IoT devices market map and supplier insights Q2 2026

The IoT security market is experiencing rapid growth driven by the increasing number of connected devices and the escalating threat landscape. Organizations face significant financial and operational risks from unsecured IoT devices, including data breaches, operational shutdowns, and regulatory penalties. Key trends include the explosion of the attack surface, rising regulatory scrutiny, and the evolution of botnets.

Procurement teams must prioritize capabilities such as agentless discovery, continuous behavioral baselining, and vulnerability prioritization to effectively mitigate these risks. Modern IoT security solutions are evolving into sophisticated cyber exposure management engines that integrate IT, OT, and IoMT. These platforms leverage AI and machine learning to automate threat detection and response, reducing alert fatigue and improving incident resolution times.

The market is also seeing a shift towards cloud-based deployment models and deeper integration with SIEM, ITSM, and NAC systems. Leaders in the space are differentiated by their ability to provide cross-domain correlation, explainable risk scoring, and passive-first monitoring. Buyers should focus on vendors that offer comprehensive device diversity support, pre-built compliance templates, and a clear roadmap for future innovation, including GenAI assistants and Agentic SOC features.

A successful IoT security implementation requires a phased approach, starting with discovery and assessment, followed by configuration, testing, and rollout. Organizations must also be prepared to address hidden costs such as professional services, hardware sensors, and integration development.

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52 companies analyzed | Last updated Apr 22, 2026

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Palomarr Insights / Q2 2026

IOT DEVICES

What does the latest IoT devices market report show?

The Q2 2026 Palomarr Insights report maps 52 IoT devices suppliers by market position, supplier scores, and category signals. Buyers can use it to understand the market before comparing vendors or building an RFP shortlist.

Palomarr Orbit

Unlike static analyst charts, Palomarr Orbit plots 52 IoT devices companies by Capabilities and Innovation, then lets you shift the center of gravity based on your priorities with Palomarr Orbit Shift. The closer to your unique core, the better the fit.

Contenders

Leaders

Emerging

Challengers

CAPABILITIES →

INNOVATION ↑

Introduction

This Q2 2026 report provides an exhaustive analysis of the IoT security category, designed to empower procurement professionals with the insights necessary to evaluate vendors using the Capability vs. Innovation Matrix. The report examines the category evolution, problem landscape, essential capabilities, buyer evaluation criteria, and the broader ecosystem.

Market landscape

The global enterprise landscape is undergoing a structural transformation as the physical and digital worlds converge through the Internet of Things (IoT). This convergence represents a fundamental shift in the nature of organizational risk. The IoT security market is driven by the proliferation of interconnected devices and the increasing sophistication of cyber threats.

Quadrant distribution

Companies are evaluated on two dimensions: Capabilities measure product depth and maturity, while Innovation reflects forward-thinking investments. The combined score shows overall market position.

52 Total suppliers analyzed

8.1 Average combined score

100% Increase in IoT threats (h1 2023)

15,000 Endpoints per industrial facility (2024)

Key trends

Agentless visibility

Modern solutions must be non-intrusive due to resource constraints of many IoT devices. Agentless discovery identifies devices by watching network traffic, without installing software.

AI-driven prioritization

AI and machine learning are used to learn normal device behavior and flag deviations, enabling risk-based prioritization and reducing remediation work.

Zero trust micro-segmentation

Automated micro-segmentation groups devices into isolated zones (VLANs) and enforces Zero Trust policies that block lateral movement between segments.

Cyber exposure management

Modern platforms integrate IT, OT, and IoMT into a single source of truth, providing a unified view of cyber risk across the organization.

Competitive analysis

Leaders in the IoT security market differentiate themselves through deep packet inspection (DPI), the ability to establish behavioral baselines, and cross-domain correlation. They also offer explainable risk scoring and passive-first monitoring.

