IoT Testing Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The report covers Global Internet of Things (IoT) Testing Services Market Size & Outlook. The market is segmented by Service Type (Professional, Managed), Testing Type (Functional Testing, Performance Testing, Network Testing, Compatibility Testing, Usability Testing, Security Testing), End-user Industry (Retail, Manufacturing, Healthcare, Energy, and Utilities, IT & Telecom), and Geography (North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa). The market size and forecasts are provided in terms of value (USD) for all the above segments.

IoT Testing Market Size

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IoT Testing Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
CAGR 32.34 %
Fastest Growing Market Asia-Pacific
Largest Market North America
Market Concentration Medium

Major Players

IoT Testing Market Major Players

*Disclaimer: Major Players sorted in no particular order


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IoT Testing Market Analysis

The IoT Testing market is expected to register a CAGR of 32.34% over the forecast period. The market is anticipated to expand faster during the forecast period due to the increased usage of various testing tools for various applications as a result of IoT testing employing innovative technology.

  • Due to the increasing adoption of smartphones and mobile devices, coupled with the growing internet penetration, the evolution of IoT has witnessed immense growth in recent years. The same factor is expected to continue driving the demand for IoT solutions in the future as well. The rise in these devices leads to increased data being generated.
  • IoT testing tools are widely used for open-source applications and to help monitor the traffic between the sender and the receiver. Hence, IoT testing tools, along with IoT solutions, are likely to become a significant factor in driving the market demand.
  • Moreover, IoT testing services play a vital role in testing smart components and IoT applications to offer end users superior quality experiences and services. IoT testing involves real-time intelligence and communication to ensure perfect harmony between hardware and software throughout the connected network.
  • The increased deployment of microservices is primarily driving the market for IoT testing. The growing need for DevOps to improve an organization's capacity to provide apps and services at a high velocity compared to conventional software development is also accelerating the market's expansion.
  • In addition, the increasing use of ingress protection (IP) testing for improved IoT devices and the growing consumer awareness of the many advantages offered by IoT testing, such as network security, the usability of connected devices, connectivity, system performance overall, etc., are significant growth-inducing factors.
  • However, as the IoT ecosystem expands, it will likely face problems scaling the testing process. With microservices test automation in IoT, the complexity of testing a massive architecture is expected to reduce, as each microservice can be tested as a separate process. Utilizing microservices for IoT testing also offers the benefits of testing the IoT system's extensibility, scalability, and integrations.
  • The growing demand for IoT during the pandemic increased the opportunities for the growth of the IoT testing market. Owing to the outbreak of COVID-19, the global supply chain and demand for multiple products have experienced disruption. The IoT adoption was significantly affected until the end of 2020. In later stages, the implementation of IoT technologies in healthcare during the epidemic for better information coordination and real-time patient monitoring significantly boosted the recovery of the IoT testing industry.

IoT Testing Market Trends

The Growing Number of IoT Devices may Drive the Market Growth

  • The growing demand for IoT devices has boosted the requirement for effective testing services. Before a product is released onto the market, it is essential to assess its quality since even a small defect might significantly impact both the consumers and the company.
  • For example, according to Ericsson's report, in 2022, the total IoT connections were reported to be valued at around 13.2 billion. These technologies enabled a significant increase in the number of connected devices in 2021, projected to reach about 500 million by the end of 2022. Increased network capabilities promote the development of Massive IoT technologies by enabling spectrum sharing between Massive IoT and 4G and 5G in FDD bands.
  • Managed IoT testing service providers see emerging technology as a significant business opportunity for the next few years. Among managed IoT testing services, security testing will have a more substantial market share than other testing services.
  • The increasing adoption of smart city concepts has evolved the great potential of IoT in energy and utilities, waste management, and infrastructure. The investment in IoT-enabled infrastructure is expected to accentuate the demand for security testing services for those assets, which may further foster the demand for managed services in these sectors.
  • Moreover, smart devices and IoT in the retail sector help companies enhance the customer experience to drive more conversions, altering the day-to-day store operations and increasing the managed services in this sector.
  • This encourages many companies operating in the manufacturing, healthcare, or government sectors to subscribe to security services instead of additionally investing in acquiring the hardware and software required to establish a security system.
IoT Testing Market : loT Connections, Value in Billion, By Segments, Global, 2022-2028

