IoT Testing Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2025-2034)

The global IoT testing market stood at a value of more than USD 2.48 Billion in 2024. The extensive adoption of IoT devices in sectors such as healthcare and transportation are fueling the demand for IoT testing for reliable services. The industry is expected to grow at a CAGR of 31.40% during the forecast period of 2025-2034 to attain a value of USD 38.05 Billion by 2034. Companies are investing in robust security frameworks to mitigate risks, establishing security testing as a vital aspect of the IoT landscape.

IoT Testing Market Overview

IoT Testing evaluates the performance, security, and functionality of Internet of Things devices, making it essential as the ecosystem grows. Its primary benefits include enhanced security through the identification of vulnerabilities to guard against cyber threats, improved performance by assessing device responses under different conditions and ensuring interoperability for smooth communication between devices. According to the Canadian Survey of Cyber Security and Cybercrime, 5,244 cyber threats were recorded in 2022, affecting Canadian businesses and fueling the growth of the IoT testing market. Effective testing ensures that only authorised users can access IoT devices, thereby reducing breach risks.

Additionally, thorough testing enhances user experience by identifying usability issues and prepares systems for scalability, allowing them to effectively manage increased loads and network growth while maintaining optimal performance. The need for comprehensive testing to ensure the reliability and effectiveness of IoT solutions is the key trend of the IoT testing market. In June 2024, Telenor IoT launched a new testing facility, the Telenor IoT Test Lab, in Karlskrona, Sweden, this lab features advanced steering and control systems that enable the management of available operators, access technologies, and signal levels, facilitating the simulation of various network scenarios in a controlled and repeatable manner.

IoT Testing Market Growth

The IoT testing market dynamics and trends are being influenced by advancements in testing methodologies, such as automation and artificial intelligence, which improve efficiency and encourage a greater number of companies to adopt testing services. The need for interoperability among diverse IoT devices further contributes to market growth by necessitating extensive compatibility testing. Beginning April 29, 2024, manufacturers of consumer smart devices were required to comply with new UK legislation called the Product Security and Telecommunications Infrastructure Act (PSTI Act), which aimed to assist consumers in choosing smart devices designed to provide ongoing protection against cyber-attacks.

Key Trends and Developments

Incorporation of automation and artificial intelligence, extensive adoption of IoT devices in various sectors, and rise of smart cities are increasing the IoT testing market value.

August 2024

In a nationwide upgrade for IoT security, NanoLock Security collaborated with OPTAGE, a prominent Japanese service provider, to enhance protection for connected devices across Japan. Their joint service aimed to cyber-protect and manage millions of devices, including smart meters, locks, routers, and cameras, using NanoLock's robust security solutions.

March 2024

ALifecom launched its Non-Terrestrial Networks IoT Platform at SATELLITE 2024 in Washington, D.C. This innovative platform integrated a channel emulator within the NE6000 network emulator, enabling effective simulation and testing of NTN communications. The NE6000 was upgraded to support NB-IoT communication over non-terrestrial networks, enhancing comprehensive testing capabilities.

February 2024

BT launched its NB-IoT network to foster the growth of smart cities and industries in the UK, achieving 97% population coverage by utilizing EE’s mobile infrastructure. This low-power technology aimed to transform sectors like utilities and construction by securely connecting devices, automating processes, and enhancing efficiency while reducing costs, such as detecting water leaks.

October 2023

Vodafone Idea's enterprise division, Vi Business, launched the IoT (Internet of Things) lab-as-a-service in collaboration with C-DOT (Centre for Development of Telematics). The Vi C-DOT IoT lab was equipped to test over 175 scenarios, including network and functional testing, field testing, application testing, compatibility testing, and oneM2M standard testing.

Increased Focus on Security Testing

The demand for the IoT testing market is rising as IoT devices become more widespread, making security testing critical amid increasing cyber threats. Organisations are emphasising comprehensive security assessments to uncover vulnerabilities and protect data. This trend includes utilising advanced testing methods like penetration testing and automated vulnerability scanning. Compliance with strict regulations also amplifies the need for security-focused testing. Companies are investing in robust security frameworks to mitigate risks, establishing security testing as a vital aspect of the IoT landscape. In July 2023, Siemens launched a primarily 5G test lab, the Industrial Connectivity Lab, to help industrial organizations evaluate various IoT-related wireless technologies alongside its private 5G system.

