IoT Connectivity Market Size and Outlook 2031

Report Description

Forecast Period	2027-2031
Market Size (2025)	USD 10.11 Billion
CAGR (2026-2031)	19.73%
Fastest Growing Segment	SMEs
Largest Market	North America
Market Size (2031)	USD 29.78 Billion

Market Overview

The Global IoT Connectivity Market is projected to grow from USD 10.11 Billion in 2025 to USD 29.78 Billion by 2031 at a 19.73% CAGR. The Global IoT Connectivity Market pertains to the network infrastructure and communication protocols that enable physical objects, embedded with sensors and software, to connect and exchange data with other systems over various networks. Primary drivers supporting market expansion include the increasing demand for automation, the proliferation of connected devices across industries, and the widespread adoption of digital transformation initiatives. A significant challenge impeding market growth, however, remains the complex interoperability issues arising from diverse IoT ecosystems employing disparate standards and protocols.

Regarding market scale, according to the LoRa Alliance, at the end of 2025, over 125 million LoRaWAN IoT end devices were deployed globally, reflecting robust adoption in the low-power wide-area network segment.

Key Market Drivers

Proliferation of Connected Devices Across Industries
The proliferation of connected devices across industries serves as a fundamental catalyst for the Global IoT Connectivity Market. As enterprises increasingly integrate IoT solutions for operational efficiency and data-driven insights, the sheer volume of devices requiring network access continues to expand. This widespread adoption spans various sectors, from manufacturing where smart sensors monitor machinery to healthcare with connected patient devices. The increasing density of these endpoints necessitates robust and scalable connectivity infrastructure to transmit the vast amounts of generated data. This growth underscores the essential role of connectivity in enabling a fully interconnected industrial landscape. According to the Ericsson Mobility Report, November 2025, total cellular IoT connections were around 4.5 billion at the end of 2025.

Advancements in 5G and LPWAN Technologies
Further propelling market expansion are the advancements in 5G and Low-Power Wide-Area Network (LPWAN) technologies. 5G networks offer high bandwidth, low latency, and enhanced reliability, which are critical for demanding IoT applications such as autonomous vehicles and real-time industrial automation. Concurrently, LPWAN technologies like Narrowband IoT (NB-IoT) and LTE-M provide cost-effective and energy-efficient connectivity for devices with lower data rate requirements and extended battery life, suitable for smart agriculture or asset tracking. These technological improvements broaden the scope of viable IoT deployments by addressing diverse connectivity needs. According to the Ericsson Mobility Report, November 2025, globally 177 service providers had deployed or commercially launched NB-IoT networks and 81 had launched Cat-M. This expanding technological foundation is crucial for supporting the overall growth in connected infrastructure. According to GSMA, in 2025, the industry reached 1 billion cellular low power wide area IoT connections.

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Key Market Challenges

The complex interoperability issues arising from diverse IoT ecosystems, which employ disparate standards and protocols, significantly impede the growth of the Global IoT Connectivity Market. This fragmentation creates substantial barriers for seamless device communication and data exchange across different platforms and vendor solutions. Businesses frequently encounter increased development costs and extended deployment timelines when attempting to integrate incompatible systems, hindering broader adoption and efficient scaling of IoT initiatives. The absence of universal communication standards leads to a fragmented landscape of isolated solutions, limiting the scalability and flexibility essential for widespread IoT implementation.

This challenge directly affects the market's expansion as enterprises become hesitant to invest heavily in solutions that may face compatibility limitations or require extensive customization to function within existing infrastructure. For instance, according to GSMA, by the end of 2025, the industry had achieved 1 billion cellular low-power wide-area IoT connections. Despite this significant volume, the practical deployment and consistent operation of these connections across various networks and geographical borders continue to encounter substantial hurdles due to inconsistent device behavior and the necessity for costly post-deployment interventions to ensure reliable performance. Such inconsistencies make managing diverse IoT environments complex and detract from the potential efficiency gains expected from connected technologies.

