US IoT Telecom Services Market Overview:
As per MRFR analysis, the US IoT Telecom Services Market Size was estimated at 7.96 (USD Billion) in 2023. The US IoT Telecom Services Market Industry is expected to grow from 10.7(USD Billion) in 2024 to 273.4 (USD Billion) by 2035. The US IoT Telecom Services Market CAGR (growth rate) is expected to be around 34.26% during the forecast period (2025 - 2035).
Key US IoT Telecom Services Market Trends Highlighted
The US IoT Telecom Services market is experiencing notable trends driven by increasing connectivity demands and advancements in technology. The growth in smart city initiatives across various states has become a significant market driver, as local governments invest in infrastructure to improve service delivery, public safety, and sustainability. Alongside this, the adoption of 5G technology is rapidly transforming IoT connectivity, allowing for faster data transmission rates and supporting a larger number of connected devices. This evolution presents opportunities for telecom providers to develop innovative IoT solutions tailored to various industries such as healthcare, manufacturing, and agriculture.
Additionally, the increased focus on security concerns related to data privacy has propelled the demand for secure IoT services in the US. Businesses are actively seeking telecom partners who can offer robust cybersecurity measures to safeguard their connected devices. As remote monitoring and control gain traction in sectors like healthcare and logistics, the demand for IoT telecom services is also expected to rise. These trends highlight the ongoing evolution of IoT applications and the potential for telecom companies to leverage partnerships to enhance service offerings.
As firms explore new business models, there is an opportunity to capture emerging markets within the IoT landscape, such as energy management and fleet tracking.The push for sustainability, driven by both consumer preferences and regulatory policies, further emphasizes the need for telecom solutions that facilitate efficient resource usage. Overall, the US IoT Telecom Services market is poised for growth as companies innovate to meet the changing needs of consumers and enterprises.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
US IoT Telecom Services Market Drivers
Rising Demand for Smart Devices
The increasing adoption of smart devices in the United States is significantly driving the US IoT Telecom Services Market Industry. According to the Consumer Technology Association, nearly 69% of American households own at least one smart device, with projections indicating that this number will increase by 20% over the next few years. This surge in connectivity among devices necessitates robust telecom services to support seamless communication and data exchange.Established companies like Cisco and AT&T are investing heavily in infrastructure upgrades to facilitate this growth, as they anticipate a greater demand for bandwidth and reliability in IoT connections, making it a crucial factor for market expansion.
Government Initiatives and Policy Support
Government initiatives aimed at advancing IoT technology further bolster the US IoT Telecom Services Market Industry. The Federal Communications Commission (FCC) has increased its commitment to promoting 5G technologies, with policies intended to expedite deployment and broaden accessibility. Recent statistics illustrate that 5G technology can provide data transmission speeds that are up to 100 times faster than 4G, significantly enhancing IoT applications in various sectors.Companies like Verizon are aligning with these efforts, launching programs that support small businesses in utilizing IoT solutions, thus enhancing the overall market landscape.
Growth of Smart Cities
The development of smart cities across the United States is a critical driving factor for the US IoT Telecom Services Market Industry. With cities like San Francisco investing over 50 million dollars in smart infrastructure, the demand for IoT telecom services surges as these cities implement technologies for traffic management, waste management, and energy efficiency. Reports from the U.S. Department of Transportation indicate that smart city initiatives can reduce traffic congestion by up to 30%, which directly correlates to the demand for seamless communication networks facilitated by telecom services.Major telecom players like T-Mobile are collaborating with municipalities to deliver tailored IoT solutions that support these urban transformations.
US IoT Telecom Services Market Segment Insights:
IoT Telecom Services Market Component Insights
The Component segment of the US IoT Telecom Services Market is pivotal in defining the landscape of connectivity and innovation. It encompasses various critical elements such as Connectivity Technology, Network Management Solutions, and Services, each playing a significant role in advancing IoT infrastructure across different sectors. The rise of Connectivity Technology reflects the growing demand for seamless and efficient communication protocols in industries as diverse as manufacturing, healthcare, and smart cities. As organizations increasingly utilize IoT devices, the importance of robust network management solutions becomes evident.These solutions help in monitoring and optimizing network performance, ensuring reliability and security, which are crucial for deploying scalable IoT applications.
