The twin industry gatherings of Mobile World Congress and Embedded World in consecutive weeks in March offered a revealing snapshot of the evolving IoT connectivity market. Unlike previous years, when a single technology narrative dominated the discussion, the overarching message in 2026 was one of gradual evolution and maturity. The industry continues to discuss artificial intelligence, but the real developments lie in infrastructure, positioning and market maturity rather than breakthrough technologies. In this article, Matt Hatton, Founding Partner at Transforma Insights shares some of the key trends he noted during the two events, thoughts he will further expand on in a webinar on 24th March: ‘MWC 2026 trends for critical IoT connectivity’.
No breakthrough technology
Every year the technology industry arrives at its major trade shows expecting to discover the next defining narrative. For the mobile and IoT ecosystem, those narratives have historically arrived in rapid succession: low-power wide-area networks, 5G, satellite connectivity, eSIM, edge computing and now artificial intelligence.
Yet one of the most striking takeaways from Mobile World Congress 2026 in Barcelona and Embedded World 2026 in Nuremberg is that no such breakthrough technology narrative really emerged. There were many conversations about all of the relevant technologies, but each was really about incremental change rather than something that would trigger any kind of substantial shift.
That absence, however, may actually be the most important signal about where the IoT connectivity market now stands. Rather than chasing the next headline technology, the sector increasingly appears to be settling into a phase of maturity. Conversations across both events suggested that the industry’s priorities are shifting away from hype cycles and toward infrastructure, operational resilience and long-term deployment realities.
AI is everywhere, but not yet transformative
Artificial intelligence unsurprisingly dominated messaging across both shows. Few stands lacked references to AI, and vendors across the connectivity, platform and device ecosystems were keen to position themselves within the broader AI narrative. Yet behind the branding, the practical impact of AI on cellular IoT remains somewhat elusive.
Many discussions revolved around the idea that IoT devices generate the real-world data required to fuel AI models. Some industry players have begun referring to this relationship as “physical AI,” emphasising the role of connected devices in linking digital intelligence to the physical world. The concept has some merit. Real-time video analytics, predictive maintenance and intelligent fleet optimisation are all examples of applications where AI and connected devices intersect. Indeed Transforma Insights has examined one aspect of this in the work we have done on AIoT.
The real story: infrastructure
Instead, a more substantive shift appears to be occurring in the underlying infrastructure that supports IoT deployments, and the growing demands of AI.
As connected devices generate increasing volumes of data and support more latency-sensitive applications, the traditional model of routing traffic through centralised network hubs is becoming less viable. Enterprises increasingly require data processing closer to the device, both for performance reasons and to address regulatory requirements around data localisation. I explored many of these topics in a recent blog post ‘What does greater ‘localisation’ mean for IoT delivery?’
This trend is accelerating interest in distributed network architectures built around local packet gateways, local breakout capabilities and edge processing environments. A recent Transforma Insights report ‘Evolving approaches to traffic management for international roaming’ (February, 2026) focused on several aspects of this trend. For connectivity providers, this shift has significant implications. The role of the IoT connectivity provider is gradually evolving from that of a SIM and data plan supplier toward something closer to a global infrastructure operator.
In other words, connectivity providers are beginning to look less like telecom operators and more like infrastructure platforms. The best analogy is perhaps to that of the content delivery network. Just as CDNs distribute content closer to users to improve performance, distributed IoT connectivity infrastructure allows device data to be processed closer to where it is generated. That shift may ultimately reshape how the industry thinks about connectivity itself. Rather than being the core product, connectivity becomes one component within a broader managed infrastructure service.
A market finding its differentiation
Another theme evident across meetings and discussions at both events was the growing importance of differentiation. For much of the last decade, the IoT connectivity market has been characterised by intense competition around basic connectivity pricing and global coverage claims. But as deployments scale and enterprises demand greater reliability, the basis of competition is changing.
Connectivity providers are increasingly emphasising their unique capabilities. For some, that means global infrastructure and distributed network architectures, as discussed above. For others, it involves vertical industry expertise or deeper integration with enterprise systems.
Mobile network operators, in particular, are attempting to leverage their broader enterprise relationships and infrastructure assets. By bundling connectivity with managed gateways, analytics platforms and vertical solutions, they are trying to move up the value chain beyond basic connectivity provision. Meanwhile, newer players in the IoT connectivity ecosystem continue to differentiate through specialised capabilities, whether in global connectivity orchestration, resilience features or advanced device management tools.
The result is an increasingly diverse ecosystem in which the underlying connectivity provision, in terms of SIM cards and data plans, is a subsidiary consideration.
Resilience becomes a central requirement
Another potential differentiator for IoT connectivity is resilience. With enterprises relying on connectivity for critical processes, and the connectivity market itself showing evidence of maturing, there is increasing focus on security and resilience as enhanced value-added features. We note continued growing interest in features such as multi-network access, advanced fallback mechanisms and network observability tools.
Regulation, particularly CRA, should be front of mind
While infrastructure and resilience dominated many discussions, another issue is quietly moving up the industry agenda: regulation. The European Union’s Cyber Resilience Act will introduce extensive cybersecurity requirements for connected products. The regulation places significant obligations on manufacturers to ensure their products are secure by design, free of known vulnerabilities and supported by appropriate incident reporting and remediation processes. The first compliance deadlines are approaching within the next year, yet awareness of the regulation still appears inconsistent across parts of the IoT ecosystem. For those not familiar, more details can be found in the CRA entry in the Transforma Insights Regulatory Database.
Interestingly, the topic seemed to receive much more attention at Embedded World than at Mobile World Congress. That may reflect the more hardware-focused nature of the embedded systems community, where device security considerations are often more visible. However, the regulation applies broadly across the connected product ecosystem. Companies involved in device manufacturing, connectivity services and platform development will all need to consider how their offerings align with the new requirements. In that sense, regulatory readiness may become one of the defining challenges for the IoT industry over the next several years.
The end of the hype cycle?
Taken together, the signals from Mobile World Congress and Embedded World suggest that IoT connectivity may be moving beyond its most hype-driven phase. That does not mean innovation has stopped. Technologies such as 5G standalone networks, satellite connectivity and advanced eSIM standards continue to evolve and will undoubtedly play important roles in future deployments. But the industry conversation appears to be shifting. Rather than searching for the next buzzword, companies are increasingly focused on building the infrastructure, security frameworks and operational capabilities required to support large-scale, long-term IoT deployments. For an industry that has spent much of the last decade promoting future possibilities, that shift toward practical implementation may be the most significant development of all.
Learn more
If you would like to hear more about Transforma Insights’ views on the key trends emerging from Mobile World Congress, check out our webinar on 24th March: MWC 2026 trends for critical IoT connectivity.
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