Adoption of Automation and AI

The incorporation of automation and artificial intelligence (AI) in IoT testing is revolutionizing the field by improving both efficiency and accuracy. Automated testing tools simplify repetitive tasks, enabling quicker deployments and more consistent results. The growth of the IoT testing industry is fueled by AI-driven analytics, which provide crucial insights into device performance and possible issues, enabling proactive problem-solving. This trend minimizes human error and speeds up the testing process, helping organizations navigate the complexities of various IoT ecosystems. In August 2024, Golioth announced its AI-ready IoT infrastructure for microcontrollers, aimed at optimizing AI training, deployment, and model execution on IoT data in devices and the cloud, enhancing enterprise operations through the Artificial Intelligence of Things (AIoT).

Adoption of IoT Testing Across Several Sectors

The extensive adoption of IoT devices in sectors such as healthcare and transportation are fueling IoT testing demand for reliable services. Rising cybersecurity threats have led organisations to prioritise security testing to safeguard sensitive information. Additionally, stricter regulatory guidelines necessitate comprehensive compliance testing. In October 2024, Tata Consultancy Services (TCS) announced the opening of the Bringing Life to Things Lab in Cincinnati, Ohio. This lab is intended to facilitate rapid prototyping, experimentation, and large-scale deployment of AI, GenAI, and IoT engineering solutions, allowing TCS to help clients develop and implement innovative solutions.

Rise in Smart Cities

The rise of smart cities is driving significant growth in the IoT testing market. As of 2023, there were over 500 smart cities worldwide, with this number expected to surpass 1,000 by 2025. These cities integrate IoT technologies for smart transportation, energy management, and public safety. According to the International Telecommunication Union (ITU), over 60% of the world’s population will live in urban areas by 2050, leading to rapid expansion in smart city projects. A report by the European Commission found that over 240 cities across Europe alone have adopted smart city initiatives, focusing on energy, transportation, and public safety. For instance, Singapore’s Smart Nation initiative has already integrated over 1,000 IoT sensors across the city for urban planning, traffic monitoring, and environmental control. This rapid growth requires rigorous IoT testing to ensure system performance, security, and scalability.

IoT Testing Market Trends

Edge computing is transforming the way data is processed by bringing computation closer to the source of data generation, significantly improving response times and reducing latency. As per industry reports, by 2025, over 75% of enterprise-generated data will be processed at the edge, rather than in a centralized data centre. This shift is primarily driven by the need for real-time data processing, especially in industries such as healthcare, automotive, and manufacturing.

For instance, in the automotive sector, BMW Group has implemented edge computing in its production facilities to enable real-time monitoring of assembly lines, reducing downtime and improving efficiency. Additionally, 5G networks play a crucial role in enhancing edge computing capabilities, offering faster speeds and lower latency. According to the European Commission, 5G's rollout is expected to enable over 20 billion connected devices globally by 2030, with a large proportion relying on edge computing for processing data.

Opportunities in the IoT Testing Market

Regulatory compliance and standards are becoming increasingly important as IoT device deployment rises. Governments and industry bodies are creating guidelines to ensure the security and safety of IoT products. Organizations are prioritizing compliance testing to meet requirements related to data privacy, security protocols, and interoperability, helping to avoid legal issues and build consumer trust. Staying informed about evolving regulations is essential for competitiveness in the IoT testing demand growth. The IoTAA, Australia’s premier IoT organization, includes over 250 members and 500 participants, focusing on collaboration, data privacy, security, spectrum availability, sector engagement, innovation, and interoperability to enhance the country's competitive advantage.

Market Restraints

The IoT testing market faces several key restraints that impede growth. The complexity of diverse IoT ecosystems complicates comprehensive testing, while rapid technological advancements often outpace existing methodologies. High costs can be prohibitive for SMEs, and strict data privacy regulations hinder access to necessary data.

Additionally, the lack of standardization results in inconsistent testing practices, and a shortage of skilled professionals limits effective testing. Integration challenges with legacy systems can cause delays, and increasing security vulnerabilities require continuous adaptation of testing processes. Together, these factors pose significant challenges for organisations striving for effective IoT testing and compliance.

