78% expect their IoT estates to grow as security breaches, network sunsets and fragmented connectivity make deployments increasingly complex
GUILDFORD, UK – 24th September, 2026 – IoT connectivity has become a board-level priority for more than three quarters (75.6%) of enterprises as connected technology plays a greater role in customer-facing products and business-critical services, according to new research from global IoT firm Eseye. The survey of 1,200 enterprise IoT decision-makers across the UK and US found that 78% expect their IoT estates to grow over the next 18 months and 66.5% plan to increase IoT investment over the next two years, increasing pressure on enterprises to maintain security, resilience and operational control as deployments become larger, more distributed and increasingly business critical.
The findings, from Eseye’s 2026 State of IoT Adoption Report, highlight the operational challenges enterprises face as their IoT estates expand. Nearly three quarters (74.5%) say managing multiple SIMs and connectivity platforms from different providers is time-consuming, 73.3% report having been subject to an IoT security breach in the past 12 months and 74.3% expect 2G and 3G network shutdowns to impact their business. At the same time, 74.6% say near-100% global connectivity is crucial to their business case.
Poor connectivity is becoming a business risk, not just an IT problem
Those pressures are becoming more significant as connected devices provide data for a growing number of automated and AI-driven processes. Almost a third (29.3%) of enterprises identify an inability to operationalise AI effectively because of a lack of reliable IoT data among the negative consequences or risks associated with limitations in achieving optimal IoT connectivity.
Looking ahead, 31.4% say widespread and effective IoT deployment could improve business decision-making and process automation through access to reliable IoT data. As AI becomes more embedded in business operations, the quality and continuity of data generated by connected devices becomes increasingly important, turning connectivity reliability into a wider data-quality and business-performance issue.
The consequences of connectivity limitations can also extend well beyond the IT team. A quarter (25.5%) of enterprises identify damage to company reputation and customer trust among the negative consequences or risks they face, while 29.33% identify failure to meet regulatory compliance requirements. A further 25.4% point to an inability to gather timely and accurate data because of device downtime, leading to poor business decisions. Together, the findings show why connectivity is increasingly being treated as a strategic business issue with implications for regulatory compliance, customer trust and the quality of business decisions.
SGP.32 accelerates demand for connectivity orchestration
Managing connectivity at scale also puts orchestration in the spotlight. SGP.32 gives enterprises greater flexibility over eSIM profiles and network choice, but 75.4% say self-managing SGP.32 connectivity would be complex and resource-intensive. More than three quarters (78.1%) say a managed SGP.32 network orchestration service that handles ongoing operations on their behalf would be beneficial when choosing an IoT connectivity partner, the highest-rated provider capability tested in the survey. A further 77.8% value having end-to-end IoT services under one roof.
The research suggests that enterprise priorities are shifting from simply connecting devices to managing connectivity as a strategic service. As IoT estates grow, organisations increasingly value providers that can simplify global operations, maintain resilience across networks and automate connectivity management throughout the device lifecycle.
Paul Marshall, Co-Founder and Chief Customer Officer at Eseye, comments: "As IoT deployments scale, enterprises face growing complexity across networks, markets and technologies. Security, network sunsets and the introduction of SGP.32 are giving organisations greater flexibility, but they also increase the operational burden of managing connectivity at scale."
"The research shows that enterprises want strategic control and visibility without having to manage every profile, network and connectivity decision themselves. That's why orchestration is becoming such an important capability in the next phase of IoT adoption."
David Langton, Chief Marketing Officer at Eseye, adds "For many organisations, IoT has reached a tipping point. The challenge is no longer how to connect more devices, but how to do so reliably at scale while turning connected data into meaningful business outcomes. That's why we're seeing connectivity, resilience and orchestration move firmly onto the boardroom agenda."
The research was conducted by Censuswide among 1,200 respondents working at companies employing 500 or more people, split evenly between the UK and US. Fieldwork took place between 9 and 15 June 2026.
Download the full State of IoT Report 2026