The Internet of Things (IoT) is where the digital and physical worlds seamlessly intertwine to revolutionize everyday life. The best IoT stocks to buy recognize this.

As the sector leaps forward at a breathtaking pace, savvy investors are paying close attention to the best IoT stocks for exponential growth. There’s no denying the transformative impact that IoT has on the global economy, which adds to the long-term attractiveness of IoT stocks to buy, with estimates valuing the IoT market at $58 billion by 2025.

In 2023, the IoT market should grow by an impressive 19%, despite the headwinds weighing down the tech sphere. The opportunity for IoT growth stocks to watch is massive, and it’s no surprise that investors are eager to get a piece of the action.

Let’s delve into the leading IoT stocks you should consider.

Johnson Controls (JCI)

Johnson Controls (NYSE:) is one of the few pure-plays in the IoT realm, which has been innovating in the space for nearly two to three decades.

With a robust history of connecting systems and products for analytical purposes, the firm has effectively developed into a true pioneer in the IoT landscape.

For instance, its groundbreaking Smart Connected Chillers product line includes devices that effectively monitor analytics related to building cooling systems. Its IoT prowess extends to various solutions, including HVAC, security, industrial refrigeration, digital solutions, and energy.

The firm boasts a consistent track record of single-digit growth in its top-line results, with industry-leading profitability numbers.

On top of that, it offers a strong dividend, with a 2.3% yield and six years of consecutive payouts. Additionally, the stock trades at a discount across multiple core pricing metrics.

Cisco Systems (CSCO)

Cisco Systems (NASDAQ:CSCO) is a titan in the IT industry, effectively expanding its reach into the rapidly evolving IoT.

As a top IoT business, it offers a versatile range of products and services, encompassing IoT, security, data center, and wireless networks. Particularly in the IoT realm, its solutions encompass operations management, data management, networking, gateways, and security solutions.

The beauty of Cisco is its varied product offerings and services, allowing various segments to bounce off each other’s success. Hence, its dynamic approach and innovative solutions solidify its position as a leader in the IoT landscape.

It’s expanded its business at a steady pace, with rock-solid margins that have grown by double-digits over the past several years. It’s been an incredibly rewarding investment for its shareholders, with a total price return of more than 200% in the past decade.

Cloudflare (NET)

Security measures are of critical importance when billions of devices are connected.

This oversight has essentially opened the door for cybercriminals to weaponize IoT gadgets, from cameras to home appliances. Hackers can orchestrate crippling Distributed Denial of Service (DDoS) attacks, which continue to escalate in severity.

Enter Cloudflare (NYSE:NET), a company that’s in pole position to tackle this frightening challenge. It’s best known as a content delivery network, ensuring websites and internet-based services operate efficiently, regardless of access points.

It is a leading provider of DDoS protection, with its security network blocking over 50 billion threats daily on average. According to its fourth-quarter report for 2022, HTTP DDoS attack traffic increased by a whopping 79% on a year-over-year basis.

With IoT expanding quickly, Cloudflare’s expertise in DDoS protection and CDN services makes it a top candidate for investors seeking opportunities in the IoT sector.

On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines