Iran IoT Market is Expected to grow at a robust CAGR of 6.98% through 2030F

The increasing Iran IoT market is driven by rise of smart agriculture to combat water scarcity, surge in connected vehicles and fleet management solutions during the forecast period 2026-2030F.

According to TechSci Research report, “Iran IoT Market – By Region, Forecast & Opportunities, 2030F”, The Iran IoT Market was valued at USD 2.89 Billion in 2024 and is expected to reach USD 4.35 Billion by 2030 with a CAGR of 6.98% during the forecast period. A major trend shaping Iran’s IoT market is the rapid adoption of smart agriculture solutions to tackle water shortages and boost productivity. Given the country’s arid climate and increasing drought frequency, farmers are turning to IoT-enabled systems that optimize irrigation, fertilization, and crop monitoring. IoT sensors are being deployed to monitor soil moisture, salinity, temperature, and nutrient levels across thousands of hectares. These devices feed real-time data into dashboards or mobile apps, allowing farmers to schedule irrigation precisely, reducing water waste by 30–40%. Drones equipped with imaging sensors are being used to detect early signs of pest infestations or plant disease, enabling preemptive interventions.

Government support for agricultural digitization is growing, especially in provinces like Khuzestan, Kerman, and Fars, which face acute water stress. Pilot projects across pistachio farms, wheat fields, and greenhouse cultivation have shown improved yield per hectare and better resource allocation. Smart greenhouses with climate sensors, CO₂ detectors, and automated fans are also emerging in peri-urban areas. Livestock farming is part of this trend as well, with RFID and wearable IoT tags being used to monitor animal location, feeding patterns, and health vitals. This allows ranchers to track reproductive cycles and reduce animal mortality. Integration with solar-powered systems further enables remote operations in off-grid farms. This transformation is critical for a country where agriculture employs over 15% of the workforce. As water resources become more constrained and global food demand grows, Iran is strategically moving toward precision agriculture—making smart farming one of the most influential trends driving the domestic IoT landscape.

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Based on component, service is the fastest growing segment in the Iran IoT market during the forecast period due to the increasing demand for ongoing support, integration, maintenance, and data management services across both public and private sector deployments. As IoT adoption accelerates in industries such as utilities, manufacturing, transportation, and agriculture, organizations are increasingly relying on specialized service providers to ensure the smooth functioning and scalability of their IoT ecosystems. One of the primary drivers behind this growth is the complexity of implementing end-to-end IoT solutions. IoT systems often require customized installation, network configuration, and integration with legacy systems, which fuels demand for consulting and system integration services. Iranian companies, particularly in utilities and industrial sectors, are seeking expertise in optimizing IoT workflows, handling edge computing, and real-time data analytics, driving up service needs.

Additionally, the growing importance of managed services—including remote device monitoring, cybersecurity management, and predictive maintenance—is becoming critical. As many Iranian enterprises lack in-house technical capabilities to manage large IoT networks, they are increasingly outsourcing operations to local and regional service providers, contributing to the segment’s expansion. Post-deployment support, including firmware updates, sensor calibration, and troubleshooting, is another essential component that strengthens the service segment’s position. With the rise in smart agriculture and smart city initiatives in cities like Tehran and Mashhad, the volume of IoT devices in operation is growing rapidly, requiring continuous technical support and lifecycle management. Furthermore, in response to cybersecurity concerns, particularly in the context of Iran’s geopolitical environment, there is increasing demand for professional security assessment and risk mitigation services for IoT deployments.

Based on region, Esfahan is the fastest growing region in the Iran IoT Market during the forecast period due to its expanding industrial base, increasing urbanization, and the regional government’s strategic push toward smart city development and digital transformation. As one of Iran’s most important provinces in terms of manufacturing, energy production, and tourism, Esfahan is emerging as a focal point for IoT deployment across multiple sectors. The city of Esfahan is home to numerous industrial zones involved in steel, petrochemicals, and cement manufacturing. These industries are increasingly adopting industrial IoT (IIoT) solutions to optimize operations, reduce energy consumption, and improve equipment reliability through predictive maintenance. IoT-based systems such as real-time sensor networks, asset tracking tools, and environmental monitoring systems are gaining traction in the region’s heavy industries.

Additionally, Esfahan’s urban infrastructure is undergoing rapid modernization. The municipality has initiated smart city projects involving intelligent traffic systems, public transport tracking, waste management automation, and air quality monitoring. These projects rely heavily on connected sensors and cloud-based platforms, thereby accelerating IoT demand in public services. In the agricultural sector, which surrounds Esfahan’s suburban areas, farmers are increasingly using precision farming technologies such as soil moisture sensors, weather forecasting systems, and smart irrigation controls to combat water scarcity—an issue critical to this region. These applications contribute significantly to the adoption of IoT solutions in the province.

Esfahan also hosts a growing number of technical universities and R&D centers, fostering local innovation and the development of customized IoT applications. This academic-industry collaboration helps boost regional adoption by creating pilot projects and facilitating local production and integration of IoT systems. With supportive local policies, increasing private and public investment, and a diversified economic base, Esfahan is well-positioned to lead IoT growth in Iran during the forecast period.

Key market players in the Iran IoT market are: -

• FANAP Co.    
• MAPNA Group
• Sharif ICT Group
• BehinTech Co.
• Rahkaran System Pasargad (RSP)
• Arsh Gostar
• Fara Gostar
• Smartmed
• Cisco Systems, Inc.
• IBM Corporation

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“The Iran IoT market presents strong growth opportunities driven by increasing demand for smart city development, industrial automation, and precision agriculture. Expanding urban infrastructure in cities like Tehran and Esfahan, along with government-backed utility digitization initiatives, is fostering IoT deployment. The rise of connected healthcare, transportation management systems, and smart grid technologies further boosts market potential. Additionally, Iran's large base of engineering talent and growing collaboration with international partners, particularly in AI and communications, offers scope for localized IoT solutions. These factors collectively position Iran as a promising landscape for IoT-driven innovation and digital transformation in the coming years.Top of Form” said Mr. Karan Chechi, Research Director of TechSci Research, a research-based Global management consulting firm.

“Iran IoT Market By Component (Hardware, Service, Software), By Type (B2B, B2C, B2G), By Application (Smart Manufacturing, Consumer Electronics, Building & Home Automation, Smart Mobility & Transportation, Connected Logistics, Others), By Region, Competition, Forecast and Opportunities, 2020-2030F,” has evaluated the future growth potential of Iran IoT Market and provides statistics & information on market size, structure, and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in Iran IoT Market.

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