Velos IoT Blog

Velos IoT Market Outlook 2026

Written by Velos IoT | 19-Dec-2025 10:04:36

 

What the Next Wave of Growth Means for MVNOs

By 2026, the Internet of Things will have moved beyond isolated connectivity use cases to become a foundational layer of enterprise digital infrastructure. IoT will underpin how organizations automate operations, manage assets and scale globally. For Mobile Virtual Network Operators, this shift creates both opportunity and urgency.

As IoT deployments grow in size and geographic scope, enterprises are reassessing how connectivity supports long-term performance, resilience and compliance. Traditional, single-operator models are increasingly giving way to multi-network strategies designed to reduce risk, improve uptime and simplify global operations. This evolution places MVNOs in a strong position—provided they move beyond basic roaming services.

IoT Growth Is Driving New Connectivity Expectations

Global IoT connections are expected to surpass 25 billion devices by 2026, driven by smart cities, energy and utilities, logistics, industrial automation and connected mobility. As deployments scale into the millions of devices, enterprises are prioritizing reliability, visibility and predictable cost structures over raw connectivity alone.

Connectivity is no longer viewed as a standalone input. It is becoming an operational dependency. Enterprises now expect global reach, built-in redundancy, real-time diagnostics and the ability to manage device lifecycles remotely across regions and regulatory environments.

This shift aligns closely with the MVNO model. By aggregating multiple mobile networks and abstracting complexity behind a single platform, MVNOs can offer resilience and flexibility that single-network approaches struggle to deliver.

Technologies Shaping IoT Connectivity Through 2026

Several connectivity technologies will define the IoT landscape over the next few years. LTE Cat-1 bis has emerged as a global baseline for many IoT deployments due to its broad coverage, operator support and longevity. It offers a practical balance of performance and availability for mobile and mid-bandwidth use cases.

NB-IoT and LTE-M continue to power massive IoT deployments, particularly in energy, utilities and industrial sensing, where long device lifecycles and low power consumption are essential. Adoption remains regionally uneven, reinforcing the need for flexible, multi-technology support.

At the same time, 5G is gaining traction in industrial automation, robotics and connected mobility. Reduced Capability 5G, or RedCap, is filling the gap between LTE-M and full 5G, enabling higher throughput without added complexity. MVNOs that integrate these technologies into a unified IoT strategy will be better positioned to support hybrid deployments.

Vertical Markets Raising the Bar for MVNOs

Across industries, IoT requirements are becoming more demanding. Manufacturers rely on IoT to optimize production, improve safety and reduce downtime. Utilities deploy millions of smart meters expected to operate for more than a decade, with minimal disruption. Cities depend on IoT for transport, lighting and environmental monitoring at scale.

Logistics and asset tracking deployments span borders and networks, while automotive and mobility use cases demand high availability, seamless roaming and over-the-air update support. Across all these verticals, connectivity resilience, compliance and lifecycle management are no longer optional.

Why Intelligence and Automation Matter More Than Ever

As IoT deployments scale, manual connectivity management does not. Enterprises are demanding real-time visibility into device behavior, network performance and cost exposure. They also expect proactive issue detection rather than reactive troubleshooting.

AI-driven diagnostics and machine learning-based network optimization are becoming essential tools. By analyzing live network conditions and device behavior, platforms can automatically select optimal networks, detect anomalies early and reduce operational overhead.

Security expectations are also rising. Zero-trust principles, encrypted communication and secure remote updates are increasingly standard requirements, driven by tighter regulations across Europe, North America and Asia-Pacific.

The MVNO Opportunity Going Forward

By 2026, successful MVNOs will look very different from traditional roaming aggregators. The most competitive providers will operate as IoT connectivity platforms, combining multi-network access with orchestration, automation and intelligence.

At Velos IoT, this shift has guided the development of UltimateSIM, our global IoT connectivity platform designed for large-scale, long-lived deployments. UltimateSIM brings together multi-IMSI connectivity, eSIM and iSIM orchestration, intelligent network selection and real-time diagnostics to help enterprises simplify global IoT operations while maintaining performance and compliance.

Connectivity is no longer just about access. It is about control, visibility and resilience. As IoT becomes deeply embedded in enterprise operations, MVNOs that deliver intelligent, automated connectivity will play a central role in enabling the next phase of digital transformation.

If you are planning new IoT deployments or reassessing your global connectivity strategy, explore how the UltimateSIM can support scalable, compliant and resilient IoT connectivity—today and as your deployments grow.     

 

Frequently Asked Questions

What makes MVNOs well suited for IoT connectivity
MVNOs can aggregate multiple mobile networks under a single platform, offering redundancy, global reach and flexibility that single-operator models cannot provide.

Why is eSIM and iSIM support critical by 2026
Permanent roaming restrictions and localization requirements are increasing worldwide. eSIM and iSIM enable remote profile management, compliance and cost optimization at scale.

How does Velos IoT help enterprises manage global IoT connectivity
Velos IoT supports enterprises through UltimateSIM, its global IoT connectivity platform designed for large-scale, long-lived deployments. UltimateSIM combines multi-IMSI connectivity, eSIM and iSIM orchestration, intelligent network selection and real-time diagnostics, giving enterprises greater control, visibility and resilience across regions and regulatory environments.

How does AI improve IoT connectivity
AI enables real-time diagnostics, predictive issue detection and automated network optimization, reducing downtime and support costs.

Is connectivity alone still enough to compete in IoT
No. Enterprises increasingly expect analytics, automation, security and lifecycle management as part of the connectivity offering.

What verticals will drive the most IoT growth for MVNOs
Energy and utilities, manufacturing, smart cities, logistics and automotive will remain the strongest drivers through 2026.