IoT Telecom Services Market Report 2025

This IoT Telecom Services market report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The IoT telecom services market size has grown exponentially in recent years. It will grow from $25.33 billion in 2024 to $34.52 billion in 2025 at a compound annual growth rate (CAGR) of 36.3%. The growth in the historic period can be attributed to proliferation of connected devices, demand for real-time data analytics, emergence of 4g/ITE networks, increased adoption of smart cities initiatives, growth in industrial IoT applications.

The IoT telecom services market size is expected to see exponential growth in the next few years. It will grow to $108.77 billion in 2029 at a compound annual growth rate (CAGR) of 33.2%. The growth in the forecast period can be attributed to deployment of 5g networks, expansion of edge computing capabilities, rising demand for low latency and high bandwidth, continued expansion of IoT in various industries, need for cost-effective and efficient telecom services. Major trends in the forecast period include integration of ai and machine learning in IoT telecom services, convergence of IoT and blockchain technologies, focus on IoT security solutions and standards, development of industry-specific IoT telecom services, integration of IoT with augmented reality (AR) and virtual reality (VR).

The IoT telecom services market is poised for growth, primarily fueled by the widespread adoption of 5G networks globally. 5G, the fifth generation mobile network, offers enhanced speed and responsiveness, leading to more effective communication among connected devices. Telecom companies benefit from the increased speed, bandwidth, and lower latency of 5G networks, enabling quicker and improved asset management and remote system monitoring. A 2022 study by Verizon and Incisiv indicates that current 5G adoption stands at approximately 13%, with expectations of tripling by 2024. Consequently, the surge in 5G network adoption is set to drive the IoT telecom services market.

The increasing number of connected cars is anticipated to drive the growth of the IoT telecom services market in the coming years. Connected cars are vehicles equipped with advanced communication and information technology systems, enabling them to connect to the internet, other vehicles, and external infrastructure. These vehicles require reliable and seamless connectivity, particularly in critical safety situations, such as collision avoidance and emergency assistance. Additionally, fleet management applications - like real-time tracking, maintenance, and logistics - depend on IoT telecom services for efficient operations. For instance, in January 2023, data published by Cubic Telecom, an Ireland-based software-defined connected vehicle (SDCV) solution provider, indicated that connected vehicles are expected to see an impressive 91% growth from 2023 to 2027, driven by advancements in driver assistance systems (ADAS) and infotainment. Consequently, the rising number of connected cars is propelling the growth of the IoT telecom services market.

Technological advancement is a significant trend gaining traction in the IoT telecom services market. Key players in the industry are concentrating on developing innovative technologies to enhance their portfolios, including integrated Internet of Things (IoT) solutions. For example, in March 2024, Tele2 AB, a Sweden-based provider of integrated telecommunication services, introduced a VoLTE (Voice over LTE) service specifically designed for IoT customers. This service provides improved voice clarity, faster data speeds, and longer battery life for IoT devices, enabling them to function effectively on 4G networks worldwide. This launch is crucial as it allows IoT customers to transition from outdated 2G and 3G networks to more sustainable and future-proof technologies, thereby supporting essential applications such as healthcare and promoting energy-efficient device usage.

Major companies operating in the IoT telecom services market are actively developing new IoT enterprise solutions. These solutions leverage IoT to improve operational efficiency and decision-making within large organizations. Ericsson, a Sweden-based telecommunications company, launched IoT Accelerator Connect in February 2022. This solution simplifies and enhances IoT connectivity for enterprises and developers, providing plug-and-play access to cellular IoT connectivity with a single click. By eliminating complex integration processes, IoT Accelerator Connect facilitates the successful implementation of IoT projects, offering cloud connectivity, device management, onboarding, and developer support.

In July 2022, Ericsson further strengthened its position in the market by acquiring Vonage, a US-based cloud communications company, for an undisclosed amount. This strategic acquisition enables Ericsson to enhance its mobile network business and expand its offerings to include a full range of communications solutions, encompassing Communications Platform as a Service (CPaaS), Unified Communications as a Service (UCaaS), and Contact Center as a Service (CCaaS).

Major companies operating in the IoT telecom services market include AT&T Intellectual Property, Verizon Communications Inc., Deutsche Telekom AG, Huawei Technologies Co. Ltd., Aeris Communications, Microsoft Corporation, Amazon Web Services Inc., International Business Machines Corporation, Cisco Systems Inc., Oracle Corporation, PTC Inc., Spectrum Enterprise, Samsara Networks Inc., Sierra Wireless Inc., GE Digital LLC, Telit Communications plc, Bosch IoT Sensor Company, SAP SE, Andersen Inc., ScienceSoft USA Corporation, Vention Inc., Altoros Americas LLC, Oxagile LLC, SumatoSoft LLC, Innowise Group LLC, Style Lab IoT Software Company, HQ Software Industrial IoT Company, ARM IoT Security Company, Siemens IoT Analytics Company.

North America was the largest region in the IoT telecom services market in 2024. The regions covered in the iot telecom services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the iot telecom services market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain.

IoT telecom services involve asset management and remote system monitoring, with these applications being the most prominent in the telecom sector. Telecom companies connect their various physical assets to the cloud, enabling remote monitoring of operations, conducting firmware upgrades, investigating issues, and keeping track of inventories. These services facilitate the connection of diverse physical assets to the cloud and the remote management of their operations.

The main types of IoT telecom services include business consulting services, device and application management services, installation and integration services, IoT billing and subscription management, and M2M billing management. Business consulting services encompass activities such as business planning and implementation for IoT in the telecom sector. Different connectivity options for IoT telecom services include cellular technologies, LPWAN, NB-IoT, and radio frequency-based solutions. Network management solutions within IoT telecom services include network performance monitoring and optimization, network traffic management, and network security management. These services find applications in various sectors, including smart building and home automation, capillary networks management, industrial manufacturing and automation, energy and utilities, healthcare, and other domains.

The IoT telecom services market research report is one of a series of new reports that provides IoT telecom services market statistics, including IoT telecom services industry global market size, regional shares, competitors with a IoT telecom services market share, detailed IoT telecom services market segments, market trends and opportunities, and any further data you may need to thrive in the IoT telecom services industry. This IoT telecom services market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The IoT telecom services market includes revenues earned by entities by providing services such as IoT connectivity services, data storage and management, asset monitoring, and PaaS and SaaS solutions. 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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