As managed services gain ground, IoT market set for big 2026 changes

As fragmentation across global 5G networks persists, enterprises and operators are predicted to move towards managed IoT connectivity solutions in 2026, reshaping industry standards and reducing technical and commercial complexity.

For CIOs wrestling with fleets of distributed devices, the promise of the Internet of Things is colliding with the practicalities of sustaining it. According to the original report by Eseye, the industry is poised for a “great re-alignment” in 2026 as enterprises shift away from bespoke, do‑it‑yourself connectivity models toward managed services that move operational and commercial risk off company balance sheets. ^[1][2]

Eseye frames the problem succinctly: it is “no longer just getting connected, but rather managing that global IoT connectivity intelligently, securely, and reliably.” That shift is being driven by a confluence of technical fragmentation, commercial complexity and the escalating data needs of AI systems that depend on continuous, trustworthy device telemetry. ^[1][2]

A central technical fault line is the uneven global roll‑out of 5G. Eseye executives point to a two‑speed reality in which the US and parts of APAC are advancing to 5G Standalone (SA) networks while much of Europe remains on 5G Non‑Standalone (NSA), a configuration that relies on legacy 4G cores and fails to deliver the full benefits of 5G. The consequence is a painful hardware dilemma: assets deployed today with 10–15 year lifecycles must be designed to survive in a “fragmented landscape,” remaining backwards compatible with 4G while being forward‑looking for 5G SA markets. ^[1]

That fragmentation has also blunted the expected rapid uptake of integrated SIM (iSIM) designs. Eseye warns that engineers are reluctant to lock devices into a single radio strategy while the underlying network landscape shifts. The firm recommends a defensive approach, designing for multi‑RAT (multiple radio access technologies), and argues SGP.32 eUICC standards are likely to be most useful when embedded within managed services rather than as an invitation for enterprises to become de‑facto network operators. According to the original report, treating SGP.32 purely as a technical spec risks a “DIY delusion” that overlooks the vast commercial overhead of operating as a virtual carrier. ^[1]

The commercial burdens are material: negotiating individual carrier contracts, reconciling multi‑currency billing, running distributed support desks and validating profile portability across operators. Eseye’s view is that 2026 will be the year finance directors force a “U‑turn” on make‑versus‑buy choices, with SGP.32 functioning as the engine for managed offerings that abstract complexity behind single contracts. Industry partnerships and platform plays are already aligning to that outcome. ^[1][2][4][5]

Mobile network operators face their own crossroads. Legacy MNO IoT platforms, often based on older stacks, carry cost‑to‑serve dynamics that undermine margins on low‑ARPUs (average revenue per user) IoT devices. Eseye’s analysis suggests MNOs will “pick a direction”, either divest or spin out IoT divisions to protect core handset businesses, or partner with specialist connectivity providers to overhaul economics and rise up the stack. For buyers, the warning is clear: ask hard questions about vendor strategy and global regulated‑market support, because unclear answers often signal legacy technical debt. ^[1]

At the same time, a pragmatic 5G use case has emerged: Fixed Wireless Access (FWA). Eseye describes FWA as the “5G killer application that has been hiding in plain sight,” capable of delivering reliable broadband to business sites, pop‑up retail and smart city infrastructure where fibre is impractical. The firm expects operators to increasingly bundle hardware, security and connectivity into managed FWA offerings, turning what was often a backup solution into a primary, monetisable service. ^[1][2]

Eseye also positions connectivity as a strategic guardrail for the next wave of automation. As enterprises adopt “sentient AIoT” , autonomous agents managing supply chains and production lines , real‑time, secure device data becomes the essential ground truth that prevents AI “hallucinations” and operational errors. The company points to large industrial programmes, such as Volvo Group’s mass asset connectivity, as examples where IoT data is being used to feed AI models for predictive maintenance and safer automation. The implication is stark: connectivity in 2026 is not a mere utility but a critical component of AI risk‑management. ^[1][2]

Market activity already reflects these dynamics. Eseye has expanded its partner ecosystem and platform capabilities, promoting its AnyNet+ SIM and Infinity IoT Platform™ that claim access to hundreds of networks and near‑universal uptime, while signing partnerships such as with Thales to streamline local network selection and with iBASIS to broaden global access. Industry recognition of managed connectivity leaders, exemplified by Telefónica’s continued top‑tier placement in Gartner’s Magic Quadrant for Managed IoT Connectivity Services, further underlines a market moving toward consolidated, professionally managed solutions. The company said in a statement that these alliances and platforms are designed to simplify lifecycle management, improve local network choice at first power‑up and deliver unified provisioning and analytics. ^{[3][4][5][6][7]}

For enterprises, the takeaway is operational: conduct a rigorous audit of IoT exposure, prioritise partners that can absorb technical debt across heterogeneous radio environments, and treat connectivity as a data supply‑chain problem integral to AI safety and commercial continuity. Industry data shows managed, platform‑led approaches are becoming the default route to achieve the reliability and scale required as the IoT becomes an input to mission‑critical automation. ^[1][2][6]

📌 Reference Map:

##Reference Map:

• ^[1] (Geekfence / Eseye original article) – Paragraph 1, Paragraph 2, Paragraph 3, Paragraph 4, Paragraph 5, Paragraph 6, Paragraph 7, Paragraph 8, Paragraph 9
• ^[2] (Eseye press forecast) – Paragraph 1, Paragraph 2, Paragraph 7, Paragraph 9
• ^[3] (Eseye product page) – Paragraph 8
• ^[4] (Thales press release) – Paragraph 8
• ^[5] (iBASIS press release) – Paragraph 8
• ^[6] (Eseye Infinity IoT Platform page) – Paragraph 8, Paragraph 9
• ^[7] (Telefónica / Gartner recognition) – Paragraph 8

Source: Fuse Wire Services