IoT Telecom Services Market Report 2026

The iot telecom services market size has grown exponentially in recent years. It will grow from $34.3 billion in 2025 to $45.84 billion in 2026 at a compound annual growth rate (CAGR) of 33.6%. The growth in the historic period can be attributed to early adoption of M2M connectivity, growth of telecom infrastructure, rising digital connectivity needs, expansion of enterprise automation, increasing remote monitoring requirements.

The iot telecom services market size is expected to see exponential growth in the next few years. It will grow to $138.74 billion in 2030 at a compound annual growth rate (CAGR) of 31.9%. The growth in the forecast period can be attributed to growing need for secure and reliable connectivity, expansion of industrial IoT applications, rising demand for network performance optimization, increasing investments in smart infrastructure, continued shift toward cloud based telecom services. Major trends in the forecast period include increasing adoption of remote asset monitoring, growing demand for cloud connected telecom infrastructure, rising focus on network intelligence and optimization, expansion of smart connectivity solutions for enterprises, increasing use of subscription based IoT telecom models.

The rising adoption of 5G networks is expected to propel the growth of the IoT telecom services market going forward. Fifth-generation (5G) mobile network technology delivers significantly higher data speeds, ultra-low latency, and enhanced network capacity compared to previous generations. The rapid rollout of 5G is driven by increasing demand for high-speed, reliable connectivity to support data-intensive applications, real-time communications, and large-scale Internet of Things (IoT) deployments. IoT telecom services play a critical role in enabling 5G ecosystems by providing seamless device connectivity, real-time data transmission, network management, and scalable service orchestration across massive IoT environments. These services allow enterprises to fully leverage 5G capabilities such as network slicing, edge computing, and ultra-reliable low-latency communication for applications including smart cities, industrial automation, autonomous systems, and connected healthcare. For instance, in March 2025, according to 5G Americas, a US-based mobile communications industry association, North America reached approximately 289 million 5G connections in 2024, representing nearly a 67% increase from about 196 million connections in the previous year. Therefore, the rising adoption of 5G networks is driving the growth of the IoT telecom services market.

Major companies operating in the IoT telecom services market are focusing on integrating advanced technologies such as artificial intelligence (AI) to enhance network reliability, monitoring, and operational efficiency. Artificial intelligence leverages machine-learning algorithms to analyze large volumes of connectivity and performance data in real time, enabling capabilities such as anomaly detection, predictive maintenance, and proactive service optimization. For instance, in December 2024, Vodafone Group Plc., a UK-based telecommunications company, launched the Vodafone Business IoT AI-powered anomaly detection tool, an AI-driven service designed to monitor IoT connectivity and network performance across Vodafone’s global infrastructure. The solution features rapid identification of service anomalies, early alerts for potential connectivity disruptions, and coverage across more than 180 countries. Vodafone’s AI-powered tool improves IoT service reliability, reduces fault-detection times, and strengthens operational efficiency for enterprise customers.

In January 2023, Semtech Corporation, a US-based semiconductor and mixed-signal technology company, acquired Sierra Wireless for approximately US$1.2 billion. Through this acquisition, Semtech aimed to strengthen its end-to-end IoT capabilities by integrating Sierra Wireless’s cellular connectivity solutions, device hardware, and cloud-based management platforms. The deal enhances Semtech’s ability to deliver comprehensive, scalable IoT telecom services across industries requiring secure and reliable device-to-cloud connectivity. Sierra Wireless Inc. is a Canada-based technology company specializing in cellular IoT modules, gateways, routers, and managed connectivity services.

Major companies operating in the iot telecom services market report are 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 2025. The regions covered in the iot telecom 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 telecom services market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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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