North America Occupies the Largest Market Share

  • By geography, the North American region is anticipated to hold a significant share, thereby dominating the IoT testing market. The region has substantial dominance over sustainable and well-established economies, empowering them to actively invest in R&D activities. Thus, it contributes to developing new technologies, such as IoT, Big Data, DevOps, and mobility.
  • With rising consumers embracing the smart home environment in the United States, IoT is further expanding across the North American region. According to a study by Stanford University researchers, around 66% of North American households possess at least one IoT device, more than a quarter of the global average of 40%. Although these technologies are increasingly on the radar of hackers, the level of security of these smart homes has also been amplified. The increased adoption of IoT impacted the growth of the testing services market extensively.
  • Moreover, organizations are keen to incorporate IoT technologies into their processes, which is expected to boost the IoT testing market's growth significantly. For instance, in October 2022, the Biden administration produced an information sheet on measures to improve and protect United States cybersecurity, including developing a cybersecurity standards label for IoT devices.
  • Further, the market is growing in the region due to expanding IoT systems, testing technologies, and applications for smart, connected devices. The need for IoT testing solutions is driven by the region's significant technological advancements and demand for 5G IoT across all business sectors.
  • The availability of highly reliable Internet access and the quick adoption of interconnected devices in manufacturing industries also contribute to the market's growth. Significant R&D expenditures are being made to enhance the necessary network connectivity infrastructure and IoT testing technologies & services, which support the region's market shares.
  • Further, several IoT testing service providers across the region have emerged in the market, providing various managed or professional services, such as compatibility testing, pilot testing, regulatory testing, and upgrade testing.
loT Testing Market - Growth Rate by Region

IoT Testing Industry Overview

The IoT testing market is moderately competitive and consists of several significant players. Some players currently dominating the market in terms of market share include Novacoast, Inc., Keysight Technologies, Inc., Praetorian Security, Inc., AFour Technologies Pvt. Ltd. (ACL Digital), and Apica Systems. However, the IoT testing solution providers are focusing on creating a point of difference among their competitors to sustain the global market's competitive landscape. Several players are expanding their offerings through investments in new product development backed by research and development spending.

 In January 2023, Happiest Minds Technologies Limited announced the signing of formal agreements to purchase 100% of SMI, a prominent IT services firm with headquarters in Madurai, India, for a total consideration of upfront and deferred equity consideration of INR 111 crores (USD 13.5 million). SMI has 400+ offshore workers and an annual sales run rate of about USD 9 Million. 

In December 2022, ACL Digital, a player in design-driven engineering services, solutions, and digital transformation, declared the acquisition of AFour Technologies. ACL Digitala 's product engineering and digital solutions are strengthened by this purchase of the AFour Technologies company, and it will be able to speed up its clients' journeys toward digital transformation.

IoT Testing Market Leaders

  1. Novacoast, Inc.

  2. Keysight Technologies, Inc.

  3. Praetorian Security, Inc.

  4. Apica Systems

  5. AFour Technologies Pvt. Ltd. (ACL Digital)

*Disclaimer: Major Players sorted in no particular order

IoT Testing Market Concentration
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IoT Testing Market News

  • January 2023: Cognizant, a prominent IT services company, agreed to acquire Mobica, a supplier of IoT software engineering services with its headquarters in Manchester, United Kingdom. Mobica's services include the whole software development lifecycle, focusing on customers' strategic internal research and development initiatives and core expertise in various domains, including testing. The purchase considerably broadens Cognizant's expertise in IoT-embedded software engineering and offers clients a broader range of end-to-end assistance to facilitate digital transformation.
  • April 2022: ACL Digital, a provider of design-led digital experience, product innovation, solutions, and consulting services, announced the acquisition of VOLANSYS, a player in digital transformation and product realization. With this purchase, ACL Digital broadens its portfolio of services. Also, it solidifies its position as a full-service supplier in the fields of product engineering, digital transformation, and the internet of things, including IoT testing.

