: maximize yield while minimizing waste. Smart connected operations allow farmers to reduce downtime, maintain equipment proactively, and make decisions based on real-time environmental data. As climate variability and labor shortages challenge traditional farming, connected agricultural systems provide stability and insight. Adoption keeps expanding as both large farms and smaller operators see how digital tools improve efficiency.

• Factory Automation: Factories rely on connected machinery, robots, conveyors, and production systems that must run continuously to maintain output. Smart connected assets help manufacturers track machine performance, identify bottlenecks, reduce unexpected breakdowns, and operate with a level of precision that manual oversight can’t match. Predictive maintenance has become a cornerstone because even short downtime can derail a production schedule. Connected systems also help coordinate human-machine interactions, enforce safety protocols, and integrate with higher-level planning tools. As factories become more automated and data-driven, the need for unified connected operations continues to grow across every size of manufacturer.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

Driving Factors

Growing Need for Predictive Maintenance and Real-Time Monitoring to Boost the Market

Predictive maintenance has become one of the strongest forces pushing this Smart Connected Assets and Operations Market Growth forward. Companies are tired of dealing with unexpected breakdowns, costly repairs, and production delays that ripple across their entire operation. Smart connected assets flip the script by letting equipment report its own performance, stress levels, and early signs of failure. When businesses can predict what will go wrong before it does, they protect productivity and reduce maintenance costs. Real-time monitoring also helps operators make immediate decisions, adjust performance, and keep machines running safely. As industries upgrade old machinery and adopt smarter ways to manage assets, the demand for connected operations keeps rising sharply.

Rising Adoption of Industrial IoT Across Major Sectors to Expand the Market

Industrial IoT adoption is accelerating across manufacturing, transportation, energy, and healthcare, and this widespread shift is fueling the entire connected operations ecosystem. Companies want richer visibility across assets, unified data platforms, and automated workflows that make their operations more resilient. The more IoT expands, the more organizations need platforms that bring together hardware, software, analytics, and services into a single operational view. This creates a ripple effect where connected operations become the backbone of broader digital transformation. With industries moving toward smarter facilities, real-time decision cycles, and integrated digital ecosystems, the demand for fully connected solutions continues to grow. 

Restraining Factor

Cybersecurity Concerns Across Connected Infrastructure to Potentially Impede Market Growth

Security remains the biggest hesitation for companies moving toward fully connected operations. Once machines, sensors, and platforms are networked together, the attack surface expands and the stakes become higher. A cyber breach in a connected industrial environment can cause downtime, safety hazards, data loss, and serious operational disruption. Many organizations still rely on legacy systems that weren’t built with modern security threats in mind, which makes integration risky without major upgrades. Companies also face challenges training teams, enforcing consistent security policies, and protecting data that moves between cloud, edge, and on-premises systems. These concerns slow adoption, especially in industries where safety and compliance are non-negotiable.

Expansion of Digital Twins and Intelligent Simulation to Create Opportunity for The Product in The Market

Opportunity

Digital twins are opening one of the most promising opportunities in connected operations. By creating virtual replicas of physical machines, facilities, or entire systems, companies can simulate performance, test scenarios, and detect issues long before they affect real equipment. This gives businesses a smarter way to manage operations, optimize asset health, and plan upgrades without risk.

The combination of digital twins, AI, and real-time data is creating a new layer of intelligence that helps companies redesign processes and improve efficiency. As industries explore more complex automation strategies, digital twins offer a powerful opportunity to streamline operations and elevate decision-making.

Difficulty Integrating Old Infrastructure with Modern Connected Systems Could Be a Potential Challenge for Consumers

Challenge

A major challenge for many industries is the struggle to integrate new connected technologies with aging equipment that was never designed to communicate digitally. Factories, utilities, and transportation networks often run on legacy machines that still work but lack compatibility with modern IoT systems. Integrating them requires specialized hardware, software customization, and significant investment, which slows down adoption.