Key Market Trends

Edge computing for enhanced IoT connectivity represents a pivotal shift, moving data processing closer to the source rather than relying solely on centralized cloud infrastructure. This architectural evolution is crucial for applications requiring ultra-low latency and real-time decision-making, such as industrial automation, autonomous vehicles, and smart city infrastructure. By decentralizing computational power, edge computing significantly reduces network bandwidth consumption and improves system responsiveness, directly impacting the operational efficiency and reliability of connected devices. According to Mender, in their February 2026 article "IoT in 2026: Edge AI, growing complexity, and the demand for smarter updates," the global edge AI market, a key component of this trend, was approximately $25 billion USD in 2025. This growth highlights the increasing demand for localized intelligence in IoT deployments.

Another significant trend is the increased focus on robust IoT security and privacy solutions. As the volume and sensitivity of data transmitted through IoT networks escalate, concerns over cyber threats, data breaches, and regulatory compliance have become paramount. Enhanced security measures, including advanced encryption, secure boot processes, and identity management, are essential for building trust and enabling the widespread adoption of IoT across critical sectors like healthcare, finance, and manufacturing. These solutions mitigate the financial and reputational risks associated with compromised systems, fostering an environment conducive to further investment and deployment. According to the ORDR "IoT Security Statistics, 2026 Report," published in May 2026, organizations contend with an average of 820,000 IoT attacks daily, marking a 46% increase from the prior year.

Segmental Insights

The Small and Medium-sized Enterprises (SMEs) segment is emerging as the fastest-growing sector within the Global IoT Connectivity Market. This rapid expansion is primarily driven by the increasing affordability and accessibility of IoT technologies, which are lowering the barriers to entry for smaller businesses. The proliferation of cost-effective, plug-and-play kits and the competitive pricing of cellular low-power wide-area network solutions enable SMEs to adopt scalable IoT applications without requiring substantial upfront capital investments. Consequently, these businesses are increasingly leveraging IoT connectivity to enhance operational efficiency, optimize resource management, and improve customer experiences.

Regional Insights

North America stands as the leading region in the Global IoT Connectivity Market, primarily due to its advanced technological infrastructure and early adoption of innovative IoT solutions. The region benefits from the widespread availability and deployment of cutting-edge connectivity technologies, including 5G, Wi-Fi 6, and LPWAN, which facilitate efficient data transmission and reliable device communication. Significant investments in smart city projects, robust digital transformation initiatives across manufacturing, healthcare, and other key industries, along with a strong concentration of major technology companies, further solidify North America's dominant position.

Recent Developments

In May 2026, Verdane and Telenor established a joint ownership structure for Telenor Connexion, valuing the global IoT connectivity company at SEK 7.5 billion. This collaboration aimed to accelerate the scaling of Telenor Connexion's managed IoT services and connectivity solutions globally. The partnership intends to provide the company with long-term growth capital through an efficient ownership structure, facilitating both organic expansion and strategic acquisitions. Telenor Connexion is recognized as a significant global player outside China, managing 31 million IoT SIM cards across over 200 countries and territories.
In January 2026, Vodafone IoT partnered with Skylo Technologies to introduce Non-Terrestrial Network (NTN) Narrowband Internet of Things (NB-IoT) satellite connectivity services. This strategic alliance was established to enhance coverage for Vodafone IoT's customers, offering seamless transitions between cellular and NTN connectivity using a single Vodafone SIM. The initial phase focused on technology trials, with plans for a comprehensive commercial service in the near future. This hybrid connectivity model is expected to benefit various industries, including asset tracking, energy services, environmental monitoring, and fleet management, providing resilient multi-national connectivity.
In January 2026, Qualcomm Technologies expanded its Industrial and Embedded IoT (IE-IoT) portfolio at CES 2026 with the introduction of new Dragonwing Q-series processors, including the Dragonwing Q-7790. These processors were designed to deliver on-device artificial intelligence capabilities and enhanced security features for a wide range of industrial and consumer IoT applications. The expansion aimed to provide scalable edge compute and AI solutions across various sectors, enabling advanced inference for applications such as smart cameras and collaboration systems without sole reliance on cloud processing.
In October 2025, Soracom announced the general availability of its integrated satellite IoT connectivity solution, resulting from its collaboration with Skylo. This new offering enabled the commercial deployment of hybrid IoT solutions, combining terrestrial cellular and satellite-based connectivity under a unified management platform. Customers in North America, Europe, Latin America, and Oceania gained the ability to activate Skylo satellite coverage remotely and manage all their connections, both satellite and cellular, through Soracom's centralized platform. This integration was designed to expand geographic reach while optimizing latency, data costs, and billing for global IoT deployments.