Furthermore, the Services aspect of this segment includes both professional and managed services, providing essential support in areas such as integration, maintenance, and analytics. The combination of these components is driving the integration of IoT applications into everyday business operations, leading to enhanced efficiency and productivity. Moreover, the increasing trend toward digital transformation in the US not only propels the demand for these components but also encourages innovation, with numerous companies exploring the potential of 5G technology to enhance connectivity capabilities further.While the market growth presents a wealth of opportunities, it also poses challenges, such as the need for uniform standards and regulations to ensure interoperability among devices.
As stakeholders continue to navigate these complexities, the Component segment is set to play an increasingly significant role in shaping the future of the US IoT Telecom Services Market, ensuring the successful execution of IoT strategies across various industries. The impact of government initiatives and investments in infrastructure also cannot be overlooked, as they provide essential support for expanding IoT capabilities, creating an ecosystem conducive to growth and enhancing the overall efficiency of telecommunication services.With ongoing advancements and the growing reliance on IoT technology, the Component segment is expected to maintain its critical status in the ever-evolving telecommunication landscape.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
IoT Telecom Services Market Service Type Insights
The US IoT Telecom Services Market, particularly the Service Type segment, plays a crucial role in the overall growth and development of the industry. This sector encompasses a variety of essential services, including Device and Application Management, which is pivotal for ensuring seamless connectivity and performance of IoT devices. Business Consulting Services significantly contributes by guiding organizations in strategic planning and implementation of IoT solutions. Moreover, IoT Billing and Subscription services are central to managing the financial aspects of these services, providing flexibility and automation in billing processes.
Installation and Integration Services facilitate the deployment of IoT systems, ensuring that devices and infrastructure work cohesively together. Lastly, M2M Billing Services are vital as they cater to the unique needs of machine-to-machine communications, supporting a growing number of connected devices. Each of these components is increasingly important in responding to the challenges and opportunities presented by the evolving technological landscape, driving innovation and optimization within the US IoT Telecom Services Market. With a focus on enhancing efficiency and user experience, the industry is positioned for substantial growth fueled by these essential service offerings.
IoT Telecom Services Market Application Insights
The Application segment of the US IoT Telecom Services Market is seeing significant traction as various industries leverage IoT solutions for enhanced operational efficiency and connectivity. Smart Buildings, which focus on automation and control systems, are redefining how infrastructure operates, leading to optimized energy consumption and improved comfort levels. Automation in industrial settings plays a crucial role in enhancing productivity and minimizing downtime through data-driven insights. Capillary Network Management is also critical, as it supports the effective handling of distributed resources and enhances service delivery.
Vehicle Telematics is transforming transportation management by providing real-time data that optimize fleet operations and improve safety. The Energy and Utilities sector benefits from IoT applications that enable smart grid solutions, ensuring better energy management and sustainability practices. Smart Healthcare emerges as a vital area, enabling remote patient monitoring and enhancing care efficiency, which is increasingly essential in the evolving healthcare landscape. Other applications complement these initiatives, driving innovation across various fields.Collectively, these applications represent a dynamic arena within the US IoT Telecom Services Market, showcasing substantial market growth potential fueled by ongoing technological advancements and increasing demand across industries.
US IoT Telecom Services Market Key Players and Competitive Insights:
The competitive landscape of the US IoT Telecom Services Market is characterized by rapid innovation and an influx of new technologies that enhance connectivity and enable advanced data analytics. As organizations increasingly adopt Internet of Things solutions to improve operations and customer experiences, telecom service providers are positioning themselves to meet the rising demand. Market players are focusing on developing end-to-end IoT solutions that integrate with existing systems and infrastructure, while also ensuring scalability and security. The market is dynamic, with various players vying for a share, leading to collaborations, partnerships, and even mergers and acquisitions, all aimed at enhancing service offerings and expanding market reach.