IoT Testing Industry Segmentation

The report titled “IoT Testing Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Market Breakup by Service

• Professional
• Managed

Market Breakup by End-User Industry

• Retail
• Manufacturing
• Healthcare
• Energy and Utilities
• IT and Telecom
• Others

Market Breakup by Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Market Analysis by Service

Professional IoT testing services offer specialized expertise and knowledge of current technologies, enabling thorough evaluations of IoT devices and systems. They perform various tests of functional, security, performance, and interoperability ensuring comprehensive coverage of the IoT ecosystem. This accelerates time-to-market, identifies vulnerabilities early, and provides access to advanced testing tools, boosting the IoT testing industry revenue. In August 2024, Bar Code India (BCI) launched 'Dristi,' an innovative IoT-based RFID reader designed to enhance supply chain management. Featuring a powerful processor, extensive memory, 4G-LTE/Wi-Fi options, and durable housing, Dristi ensures real-time data access and high performance in demanding environments, revolutionizing the industry.

Managed IoT testing services enhance cost efficiency by minimizing the need for substantial upfront investments in testing infrastructure. They offer scalability, enabling organizations to adapt testing efforts based on project requirements without the burden of permanent staffing changes. Outsourcing testing allows businesses to concentrate on their core operations while maintaining compliance and security throughout the device lifecycle, thereby creating IoT testing market opportunities. In September 2024, The Things Industries launched The Things Indoor Gateway Pro, a next-generation managed LoRaWAN gateway. This product facilitates seamless LoRaWAN network installation and features zero-touch provisioning, advanced device management, and integrated LTE, Ethernet, and Wi-Fi connectivity, transforming IoT network management.

Market Analysis by End-User Industry

IoT testing improves patient safety by verifying that medical devices function correctly, reducing the likelihood of errors. It enhances data accuracy, leading to better diagnoses and treatments. The IoT testing market growth is fueled by its role in helping healthcare organizations meet regulatory requirements and ensure device safety standards. Additionally, it fosters interoperability among medical systems, enabling seamless data exchange and communication, which boosts overall operational efficiency. In October 2023, Vytal launched to address key healthcare challenges like ageing infrastructure and tight budgets. The platform, already tested in over 50 hospitals, integrates capital planning with asset management and compliance, leveraging AI, robotics, and IoT to enhance operations and connect patient care with the physical environment.

IoT testing enhances resource management for utilities by minimizing waste and increasing efficiency. It improves grid reliability by detecting vulnerabilities and ensuring stable energy distribution. With real-time monitoring from IoT devices, utilities can manage issues proactively and respond quickly. Additionally, testing ensures adherence to regulatory standards, helping organizations avoid penalties and achieve cost savings through optimized operations, contributing to IoT testing market revenue. In May 2024, Oakter launched OAKMETER, a smart energy meter featuring advanced technologies like Advanced Metering Infrastructure and real-time analytics. This device allows two-way communication with utility servers, enabling timely tampering detection, real-time data updates, outage identification, and mobile visibility of energy usage, enhancing efficiency and reducing costs for consumers and utilities alike.

IoT Testing Market Regional Insights

Europe IoT Testing Market Analysis

Europe leads in IoT testing demand, particularly from Germany, Italy, and France. In 2022, Germany's Federal Office for Information Security (BSI) launched an IT-security label to enhance consumer protections for connected devices, boosting the IoT testing market growth. In July 2024, Xantaro Group partnered with US-based Celona to market its private 5G system for various European industrial applications, including IoT connectivity and process automation.

North America IoT Testing Market Trends

The North American IoT Testing market value is poised for significant growth, driven by leading brands like TÜV SÜD, Intertek, Eurofins Digital Testing and SGS. IoT testing enhances security by identifying vulnerabilities, ensures regulatory compliance with evolving standards, and promotes interoperability among devices, facilitating seamless integration and communication across various ecosystems. In February 2024, Cisco and TELUS launched new 5G capabilities in North America, focusing on IoT use cases for connected cars, supporting testing for an automotive manufacturer and enhancing customer experiences.

