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US IoT Telecom Services Market

ID: MRFR/ICT/17134-HCR
100 Pages
Garvit Vyas
October 2025

US IoT Telecom Services Market Research Report: By Component (Connectivity Technology, Network Management Solution, Services), By Service Type (Device And Application Management, Business Consulting Services, IOT Billing And Subscription, Installation And Integration Services, M2M Billing Services) and By Application (Smart Buildings, Automation, Capillary Network Management, Vehicle Telematics, Energy And Utilities, Smart Healthcare, Others) - Forecast to 2035

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US IoT Telecom Services Market Summary

As per Market Research Future analysis, the US IoT Telecom-Services Market Size was estimated at 10.5 USD Billion in 2024. The US The IoT Telecom-Services Market is projected to grow from 14.05 USD Billion in 2025 to 258.0 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 33.7%8% during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The US IoT telecom-services market is experiencing robust growth driven by technological advancements and increasing demand for connectivity.

  • The largest segment in the US IoT telecom-services market is the connected devices segment, which is witnessing substantial adoption across various industries.
  • The fastest-growing segment is the smart city initiatives, reflecting a significant shift towards urban digitalization and efficiency.
  • The market is characterized by an increased focus on cybersecurity solutions, as organizations prioritize the protection of connected systems.
  • Key drivers of this market include the rising demand for connected devices and advancements in network infrastructure, which are essential for supporting IoT growth.

Market Size & Forecast

2024 Market Size 10.5 (USD Billion)
2035 Market Size 258.0 (USD Billion)
CAGR (2025 - 2035) 33.78%

Major Players

AT&T (US), Verizon (US), Vodafone (GB), Deutsche Telekom (DE), Orange (FR), Telefónica (ES), China Mobile (CN), NTT Group (JP), T-Mobile (US)

US IoT Telecom Services Market Trends

The IoT Telecom-Services Market is currently experiencing a transformative phase., driven by advancements in connectivity and the proliferation of smart devices. As industries increasingly adopt IoT solutions, the demand for robust telecom services has surged. This shift is evident in various sectors, including healthcare, manufacturing, and transportation, where IoT applications enhance operational efficiency and data management. The integration of 5G technology is particularly noteworthy, as it facilitates faster data transmission and supports a higher density of connected devices. Consequently, telecom providers are adapting their infrastructure to meet these evolving needs, indicating a dynamic landscape. Moreover, regulatory frameworks are evolving to support the growth of the iot telecom-services market. Government initiatives aimed at fostering innovation and ensuring cybersecurity are becoming more prevalent. These measures not only encourage investment but also enhance consumer trust in IoT technologies. As the market matures, collaboration between telecom operators and technology providers is likely to intensify, leading to the development of tailored solutions that address specific industry challenges. This collaborative approach may further accelerate the adoption of IoT services across various sectors, positioning the market for sustained growth in the coming years.

Increased Adoption of 5G Technology

The rollout of 5G networks is significantly impacting the iot telecom-services market. Enhanced speed and reduced latency enable more devices to connect seamlessly, fostering innovation in various applications. Industries are leveraging this technology to improve operational efficiency and create new business models.

Focus on Cybersecurity Solutions

As IoT devices proliferate, concerns regarding data security are rising. The IoT Telecom-Services Market is witnessing a shift towards integrated cybersecurity solutions.. Telecom providers are prioritizing the development of secure networks to protect sensitive information and maintain consumer trust.

Expansion of Smart City Initiatives

The concept of smart cities is gaining traction, leading to increased demand for IoT services. Municipalities are investing in infrastructure that supports smart technologies, such as connected traffic systems and energy management solutions. This trend is likely to drive growth in the iot telecom-services market.

US IoT Telecom Services Market Drivers

Increased Focus on Data Analytics

The growing emphasis on data analytics is reshaping the iot telecom-services market. Companies are increasingly recognizing the value of data generated by connected devices, leading to a surge in demand for analytics solutions. This trend is particularly pronounced in sectors such as healthcare, manufacturing, and transportation, where actionable insights can drive efficiency and innovation. The market for IoT analytics is expected to grow at a CAGR of over 25% through 2025, indicating a robust appetite for services that can process and analyze vast amounts of data. Consequently, telecom providers are adapting their offerings to include data analytics capabilities, further propelling the growth of the iot telecom-services market.

Rising Demand for Connected Devices

The proliferation of connected devices is a primary driver for the iot telecom-services market. As consumers and businesses increasingly adopt smart devices, the need for robust connectivity solutions intensifies. In the US, it is estimated that the number of connected devices will reach over 30 billion by 2025, creating a substantial demand for telecom services that can support this ecosystem. This surge in device adoption necessitates enhanced network capabilities, leading telecom providers to innovate and expand their service offerings. The iot telecom-services market is thus positioned to benefit from this trend, as companies seek reliable and efficient connectivity solutions to manage their growing number of devices.