In the context of the US IoT Telecom Services Market, SAP distinguishes itself through its comprehensive suite of IoT services and software that enable businesses to leverage their existing data and optimize operations through analytics and automation. The company's strong presence in areas such as supply chain management and enterprise resource planning provides it with a unique advantage, as it allows for seamless integration of IoT solutions with existing enterprise applications. SAP has established multiple strategic alliances, enhancing its reach and implementation capabilities across various sectors of the economy. The company's robust technological infrastructure bolsters its service reliability and overall customer satisfaction, while the focus on delivering highly customized IoT applications resonates well with the diverse needs of US businesses, reinforcing its competitive position in the marketplace.
Ericsson holds a significant place in the US IoT Telecom Services Market, driving innovation in connectivity solutions that empower industrial transformation and smart infrastructure development. The company offers a variety of key products and services, including its IoT Accelerator platform, which provides enterprises with an end-to-end solution to simplify the deployment and management of IoT devices. Ericsson’s strengths lie in its extensive network infrastructure and strong partnerships with various telecom operators, enabling high-quality connectivity across the US. The company has actively pursued mergers and acquisitions to enhance its service portfolio, expanding its capabilities in the IoT landscape. Through these strategic moves and a commitment to research and development, Ericsson is well-positioned to continue influencing the market with forward-thinking solutions that address the evolving needs of businesses and industries in the US.
Key Companies in the US IoT Telecom Services Market Include:
- SAP
- Ericsson
- Dell Technologies
- Sprint Corporation
- Hewlett Packard Enterprise
- Oracle
- Verizon Communications
- IBM
- Amazon Web Services
- Microsoft
- AT and T
- TMobile US
- Google Cloud
- Cisco Systems
- Siemens
US IoT Telecom Services Market 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.
US IoT Telecom Services Market Segmentation Insights
IoT Telecom Services Market Component Outlook
- Connectivity Technology
- Network Management Solution
- Services
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
IoT Telecom Services Market Application Outlook
- Smart Buildings
- Automation
- Capillary Network Management
- Vehicle Telematics
- Energy And Utilities
- Smart Healthcare
- Others
Report Scope:
| Report Attribute/Metric Source: |
Details |
| MARKET SIZE 2018 |
7.96(USD Billion) |
| MARKET SIZE 2024 |
10.7(USD Billion) |
| MARKET SIZE 2035 |
273.4(USD Billion) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) |
34.26% (2025 - 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 |
SAP, Ericsson, Dell Technologies, Sprint Corporation, Hewlett Packard Enterprise, Oracle, Verizon Communications, IBM, Amazon Web Services, Microsoft, AT and T, TMobile US, Google Cloud, Cisco Systems, Siemens |
| SEGMENTS COVERED |
Component, Service Type, Application |
| KEY MARKET OPPORTUNITIES |
Smart cities infrastructure development, Connected healthcare solutions expansion, Industrial IoT adoption acceleration, Enhanced security systems integration, Agricultural automation technologies growth |
| KEY MARKET DYNAMICS |
growing demand for connectivity, increasing adoption of smart devices, advancements in network technologies, regulatory compliance and data security, competitive pricing among service providers |
| COUNTRIES COVERED |
US |
Frequently Asked Questions (FAQ) :
The expected market size of the US IoT Telecom Services Market in 2024 is valued at 10.7 USD Billion.
By 2035, the US IoT Telecom Services Market is projected to reach a value of 273.4 USD Billion.
The expected CAGR for the US IoT Telecom Services Market from 2025 to 2035 is 34.26 percent.
Key players in the US IoT Telecom Services Market include SAP, Ericsson, Dell Technologies, Sprint Corporation, and Verizon Communications.
The Connectivity Technology segment of the US IoT Telecom Services Market is valued at 4.5 USD Billion in 2024.
The projected market size for Network Management Solutions in the US IoT Telecom Services Market by 2035 is 75.0 USD Billion.
By 2035, the Services segment of the US IoT Telecom Services Market is expected to be valued at 85.9 USD Billion.
Main growth drivers for the US IoT Telecom Services Market include increased connectivity demand and advancements in IoT technology.
Current global scenarios influence the US IoT Telecom Services Market by shaping connectivity needs and technological developments.
The Connectivity Technology segment is expected to exhibit significant growth, contributing to the overall CAGR of 34.26 percent during 2025 to 2035.
