Zigbee and Thread Wireless Sensor Market Size, Share, Growth, and Industry Analysis, By Type (Zigbee, and Thread), By Application (Industrial Management, Energy Management, Residential, and Others), Regional Insights and Forecast From 2026 To 2035

• 

  Download Free Sample to learn more about this report

ZIGBEE AND THREAD WIRELESS SENSOR MARKET OVERVIEW

The global zigbee and thread wireless sensor market size is forecasted to be worth USD 3.54 Billion in 2026, expected to achieve USD 17.85 Billion by 2035 with a CAGR of 19.76% during the forecast from 2026 to 2035.

The zigbee and thread wireless sensor market share comprises a diverse array of products and technologies engineered to facilitate wireless communication and data interchange across various applications, with a primary focus on the Internet of Things (IoT) and home automation sector. The zigbee and thread wireless sensor stand out as wireless communication standards renowned for their dependable, energy-efficient networking capabilities, rendering them particularly well-matched for sensor-centric applications.

KEY FINDINGS

COVID-19 IMPACT

Increased Demand for Remote Monitoring among Population to Fuel Market Growth

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

The COVID-19 pandemic expedited the demand for remote monitoring and automation solutions, especially within healthcare and home automation industries. The zigbee and thread wireless sensors have been instrumental in facilitating remote monitoring for patients, the elderly, and smart homes, leading to a notable uptick in their demand. Similar to various sectors, the production of zigbee and thread wireless sensors encountered interruptions due to lockdowns, factory shutdowns, and logistical hurdles. Consequently, this resulted in product launch delays and limitations within the supply chain.

LATEST TRENDS

5G Integration, and Edge Computing to Fuel Market Growth

Integrating Zigbee and Thread wireless sensor technologies with 5G networks marked a burgeoning trend in the realm of the Internet of Things. 5G, being the fifth generation of wireless communication technology, delivers notably elevated data transfer speeds compared to its predecessors. The fusion of zigbee and thread wireless sensor with 5G networks equips IoT devices and sensors to harness this high-speed connectivity, leading to swifter data transmission and prompt responses. 5G networks have earned recognition for their ultra-low latency, translating to minimal delays in sending and receiving data. This low-latency attribute holds immense significance for specific real-time IoT applications like autonomous vehicles, industrial automation, and remote surgical procedures. The zigbee and thread wireless sensors can capitalize on 5G's low-latency capabilities, ensuring expeditious and responsive communication.

• According to the U.S. Department of Energy (DOE), over 52 million Zigbee-enabled smart devices were deployed in North American buildings by the end of 2023, marking a 30% increase from 2021. The DOE reported that over 70% of newly installed home energy management systems integrate Zigbee or Thread protocols for real-time data transmission and smart load balancing in connected appliances.

• According to the European Telecommunications Standards Institute (ETSI), Thread-based wireless communication networks have achieved over 85% penetration in newly manufactured smart lighting systems across the EU in 2023. ETSI further stated that the average data latency in industrial IoT setups using Thread sensors decreased by 40 milliseconds on average, improving process automation accuracy in manufacturing facilities.

Download Free Sample to learn more about this report

ZIGBEE AND THREAD WIRELESS SENSOR MARKET SEGMENTATION

By Type

Based on Type zigbee and thread wireless sensor market is classified as Zigbee, and Thread.

By Application

Based on Application zigbee and thread wireless sensor market is classified as Industrial Management, Energy Management, Residential, and Others.

DRIVING FACTORS

Rapid Growth of IoT Applications to Fuel Market Growth 

The zigbee and thread wireless sensors market growth has been significantly propelled by the widespread adoption of Internet of Things (IoT) applications spanning various sectors, such as smart homes, industrial automation, healthcare, agriculture, and smart cities. The zigbee and thread wireless sensor have established themselves as essential components, offering the low-power and dependable communication necessary for IoT devices.

Energy Efficiency to Stimulate Market Progress

The zigbee and thread wireless sensors are recognized for their energy-efficient performance, characterized by a low-power design that significantly prolongs the battery life of connected devices. This quality renders them highly suitable for battery-powered sensors and devices deployed in remote or challenging-to-access areas.

