IoT Telecom Services Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented, By Component (Connectivity Technology, Network Management Solution), By Service Type (Device & Application Management, Business Consulting Services, Installation & Integration Services, M2M Billing Services), By Application (Smart Buildings, Automation, Capillary Network Management, Smart Healthcare, and Others), By Region, By Competition, 2021-2031F

Market Overview

The Global IoT Telecom Services Market will grow from USD 21.97 Billion in 2025 to USD 52.73 Billion by 2031 at a 15.71% CAGR. Global IoT Telecom Services encompass the specialized connectivity and network management solutions provided by telecommunication operators to enable machine to machine communication across diverse industrial and consumer environments. These services facilitate the seamless transmission of data between distributed devices and centralized platforms using cellular technologies such as 5G and various low power wide area networks. The primary drivers fueling this market include the accelerating demand for operational efficiency through industrial automation and the expanding deployment of high speed networks that support critical low latency applications. According to GSMA Intelligence, in 2024, global IoT connections were projected to reach 38.7 billion by 2030 with the enterprise sector accounting for the majority of this expansion.

Despite this robust growth trajectory, the market faces a significant impediment regarding the cybersecurity and data privacy of massive device ecosystems. As the volume of connected endpoints expands exponentially, the potential attack surface for cyber threats increases and creates complex vulnerabilities that telecom providers must address to maintain network integrity. The difficulty of ensuring standardized security protocols across heterogeneous devices and legacy infrastructure remains a critical hurdle that could impede broader service adoption in sensitive sectors such as healthcare and critical utilities.

Key Market Drivers

The widespread deployment of 5G infrastructure serves as a foundational catalyst for the Global IoT Telecom Services Market, providing the necessary bandwidth, low latency, and reliability required for next-generation applications. As telecommunication operators transition to standalone architectures, they are unlocking network slicing capabilities that allow for the precise management of diverse IoT ecosystems, from massive sensor grids to mission-critical control systems. This infrastructure build-out is global and aggressive; according to the Global mobile Suppliers Association, November 2024, in the '5G Market Snapshot', 151 operators in 63 countries were investing in 5G standalone access networks. This technical evolution enables providers to offer specialized service tiers, moving the market value proposition beyond simple data transport to managed, high-performance connectivity.

Simultaneously, the accelerated adoption of Industrial IoT (IIoT) solutions is driving substantial revenue growth for telecom service providers as enterprises digitize their operations. Manufacturing and utility sectors are increasingly relying on cellular connectivity to facilitate predictive maintenance, real-time asset tracking, and autonomous robotics within smart factories, creating a surge in demand for private networks and edge solutions. According to Rockwell Automation, April 2024, in the '9th Annual State of Smart Manufacturing Report', 95% of manufacturers are now using or evaluating smart manufacturing technology, significantly up from the previous year. This industrial momentum is reflective of a broader trend in service uptake; according to Viasat, in 2024, 68% of businesses reported an increase in their IoT progress over the last 12 months, signaling a deepening reliance on telecom services for operational transformation.

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Key Market Challenges

The primary challenge impeding the Global IoT Telecom Services Market is the escalating threat to cybersecurity and data privacy within massive device ecosystems. As telecommunication operators expand connectivity to support billions of endpoints, the attack surface available to malicious actors grows exponentially. This vulnerability is exacerbated by the heterogeneity of the IoT landscape, where legacy infrastructure and low-power devices often lack the processing capability to support standardized, robust encryption protocols. Consequently, enterprises in highly regulated sectors, such as healthcare and critical utilities, are hesitant to fully integrate these connectivity services, fearing that a single compromised node could lead to systemic operational paralysis or severe data breaches.

This apprehension regarding network integrity is substantiated by recent alarming trends in cyber hostility. According to the Wireless Communications Alliance (WCA), in 2024, the frequency of security attacks on IoT devices surged by 107% during the first five months of the year compared to the same period in 2023. Such a dramatic increase in hostile activity forces telecom providers to divert significant capital and technical resources toward defensive mitigation rather than service innovation. Ultimately, this security deficit erodes the fundamental trust required for large-scale deployment, directly throttling the adoption rates necessary to meet the market’s aggressive growth projections.

Key Market Trends

The integration of satellite and terrestrial IoT connectivity is establishing hybrid networks that guarantee ubiquitous coverage beyond the limitations of traditional cellular infrastructure. This convergence addresses critical connectivity gaps in remote logistics and maritime operations where ground-based towers are economically unviable. By utilizing standardized non-terrestrial networks, telecom providers enable seamless roaming between satellite and cellular bands to ensure uninterrupted data transmission for assets traversing dead zones. This strategic expansion into space-based services is accelerating rapidly among major operators seeking to capture revenue from previously unreachable geographies. According to GSMA Intelligence, December 2024, in the 'Satellite and NTN tracker, Q4 2024', the number of operators investing in the satellite space reached almost 100 following the entry of eight new players in the final quarter.

