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

Forecast Period	2026-2030
Market Size (2024)	USD 2.89 Billion
Market Size (2030)	USD 4.35 Billion
CAGR (2025-2030)	6.98%
Fastest Growing Segment	Service
Largest Market	Tehran

Market Overview

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.

The Iran Internet of Things (IoT) market is poised for consistent growth, driven by increasing digital transformation efforts across key sectors such as automotive, industrial, energy, agriculture, and smart cities. With an expanding base of internet users, improving telecom infrastructure, and a national focus on automation and energy efficiency, IoT technologies are being rapidly integrated into both public and private initiatives. The automotive segment holds a significant share of the market, as car manufacturers and transportation services increasingly adopt connected systems, including vehicle tracking, remote diagnostics, and advanced driver assistance systems. Similarly, industrial IoT is gaining traction due to the country's push for modernization of manufacturing and energy operations, including the use of predictive maintenance, real-time monitoring, and machine-to-machine communication in factories and refineries.

Consumer IoT applications, such as smart home devices, wearables, and connected appliances, are also on the rise, fueled by a growing tech-savvy middle class. Smart city projects, especially in major urban centers like Tehran, Isfahan, and Shiraz, are further enhancing the market outlook. These initiatives include intelligent traffic systems, smart lighting, waste management, and smart metering for utilities—efforts that aim to reduce costs and environmental impact while improving service efficiency.

The energy and oil & gas sectors in particular benefit from IoT integration, with applications such as remote asset monitoring and automation of exploration and production processes. Agricultural IoT is another emerging field, especially in areas facing water scarcity. Smart irrigation, crop monitoring, and soil sensing technologies are being explored to optimize yields and conserve resources.

While opportunities are substantial, the market faces several challenges. These include concerns over data privacy and cybersecurity, limited foreign investment due to ongoing international sanctions, and dependency on domestic technological capabilities. However, ongoing advancements in 4G and 5G network coverage, fiber-optic infrastructure, and the participation of local technology providers are gradually addressing these barriers.

Iran’s IoT market is expected to witness sustained growth over the coming years. Continued support for smart infrastructure projects, increasing digital literacy, and strategic government initiatives will play a crucial role in shaping the country’s IoT ecosystem and driving long-term economic and technological development.

Key Market Drivers

Expansion of Telecom Infrastructure and 5G Rollout

The advancement of Iran’s telecom infrastructure is one of the strongest catalysts for IoT adoption. The national rollout of high-speed internet services is ongoing, with fiber-to-the-home (FTTH) infrastructure targeted to reach 20 million households by the end of 2025, up from approximately 10 million in early 2024. The population coverage of LTE/4G has now exceeded 90%, ensuring most urban and rural areas are IoT-ready. Additionally, the number of 5G base stations is set to rise from about 1,200 in 2024 to 4,000 by 2025, enhancing the network’s ability to support low-latency IoT applications such as autonomous systems and remote diagnostics.

Mobile broadband penetration has grown substantially, with over 43 million active mobile data subscribers, supporting mobile-based IoT integration in sectors like transportation, agriculture, and health. Fixed broadband access has also risen, with over 60% of Iranian households now connected to high-speed internet. Network speeds have improved as well, with average mobile download speeds reaching 35 Mbps, supporting real-time data transmission for connected devices.

The combination of expanded mobile and fiber broadband networks ensures the infrastructure necessary for large-scale IoT deployment. These developments enable seamless operation of smart homes, industrial sensors, vehicle tracking systems, and energy-efficient city infrastructure. As bandwidth and latency improve further, the range and complexity of IoT applications in Iran will continue to broaden.

Government Push for Smart Cities and Utility Automation

Iran’s government has placed a strong emphasis on digitizing public utilities and urban infrastructure. A flagship initiative includes the deployment of smart electricity meters under the FAHAM program, targeting 30 million consumers nationwide. These meters enable remote monitoring, dynamic pricing, and consumption optimization. In parallel, at least eight cities, including Tehran, Isfahan, Shiraz, Mashhad, and Tabriz, are actively piloting or implementing smart city programs. These initiatives include smart lighting, traffic control, and waste management systems integrated with IoT technology.