IoT Testing Market Report - Table of Contents


    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study




    1. 4.1 Market Overview

    2. 4.2 Industry Value Chain Analysis

    3. 4.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.3.1 Bargaining Power of Suppliers

      2. 4.3.2 Bargaining Power of Consumers

      3. 4.3.3 Threat of New Entrants

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

    4. 4.4 Assessment of the Impact of COVID-19 on the Market


    1. 5.1 Market Drivers

      1. 5.1.1 Increase in Security Concerns in IOT Devices

      2. 5.1.2 The Growing Number of IOT Devices

    2. 5.2 Market Restraints

      1. 5.2.1 Rising Complexity of IOT Devices

      2. 5.2.2 Shortage of Uniform Standards for Interoperability and Interconnection

    3. 5.3 Discussion on Various Types of IOT Testing (Data Integrity Testing, Functional Testing, Security Testing, Performance Testing, Usability Testing, Reliability & Scalability Testing)


    1. 6.1 By Service Type

      1. 6.1.1 Professional

      2. 6.1.2 Managed

    2. 6.2 By Testing Type

      1. 6.2.1 Functional Testing

      2. 6.2.2 Performance Testing

      3. 6.2.3 Network Testing

      4. 6.2.4 Compatibility Testing

      5. 6.2.5 Usability Testing

      6. 6.2.6 Security Testing

    3. 6.3 End-user Industry

      1. 6.3.1 Retail

      2. 6.3.2 Manufacturing

      3. 6.3.3 Healthcare

      4. 6.3.4 Energy and Utilities

      5. 6.3.5 IT & Telecom

      6. 6.3.6 Other End-user Industries

    4. 6.4 Geography

      1. 6.4.1 North America

      2. 6.4.2 Europe

      3. 6.4.3 Asia-Pacific

      4. 6.4.4 Latin America

      5. 6.4.5 Middle East and Africa


    1. 7.1 Company Profiles

      1. 7.1.1 IBM Corporation

      2. 7.1.2 Apica Systems

      3. 7.1.3 AFour Technologies Pvt. Ltd. (ACL Digital)

      4. 7.1.4 Happiest Minds Technologies Pvt. Ltd

      5. 7.1.5 Qualitest Group

      6. 7.1.6 Praetorian Security, Inc.

      7. 7.1.7 Saksoft Limited

      8. 7.1.8 Keysight Technologies, Inc.

      9. 7.1.9 Novacoast, Inc.

      10. 7.1.10 Trustwave Holdings Inc. (Singtel)

      11. 7.1.11 HCL Technologies Limited

    2. *List Not Exhaustive


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IoT Testing Industry Segmentation

IoT testing can be defined as a procedure that includes running an IoT solution through a number of tests to make sure it is prepared for practical applications. The market for the study defines the revenues generated from the sales of IoT testing services across various end-users, including retail, manufacturing, healthcare, energy and utilities, IT & telecom. The market also covers the major factors impacting the growth of the IoT testing market in terms of drivers and restraints.

The IoT Testing Market is segmented by Service Type (Professional, Managed), Testing Type (Functional Testing, Performance Testing, Network Testing, Compatibility Testing, Usability Testing, Security Testing), End-user Industry (Retail, Manufacturing, Healthcare, Energy and Utilities, IT & Telecom), and Geography (North America, Europe, Asia Pacific, Latin America, and Middle East & Africa). The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.

By Service Type
By Testing Type
Functional Testing
Performance Testing
Network Testing
Compatibility Testing
Usability Testing
Security Testing
End-user Industry
Energy and Utilities
IT & Telecom
Other End-user Industries
North America
Latin America
Middle East and Africa
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IoT Testing Market Research FAQs

The IoT Testing Market is projected to register a CAGR of 32.34% during the forecast period (2024-2029)

Novacoast, Inc., Keysight Technologies, Inc., Praetorian Security, Inc., Apica Systems and AFour Technologies Pvt. Ltd. (ACL Digital) are the major companies operating in the IoT Testing Market.

Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).

In 2024, the North America accounts for the largest market share in IoT Testing Market.

The report covers the IoT Testing Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the IoT Testing Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

IoT Testing Industry Report

Statistics for the 2023 IoT Testing market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. IoT Testing analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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IoT Testing Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)