Some organizations also face internal resistance or skills gaps that make the transition even harder. Until companies upgrade their foundational infrastructure or find scalable ways to blend old and new systems, connected operations will advance unevenly across industries.

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SMART CONNECTED ASSETS AND OPERATIONS MARKET REGIONAL INSIGHTS

• North America 

North America stays ahead in this market because enterprises in the region invest early in automation, industrial IoT, and operational intelligence. The United States Smart Connected Assets and Operations Market plays a central role thanks to its strong manufacturing base, advanced energy infrastructure, and concentration of major technology providers. Companies across industries use connected assets to reduce downtime, improve safety, and maintain operational stability. Cloud adoption is high, making it easier to deploy APM platforms and integrate AI-based analytics. The combination of digital transformation initiatives, regulatory compliance needs, and strong IT capability keeps demand rising. As organizations continue upgrading production lines and critical infrastructure, the region remains a leader in connected operations growth.

• Europe

Europe’s industrial landscape creates a fertile environment for smart connected assets, especially in sectors like automotive, energy, and industrial equipment manufacturing. Companies here approach digital transformation with a strong focus on efficiency, sustainability, and compliance, which naturally aligns with connected operations. European industries are also early adopters of automation and predictive maintenance because they rely heavily on precision manufacturing and stable production cycles. The region’s commitment to carbon reduction and cleaner industrial operations encourages the use of connected systems that optimize energy use and asset health. With strong engineering talent and a well-established industrial base, Europe continues advancing its connected asset ecosystem.

• Asia

Asia is expanding fast thanks to growing industrial output, rising smart manufacturing investments, and large-scale digital transformation across China, India, Japan, and Southeast Asia. Companies are adopting connected assets to improve productivity, reduce downtime, and modernize legacy systems across factories, energy plants, and transportation networks. Rapid urbanization and heavy industrial activity create strong demand for automation and predictive intelligence. At the same time, governments across the region are encouraging Industry 4.0 adoption, which accelerates IoT deployments across both small and large enterprises. As Asian industries scale and diversify, connected operations become essential for maintaining competitive efficiency.

KEY INDUSTRY PLAYERS

Key Industry Players Shaping the Market Through Innovation and Market Expansion

The companies shaping this market are pushing innovation through faster computing power, advanced analytics, sensor intelligence, and deep integration across operational environments. Intel, Cisco Systems, IBM, Arm Holdings, and General Electric supply much of the hardware and platform intelligence that makes connected ecosystems possible. Texas Instruments, Cypress Semiconductor, Stmicroelectronics, and NXP Semiconductors strengthen the semiconductor base that enables edge computing and sensor precision. PTC and Rockwell Automation elevate the software and industrial automation layer with platforms built for real-time decision-making and asset visibility. Together, these firms influence technology adoption, set new expectations for operational intelligence, and help enterprises modernize their infrastructures.

List Of Top Smart Connected Assets And Operations Market Companies

• Intel (United States)
• Cisco Systems (United States)
• IBM Corporation (United States)
• Arm Holdings (United Kingdom)
• General Electric (United States)
• Texas Instruments (United States)
• Cypress Semiconductor (United States)
• Rockwell Automation (United States)
• Stmicroelectronics (Switzerland)
• NXP Semiconductors (Netherlands)
• PTC (United States)

KEY INDUSTRY DEVELOPMENT

June 2024: The smart connected operations landscape saw a major shift when several global technology providers introduced integrated AI-driven asset intelligence suites designed to merge real-time sensor data, digital twins, and predictive analytics into a single operational environment. These platforms were launched to help industries unify fragmented asset data, reduce downtime, and strengthen remote operational capabilities. The rollout gained traction across manufacturing, energy, and transportation companies that were looking for deeper automation and faster decision cycles. By blending AI, edge computing, and cloud-native architectures, this development set a new benchmark for how enterprises manage mission-critical equipment and long-term asset reliability.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.