The expansion of public utility digitization is also supported by the national fiber optic backbone, which now exceeds 120,000 kilometers, ensuring wide-area connectivity. In rural areas, over 13 million households are now connected to the internet, enabling smart agriculture and energy applications outside major cities. Additionally, public transportation networks in cities like Tehran have adopted real-time tracking systems covering over 2,000 buses, reducing wait times and improving commuter experience.

Smart water and waste systems are being deployed in drought-prone provinces, with sensor-based irrigation aimed at reducing water usage by up to 40%. These IoT-backed urban and public utility services are enhancing efficiency, lowering costs, and providing real-time data for better decision-making. This proactive government approach is setting the foundation for large-scale IoT integration in urban planning and resource management.

Youthful, Tech-Savvy Population and Growing Digital Economy

Iran’s demographic profile is highly conducive to IoT growth. Over 60% of the population is under the age of 35, representing a digitally native generation with strong receptiveness to connected technologies. Smartphone penetration has risen sharply, reaching over 75% in 2024, with further increases projected as low-cost devices become more accessible. This youth segment also fuels the rise of connected consumer devices, from smartwatches to smart home assistants.

The digital economy is expanding rapidly, with e-commerce transactions surpassing USD 47 billion in 2023, reflecting a shift towards digital services. Around 5,000 startups are currently active in Iran, many of which are engaged in developing software, cloud platforms, and connected hardware that directly supports IoT ecosystems. The number of internet users crossed 85 million, driven by mobile data availability and declining internet costs.

Online education, telemedicine, and e-governance platforms are also increasingly prevalent, each relying on IoT components such as health monitoring wearables, connected classroom tools, and digital identity systems. Urban centers like Tehran and Mashhad are witnessing increased installations of smart door locks, thermostats, and surveillance systems, driven by increased digital comfort among households.

This digital-savvy population is not only a consumer base but also a driver of innovation. A new generation of entrepreneurs and engineers are building homegrown IoT solutions tailored to Iran’s regulatory and infrastructural context. The synergy between youth, innovation, and digital access is playing a vital role in propelling IoT adoption across the country.

Industrial Automation and Manufacturing Digitization

Iran’s efforts to modernize its industrial base are significantly accelerating IoT adoption in manufacturing and logistics. The industrial sector contributes nearly 20% to national GDP, and the government has prioritized automation to improve productivity and global competitiveness. Over 50 active industrial parks across Iran are adopting smart factory technologies, including automated inventory systems, machine monitoring sensors, and real-time quality control.

The steel sector alone has scaled production from 10 million tons to over 40 million tons per year, necessitating sensor networks for temperature control, predictive maintenance, and energy optimization. Similarly, the petrochemical industry’s capacity is set to double from 50 to 100 million tons per year, leveraging IoT for supply chain monitoring, emissions tracking, and safety management.

Industrial robots and IoT-integrated machinery are now being used in over 30% of large-scale facilities, while over 380 R&D projects related to automation and oil & gas have been completed in the past decade. Warehouse management systems equipped with RFID and IoT connectivity have improved shipping accuracy by 25% and reduced operational costs by 15%.

Smart logistics is also growing, with GPS-enabled fleet tracking used by more than 1,500 transport companies nationwide. These developments illustrate how Iran’s shift toward Industry 4.0 is closely tied to IoT infrastructure, making it a key growth lever for the country’s manufacturing future.

IoT Adoption in Oil & Gas and Smart Agriculture

As a major hydrocarbon producer, Iran’s oil and gas sector is leveraging IoT to enhance extraction, refining, and distribution. The country has over 2,500 active oil and gas wells, with many equipped with sensors that monitor pressure, temperature, and flow rates in real time. Natural gas output has reached approximately 900 million cubic meters per day, necessitating digital control systems to manage distribution and safety.

More than 100 petrochemical facilities have started integrating IoT platforms for operational optimization, leak detection, and predictive maintenance. These deployments have reduced unplanned downtime by 20% in select refineries and improved energy usage efficiency by 12–15%. Pipelines stretching thousands of kilometers across the country are monitored using IoT-enabled SCADA systems to ensure safety and detect anomalies.

