Iran IoT Market, By Region, Competition, Forecast and Opportunities, 2020-2030F

The Iran IoT Market was valued at USD 2.89 Billion in 2024, and is expected to reach USD 4.35 Billion by 2030, rising at a CAGR of 6.98%.

The Iran Internet of Things (IoT) market is poised for consistent growth, driven by increasing digital transformation efforts across key sectors such as automotive, industrial, energy, agriculture, and smart cities. With an expanding base of internet users, improving telecom infrastructure, and a national focus on automation and energy efficiency, IoT technologies are being rapidly integrated into both public and private initiatives. The automotive segment holds a significant share of the market, as car manufacturers and transportation services increasingly adopt connected systems, including vehicle tracking, remote diagnostics, and advanced driver assistance systems. Similarly, industrial IoT is gaining traction due to the country's push for modernization of manufacturing and energy operations, including the use of predictive maintenance, real-time monitoring, and machine-to-machine communication in factories and refineries.

Consumer IoT applications, such as smart home devices, wearables, and connected appliances, are also on the rise, fueled by a growing tech-savvy middle class. Smart city projects, especially in major urban centers like Tehran, Isfahan, and Shiraz, are further enhancing the market outlook. These initiatives include intelligent traffic systems, smart lighting, waste management, and smart metering for utilities - efforts that aim to reduce costs and environmental impact while improving service efficiency.

The energy and oil & gas sectors in particular benefit from IoT integration, with applications such as remote asset monitoring and automation of exploration and production processes. Agricultural IoT is another emerging field, especially in areas facing water scarcity. Smart irrigation, crop monitoring, and soil sensing technologies are being explored to optimize yields and conserve resources.

While opportunities are substantial, the market faces several challenges. These include concerns over data privacy and cybersecurity, limited foreign investment due to ongoing international sanctions, and dependency on domestic technological capabilities. However, ongoing advancements in 4G and 5G network coverage, fiber-optic infrastructure, and the participation of local technology providers are gradually addressing these barriers.

Iran’s IoT market is expected to witness sustained growth over the coming years. Continued support for smart infrastructure projects, increasing digital literacy, and strategic government initiatives will play a crucial role in shaping the country’s IoT ecosystem and driving long-term economic and technological development.

Key Market Drivers

Expansion of Telecom Infrastructure and 5G Rollout

The advancement of Iran’s telecom infrastructure is one of the strongest catalysts for IoT adoption. The national rollout of high-speed internet services is ongoing, with fiber-to-the-home (FTTH) infrastructure targeted to reach 20 million households by the end of 2025, up from approximately 10 million in early 2024. The population coverage of LTE/4G has now exceeded 90%, ensuring most urban and rural areas are IoT-ready. Additionally, the number of 5G base stations is set to rise from about 1,200 in 2024 to 4,000 by 2025, enhancing the network’s ability to support low-latency IoT applications such as autonomous systems and remote diagnostics.

Mobile broadband penetration has grown substantially, with over 43 million active mobile data subscribers, supporting mobile-based IoT integration in sectors like transportation, agriculture, and health. Fixed broadband access has also risen, with over 60% of Iranian households now connected to high-speed internet. Network speeds have improved as well, with average mobile download speeds reaching 35 Mbps, supporting real-time data transmission for connected devices.

The combination of expanded mobile and fiber broadband networks ensures the infrastructure necessary for large-scale IoT deployment. These developments enable seamless operation of smart homes, industrial sensors, vehicle tracking systems, and energy-efficient city infrastructure. As bandwidth and latency improve further, the range and complexity of IoT applications in Iran will continue to broaden.

Key Market Challenges

Limited Access to International Technology and Investment

One of the most significant challenges facing Iran’s IoT sector is restricted access to global technologies due to economic sanctions and geopolitical barriers. These restrictions limit partnerships with international IoT hardware manufacturers, software developers, and cloud service providers. As a result, Iranian companies often rely on outdated or domestically produced technology, which can be less advanced or incompatible with global standards.

The ban on many U.S.- and European-origin technologies affects imports of sensors, microcontrollers, and advanced chips, forcing local companies to find alternative suppliers or invest in less efficient domestic production. Additionally, the absence of global investment slows innovation, as startup funding, joint ventures, and knowledge exchange with leading IoT ecosystems remain limited. This restricts scalability and delays the commercialization of new solutions.

Moreover, Iran’s exclusion from international financial systems makes it difficult for local companies to purchase software licenses or access cloud infrastructure services from global vendors such as AWS, Google Cloud, or Azure. This dependency on local alternatives sometimes leads to performance or security limitations. Despite local resilience and innovation, the lack of exposure to global best practices and emerging trends hinders competitiveness in export markets.

Overcoming this challenge requires significant self-sufficiency, localization of core technologies, and stronger collaboration with friendly nations willing to provide technical support or infrastructure access. Without these, the growth of Iran’s IoT ecosystem will remain internally constrained and slower compared to more globally integrated economies.

Key Market Trends

Surge in Connected Vehicles and Fleet Management Solutions

IoT is rapidly transforming Iran’s transportation and logistics sectors, particularly through the rise of connected vehicles and fleet management systems. With over 22 million registered vehicles and an expanding e-commerce market, logistics optimization has become a priority. IoT-enabled vehicle tracking, telematics, and driver monitoring are becoming standard tools for logistics companies, courier services, and public transport operators.

Fleet operators are deploying GPS and IoT sensors in trucks and delivery vans to monitor vehicle location, speed, fuel efficiency, and route deviations in real time. These systems reduce unauthorized use, improve route planning, and cut down fuel consumption by up to 20%. Many transport firms now use geofencing to receive alerts when vehicles enter or leave designated zones.

The public transportation sector is also embracing IoT, with cities like Tehran and Shiraz integrating real-time tracking and digital ticketing systems in over 2,000 buses and taxis. These smart solutions enhance commuter experience and operational transparency.

In the private car segment, the demand for connected car devices such as dashcams, tire pressure monitoring systems, and onboard diagnostics (OBD-II) scanners is rising among tech-savvy urban users. Car insurance providers are beginning to offer usage-based insurance (UBI) linked to vehicle telematics data, aligning premiums with driving behavior.

This trend is also influencing the aftermarket auto industry, where repair shops are starting to adopt IoT-based diagnostics and predictive maintenance tools. As vehicle digitization progresses, data from millions of mobile units is enabling a new layer of urban mobility intelligence - driving growth in fleet efficiency, safety, and road planning in Iran’s urban centers.

Key Market Players

FANAP Co.
MAPNA Group
Sharif ICT Group
BehinTech Co.
Rahkaran System Pasargad (RSP)
Arsh Gostar
Fara Gostar
Smartmed
Cisco Systems, Inc.
IBM Corporation

Report Scope:

In this report, the Iran IoT Market has been segmented into the following categories, in addition to the Application trends which have also been detailed below:

Iran IoT Market, By Component:

Hardware
Service
Software

Iran IoT Market, By Type:

Iran IoT Market, By Application:

Smart Manufacturing
Consumer Electronics
Building & Home Automation
Smart Mobility & Transportation
Connected Logistics
Others