Key Market Players

AT&T Inc.
Verizon Communications Inc.
Telefónica S.A.
China Mobile Limited
Orange S.A.
T-Mobile US Inc.
Cisco Systems Inc.
Qualcomm Incorporated
Vodafone Group Plc
Ericsson AB

By Component	By Application	By Organization Size	By Region
Platform Services	Building & Home Automation Smart Energy & Utility Smart Manufacturing Connected Health Smart Retail Smart Transportation Others	Large Enterprises SMEs	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global IoT Connectivity Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

IoT Connectivity Market , By Component:

Platform
Services

IoT Connectivity Market , By Application:

Building & Home Automation
Smart Energy & Utility
Smart Manufacturing
Connected Health
Smart Retail
Smart Transportation
Others

IoT Connectivity Market , By Organization Size:

Large Enterprises
SMEs

IoT Connectivity Market , By Region:

North America

United States
Canada
Mexico

Europe

France
United Kingdom
Italy
Germany
Spain

Asia Pacific

China
India
Japan
Australia
South Korea

South America

Brazil
Argentina
Colombia

Middle East & Africa

South Africa
Saudi Arabia
UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global IoT Connectivity Market .

Available Customizations:

Global IoT Connectivity 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).

Global IoT Connectivity Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]

Table of content

1. Product Overview

1.1. Market Definition

1.2. Scope of the Market

1.2.1. Markets Covered

1.2.2. Years Considered for Study

1.2.3. Key Market Segmentations

2. Research Methodology

2.1. Objective of the Study

2.2. Baseline Methodology

2.3. Key Industry Partners

2.4. Major Association and Secondary Sources

2.5. Forecasting Methodology

2.6. Data Triangulation & Validation

2.7. Assumptions and Limitations

3. Executive Summary

3.1. Overview of the Market

3.2. Overview of Key Market Segmentations

3.3. Overview of Key Market Players

3.4. Overview of Key Regions/Countries

3.5. Overview of Market Drivers, Challenges, Trends

4. Voice of Customer

5. Global IoT Connectivity Market Outlook

5.1. Market Size & Forecast

5.1.1. By Value

5.2. Market Share & Forecast

5.2.1. By Component (Platform, Services)

5.2.2. By Application (Building & Home Automation, Smart Energy & Utility, Smart Manufacturing, Connected Health, Smart Retail, Smart Transportation, Others)