In agriculture, IoT is transforming irrigation and crop management. Sensor-based systems are being used across thousands of hectares of farmland to monitor soil moisture, temperature, and humidity. Smart irrigation systems have helped reduce water usage by up to 35%, a critical achievement for a country facing recurring drought conditions. Livestock farms have begun using wearable tags to track animal health and behavior, with early adopters reporting a 10% improvement in productivity.

By integrating IoT into these essential sectors, Iran is boosting operational reliability, reducing waste, and improving environmental sustainability. These sectors serve as high-impact domains for large-scale IoT deployment, given their size and importance in Iran’s economy.

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Key Market Challenges

Limited Access to International Technology and Investment

One of the most significant challenges facing Iran’s IoT sector is restricted access to global technologies due to economic sanctions and geopolitical barriers. These restrictions limit partnerships with international IoT hardware manufacturers, software developers, and cloud service providers. As a result, Iranian companies often rely on outdated or domestically produced technology, which can be less advanced or incompatible with global standards.

The ban on many U.S.- and European-origin technologies affects imports of sensors, microcontrollers, and advanced chips, forcing local companies to find alternative suppliers or invest in less efficient domestic production. Additionally, the absence of global investment slows innovation, as startup funding, joint ventures, and knowledge exchange with leading IoT ecosystems remain limited. This restricts scalability and delays the commercialization of new solutions.

Moreover, Iran’s exclusion from international financial systems makes it difficult for local companies to purchase software licenses or access cloud infrastructure services from global vendors such as AWS, Google Cloud, or Azure. This dependency on local alternatives sometimes leads to performance or security limitations. Despite local resilience and innovation, the lack of exposure to global best practices and emerging trends hinders competitiveness in export markets.

Overcoming this challenge requires significant self-sufficiency, localization of core technologies, and stronger collaboration with friendly nations willing to provide technical support or infrastructure access. Without these, the growth of Iran’s IoT ecosystem will remain internally constrained and slower compared to more globally integrated economies.

Cybersecurity and Data Privacy Concerns

The expansion of IoT in Iran has raised serious concerns about cybersecurity and data protection. As millions of connected devices exchange real-time data, the risk of cyber threats—including unauthorized access, data breaches, and system disruptions—has grown substantially. Many local companies lack mature cybersecurity frameworks or access to advanced tools that can protect IoT networks from complex attacks.

With the proliferation of smart meters, wearable devices, connected home systems, and industrial sensors, the attack surface has expanded. However, only a small portion of Iranian enterprises have adopted end-to-end encryption, intrusion detection systems, or multi-layered authentication. This leaves many devices vulnerable to spoofing, denial-of-service attacks, and data theft.

In addition, regulatory frameworks related to data privacy are still evolving. There is no comprehensive national data protection law equivalent to the GDPR, leaving users uncertain about how their personal data is stored, used, or shared. The lack of legal clarity discourages large-scale adoption of consumer IoT and limits trust among enterprise users.

Furthermore, many devices in use are imported from countries with inconsistent security standards or backdoors, compounding the risk. In the industrial and energy sectors, where IoT is critical to operational control, even a short disruption could lead to safety incidents, downtime, or environmental hazards.

To address these challenges, Iran must strengthen its cybersecurity infrastructure, promote secure coding practices, encourage compliance with international standards, and educate users about safe device usage. Without enhanced protections, the full potential of the IoT ecosystem could be compromised by digital vulnerabilities.

Fragmented Standards and Lack of Interoperability

Iran’s IoT ecosystem suffers from fragmented technical standards and weak device interoperability, which significantly hampers system integration and scalability. As various companies develop proprietary platforms, sensors, and communication protocols, many devices struggle to communicate efficiently, especially when built by different vendors.

This issue is particularly evident in smart city deployments, where utility meters, lighting systems, waste sensors, and public transport solutions are often developed independently without standard communication layers. The lack of common standards leads to isolated data silos, duplicate infrastructure costs, and limited cross-platform integration. Municipalities face challenges in managing and analyzing data from disparate sources, resulting in inefficiencies.