Advancements in Network Infrastructure

The ongoing advancements in network infrastructure significantly impact the iot telecom-services market. With the rollout of next-generation technologies, such as 5G, telecom providers are enhancing their capabilities to support a higher volume of data traffic. This is particularly relevant in urban areas, where the demand for high-speed connectivity is paramount. According to industry estimates, the 5G infrastructure investment in the US is projected to exceed $275 billion by 2025. Such investments not only improve service quality but also enable new applications and services, thereby driving growth in the iot telecom-services market as businesses and consumers seek to leverage these advancements.

Regulatory Support for IoT Innovations

Regulatory frameworks are increasingly supporting innovations in the iot telecom-services market. The US government has recognized the potential of IoT technologies to enhance economic growth and improve public services. Initiatives aimed at fostering innovation, such as funding for research and development, are being implemented. For instance, the Federal Communications Commission (FCC) has introduced policies to facilitate the deployment of IoT networks. This regulatory support is likely to encourage investment in the iot telecom-services market, as companies seek to align their services with government initiatives and capitalize on new opportunities created by favorable regulations.

Growing Importance of Sustainability Initiatives

Sustainability initiatives are becoming a crucial driver for the iot telecom-services market. As environmental concerns gain prominence, businesses are increasingly seeking IoT solutions that can help reduce their carbon footprint and enhance operational efficiency. The integration of IoT technologies in sectors such as agriculture, energy, and transportation is facilitating more sustainable practices. For example, smart grid technologies are optimizing energy consumption, while precision agriculture is minimizing resource waste. The market for sustainable IoT solutions is projected to grow significantly, indicating a shift towards environmentally conscious practices that will likely benefit the iot telecom-services market.

Market Segment Insights

By Service Type: Device and application management (Largest) vs. M2M billing services (Fastest-Growing)

In the US iot telecom-services market, device and application management holds a significant share, leading the segment values with a robust performance. This segment has been prominent due to the increasing demand for effective management of connected devices and applications, enabling seamless integration and operation. Following closely are M2M billing services, which are gaining traction as businesses continue to embrace machine-to-machine communications, thereby contributing to the overall market expansion. The remaining segments, such as business consulting services and IoT billing and subscription, also play vital roles, though they command smaller portions of the market. Growth trends in the US iot telecom-services market indicate a shift towards a more connected ecosystem, driving the demand for installation and integration services. The proliferation of IoT applications across various industries enhances the need for comprehensive service offerings. Factors like technological advancements, the rise of smart cities, and increasing automation are significant drivers, with businesses prioritizing reliable service types to facilitate operational efficiency and innovative developments in the IoT space.

Device and application management (Dominant) vs. M2M billing services (Emerging)

Device and application management stands out as the dominant service type within the US iot telecom-services market, primarily attributed to its critical role in managing vast networks of interconnected devices. This segment ensures that applications operate cohesively, fostering better data communication and operational efficiency. M2M billing services, on the other hand, are emerging rapidly, supporting businesses in handling billing complexities associated with machine-to-machine interactions. As organizations increasingly adopt IoT solutions, M2M billing services are evolving to meet the demands for accurate tracking and invoicing of machine communications, which is vital for driving revenue streams. Together, these segments exemplify the diverse needs within the market, showcasing the balance between established and emerging service types.

By Component Type: Connectivity Technology (Largest) vs. Network Management Solutions (Fastest-Growing)

In the US iot telecom-services market, Connectivity Technology holds the largest share among the component types, driving significant revenue due to its critical role in ensuring seamless connectivity for various IoT applications. Meanwhile, Network Management Solutions are rapidly gaining traction, particularly with the increasing complexity of IoT networks that require effective management and monitoring solutions to optimize performance and security. Growth trends indicate a robust demand for advanced Connectivity Technologies as enterprises invest in upgrading their infrastructure to support a growing number of IoT devices. Conversely, Network Management Solutions are experiencing a surge as organizations prioritize efficient network oversight, leading to enhanced efficiency and reduced downtime. Increased reliance on IoT applications across sectors such as healthcare, manufacturing, and smart cities drives both segments, creating a dynamic landscape for service providers and technology innovators.

Connectivity Technology: Dominant vs. Network Management Solutions: Emerging

Connectivity Technology is the dominant force in the US iot telecom-services market due to its foundational role in enabling IoT connectivity across diverse applications. This segment encompasses various technologies such as cellular, satellite, and LPWAN, which cater to the connectivity needs of businesses aiming to leverage IoT for operational efficiencies. On the other hand, Network Management Solutions, though emerging, are becoming increasingly essential. These solutions provide pivotal functionalities including performance monitoring, analytics, and security measures to efficiently manage complex IoT environments. As organizations scale their IoT deployments, the need for robust network management capabilities grows, highlighting the complementary relationship between these two segments and positioning them as integral to the future of IoT.

By Application: Smart Healthcare (Largest) vs. Smart Buildings (Fastest-Growing)

The US iot telecom-services market is characterized by diverse applications with Smart Healthcare holding the largest market share due to increasing demand for advanced healthcare solutions. In contrast, the Smart Buildings segment demonstrates rapid growth, driven by rising investments in building automation and energy efficiency. The segmentation illustrates varying levels of adoption, with sectors like Vehicle Telematics and Energy and Utilities also contributing to the market's expansion. Growth trends indicate a strong focus on automation and connectivity across various sectors. Factors such as regulatory initiatives, urbanization, and the growing emphasis on efficiency are propelling the demand for IoT applications. The integration of advanced technologies such as AI and machine learning further enhances capabilities, ensuring that sectors like Smart Healthcare and Smart Buildings attract substantial investment and innovation.

Smart Healthcare (Dominant) vs. Smart Buildings (Emerging)

Smart Healthcare has emerged as a dominant force in the US iot telecom-services market, primarily due to its ability to enhance patient care through real-time monitoring and data analytics. This segment leverages IoT devices to improve operational efficiency, safety, and patient engagement in healthcare settings. On the other hand, Smart Buildings are recognized as an emerging segment, attracting attention due to their potential for energy savings and operational efficiency. The integration of IoT in smart buildings enhances user comfort and reduces operational costs, making it a rapidly evolving area. Together, these segments illustrate the transformational potential of IoT across various applications.

Get more detailed insights about US IoT Telecom Services Market

Key Players and Competitive Insights

The IoT Telecom-Services Market is characterized by a dynamic competitive landscape., driven by rapid technological advancements and increasing demand for connectivity across various sectors. Major players such as AT&T (US), Verizon (US), and T-Mobile (US) are strategically positioning themselves through innovation and partnerships to enhance their service offerings. These companies focus on expanding their IoT ecosystems, leveraging 5G technology to provide robust solutions for smart cities, healthcare, and industrial applications. Their collective strategies not only foster competition but also drive the market towards more integrated and efficient IoT solutions.

Key business tactics employed by these companies include localizing manufacturing and optimizing supply chains to enhance operational efficiency. The market structure appears moderately fragmented, with several key players exerting influence over specific segments. This fragmentation allows for niche players to emerge, yet the dominance of established firms like Verizon (US) and AT&T (US) ensures that competitive pressures remain high, compelling all players to innovate continuously.

In October 2025, Verizon (US) announced a strategic partnership with a leading cloud provider to enhance its IoT platform capabilities. This collaboration aims to integrate advanced analytics and AI-driven insights into Verizon's IoT services, potentially improving customer experience and operational efficiency. Such a move underscores Verizon's commitment to maintaining a competitive edge through technological integration and service enhancement.

In September 2025, AT&T (US) launched a new suite of IoT solutions tailored for the agriculture sector, focusing on precision farming technologies. This initiative not only diversifies AT&T's service portfolio but also aligns with the growing trend of digital transformation in agriculture, suggesting a strategic pivot towards sustainability and efficiency in resource management. The implications of this launch could be profound, as it positions AT&T as a key player in a sector increasingly reliant on IoT technologies.

In August 2025, T-Mobile (US) expanded its IoT network coverage by integrating satellite connectivity, thereby enhancing its service offerings in remote areas. This strategic move is indicative of T-Mobile's focus on inclusivity and accessibility, potentially allowing it to capture a larger market share in underserved regions. The integration of satellite technology into their IoT services may also set a precedent for future innovations in connectivity solutions.

As of November 2025, current trends in the iot telecom-services market emphasize digitalization, sustainability, and the integration of AI technologies. Strategic alliances are increasingly shaping the competitive landscape, as companies recognize the value of collaboration in driving innovation. Looking ahead, competitive differentiation is likely to evolve from traditional price-based strategies to a focus on technological innovation, reliability in supply chains, and the ability to deliver tailored solutions that meet the specific needs of diverse industries.

