Egypt Internet of Things Market By Component (Software, Hardware & Service), By Type (B2B, B2G, B2C), By Connectivity (LPWAN, Radio frequency Identification (RFID), Near Field Communication, Zigbee, Others), By End Use (Manufacturing, IT & Telecom, Automotive &Transportation, Consumer Electronics, Healthcare, Environmental Monitoring, & Others), By Region, Competition, Forecast and Opportunities, 2020-2030F

Market Overview

Egypt Internet of Things Market was valued at USD 500.15 Million in 2024 and is expected to reach USD 1,583.03 Million by 2030 with a CAGR of 20.99% during the forecast period.

The Egypt Internet of Things (IoT) market is undergoing rapid transformation, driven by increasing digitalization across industries, a growing tech-savvy population, and strong government support for smart infrastructure and digital economy initiatives This growth is primarily attributed to rising investments in smart cities, industrial automation, smart utilities, and the integration of IoT technologies into healthcare, transportation, and logistics systems. Egypt’s Vision 2030 and the “Digital Egypt” initiative are major catalysts, encouraging the adoption of connected technologies across both public and private sectors. These programs focus on modernizing infrastructure, enhancing government services, and supporting innovation through partnerships with leading technology companies.

Segment-wise, the IoT services component is witnessing the fastest growth, reflecting the rising demand for deployment, integration, and management of IoT platforms. Among connectivity technologies, RFID and LPWAN are gaining traction, particularly in manufacturing, logistics, and smart city applications. In terms of end-use, the industrial sector dominates the market, accounting for the largest revenue share, followed by smart home, healthcare, and transportation sectors. Consumer IoT is also rapidly expanding, fueled by increased penetration of smart devices, mobile applications, and wearable technologies. The B2C segment, in particular, is benefiting from rising awareness and affordability of smart home solutions such as connected lighting, security systems, and smart appliances.

The competitive landscape is composed of global players like Siemens, Cisco, IBM, Microsoft, and Huawei, as well as local firms such as Giza Systems, CardoO, and IOTBlue. Telecom operators like Telecom Egypt and Orange Egypt are playing a pivotal role by offering connectivity and managed services to support IoT deployments. Cairo and Alexandria serve as key hubs for IoT adoption due to their industrial base, technology parks, and institutional support. Despite the promising outlook, challenges such as data privacy concerns, infrastructure limitations in rural regions, and the high cost of advanced IoT systems remain. However, ongoing infrastructure development, coupled with rising investment from both government and private entities, is expected to address these issues and further stimulate growth. Overall, the Egypt IoT market presents significant opportunities for technology providers, integrators, and service enablers aiming to capitalize on the country’s digital transformation journey.

Key Market Drivers

Expansion of Digital Infrastructure

Egypt’s aggressive investment in digital infrastructure is significantly advancing IoT adoption across the country. The number of cellular towers increased from around 7,000 in 2019 to nearly 35,000 by 2024, with ongoing plans to reach 50,000. The number of mobile subscriptions rose from 39 million in 2019 to over 106 million by the end of 2023. Fixed internet speeds have also improved dramatically, growing from an average of 6.5 Mbps in 2019 to more than 75 Mbps in 2024. Over 26 billion EGP has been allocated for replacing legacy copper cabling with fiber-optic lines since 2016. In addition, around 33,000 government buildings were connected via a national digital network, with investments exceeding 25 billion EGP. These infrastructure enhancements enable high-volume data transfer, real-time analytics, and device connectivity—cornerstones of IoT operations in sectors such as utilities, logistics, and public services.