In the industrial sector, legacy machines and new IoT-enabled systems often operate in parallel but cannot seamlessly share data. This hinders predictive maintenance, centralized control, and real-time analytics. While international protocols like MQTT, LoRaWAN, and Zigbee are used in some cases, inconsistent implementation across vendors and sectors undermines their effectiveness.

The challenge is further exacerbated by limited regulation or oversight on device compliance. There is no national authority mandating standardization for consumer or industrial IoT devices, leaving companies to choose whichever solutions are cost-effective—even if they are not interoperable in the long run.

To overcome this, Iran’s IoT stakeholders need to adopt unified national standards for device connectivity, data formats, and APIs. Building a collaborative ecosystem, where public and private entities align on best practices, will be key to ensuring long-term interoperability, reduced redundancy, and improved user experience.

High Cost of Deployment and Maintenance

The initial cost of setting up an IoT ecosystem in Iran remains prohibitively high for many small and mid-sized enterprises. Devices such as sensors, actuators, gateways, and edge computing units are often imported, incurring additional logistics, customs, and currency exchange costs. For domestic producers, high costs of raw materials, inflation, and limited economies of scale make hardware production expensive.

Installation of smart systems—whether in buildings, factories, or farms—requires trained technicians, software integration, and ongoing maintenance. Many organizations lack the budget to allocate for these capital-intensive projects. Even public sector initiatives, such as smart traffic management or environmental monitoring, have faced delays due to funding limitations.

Furthermore, IoT systems require regular updates, cybersecurity management, and potential hardware replacements, adding to total cost of ownership. Without proper planning, long-term maintenance can become costlier than initial deployment. For instance, smart agriculture projects require continuous calibration and servicing of sensors, which increases operational expenses in rural areas.

Another factor is the limited availability of local manufacturing for advanced chips and communication modules. Domestic supply chains for high-performance IoT components are still in the early stages, forcing reliance on expensive imports. Also, integrating IoT into legacy infrastructure—particularly in utilities and industrial plants—requires significant customization, further inflating costs.

To reduce financial barriers, incentives such as tax exemptions, R&D grants, and public-private partnerships could help offset the expenses. Otherwise, high deployment and maintenance costs will continue to limit mass adoption, especially outside major urban areas.

Skill Gaps and Talent Shortage

A critical challenge facing the Iranian IoT market is the shortage of skilled professionals required to design, deploy, and maintain complex IoT systems. While Iran has a strong engineering education base, the specific skills needed for end-to-end IoT development—such as embedded systems design, edge computing, cloud integration, and AI-based analytics—are not yet widespread.

Many startups and medium-sized enterprises struggle to find engineers proficient in multi-protocol device communication, firmware development, or real-time data security. This lack of expertise delays project implementation, increases reliance on foreign consultants, or leads to poorly integrated systems. Even in universities, IoT-focused curriculums and hands-on training are still limited to a few institutions.

The issue is even more pronounced in rural and industrial regions, where smart farming or factory automation projects require local technical support. However, many rural areas lack trained personnel who can calibrate devices, manage software platforms, or interpret IoT data effectively. This slows down post-deployment success and reduces system reliability.

The brain drain of tech talent to other countries exacerbates the issue, as many top engineers seek opportunities abroad due to better pay and fewer restrictions. Additionally, language barriers and limited exposure to global development tools make it harder for Iranian developers to stay updated with global IoT trends.

Addressing this challenge will require educational reforms, the introduction of specialized certification programs, and investment in IoT-specific R&D hubs. Without a skilled and scalable workforce, the full benefits of IoT—particularly in rural, industrial, and healthcare applications—will remain out of reach.

Key Market Trends

Surge in Connected Vehicles and Fleet Management Solutions

IoT is rapidly transforming Iran’s transportation and logistics sectors, particularly through the rise of connected vehicles and fleet management systems. With over 22 million registered vehicles and an expanding e-commerce market, logistics optimization has become a priority. IoT-enabled vehicle tracking, telematics, and driver monitoring are becoming standard tools for logistics companies, courier services, and public transport operators.

Fleet operators are deploying GPS and IoT sensors in trucks and delivery vans to monitor vehicle location, speed, fuel efficiency, and route deviations in real time. These systems reduce unauthorized use, improve route planning, and cut down fuel consumption by up to 20%. Many transport firms now use geofencing to receive alerts when vehicles enter or leave designated zones.

The public transportation sector is also embracing IoT, with cities like Tehran and Shiraz integrating real-time tracking and digital ticketing systems in over 2,000 buses and taxis. These smart solutions enhance commuter experience and operational transparency.

In the private car segment, the demand for connected car devices such as dashcams, tire pressure monitoring systems, and onboard diagnostics (OBD-II) scanners is rising among tech-savvy urban users. Car insurance providers are beginning to offer usage-based insurance (UBI) linked to vehicle telematics data, aligning premiums with driving behavior.

This trend is also influencing the aftermarket auto industry, where repair shops are starting to adopt IoT-based diagnostics and predictive maintenance tools. As vehicle digitization progresses, data from millions of mobile units is enabling a new layer of urban mobility intelligence—driving growth in fleet efficiency, safety, and road planning in Iran’s urban centers.

Accelerated Deployment of Smart Meters and Grid Digitalization

Smart metering and utility digitalization have emerged as one of the most prominent trends in Iran’s IoT landscape. As the country faces growing electricity demand, technical losses, and environmental pressure, smart meters for electricity, gas, and water are being rolled out under large-scale public programs.

The FAHAM project, Iran’s national smart metering initiative, aims to equip around 30 million users with advanced meters that allow real-time consumption tracking, remote disconnect/reconnect, and time-of-use billing. As of mid-2025, millions of electric smart meters have already been deployed, primarily in industrial and high-usage residential zones.

Beyond electricity, IoT-based water meters are being installed in drought-affected areas such as Yazd and Semnan, helping utilities detect leaks, reduce non-revenue water, and offer tiered pricing. Gas companies are also digitizing pipeline infrastructure using smart flow meters and pressure sensors, reducing service disruptions and improving safety response times.

These smart grid efforts are complemented by the integration of IoT-based transformer monitoring, energy theft detection, and automated outage management systems. In cities like Isfahan, real-time load balancing using sensor networks is helping reduce blackouts during peak usage seasons.

From a consumer perspective, mobile apps linked to smart meters allow users to monitor daily usage, receive alerts, and better control energy costs. This shift empowers both utilities and customers to manage resources more efficiently.

As Iran transitions toward a more sustainable energy model, smart meter deployment and utility IoT systems are set to become foundational to the country’s energy efficiency and carbon reduction strategies.

Growth of Smart Home Adoption Among Urban Households

Urban Iranian consumers are increasingly embracing smart home devices as affordability improves and digital familiarity grows. Cities like Tehran, Mashhad, and Karaj are witnessing the rise of tech-enabled homes with connected lighting, appliances, and security systems. This trend is driven by both convenience and safety concerns, particularly in high-rise residential developments.

Smart home hubs, voice-activated assistants (often Persian-language supported), and mobile-controlled lighting systems are gaining popularity among middle- and upper-income families. Smart plugs, thermostats, and air purifiers allow energy savings and enhanced climate control in homes, especially during hot summers and harsh winters.

Video doorbells, smart locks, and home surveillance cameras are also on the rise, especially in gated communities and newly built residential towers. These systems offer real-time alerts, motion detection, and remote access, adding layers of security for families and property managers. Increasingly, builders are incorporating smart home readiness as a value-added feature in residential real estate projects.

The availability of domestically produced smart home kits has further expanded accessibility, while localized user interfaces and mobile apps have made adoption easier for older generations as well. Approximately 10–15% of new urban homes are now equipped with at least one smart device, a figure that continues to rise steadily.

This trend is further fueled by growing smartphone penetration, falling sensor costs, and consumer awareness through social media and e-commerce. As urbanization continues and remote work lifestyles persist, smart home integration is evolving from a luxury to a standard utility among Iran’s digital-first urban households.

Increasing Integration of IoT with Artificial Intelligence

A major evolving trend in the Iranian IoT market is the increasing convergence of IoT with Artificial Intelligence (AI). As the number of connected devices grows, the need for intelligent decision-making and automation based on real-time data has become critical across sectors. This trend is evident in areas such as predictive maintenance, smart surveillance, precision agriculture, and demand forecasting.