Key Companies in the US IoT Telecom Services Market market include

Industry Developments

Recent developments in the US IoT Telecom Services Market have shown significant advancements in connectivity solutions, driven by major players such as Verizon Communications, AT and T, and TMobile US. In October 2023, Verizon announced enhancements in its 5G network, aiming to support increased IoT applications for industries like healthcare and manufacturing. In the same month, Dell Technologies and SAP unveiled a partnership focusing on edge computing solutions tailored for IoT deployments, enhancing data analysis capabilities.

Another notable event was Sprint Corporation, now part of TMobile US, launching new IoT platform services that facilitate streamlined connectivity for diverse business models in November 2022. Moreover, Oracle has been continuously expanding its IoT Cloud offerings, fostering better integration with cloud services in recent months. Growth in valuation for entities like Cisco Systems and Amazon Web Services indicates a rising demand for IoT solutions, which is expected to spur further investment and innovation in the sector.

Over the last couple of years, the US market has seen increased mergers and acquisitions, with IBM acquiring Red Hat in July 2019, enhancing its IoT capabilities significantly, reflecting a growing trend toward consolidation in the industry.

Future Outlook

US IoT Telecom Services Market Future Outlook

The IoT Telecom Services Market is projected to grow at a 33.78% CAGR from 2024 to 2035, driven by advancements in connectivity, data analytics, and automation.

New opportunities lie in:

  • Development of smart city infrastructure solutions
  • Expansion of IoT-enabled healthcare monitoring systems
  • Integration of AI-driven analytics for predictive maintenance

By 2035, the market is expected to achieve substantial growth and innovation.

Market Segmentation

US IoT Telecom Services Market Application Outlook

  • Smart buildings
  • Automation
  • Capillary network management
  • Vehicle telematics
  • Energy and utilities
  • Smart healthcare
  • Others

US IoT Telecom Services Market Service Type Outlook

  • Device and application management
  • Business consulting services
  • IoT billing and subscription
  • Installation and integration services
  • M2M billing services
  • Others

US IoT Telecom Services Market Component Type Outlook

  • Connectivity Technology
  • Network Management Solutions
  • Services

Report Scope

MARKET SIZE 2024 10.5(USD Billion)
MARKET SIZE 2025 14.05(USD Billion)
MARKET SIZE 2035 258.0(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR) 33.78% (2024 - 2035)
REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR 2024
Market Forecast Period 2025 - 2035
Historical Data 2019 - 2024
Market Forecast Units USD Billion
Key Companies Profiled AT&T (US), Verizon (US), Vodafone (GB), Deutsche Telekom (DE), Orange (FR), Telefónica (ES), China Mobile (CN), NTT Group (JP), T-Mobile (US)
Segments Covered Service Type, Component Type, Application
Key Market Opportunities Integration of advanced analytics and AI in IoT telecom-services enhances operational efficiency and customer experience.
Key Market Dynamics Rising demand for smart devices drives innovation and competition in the IoT telecom-services market.
Countries Covered US

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FAQs

What is the expected market size of the US IoT Telecom Services Market in 2024?

The expected market size of the US IoT Telecom Services Market in 2024 is valued at 10.7 USD Billion.

What will the market value of the US IoT Telecom Services Market reach by 2035?

By 2035, the US IoT Telecom Services Market is projected to reach a value of 273.4 USD Billion.

What is the expected CAGR for the US IoT Telecom Services Market from 2025 to 2035?

The expected CAGR for the US IoT Telecom Services Market from 2025 to 2035 is 34.26 percent.

Who are the key players in the US IoT Telecom Services Market?

Key players in the US IoT Telecom Services Market include SAP, Ericsson, Dell Technologies, Sprint Corporation, and Verizon Communications.

What is the market size of the Connectivity Technology segment in 2024?

The Connectivity Technology segment of the US IoT Telecom Services Market is valued at 4.5 USD Billion in 2024.

What is the projected market size for Network Management Solutions in 2035?

The projected market size for Network Management Solutions in the US IoT Telecom Services Market by 2035 is 75.0 USD Billion.

What market size is expected for Services by the year 2035?

By 2035, the Services segment of the US IoT Telecom Services Market is expected to be valued at 85.9 USD Billion.

What are the main growth drivers for the US IoT Telecom Services Market?

Main growth drivers for the US IoT Telecom Services Market include increased connectivity demand and advancements in IoT technology.

How do current global scenarios affect the US IoT Telecom Services Market?

Current global scenarios influence the US IoT Telecom Services Market by shaping connectivity needs and technological developments.

What is the expected growth rate for the Connectivity Technology segment from 2025 to 2035?

The Connectivity Technology segment is expected to exhibit significant growth, contributing to the overall CAGR of 34.26 percent during 2025 to 2035.

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