Simultaneously, the widespread adoption of eSIM and iSIM technologies is revolutionizing device management by removing the logistical constraints of physical SIM cards. This innovation allows enterprises to remotely provision network profiles over the air, eliminating the need for manual hardware replacements during carrier changes. Such flexibility is vital for global fleets, enabling devices to instantly adopt local profiles to reduce costs and avoid permanent roaming restrictions. This transition toward embedded solutions is driving significant momentum in hardware deployment across the sector. According to the Trusted Connectivity Alliance, March 2025, in the 'Members Report', eSIM shipment volumes reached 503 million units in 2024, representing a 35% increase compared to the previous year.

Segmental Insights

The Network Management Solution segment is currently recognized as the fastest-growing category within the Global IoT Telecom Services Market. This expansion is primarily driven by the increasing complexity of connecting vast numbers of devices across diverse geographic regions and network standards. Enterprises require centralized platforms to efficiently monitor connectivity status, detect technical faults, and ensure data security without manual intervention. Furthermore, the need to adhere to interoperability guidelines established by institutions such as the International Telecommunication Union necessitates automated management tools to maintain service reliability and regulatory compliance across international operations.

Regional Insights

North America commands the leading position in the Global IoT Telecom Services Market, driven by the region's early and extensive deployment of advanced network infrastructure, including 5G and Low-Power Wide-Area Networks. This dominance is underpinned by the widespread adoption of connected solutions across critical sectors such as industrial manufacturing, healthcare, and fleet management. The market is further strengthened by a mature ecosystem of major telecommunications providers that drive continuous innovation in connectivity and data management. Additionally, strategic government initiatives supporting smart city projects and digital transformation in the United States and Canada ensure sustained demand for reliable telecom services.

Recent Developments

• In March 2025, a United States-based telecommunications conglomerate launched a commercial global orchestration service for Internet of Things (IoT) connectivity. This new offering allowed business customers to manage and activate devices in international regions using eSIM profiles from partner carriers in the Asia-Pacific region, Canada, and Europe. The service was integrated into the operator’s central IoT management platform, enabling enterprises to operate their devices globally as if they were local network subscribers. This launch aimed to eliminate roaming permanency constraints and provide a unified interface for controlling global IoT deployments, streamlining operations for multinational corporations.
• In August 2024, a German telecommunications provider expanded its global Internet of Things (IoT) footprint by joining a major alliance of mobile operators across Asia Pacific, the Middle East, Africa, and Europe. This strategic move enabled the company to offer seamless cross-border connectivity and standardized services to multinational enterprise clients under a single contract. By leveraging the alliance’s combined network infrastructure, the operator aimed to simplify the deployment and management of IoT solutions, such as connected vehicles, in diverse international markets. The partnership facilitated local customer support and eliminated the need for separate agreements with multiple regional providers.
• In February 2024, a Finnish telecommunications company announced the integration of five new third-party applications into its industrial edge platform to bolster Internet of Things (IoT) capabilities. These applications focused on asset tracking, indoor navigation, and worker safety, utilizing the platform’s low latency and resilient connectivity. By partnering with external software providers, the company aimed to offer solutions such as real-time radio frequency identification tracking and visual positioning systems. This development allowed industrial customers to deploy digital services directly at the network edge, thereby improving asset utilization and streamlining complex operational environments through advanced data processing.
• In January 2024, a United Kingdom-based telecommunications group entered into a ten-year strategic partnership with a global technology firm to enhance its managed Internet of Things (IoT) connectivity business. The agreement outlined plans for the technology partner to invest in the telecom operator’s IoT platform, which was scheduled to become a standalone entity by April 2024. Additionally, the operator committed to investing $1.5 billion over the decade to develop cloud and artificial intelligence services. This collaboration was intended to scale the platform's reach to more devices and businesses while integrating generative AI to improve customer experiences and operational efficiency.

Key Market Players

• Qualcomm Incorporated
• Aeris Communications, Inc.
• Reliance Jio Infocomm Ltd.
• Bharti Airtel Limited
• MediaTek
• Huawei Technologies Co., Ltd.
• AT&T Inc.
• Deutsche Telekom AG
• Vodafone Group Plc

Report Scope:

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

• IoT Telecom Services Market, By Component:

• Connectivity Technology
• Network Management Solution

• IoT Telecom Services Market, By Service Type:

• Device & Application Management
• Business Consulting Services
• Installation & Integration Services
• M2M Billing Services

• IoT Telecom Services Market, By Application:

• Smart Buildings
• Automation
• Capillary Network Management
• Smart Healthcare
• Others

• IoT Telecom Services 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