In industrial zones, AI algorithms are being layered on top of IoT sensor networks to identify patterns in machine vibrations, energy usage, and temperature changes. This allows predictive maintenance systems to detect failures before they occur, reducing equipment downtime and optimizing production cycles. Over 30% of large manufacturing facilities in Iran are exploring such AI-powered systems.

In retail and logistics, AI-IoT integration is used for dynamic inventory management and real-time customer analytics. Sensors track foot traffic and shelf activity, while AI models analyze consumer behavior, improving layout planning and restocking efficiency. This has led to a reported 10–15% boost in retail productivity in pilot stores.

Security and surveillance systems are becoming smarter with AI-based facial recognition, vehicle tracking, and anomaly detection. In public infrastructure, such systems support crime prevention and emergency response in densely populated cities.

In agriculture, AI is helping analyze data from soil and weather sensors to recommend seeding schedules, pesticide application, and water usage. These decisions are made in real time and executed through automated systems.

The rise of local AI startups, supported by government innovation grants and tech universities, is accelerating this fusion. As data volumes surge, AI is emerging as the key to unlocking the full potential of IoT by converting raw data into actionable, autonomous operations.

Segmental Insights

Component Insights

Hardware segment dominated in the Iran IoT market in 2024 due to its foundational role in the deployment of connected ecosystems across industrial, utility, and consumer applications. Iran’s IoT development is in a growth phase where large-scale infrastructure projects and initial technology deployments are still heavily reliant on physical components such as sensors, RFID tags, embedded chips, gateways, and edge devices. These are critical for enabling basic IoT functionality—data collection, device connectivity, and real-time monitoring.

A significant portion of IoT spending in Iran has been directed toward smart metering projects, such as the national FAHAM initiative, which requires millions of smart electricity, water, and gas meters, all of which are hardware-intensive. Similarly, the rise of smart agriculture—including soil moisture sensors, environmental probes, and precision irrigation systems—has led to a surge in hardware procurement, especially in provinces affected by drought and water stress.

The industrial IoT (IIoT) segment is also driving demand for hardware through predictive maintenance and asset tracking solutions in manufacturing, mining, and energy sectors. These applications require a wide range of devices such as vibration sensors, temperature monitors, and connected PLCs (Programmable Logic Controllers). Moreover, the logistics and transport sectors are adopting telematics systems, GPS trackers, and on-board diagnostic (OBD) units in commercial fleets.

Even in smart home and consumer segments, the growing popularity of connected appliances, surveillance cameras, and smart lighting systems continues to expand hardware demand among urban users.

Given Iran’s limitations in software access due to sanctions and restricted cloud services, much of the local focus has remained on deploying tangible, locally assembled or imported hardware. Until domestic software ecosystems mature and connectivity infrastructure becomes more robust, the hardware segment will continue to capture the largest share of Iran’s IoT market.

Type Insights

B2B segment dominated the Iran IoT market in 2024 due to strong demand from sectors like manufacturing, agriculture, utilities, and logistics. Enterprises are deploying IoT solutions for predictive maintenance, smart metering, supply chain tracking, and process automation to improve efficiency and reduce operational costs. Large-scale government-backed projects, such as smart grid rollouts and industrial automation, are further accelerating B2B adoption. Unlike the consumer segment, B2B deployments are high in volume and scale, requiring customized IoT infrastructure and long-term service integration, making it the primary revenue driver in Iran’s evolving IoT ecosystem.

 

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Region Insights

Largest Region

Tehran dominated the Iran IoT market in 2024 due to its status as the country’s political, economic, and technological hub. As the capital and most populous city, Tehran hosts the majority of Iran’s government ministries, industrial headquarters, and high-tech firms, making it the natural focal point for early adoption and deployment of IoT technologies across sectors.

The city has seen the most significant rollout of smart infrastructure projects, including intelligent traffic systems, smart parking, air quality monitoring, and public safety surveillance. Tehran Municipality has been actively integrating IoT solutions to address urban challenges such as pollution, congestion, and waste management, giving rise to a robust market for sensors, connectivity solutions, and real-time analytics platforms.