Government-Led Smart City and Industry 4.0 Projects

Smart city initiatives and manufacturing automation are two of Egypt’s most prominent IoT drivers. The New Administrative Capital is spread over 725 square kilometers, planned to accommodate 6.5 million people and create over 1.7 million jobs. The smart infrastructure budget for this project exceeds 40 billion EGP. As part of its Industry 4.0 roadmap, Egypt has launched its first innovation hub focused on automation, robotics, and IoT applications in production environments. Smart metering systems are being rolled out in over 10 million utility connections nationwide. The government also introduced digital traffic control systems across more than 30 major intersections. Over 20 industrial zones have integrated IoT in resource optimization, predictive maintenance, and safety automation. These projects increase the relevance and scalability of IoT in national infrastructure and industry.

Surge in Digital Talent and Skills Development

Human capital investment is a crucial pillar of Egypt’s digital economy strategy. More than 200,000 individuals received ICT training under government programs in FY 2021–2022. Specific to IoT and embedded systems, over 6,000 trainees completed specialization tracks. Over 20,000 students graduated from national telecom institutes specializing in networks, cloud, and device connectivity. Egypt’s dedicated ICT university has enrolled more than 3,000 students in IoT-related degree programs since its launch. Government-sponsored programs have awarded more than 100,000 online nanodegrees in data science, AI, and IoT disciplines over a span of two years. These efforts ensure that the workforce is ready to support enterprise-grade IoT deployments, system customization, and ongoing maintenance.

Growth of Innovation Ecosystems and Startups

Egypt’s innovation ecosystem is becoming a strong foundation for IoT product development. Startup investments grew from roughly USD190 million in 2020 to over USD465 million in 2021. Technology hubs now exist in over 15 governorates, offering incubators, testbeds, and seed funding. More than 1,000 IoT-related patents and applications were filed by Egyptian researchers and entrepreneurs over the last five years. Over 50 tech startups are currently focused on smart devices, wearables, agricultural sensors, and connected logistics platforms. A local consumer electronics company recently shipped more than 80,000 smartwatches integrated with IoT capabilities within a year of launch. As more domestic entrepreneurs enter the market, sector-specific solutions in healthcare, logistics, energy, and retail are expected to proliferate.

Enabling Policy Framework and Digital Governance

Egypt’s supportive regulatory ecosystem plays a key role in facilitating IoT growth. Over 33,000 government institutions have been integrated into a national digital network for secure communication and data sharing. The number of registered digital signature certificates increased from 8,000 in 2020 to more than 130,000 by 2022. Around 375 million digital government transactions were completed in a single year, demonstrating rising citizen engagement with smart platforms. A national e-payment law now mandates digital payments for government transactions above 500 EGP. The country has also implemented cloud-first policies across all state entities and initiated cross-border data protection standards. These policy actions create trust and regulatory certainty, which are vital for scaling IoT applications in both the public and private sectors.

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Key Market Challenges

Inadequate Nationwide Connectivity Coverage

Despite strong strides in urban internet infrastructure, Egypt faces significant disparities in digital connectivity between urban centers and rural or remote areas. While cities like Cairo, Alexandria, and the New Administrative Capital enjoy high-speed internet and 4G/5G availability, many governorates in Upper Egypt and the Nile Delta still rely on low-speed or unstable connections. Fixed broadband penetration in Egypt remains under 15% nationally, and mobile broadband coverage, though over 90% in cities, drops to around 55–60% in sparsely populated areas. This infrastructure gap limits the scalability of IoT in sectors like agriculture, logistics, and rural healthcare—areas where IoT could offer the greatest impact. Power instability also affects sensor uptime and data reliability in many remote zones. For IoT ecosystems to function effectively, continuous, low-latency connections are essential. However, persistent challenges in extending fiber optics and cellular backhaul to non-urban locations delay the widespread deployment of connected solutions, particularly those requiring real-time responsiveness or edge computing. Furthermore, connectivity costs relative to average income remain high, discouraging small enterprises and local authorities from adopting IoT platforms. Until equitable network coverage and affordable access are ensured nationwide, Egypt’s IoT potential will remain concentrated in privileged, urbanized zones.

