IoT Engineering Services Market Report 2026

The iot engineering services market size has grown exponentially in recent years. It will grow from $46.46 billion in 2025 to $57.85 billion in 2026 at a compound annual growth rate (CAGR) of 24.5%. The growth in the historic period can be attributed to growth of digital transformation initiatives, rising adoption of connected devices, increasing enterprise automation needs, expansion of remote operations, early focus on operational efficiency improvement.

The iot engineering services market size is expected to see exponential growth in the next few years. It will grow to $140.74 billion in 2030 at a compound annual growth rate (CAGR) of 24.9%. The growth in the forecast period can be attributed to growing connected infrastructure deployment, increasing demand for secure IoT environments, rising investments in smart industries, expansion of enterprise wide automation, increasing focus on predictive performance analytics. Major trends in the forecast period include increasing focus on business performance monitoring, rising adoption of connected enterprise solutions, growing demand for operational cost optimization, expansion of remote monitoring and automation capabilities, increasing use of integrated engineering and deployment services.

The rising demand for IoT solutions for smart manufacturing is expected to propel the growth of the IoT engineering services market going forward. Smart manufacturing refers to advanced manufacturing operations that integrate computer-based systems for design, development, monitoring, and production, while enabling efficient supply chain coordination. The growing adoption of smart manufacturing is driven by the need for real-time visibility, automation, predictive maintenance, and data-driven decision-making across industrial operations. IoT solutions play a critical role in smart manufacturing by enabling connected assets, monitoring equipment performance, optimizing production workflows, and delivering actionable insights into operational efficiency and resource utilization. As manufacturers increasingly digitize their operations, demand for specialized IoT engineering services to design, deploy, and manage connected systems continues to rise. For instance, in August 2025, according to Eurostat, the Luxembourg-based statistical office of the European Union, 70.9% of people in the EU used internet-connected devices in 2024, with the Netherlands reporting the highest usage at 94.8%. Therefore, the rising demand for IoT solutions for smart manufacturing is driving the growth of the IoT engineering services market.

Major companies operating in the IoT engineering services market are focusing on developing innovative technologies such as on-device connectivity software solutions to gain a competitive edge. On-device connectivity software solutions enable devices to establish and manage network connections independently, facilitating reliable communication and data exchange without relying entirely on external cloud-based systems. These solutions improve resilience, reduce latency, and simplify global IoT deployments. For instance, in January 2023, Eseye, a UK-based IoT solutions company, launched AnyNet SMARTconnect, an on-device connectivity software solution designed to reduce development time, enhance connectivity resilience, and lower engineering costs. AnyNet SMARTconnect embeds intelligent global IoT connectivity directly into devices, helping manufacturers accelerate time-to-market by up to nine months while maintaining flexibility across evolving supply chain and deployment requirements.

In March 2023, Cognizant, a US-based information technology consulting and business process outsourcing company, acquired Mobica for an undisclosed amount. This acquisition aims to strengthen Cognizant's IoT embedded software engineering capabilities and provide comprehensive support for digital transformation projects. By leveraging Mobica's expertise in edge systems, artificial intelligence, and machine learning, Cognizant seeks to enhance its services for its Global 2000 clients across key industries, including technology and automotive. Mobica is a UK-based software services firm specializing in IoT engineering services.

Major companies operating in the iot engineering services market report are Tata Consultancy Services Limited, Infosys Limited, Cognizant Technology Solutions Corporation, Happiest Minds Technologies Limited, Capgemini SE, IBM Corporation, Innowise Group, Integra Sources LLC, Softeq Development Corporation, Accenture plc, Wipro Limited, HCL Technologies Limited, Tech Mahindra Limited, Mindtree Limited, Virtusa Corporation, NTT Data Corporation, Luxoft Holding Inc., EPAM Systems Inc., Coforge Limited, Lochbridge Inc.

North America was the largest region in the IoT engineering services market in 2025.Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the iot engineering services market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the iot engineering services market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The IoT engineering services market includes revenues earned by entities by providing services such as Cloud Architecture, Embedded Platform Engineering, Platform migration, Middleware development, Testing and Validation. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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