Asia Pacific IoT Testing Market Insights

In India, companies such as Tech Mahindra, CureMetrix, and HCL Technologies highlight the expanding IoT Testing market share in the Asia-Pacific region. Effective IoT testing enhances user experience by identifying usability issues, ensures scalability for future growth, and supports innovation by enabling the development of new applications and services. In Japan, the IoT Product Security Conformity Assessment Scheme is a certification initiative designed to enhance IoT product security. Developed by the Ministry of Economy, Trade, and Industry (METI), it is set to launch in March 2025 and will establish security requirements aligned with international standards.

Latin America IoT Testing Market Analysis

Key markets in the region include Brazil, Mexico, and Argentina, where there is a high demand for spices. The Latin American IoT testing market is expanding due to rising cybersecurity threats from IoT devices, increased telecommunications investments enhancing connectivity, and a growing start-up ecosystem creating demand for specialised testing services. In June 2024, the LoRa Alliance accredited DEKRA's facility in Atibaia, Brazil, as its first authorized test lab in South and Latin America, enhancing global market access for LoRaWAN devices and supporting local certification services.

Middle East and Africa IoT Testing Driving Factors

The African IoT testing market growth is on the rise as the governments of Egypt, Ethiopia, and Morocco introduce regulations aimed at improving the security and reliability of IoT devices, which in turn increases the demand for comprehensive testing services. At the same time, local startups are developing innovative solutions, further elevating the need for specialised testing. In September 2024, Rwanda revealed plans for smart-city projects to modernize infrastructure, highlighting new cybersecurity needs. The initiative, presented at the Smart Cities Africa conference, aimed to foster collaboration, and develop 100 smart cities by 2100.

Innovative Startups in IoT Testing Market

Innovative startups in the global IoT testing market bring key benefits, including agility to adapt quickly, cutting-edge solutions leveraging AI and automation, and cost-effective services for a broad range of businesses. They focus on niche markets, foster rapid innovation, and maintain a customer-centric approach, enhancing reliability and performance in IoT testing.

TestGrid: Specializing in automated testing solutions, TestGrid utilises AI-driven analytics to streamline IoT device validation. Their platform supports extensive test scenarios, ensuring comprehensive coverage and faster deployment, making it ideal for enterprises looking to enhance their testing efficiency.

Prysmian Group: This startup focuses on connectivity solutions for IoT testing, offering cutting-edge fibre optic cables and smart connectivity systems. Their innovations support robust network performance, enabling seamless data transmission and improving overall IoT device reliability across various sectors.

Competitive Landscape

Key players in the market focus on IT solutions and cybersecurity services, providing cutting-edge software development, network security, and cloud services. They excel in identity and access management, IT compliance, and risk management, assisting organizations in improving operational efficiency and navigating digital transformation while ensuring strong security and customer satisfaction.

International Business Machines Corporation

International Business Machines Corporation: IBM, headquartered in Armonk, New York, has been a global technology leader since its establishment in 1911. The company specializes in cloud solutions, AI, and data analytics, driving digital transformation for businesses. IBM's innovative technologies and consulting services help organizations enhance cybersecurity and optimize operational efficiency.

Novacoast, Inc.

Novacoast, Inc.: Founded in 1996 and based in Santa Barbara, California, Novacoast focuses on IT solutions and cybersecurity services. The company excels in software development, network security, and cloud solutions, with a strong emphasis on identity and access management. Novacoast aids organizations in navigating digital transformation while ensuring robust security compliance.

Keysight Technologies, Inc.

Keysight Technologies, Inc.: Established in 2014 and headquartered in Santa Rosa, California, it specialises in electronic design and test solutions. The company provides innovative testing and measurement solutions for industries such as automotive and telecommunications. Keysight supports engineers in optimising designs and enhancing performance, ensuring the development of next-generation technologies.

Praetorian Security, Inc.

Praetorian Security, Inc.: Founded in 2017 and located in Austin, Texas, it is a cybersecurity firm focused on protecting organizations from evolving threats. They provide tailored security solutions, risk assessments, and incident response services. Praetorian's expertise helps clients build resilient security postures, effectively navigating complex security challenges while maintaining operational integrity.

Other key players in the global IoT testing market report include AFour Technologies Pvt. Ltd. among others.