Tehran also benefits from the highest concentration of universities and research institutions, fostering innovation in IoT hardware and AI-based applications. Local startups and tech companies operating in Tehran are leading the development of smart agriculture devices, connected industrial solutions, and home automation systems. Access to technical talent and research collaborations significantly boosts product development and pilot testing.

Furthermore, Tehran's advanced ICT infrastructure — including widespread internet access, 4G/5G availability in urban pockets, and higher smartphone penetration — enables seamless deployment of IoT services. The presence of Iran’s largest telecom operators and cloud service providers supports enterprise-scale IoT projects in healthcare, utilities, and manufacturing.

In the B2B space, many large enterprises and government agencies headquartered in Tehran are early adopters of IoT for energy monitoring, industrial automation, and logistics tracking. Additionally, consumer interest in smart home devices and wearable tech is strongest in the city due to higher income levels and digital awareness.

Emerging Region

Mashhad was the emerging region in the Iran IoT market in the coming period due to its growing urbanization, industrial expansion, and rising smart city initiatives. As Iran’s second-largest city and a major pilgrimage destination, Mashhad faces increasing demands for efficient traffic management, public safety, and infrastructure optimization—driving the adoption of IoT-based solutions. Local authorities are investing in smart transportation, environmental monitoring, and energy management systems. Additionally, Mashhad’s expanding industrial parks and logistics centers are deploying IoT for process automation and fleet tracking. With improving digital infrastructure and rising tech awareness, Mashhad is poised to become a significant IoT growth hub in Iran.

Recent Developments

• In December 2024, Iranian-affiliated threat actors launched IOCONTROL, a sophisticated malware targeting IoT and OT/SCADA systems across critical infrastructure in the U.S. and Israel. Analysts consider IOCONTROL a nation-state cyberweapon capable of widespread disruption. The malware affects devices including routers, PLCs, HMIs, IP cameras, and fuel systems from manufacturers like D-Link, Hikvision, and Gasboy, reflecting Iran’s growing cyber capabilities in targeting networked operational environments.
• In June 2025, Iran’s cyber command issued directives restricting senior officials from using IT devices connected to telecom networks, reflecting concerns about cyber threats from Israel amid heightened regional conflict. The measure, reported by the IRGC-affiliated Fars News Agency, underscores Iran’s fears of digital disruption as military tensions escalate following Israel’s Operation Rising Lion, which targeted Tehran’s nuclear facilities.
• Amid rising cyber threats, Iran’s cybersecurity authority has prohibited government officials and their security teams from using devices connected to public internet or telecommunications networks. This preventive measure aims to reduce vulnerability to Israeli cyber intrusions. The ban, reported by the Fars News Agency in June 2025, reflects the government’s shift toward offline operational protocols during an increasingly hostile cyber environment.
• In May 2025, Iranian ICT Minister Hashemi met with Chinese officials in Beijing to advance bilateral cooperation in AI, industrial intelligence, communications infrastructure, and talent development. Held under the framework of the 25-year Iran-China strategic partnership, both sides reaffirmed their commitment to deepening technological collaboration. Chinese leadership recognized Iran’s potential in ICT and AI sectors, positioning the country as a key regional partner in technology diplomacy and infrastructure modernization.

Key Market Players

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

By Component	By Type	By Application	By Region
Hardware Service Software	B2B B2C B2G	Smart Manufacturing Consumer Electronics Building & Home Automation Smart Mobility & Transportation Connected Logistics Others	Tehran Mashhad Esfahan Tabriz Kermanshah

Report Scope:

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

• Iran IoT Market, By Component:

o   Hardware

o   Service

o   Software

• Iran IoT Market, By Type:

o   B2B

o   B2C

o   B2G

• Iran IoT Market, By Application:

o   Smart Manufacturing

o   Consumer Electronics

o   Building & Home Automation

o   Smart Mobility & Transportation

o   Connected Logistics

o   Others

• Iran IoT Market, By Region:

o   Tehran

o   Mashhad

o   Esfahan

o   Tabriz

o   Kermanshah

Competitive Landscape

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

Available Customizations:

Iran IoT 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).

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