While AI captures headlines, industrial and B2B IoT is quietly shaping the future of enterprise operations—and offering venture investors a significant opportunity in North America.

McKinsey estimates that IoT could enable $5.5 to $12.6 trillion in economic value by 2030, with about 65% coming from B2B use cases like factories, logistics, and utilities. Notably, manufacturing alone could contribute around 26% of that total. North American companies remain at the center of this transformation, driving much of the investment and innovation.

According to IoT Analytics, there were over 3,300 active IoT startups in 2024, with 36% based in North America. Though most funding has flowed into later-stage rounds backed by corporate VCs, early-stage industrial IoT ventures—especially those in edge computing, analytics, and infrastructure—are underfunded and present a strategic opportunity for traditional VC firms to step in.

Technology enablers like edge computing and digital twins are driving real-world impact. Gartner reports that 27% of manufacturers had deployed edge solutions as of 2023, with 64% planning to do so by 2027 (Gartner link accessible via search). Digital twins are no longer futuristic: ~29% of manufacturers have adopted them in some form.

Industrial IoT is delivering measurable ROI. For instance, predictive maintenance solutions can reduce downtime by up to 50% and cut maintenance costs by 18–25%, leading to multi‑million‑dollar savings for large plants. These aren’t projections—they’re proven outcomes.

As supply chains become more complex and ESG pressures rise, demand for efficient, resilient, and data-driven operations will only grow. That makes today’s industrial IoT startups not just viable ventures, but essential infrastructure builders. For VCs seeking strong fundamentals, tangible impact, and untapped opportunities, the IoT space deserves attention.

Ready to get started? Book a call with us today.