Key Takeaways

• In 2026, enterprises are expected to shift from DIY IoT connectivity to managed services to mitigate operational risks.
• Global cellular infrastructure fragmentation is prompting a reevaluation of asset design and investment strategies.
• Fixed Wireless Access (FWA) is emerging as the primary application for 5G, altering mobile network operators’ strategies.

Shifting Paradigms in IoT Connectivity

The landscape of global IoT connectivity is set for a significant transformation by 2026, as enterprises move away from do-it-yourself (DIY) models towards managed services. This shift is largely driven by the increasing complexity of maintaining IoT systems, which has become overwhelming for internal teams. The move to managed services allows enterprises to transfer operational risks off their balance sheets, making stability a priority.

A key factor influencing this change is the fragmentation of global cellular infrastructure. While regions such as the US and Asia-Pacific are rapidly advancing towards 5G Standalone (SA) networks, which offer improved latency and network capabilities, Europe is trailing. European operators mainly deploy 5G Non-Standalone (NSA) networks, which still rely on legacy 4G technology. This situation creates challenges for enterprises deploying assets with a lifespan of 10 to 15 years, as they must be compatible with both existing and emerging technologies.

To adapt to this fragmented landscape, enterprises are encouraged to adopt a multi-radio access technology (multi-RAT) strategy when designing IoT assets. This approach mitigates investment risks amid uncertainty and prepares organizations for diverse connectivity environments.

Enterprises might find themselves in a “DIY delusion” regarding the new SGP.32 eUICC standard, designed to facilitate operator-agnostic connectivity. This standard could actually complicate operations by necessitating the creation of internal virtual operating frameworks. Managing multiple carrier contracts and support systems can overwhelm many IT departments, prompting financial leaders to reconsider their make-or-buy decisions.

Mobile Network Operators (MNOs) also face intense pressure in this evolving market. Many legacy platforms used by MNOs are no longer sustainable for the low-margin IoT business model, compelling them to adopt clear strategies. Some may spin off their IoT divisions, while others could form partnerships with specialist connectivity providers to revamp their business structures. For enterprises, selecting a stable MNO partner is crucial to avoid inheriting technical debt.

As the industry navigates the complexities of IoT, Fixed Wireless Access (FWA) has emerged as a standout use case for 5G technology. FWA provides essential high-reliability broadband access, especially in areas where traditional fiber infrastructure is challenging to implement. In 2026, MNOs are anticipated to further develop FWA offerings, enhancing their value proposition by bundling hardware, security, and connectivity services.

Another pressing concern in the IoT landscape is the necessity for reliable data supply chains to support next-generation automation technologies, including AI-driven processes. Ensuring that real-time data feeds into these systems is necessary to avoid vulnerabilities, particularly as AI models evolve. For example, connecting numerous assets allows companies to gather secure data for predictive maintenance, necessary for operational integrity.

Ultimately, enterprises must reassess their understanding of SGP.32 and ensure that their connectivity partners are equipped to handle the complexities of a fragmented 5G environment. The imperative for operational resilience and effective risk management will redefine IoT connectivity in 2026, replacing the era of “good enough” solutions with a demand for comprehensive audits of operational capabilities.

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