5.2.3. By Organization Size (Large Enterprises, SMEs)

5.2.4. By Region

5.2.5. By Company (2025)

5.3. Market Map

6. North America IoT Connectivity Market Outlook

6.1. Market Size & Forecast

6.1.1. By Value

6.2. Market Share & Forecast

6.2.1. By Component

6.2.2. By Application

6.2.3. By Organization Size

6.2.4. By Country

6.3. North America: Country Analysis

6.3.1. United States IoT Connectivity Market Outlook

6.3.1.1. Market Size & Forecast

6.3.1.1.1. By Value

6.3.1.2. Market Share & Forecast

6.3.1.2.1. By Component

6.3.1.2.2. By Application

6.3.1.2.3. By Organization Size

6.3.2. Canada IoT Connectivity Market Outlook

6.3.2.1. Market Size & Forecast

6.3.2.1.1. By Value

6.3.2.2. Market Share & Forecast

6.3.2.2.1. By Component

6.3.2.2.2. By Application

6.3.2.2.3. By Organization Size

6.3.3. Mexico IoT Connectivity Market Outlook

6.3.3.1. Market Size & Forecast

6.3.3.1.1. By Value

6.3.3.2. Market Share & Forecast

6.3.3.2.1. By Component

6.3.3.2.2. By Application

6.3.3.2.3. By Organization Size

7. Europe IoT Connectivity Market Outlook

7.1. Market Size & Forecast

7.1.1. By Value

7.2. Market Share & Forecast

7.2.1. By Component

7.2.2. By Application

7.2.3. By Organization Size

7.2.4. By Country

7.3. Europe: Country Analysis

7.3.1. Germany IoT Connectivity Market Outlook

7.3.1.1. Market Size & Forecast

7.3.1.1.1. By Value

7.3.1.2. Market Share & Forecast

7.3.1.2.1. By Component

7.3.1.2.2. By Application

7.3.1.2.3. By Organization Size

7.3.2. France IoT Connectivity Market Outlook

7.3.2.1. Market Size & Forecast

7.3.2.1.1. By Value

7.3.2.2. Market Share & Forecast

7.3.2.2.1. By Component

7.3.2.2.2. By Application

7.3.2.2.3. By Organization Size

7.3.3. United Kingdom IoT Connectivity Market Outlook

7.3.3.1. Market Size & Forecast

7.3.3.1.1. By Value

7.3.3.2. Market Share & Forecast

7.3.3.2.1. By Component

7.3.3.2.2. By Application

7.3.3.2.3. By Organization Size

7.3.4. Italy IoT Connectivity Market Outlook

7.3.4.1. Market Size & Forecast

7.3.4.1.1. By Value

7.3.4.2. Market Share & Forecast

7.3.4.2.1. By Component

7.3.4.2.2. By Application

7.3.4.2.3. By Organization Size

7.3.5. Spain IoT Connectivity Market Outlook

7.3.5.1. Market Size & Forecast

7.3.5.1.1. By Value

7.3.5.2. Market Share & Forecast

7.3.5.2.1. By Component

7.3.5.2.2. By Application

7.3.5.2.3. By Organization Size

8. Asia Pacific IoT Connectivity Market Outlook

8.1. Market Size & Forecast

8.1.1. By Value

8.2. Market Share & Forecast

8.2.1. By Component

8.2.2. By Application

8.2.3. By Organization Size

8.2.4. By Country

8.3. Asia Pacific: Country Analysis

8.3.1. China IoT Connectivity Market Outlook

8.3.1.1. Market Size & Forecast

8.3.1.1.1. By Value

8.3.1.2. Market Share & Forecast

8.3.1.2.1. By Component

8.3.1.2.2. By Application

8.3.1.2.3. By Organization Size

8.3.2. India IoT Connectivity Market Outlook

8.3.2.1. Market Size & Forecast

8.3.2.1.1. By Value

8.3.2.2. Market Share & Forecast

8.3.2.2.1. By Component

8.3.2.2.2. By Application

8.3.2.2.3. By Organization Size

8.3.3. Japan IoT Connectivity Market Outlook

8.3.3.1. Market Size & Forecast

8.3.3.1.1. By Value

8.3.3.2. Market Share & Forecast

8.3.3.2.1. By Component

8.3.3.2.2. By Application

8.3.3.2.3. By Organization Size

8.3.4. South Korea IoT Connectivity Market Outlook