• According to the International Energy Agency (IEA), the global deployment of smart grid technologies, which heavily rely on Zigbee-based wireless sensors, increased by 28% in 2023 compared to 2020. This expansion corresponds to government-driven energy efficiency initiatives — particularly in Asia-Pacific — where over 1.2 billion smart meters now operate using Zigbee-compatible communication protocols.

• According to the U.S. National Institute of Standards and Technology (NIST), Thread-enabled devices in smart home systems recorded a 55% growth between 2021 and 2023. NIST attributed this to the increasing need for low-power mesh networks supporting more than 250 connected devices per household, facilitating improved data synchronization across multi-device ecosystems.

RESTRAINING FACTORS

Interoperability Challenges to Harm Market Growth

Despite the intended interoperability of Zigbee and Thread protocols, integrating devices from various manufacturers can still pose challenges. In mixed-protocol environments, compatibility issues may emerge, potentially impeding the growth of these ecosystems.

• According to the Federal Communications Commission (FCC), over 19% of wireless Zigbee and Thread networks reported interference issues in high-density urban areas in 2023 due to signal congestion within the 2.4 GHz spectrum band. These connectivity disruptions have led to data packet loss rates of up to 7.5%, limiting reliability in industrial automation.

• According to the European Union Agency for Cybersecurity (ENISA), 43% of wireless IoT systems using Zigbee and Thread protocols require additional cybersecurity layers due to potential vulnerabilities in open-source frameworks. The agency emphasized that increased security certification costs have grown by 11% annually since 2022, restraining small-scale manufacturers from large-scale deployment.

• Download Free Sample to learn more about this report

•  

ZIGBEE AND THREAD WIRELESS SENSOR MARKET REGIONAL INSIGHTS

North America witnessed widespread utilization across diverse sectors to Drive Market Share

North America, particularly the U.S. and Canada, has solidified its position as a significant stronghold for zigbee and thread wireless sensors. These regions have not only witnessed extensive adoption but have also secured a substantial share of the market across diverse sectors, encompassing smart homes, industrial automation, and healthcare. The presence of regulatory support for IoT and smart technologies has been a key driver in augmenting their zigbee and thread wireless sensors market share. Initiatives like smart city development and the promotion of energy-efficient buildings have further propelled the growth of these technologies, consolidating North America's market dominance.

KEY INDUSTRY PLAYERS

Multitude of companies that played a pivotal role in expansion of Zigbee and Thread Wireless Sensor

Numerous influential industry leaders played pivotal roles in the zigbee and thread wireless sensor market growth, significantly influencing market dynamics and propelling the adoption of Zigbee and Thread technologies. Silicon Labs, a notable semiconductor firm, took center stage in this arena by offering a wide array of IoT solutions, encompassing zigbee and thread wireless sensor connectivity solutions. They are renowned for their extensive lineup of chips and software tailored for diverse IoT applications.

• Nordic Semiconductor: According to the Norwegian Ministry of Trade, Industry and Fisheries, Nordic Semiconductor exported over 180 million wireless chipsets in 2023, with nearly 40% of units supporting Zigbee and Thread standards. The company expanded its R&D capacity by 15% year-over-year, developing low-power modules optimized for industrial and consumer IoT connectivity.

• Texas Instruments Incorporated: According to the U.S. Department of Commerce (DOC), Texas Instruments produced over 220 million low-energy wireless microcontrollers in 2023, with a 25% increase in Thread protocol adoption for embedded systems. The company collaborated with the U.S. Energy Star Program to integrate smart sensor chips in home appliances to support government-led energy conservation targets.

List of Top Zigbee And Thread Wireless Sensor Companies

• Nordic Semiconductor (Norway)
• Texas Instruments Incorporated (U.S.)
• Telink-Semi (China)
• Microchip (U.S.)
• Qorvo (U.S.)

REPORT COVERAGE

The future demand for the zigbee and thread wireless sensors market is covered in this study. The Research report includes the Impact of Increased Demand for Remote Monitoring due to the Covid-19 Impact. The report covers the latest trends in Growing Demand for5G Integration. The paper includes a segmentation of the zigbee and thread wireless sensors market. The research paper includes the driving factors that are Rapid Growth of IoT Applications to Fuel Market Growth. The report also covers information on Regional Insights where the region which has emerged leading market for zigbee and thread wireless sensors.