Limited Local Hardware Manufacturing Capability

The lack of a robust domestic hardware manufacturing base is a significant bottleneck for Egypt’s IoT ecosystem. Most IoT devices—including sensors, microcontrollers, communication modules, and edge gateways—are imported from China, Germany, or the U.S. This reliance on foreign vendors exposes Egyptian firms to high import duties, long lead times, and supply chain vulnerabilities. For example, global chip shortages in 2020–2022 delayed the rollout of multiple smart meter and industrial automation projects in Egypt. Additionally, the absence of domestic chip fabrication and printed circuit board (PCB) manufacturing forces developers to depend on external assembly partners, reducing local control over quality and scalability. While some startups engage in device prototyping or integration, fewer than 10 companies in Egypt operate at any level of commercial-scale IoT hardware production. The absence of economies of scale keeps unit costs high, making price-sensitive sectors like agriculture, education, or public utilities less likely to adopt connected devices at scale. Without government incentives, technology parks, or joint ventures focused on electronics fabrication and embedded system manufacturing, the cost and accessibility of IoT hardware will remain a challenge. Building a localized supply chain is essential for fostering sustainable, affordable, and responsive IoT growth.

Shortage of Specialized IoT Integration Skills

While Egypt has made progress in developing ICT talent, there remains a noticeable shortage of professionals with specialized IoT integration and operational expertise. Skills such as embedded system development, wireless sensor networking, industrial communication protocols (e.g., MQTT, LoRaWAN), and cybersecurity for connected devices are still niche in the domestic workforce. Many companies struggle to find engineers who can design end-to-end IoT solutions—from sensor selection and firmware design to data analytics and dashboard development. The issue is more severe outside major cities, where training programs are less available. A recent estimate indicates that fewer than 10% of ICT graduates possess hands-on IoT deployment experience. As a result, Egyptian enterprises often outsource complex projects to foreign consultants, driving up costs and reducing knowledge transfer. Moreover, the evolving nature of IoT—including AI integration, edge computing, and real-time analytics—requires continuous upskilling, which is not yet institutionalized in most academic curricula. The absence of practical labs and IoT certification standards further widens the skills gap. If this challenge remains unaddressed, it could hinder the development of large-scale or mission-critical IoT projects and discourage private and public investment in this transformative technology.

Cybersecurity and Data Privacy Concerns

One of the most pressing barriers to IoT adoption in Egypt is the growing concern over data security, privacy, and regulatory compliance. As connected devices proliferate, so do the vulnerabilities in communication networks, cloud platforms, and device firmware. A large number of IoT deployments in Egypt, particularly in utilities and industrial settings, lack encryption protocols or intrusion detection systems. Additionally, many locally-deployed devices do not meet international security certifications, increasing the risk of exploitation. According to industry estimates, more than 50% of IoT systems in Egypt do not have real-time monitoring or update mechanisms to patch security flaws. Moreover, the current legal framework on data protection is still evolving, with limited enforcement and ambiguities around cross-border data flows, especially for cloud-hosted solutions. Public awareness regarding data collection, storage, and use in consumer IoT products remains low, further compounding the risk of misuse. Fear of breaches or reputational damage deters many organizations—particularly in healthcare, finance, and government—from implementing IoT solutions at scale. To foster trust and accelerate deployment, Egypt will need stronger regulations, national standards for IoT security, mandatory device testing, and public education around digital safety.

Fragmentation Across Ecosystem Players

The Egyptian IoT market is marked by fragmentation across vendors, platforms, and protocols, which creates interoperability challenges and slows down adoption. Multiple device manufacturers use different communication standards—such as Zigbee, LoRa, NB-IoT, or proprietary RF protocols—which often cannot seamlessly interact with each other. On the platform side, many system integrators build custom IoT dashboards and analytics engines that are not API-compatible with others. This lack of standardization makes it difficult for enterprises to scale solutions or integrate new technologies without expensive overhauls. Additionally, many small-to-medium-sized businesses have limited understanding of vendor lock-in risks, ending up with siloed systems that cannot evolve or expand efficiently. The absence of a national IoT interoperability framework or open standard repository worsens this situation. Furthermore, coordination between device makers, telecom operators, software developers, and government regulators is inconsistent, leading to duplicate efforts and mismatched service offerings. This fragmented landscape discourages collaboration, increases deployment time, and inflates project costs. Without a cohesive strategy to align stakeholders around common protocols, APIs, and governance models, Egypt risks slowing the maturity of its IoT market despite the availability of enabling technologies.

