IoT Services Market Report 2026

IoT Services Market Overview

• IoT Services market size has reached to $289.53 billion in 2025 • Expected to grow to $651.61 billion in 2030 at a compound annual growth rate (CAGR) of 17.7% • Growth Driver: Rising Adoption Of Smart Homes • Market Trend: Nippon Telegraph And Telephone (NTT) And Cisco Collaborate To Launch Enterprise-Grade IOT As-A-Service • Asia-Pacific was the largest region and fastest growing region.

What Is Covered Under IoT Services Market?

IoT (Internet of Things) services refers to a set of end-to-end services in which businesses contract with external providers to design, build, install, and operate IoT solutions. IoT services help elaborate on the idea of IoT adoption and set up secure technology infrastructure for advanced data tasks. The main types of internet of things (IoT) services are professional services and managed services. A professional service is an intangible product that a contractor or product vendor sells to help a customer manage a specific part of their business. The various type of verticals are manufacturing, retail, IT & telecom, transportation & logistics, utilities, healthcare, energy, and others. The various applications of internet of things (IoT) services are smart buildings, smart manufacturing, smart transport and logistics, smart healthcare, smart retail, and smart energy.

What Is The IoT Services Market Growth Forecast?

The iot services market size is expected to see rapid growth in the next few years. It will grow to $651.61 billion in 2030 at a compound annual growth rate (CAGR) of 17.7%. The growth in the forecast period can be attributed to expansion of smart city projects, rising adoption of managed services, demand for real time data insights, growth of industrial iot deployments, focus on cybersecurity for iot. Major trends in the forecast period include end to end iot service models, managed iot platform services, secure iot infrastructure deployment, data analytics driven iot services, remote device and network management.

Global IoT Services Market Segmentation

1) By Type: Professional Services, Managed Services 2) By Application: Smart Buildings, Smart Manufacturing, Smart Transport and Logistics, Smart Healthcare, Smart Retail, Smart Energy 3) By Vertical: Manufacturing, Retail, IT And Telecom, Transportation And Logistics, Utilities, Healthcare, Energy, Other Verticals Subsegments: 1) By Professional Services: Consulting Services, Deployment And Integration Services, Support And Maintenance Services 2) By Managed Services: Device Management, Network Management, Application Management, Data Management

What Is The Driver Of The IoT Services Market?

The growing number of smart homes is expected to propel the growth of the IoT services market going forward. Smart homes refer to residential properties equipped with a range of devices and systems that can be remotely monitored, controlled, and automated. The smart home market is driving the growth of the IoT services market, as the increasing adoption of IoT solutions in smart homes is creating new opportunities for businesses to provide innovative and advanced IoT services. For instance, in August 2023, according to RubyHome, a US-based real estate company, in the US, 63.43 million homes use smart home devices, and around 7 in 10 homebuyers are willing to buy a smart home. Therefore, the growing number of smart homes is driving the growth of the IoT services industry.

Key Players In The Global IoT Services Market

Major companies operating in the iot services market are Cisco Systems Inc., Cognizant Technology Solutions Corporation, Google LLC, Infosys Limited, Tieto Corporation, Virtusa Corporation, Accenture plc, International Business Machines Corporation (IBM), Tech Mahindra Limited, Harman International Industries Incorporated, Microsoft Corporation, Wipro Limited, HCL Technologies Limited, Tata Consultancy Services Limited, AT&T Inc., Honeywell International Inc., Intel Security Group, Qualcomm Incorporated, Vates Inc., Oxagile LLC, Verizon Communications Inc., HQSoftware LLC, General Electric Digital LLC, Bosch IoT Sensor Company GmbH, Arm Limited, Sierra Wireless Inc., PTC Inc., Telit Communications PLC, SoluLab Inc., Amazon Web Services Inc., Oracle Corporation, Qualcomm Technologies Inc., Telefonaktiebolaget LM Ericsson, Marvell Technology Group Ltd., Nlyte Software Inc., Broadcom Inc., NVIDIA Corporation, OVHcloud Co., Tencent Holdings Limited, Alibaba Group Holding Limited, Equinix Inc., Digital Realty Trust Inc., CyrusOne Inc.

Global IoT Services Market Trends and Insights

Major companies operating in the IoT services market are innovating enterprise-grade Edge and IoT technologies to sustain their market position and enhance their market dominance. Enterprise-grade Edge and IoT technologies refer to advanced, scalable, and secure solutions that enable businesses to leverage edge computing and IoT capabilities for their operations. For instance, in May 2023, Nippon Telegraph and Telephone, a Tokyo-based telecommunications company, and Cisco, a US-based technology company, launched IoT as-a-Service for enterprise customers. This IoT as-a-Service offering is designed to help businesses quickly realize the benefits of IoT, such as improved decision-making, reduced operational costs, and enhanced customer experiences. The partnership's focus on enterprise-grade Edge and IoT technologies ensures the reliability, scalability, and security of the solutions provided.

What Are Latest Mergers And Acquisitions In The IoT Services Market?

In September 2024, Trasna Holdings, an Ireland-based company specializing in IoT communications, acquired Workz for an undisclosed amount. Through this acquisition, Trasna aims to strengthen its IoT connectivity portfolio, including SIM, eSIM, and System-on-Chip (SoC) technologies, enabling more flexible and scalable mobile IoT services. Workz is an UAE-based provider of IoT services.

Regional Insights

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

What Defines the IoT Services Market?

The Internet of Things (IoT) services market includes revenues earned by entities by providing IoT services that are used in building and home automation, smart energy and utilities, connected logistics, smart retail, smart mobility, and transportation. 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.

How is Market Value Defined and Measured?

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.

What Key Data and Analysis Are Included in the IoT Services Market Report 2026?

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