How companies earn their ranking

Capability in the IoT security market is driven by the breadth and depth of device visibility, the accuracy of risk prioritization, and the seamless integration with existing security tools. Innovation is defined by the use of AI and automation to reduce alert fatigue, the ability to detect and respond to modern threats like Shadow AI, and the proactive management of device lifecycles.

Top-ranked companies demonstrate a commitment to passive monitoring, ensuring minimal disruption to legacy equipment, while also providing advanced features like explainable risk scoring and cross-domain correlation. Vendors can improve their ranking by investing in massive data ingestion capabilities, expanding their integration marketplace, and developing GenAI co-pilots to assist analysts.

They must also prioritize compliance mapping to automate security audits and support a diverse range of devices across IT, OT, and IoMT environments.

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Rankings

Palo Alto Networks

Best Overall Best Value

9.8

Cisco

Best for Enterprise

9.7

Verizon Wireless

9.6

AT&T Wireless

9.6

T-Mobile

9.5

Vodafone

9.4

KORE Wireless

9.3

Telefonica (ElevenPaths)

9.3

Semtech

9.2

Eseye

9.1

Competitive assessment

Our AI-generated analysis explains what makes each top-ranked company a strong fit for IoT devices, based on their specific capabilities, product features, and market positioning.

Palo Alto Networks

Best Overall Best Value

9.8

Palo Alto Networks excels in IoT security with its AI-driven platform that proactively monitors threats and integrates seamlessly with existing enterprise infrastructures.

AI-driven security operations
Comprehensive platform integration
Global threat intelligence capabilities

Cisco

Best for Enterprise

9.7

Cisco ranks highly for IoT devices due to its comprehensive industrial IoT solutions and integrated security features that enhance device safety and network resilience.

AI-guided remediation accelerates threat response
Integrated security simplifies network operations
Unified cloud management offers seamless scalability

Verizon Wireless

9.6

Verizon Wireless delivers a strong IoT ecosystem with private 5G networks and comprehensive security solutions, making it suitable for enterprises with critical connectivity needs.

Largest U.S. wireless carrier
Extensive network reliability
Leading in 5G technology deployment

AT&T Wireless

9.6

AT&T Wireless offers a wide range of IoT solutions with a focus on security and flexibility, making it suitable for SMBs and enterprises looking for customizable options.

Strong 5G network coverage
Flexible unlimited plan options
Comprehensive security features with ActiveArmor

T-Mobile

9.5

T-Mobile's IoT offerings focus on reliable 5G connectivity and ease of implementation, appealing to SMBs and enterprises seeking straightforward deployment.

T-Mobile offers significant discounts for online purchases
Unique satellite connectivity enhances remote communication
Business plans include extensive Microsoft 365 integration

Vodafone

9.4

Vodafone provides comprehensive IoT solutions with a focus on secure connectivity and data analytics, making it a strong choice for enterprises looking to enhance operational efficiency.

Leading global IoT connectivity and expertise
Integrated security with seamless networking
Real-time data analytics for actionable insights

KORE Wireless

9.3

KORE Wireless offers integrated IoT connectivity solutions that simplify deployment and management, making it a strong choice for enterprises looking to scale their IoT initiatives.

End-to-end IoT solutions
Global connectivity across 190 countries
Comprehensive device management and compliance services

Telefonica (ElevenPaths)

9.3

Telefonica offers robust IoT connectivity solutions with advanced cybersecurity measures, making it suitable for enterprises seeking reliable and secure deployments.

Comprehensive Cloud and Cybersecurity Services
Tailored Solutions with Expert Consultative Approach
Integrated Cyber-Resilience Across Digital Infrastructure

Semtech

9.2

Semtech provides a comprehensive suite of IoT connectivity services, emphasizing device management and data insights, suitable for enterprises looking to streamline operations.

Semtech offers seamless global connectivity with unique Smart SIM technology
Comprehensive IoT solutions integrate both modules and routers effectively
Robust security features ensure end-to-end data protection across devices

Eseye

9.1

Eseye specializes in global IoT connectivity with an emphasis on eSIM orchestration, making it ideal for enterprises needing reliable and scalable solutions.