8.3.4.1. Market Size & Forecast

8.3.4.1.1. By Value

8.3.4.2. Market Share & Forecast

8.3.4.2.1. By Component

8.3.4.2.2. By Application

8.3.4.2.3. By Organization Size

8.3.5. Australia IoT Connectivity Market Outlook

8.3.5.1. Market Size & Forecast

8.3.5.1.1. By Value

8.3.5.2. Market Share & Forecast

8.3.5.2.1. By Component

8.3.5.2.2. By Application

8.3.5.2.3. By Organization Size

9. Middle East & Africa IoT Connectivity Market Outlook

9.1. Market Size & Forecast

9.1.1. By Value

9.2. Market Share & Forecast

9.2.1. By Component

9.2.2. By Application

9.2.3. By Organization Size

9.2.4. By Country

9.3. Middle East & Africa: Country Analysis

9.3.1. Saudi Arabia IoT Connectivity Market Outlook

9.3.1.1. Market Size & Forecast

9.3.1.1.1. By Value

9.3.1.2. Market Share & Forecast

9.3.1.2.1. By Component

9.3.1.2.2. By Application

9.3.1.2.3. By Organization Size

9.3.2. UAE IoT Connectivity Market Outlook

9.3.2.1. Market Size & Forecast

9.3.2.1.1. By Value

9.3.2.2. Market Share & Forecast

9.3.2.2.1. By Component

9.3.2.2.2. By Application

9.3.2.2.3. By Organization Size

9.3.3. South Africa IoT Connectivity Market Outlook

9.3.3.1. Market Size & Forecast

9.3.3.1.1. By Value

9.3.3.2. Market Share & Forecast

9.3.3.2.1. By Component

9.3.3.2.2. By Application

9.3.3.2.3. By Organization Size

10. South America IoT Connectivity Market Outlook

10.1. Market Size & Forecast

10.1.1. By Value

10.2. Market Share & Forecast

10.2.1. By Component

10.2.2. By Application

10.2.3. By Organization Size

10.2.4. By Country

10.3. South America: Country Analysis

10.3.1. Brazil IoT Connectivity Market Outlook

10.3.1.1. Market Size & Forecast

10.3.1.1.1. By Value

10.3.1.2. Market Share & Forecast

10.3.1.2.1. By Component

10.3.1.2.2. By Application

10.3.1.2.3. By Organization Size

10.3.2. Colombia IoT Connectivity Market Outlook

10.3.2.1. Market Size & Forecast

10.3.2.1.1. By Value

10.3.2.2. Market Share & Forecast

10.3.2.2.1. By Component

10.3.2.2.2. By Application

10.3.2.2.3. By Organization Size

10.3.3. Argentina IoT Connectivity Market Outlook

10.3.3.1. Market Size & Forecast

10.3.3.1.1. By Value

10.3.3.2. Market Share & Forecast

10.3.3.2.1. By Component

10.3.3.2.2. By Application

10.3.3.2.3. By Organization Size

11. Market Dynamics

11.1. Drivers

11.2. Challenges

12. Market Trends & Developments

12.1. Merger & Acquisition (If Any)

12.2. Product Launches (If Any)

12.3. Recent Developments

13. Global IoT Connectivity Market : SWOT Analysis

14. Porter's Five Forces Analysis

14.1. Competition in the Industry

14.2. Potential of New Entrants

14.3. Power of Suppliers

14.4. Power of Customers

14.5. Threat of Substitute Products

15. Competitive Landscape

15.1. AT&T Inc.

15.1.1. Business Overview

15.1.2. Products & Services

15.1.3. Recent Developments

15.1.4. Key Personnel

15.1.5. SWOT Analysis

15.2. Verizon Communications Inc.

15.3. Telefónica S.A.

15.4. China Mobile Limited

15.5. Orange S.A.

15.6. T-Mobile US Inc.

15.7. Cisco Systems Inc.

15.8. Qualcomm Incorporated

15.9. Vodafone Group Plc

15.10. Ericsson AB

16. Strategic Recommendations

17. About Us & Disclaimer

Report Description

Table of content

Figures and Tables

Frequently asked questions

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