Key Market Trends

Accelerated Adoption of IoT in Logistics and Supply Chain

The logistics and transportation sectors in Egypt are rapidly embracing IoT to overcome traditional inefficiencies and enhance supply chain visibility. Real-time GPS tracking, RFID scanning, and asset-monitoring sensors are now being deployed by large logistics providers, e-commerce platforms, and even agricultural exporters. IoT devices help companies monitor the location, temperature, and condition of goods throughout the transit process—crucial for time-sensitive and perishable products. Fleet management systems equipped with IoT enable fuel usage monitoring, driver behavior analysis, and route optimization, resulting in significant cost savings. Egypt’s role as a key trade gateway, especially with the Suez Canal and regional shipping hubs, makes logistics optimization a national priority. With customs processes being digitized, IoT is facilitating faster clearances and real-time status updates. Cold-chain solutions for pharmaceuticals and food exports are also integrating sensor-based temperature control and monitoring systems. Moreover, public transportation fleets and smart parking projects in Cairo and Alexandria are adopting connected systems for better scheduling and utilization. This ongoing digital shift in logistics not only improves delivery timelines and operational control but also contributes to Egypt’s broader goals of becoming a competitive trade and transport hub in the region.

Development of Smart Public Infrastructure and Utilities

Egypt is experiencing a surge in smart infrastructure deployments as part of its national transformation goals. Smart traffic systems, automated street lighting, connected waste management, and IoT-enabled utilities are increasingly integrated into urban development projects, particularly in new cities like the New Administrative Capital. For example, intelligent traffic lights equipped with sensors help optimize vehicle flow, reduce congestion, and respond to emergency vehicle movement. In public utilities, smart water meters and electricity meters allow for accurate consumption tracking, remote monitoring, and tamper detection—reducing non-technical losses and manual intervention. Smart grid solutions are being deployed by energy providers to monitor grid stability, manage outages proactively, and integrate renewable sources. Additionally, connected surveillance and environmental sensors are being installed to enhance public safety and monitor air quality. These smart infrastructure upgrades are improving urban efficiency, reducing resource waste, and increasing citizen satisfaction. As Egypt continues to urbanize—with multiple new urban centers under construction—smart public infrastructure will become a defining feature of its urban policy, creating sustained demand for scalable and interoperable IoT systems in government-led projects.

Growth of Local IoT Startups and Innovation Hubs

A growing trend in the Egypt IoT market is the emergence of local startups and technology innovation hubs focused on developing indigenous IoT solutions. In recent years, Egypt has seen a surge in technology entrepreneurship, supported by government-backed initiatives, university incubators, and private accelerators. Local startups are innovating across sectors—developing smart farming systems, connected health monitors, asset tracking devices, and industrial IoT platforms tailored to local challenges. These companies benefit from increased venture capital funding, international partnerships, and growing access to prototyping facilities. Startup investment in Egypt has more than doubled in recent years, with a notable percentage directed toward IoT and smart hardware. Tech hubs in Cairo, Alexandria, and Assiut are fostering a culture of experimentation and rapid deployment. University-led labs are offering students and entrepreneurs access to open-source hardware, cloud platforms, and mentorship for building market-ready products. This trend is critical for reducing dependency on imported technology, lowering IoT solution costs, and building a resilient, self-sustaining ecosystem. As these startups scale, they contribute not only to technological advancement but also to job creation and regional economic development.