Unique eSIM orchestration ensuring seamless management
Unmatched global coverage with 800 networks
High customer satisfaction with 94% recommendation rate

Recommendations

SMB buyers

Prioritize solutions with easy deployment and intuitive interfaces. Focus on agentless discovery and automated threat detection capabilities.

Mid-market buyers

Seek solutions that offer a balance of features and cost. Ensure integration with existing security tools and compliance with relevant regulations.

Enterprise buyers

Prioritize solutions with comprehensive device diversity support, pre-built compliance templates, and a clear roadmap for future innovation, including GenAI assistants and Agentic SOC features.

Scoring methodology

The Palomarr scoring methodology evaluates vendors based on their current capabilities and forward-looking innovation. Capability scores are assessed based on technical features, market presence, and customer feedback, while innovation scores reflect investments in emerging technologies and automation.

About this study

This report analyzes leading suppliers in the IoT security space, evaluating capability and innovation scores based on a rigorous assessment of technical capabilities, market presence, and customer feedback. The analysis provides insights into the competitive landscape and actionable recommendations for procurement teams.

FAQs & disclaimers

Can we just use our existing antivirus (EDR) for IoT?

Generally, no. Most IoT devices cannot host an antivirus agent. You need an agentless solution that monitors the network instead.

What is Shadow AI and why should I care?

Shadow AI refers to employees using unapproved AI tools or connecting AI-capable hardware to the network. These incidents cost significantly more per breach.

How do I know if this tool will crash my legacy factory equipment?

Look for vendors that emphasize Passive Monitoring and Non-Intrusive Discovery. These tools listen to existing traffic rather than actively scanning devices.

Is the market moving toward a Unified platform or Best-of-Breed?

The trend is toward Cyber Exposure Management (CTEM) platforms that unify IT, OT, and IoT. Buying separate tools creates siloed information.

Disclaimer: The information contained in this report is for informational purposes only and should not be considered as professional advice. Palomarr makes no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the report or the information, products, services, or related graphics contained in the report for any purpose. Any reliance you place on such information is therefore strictly at your own risk.

Conclusion

The IoT security market is rapidly evolving, with a growing emphasis on automation, AI-driven prioritization, and integration with broader enterprise security ecosystems. Organizations must adopt a proactive approach to IoT security, focusing on comprehensive visibility, continuous monitoring, and automated response capabilities.

By carefully evaluating vendors and prioritizing essential capabilities, procurement teams can mitigate the risks associated with unsecured IoT devices and ensure a secure and resilient digital environment. The future of IoT security lies in the convergence of IT, OT, and IoMT security, with unified platforms providing a holistic view of cyber risk across the organization.

Emerging technologies such as blockchain for decentralized device identity and quantum-resistant encryption will further enhance the security posture of IoT deployments. The rise of the Agentic SOC will also transform the role of security analysts, enabling them to focus on complex, cross-domain threat hunting. Ultimately, success in IoT security requires a collaborative approach, with IT, security, and operational teams working together to implement and maintain a robust security framework.

By adopting a threat-informed design and fostering a culture of collaborative security, organizations can effectively protect their IoT assets and achieve a measurable reduction in organizational risk.

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IoT devices market map and supplier insights Q2 2026

IOT DEVICES

What does the latest IoT devices market report show?

Palomarr Orbit

Palomarr Orbit Shift

Introduction

Market landscape

Key trends

Agentless visibility

AI-driven prioritization

Zero trust micro-segmentation

Cyber exposure management

Competitive analysis

How companies earn their ranking

Rankings

Competitive assessment

Recommendations

SMB buyers

Mid-market buyers

Enterprise buyers

Scoring methodology

About this study

FAQs & disclaimers

Conclusion

Take the deep dive

Read the buyer's guide

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Los Angeles, CA 90094