In 2026, the Internet of Things is no longer about connecting devices; it is about embedding intelligence into the physical world, writes Dario Betti, CEO, Mobile Ecosystem Forum (MEF).
What began as telemetry streaming to distant Clouds has evolved into a distributed architecture where decisions happen at the Edge. Factories predict failures before they occur, traffic systems adapt in real time, and healthcare devices monitor patients with clinical precision.
This transformation is powered by Edge computing, AI, and next-generation connectivity, and it is reinforced by a regulatory environment that demands security as a design principle rather than an afterthought.
The cellular backbone of IoT
The cellular backbone of IoT tells a compelling story. The increased adoption of connected devices across both industry and government has seen the number of cellular M2M connections surge dramatically – boosted by falling hardware and connectivity costs, as well as the increased rollout of cellular technologies like Narrowband-IoT, LTE-M and 5G.
MEF Data, the data service for the Mobile Ecosystem Forum, shows that global cellular IoT connections have grown from 710 million in 2017 to 3.8 billion by 2024. These trends align broadly with industry trackers, which place cellular IoT connections in the range of 8 billion by 2031, but this is still a minority of the tens of billions of total IoT connections.
However, mobile and software forms are growing fast as quality of service, mobility and standardisation of solution are moving at speed. To the surprise of many, the world of telecom has gone mobile, and IoT will most likely follow suit. The MEF dataset adds granularity to this narrative, revealing how national markets diverge.
Where is IoT growing fastest?
The Asia Pacific region accounted for the overwhelming majority of deployments; approximately 3 billion cellular M2M connections. With China alone representing a scale that dwarfs other markets, and therefore shaping global standards and supply chains.
Meanwhile, Germany and the United States show steady expansion, without China’s exponential curve, reflecting different regulatory regimes and vertical priorities such as automotive, logistics, and smart energy. Europe claimed almost 362 million by the end of 2024, followed by the Americas with 316 million, and Middle East & Africa with almost 85 million.
However, the surge in cellular M2M connections is not just about volume; it also reflects a profound technology migration. In 2017, 4G dominated IoT connectivity, while 2G and 3G still held significant shares. By 2024, the picture had changed dramatically: 5G connections had become the largest segment, driven by hyperscale deployments in China, while 4G remained essential for reliability across diverse geographies. Legacy technologies persist in pockets – 2G for long-lived endpoints and cost-sensitive markets – underscoring the heterogeneity that global fleet managers must navigate.
What’s in store for 2026?
The implications for 2026 are clear. Enterprises will design for Multi-Radio Access Technology environments, balancing 4G’s ubiquity with 5G’s promise of deterministic latency and network slicing. The emergence of 5G RedCap and eRedCap will broaden device economics, enabling migration without the complexity of full broadband 5G. At the same time, Edge intelligence will become the operational norm, reducing dependence on centralized Clouds and unlocking real-time responsiveness in industrial and urban systems.
Regulation adds another layer of complexity. In the United States, the FCC’s Cyber Trust Mark and forthcoming federal procurement mandates will make security labelling a prerequisite for market access. Europe’s Cyber Resilience Act and global ETSI-based frameworks push manufacturers toward auditable lifecycles and vulnerability disclosure. Alongside these compliance pressures, GSMA’s eSIM standards (SGP.32) will gain traction, allowing enterprises to orchestrate connectivity across borders and carriers—a critical capability as IoT fleets scale into the tens of millions.
The cellular segment remains the anchor for mission-critical applications. MEF Data illustrates the reality beneath those forecasts: billions of SIMs already in service, a technology mix in flux, and regional disparities that will shape strategy for years to come.
IoT in 2026 is defined by intelligence, integration, and responsibility. Organisations that embrace Edge-Cloud synergy, leverage eSIM orchestration, and treat security as a design discipline will lead the next wave of digital transformation. The question is not whether IoT will transform industries—it already has—but how quickly businesses can adapt to its new rules of engagement.
Author biography:
Dario Betti is CEO of MEF (Mobile Ecosystem Forum) a global trade body established in 2000 and headquartered in the UK with members across the world. As the independent voice of the mobile ecosystem, MEF focuses on cross-industry best practices, anti-fraud and monetisation. The Forum provides its members with global and cross-sector platforms for networking, collaboration and advancing industry solutions.
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