Segmental Insights

Component Insights

Software segment dominated in the Egypt Internet of Things market in 2024 due to the increasing demand for scalable, intelligent platforms that can manage, analyze, and secure massive volumes of data generated by connected devices. As IoT adoption grows across industries such as manufacturing, healthcare, logistics, and utilities, organizations are prioritizing software platforms to extract real-time insights, enhance decision-making, and ensure device interoperability. These software systems include middleware, device management software, data analytics tools, and security applications—all of which play a critical role in the functionality of IoT networks.

The growth of cloud-based IoT platforms is a major contributor. Egyptian enterprises are increasingly shifting to cloud-native infrastructure to manage distributed devices, reduce costs, and improve scalability. These platforms offer flexibility to integrate with AI, machine learning, and edge computing—further boosting the role of software over hardware. Additionally, the rise of smart city initiatives and public digital infrastructure projects has driven demand for large-scale IoT management platforms capable of monitoring utilities, traffic systems, and public safety infrastructure in real time.

The software segment also benefits from the relative ease of customization and localization compared to hardware. Egyptian developers and startups are creating tailored software solutions for sectors such as agriculture (smart irrigation platforms), retail (customer behavior analytics), and logistics (fleet tracking systems), which significantly accelerates local adoption. Cybersecurity software has also emerged as a key priority, as organizations seek to protect data integrity across connected environments.

Moreover, software platforms enable integration across diverse device ecosystems—critical in Egypt’s fragmented IoT landscape where multiple vendors and protocols coexist. As organizations prioritize operational efficiency, predictive analytics, and real-time visibility, the role of software becomes central to value creation in IoT projects. This shift positions software as the backbone of Egypt’s IoT ecosystem in 2024 and beyond.

Type Insights

B2G segment dominated the Egypt Internet of Things market in 2024 due to large-scale government initiatives driving demand for smart infrastructure and digital transformation. Major projects such as the New Administrative Capital integrated IoT in utilities, surveillance, traffic systems, and public services. Businesses collaborated with government entities to deploy smart meters, connected waste systems, and intelligent transportation networks. Additionally, national programs for smart cities, e-governance, and public safety accelerated IoT adoption in municipal services. The government’s strong digitalization agenda and infrastructure investments positioned B2G partnerships as the primary growth engine for Egypt’s IoT landscape.

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Region Insights

Largest Region

Cairo dominated the Egypt Internet of Things market in 2024 due to its role as the country’s primary economic, administrative, and technological hub. As the largest metropolitan area in Egypt, Cairo houses the headquarters of major telecom providers, technology companies, government ministries, and public infrastructure authorities—all of which play pivotal roles in driving IoT adoption. The city benefits from the highest level of digital infrastructure nationwide, including widespread high-speed internet coverage, advanced 4G/5G networks, and growing deployment of fiber-optic connectivity, making it ideal for implementing IoT solutions across sectors.

Cairo’s dominance is also driven by the government’s concentrated investment in smart city projects and e-governance initiatives. The capital has been a testing ground for smart traffic systems, connected public transportation networks, surveillance systems, and smart utilities like water and electricity metering. The New Administrative Capital—adjacent to Cairo—is also contributing to this growth by integrating thousands of IoT-enabled devices into urban infrastructure, further strengthening the region’s leadership in the IoT ecosystem.

Moreover, Cairo is home to a large concentration of technology startups, innovation hubs, and universities offering IoT and embedded systems training. Institutions such as Cairo University and the Information Technology Institute (ITI) have launched specialized IoT and AI programs, contributing to a highly skilled talent pool. The city also leads in consumer IoT adoption, with high rates of smart home device usage, mobile app-based services, and wearable tech penetration due to higher income levels and digital awareness.

The availability of venture capital, tech incubators, and business accelerators in Cairo also supports the development of homegrown IoT solutions. With a strong blend of infrastructure, talent, policy focus, and economic activity, Cairo continues to lead Egypt’s IoT market in 2024, serving as both a deployment base and innovation center for connected technologies.

Emerging Region

Giza was the emerging region in the Egypt Internet of Things market in the coming period due to its strategic blend of industrial zones, academic institutions, and growing infrastructure investments. With several tech parks and manufacturing hubs expanding, demand for smart factory solutions—such as asset tracking, predictive maintenance, and energy monitoring—is on the rise. Giza’s universities and research centers are launching IoT training and innovation labs, contributing to a local talent pool. Additionally, improved fiber coverage and municipal interest in smart utilities and public services create fertile ground for pilot IoT deployments. These factors position Giza as a fast-growing IoT hotspot in the near future.

Recent Developments

• In October 2024, Ericsson expanded its collaboration with Egyptian universities to nurture future technology leaders. This initiative enables students to engage in joint graduation and postgraduate research projects aligned with Ericsson’s R&D priorities. Participants gain access to advanced technologies, mentorship, and supervision from Ericsson experts, fostering practical experience in cutting-edge innovation. The partnership reinforces Ericsson’s long-term commitment to strengthening Egypt’s research ecosystem and talent pipeline while accelerating the nation’s digital transformation through academic-industry collaboration.
• In June 2025, Cyshield partnered with Thales to launch Egypt’s first eSIM connectivity service for consumer and IoT devices. Based in Cairo, Cyshield supports all four national mobile operators in enabling seamless eSIM activation, flexible subscriptions, and enhanced digital experiences. The solution targets smartphones, wearables, and connected IoT applications. This strategic move enhances Egypt’s digital infrastructure, accelerates connected device adoption, and reinforces Cyshield’s position as a key player in secure, scalable digital communication technologies.
• In June 2025, Orange Egypt and Huawei announced a strategic partnership to deploy 5G networks, driving advanced connectivity for consumers and enterprises. The rollout will support emerging technologies such as AI, robotics, AR, and VR, laying the foundation for smart city and IoT ecosystems. Leveraging Huawei’s Massive MIMO for RAN, the collaboration enhances network efficiency, capacity, and service quality, positioning Orange Egypt as a frontrunner in enabling next-generation digital experiences nationwide.
• In March 2025, the Egyptian Space Agency and Qamar Space Technology Company signed a strategic cooperation protocol to advance satellite development capabilities in Egypt. The agreement enables joint R&D, access to national testing facilities, and scientific knowledge exchange. Qamar aims to develop satellites for IoT, communications, and imaging services. As Egypt’s first private space-tech manufacturer, Qamar strengthens the country’s digital infrastructure and innovation leadership, supporting domestic and international markets with integrated space-based solutions.

Key Market Players

• Siemens       
• Amazon
• IBM
• Cisco
• Microsoft
• Oracle
• Honeywell
• Hewlett Packard Enterprise
• Ericsson
• Huawei   

Report Scope:

In this report, the Egypt Internet of Things Market has been segmented into the following categories, in addition to the Connectivity trends which have also been detailed below:

• Egypt Internet of Things Market, By Component:

o   Software

o   Hardware

o   Service

• Egypt Internet of Things Market, By Type:

o   B2B

o   B2G

o   B2C

• Egypt Internet of Things Market, By Connectivity:

o   LPWAN

o   Radio frequency Identification (RFID)

o   Near Field Communication

o   Zigbee

o   Others

• Egypt Internet of Things Market, By End Use:

o   Manufacturing

o   IT & Telecom

o   Automotive &Transportation

o   Consumer Electronics

o   Healthcare

o   Environmental Monitoring

o   Others

• Egypt Industrial Automation Market, By Region:

o   Cairo

o   Alexandria

o   Giza

o   Al Qalyubia

o   Port Said

o   Suez

o   Rest of Egypt

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Egypt Internet of Things Market.

Available Customizations:

Egypt Internet of Things Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).