Analyst predictions continue to point up huge growth in the IoT market but it remains a coiled spring in the channel. Here, Pangea Connected Sales Director Bernie McPhillips puts forward compelling arguments that should open the IoT flood gates.
Matching IoT activity in the channel to analyst predictions would release massive pent-up demand for resellers and MSPs – and for that reason IoT growth can only accelerate. By 2027 the global IoT market is expected to hit $1.5 trillion, and as businesses adopt more IoT solutions the need for reliable, resilient, scalable and secure connectivity is skyrocketing, observed McPhillips. “Cellular IoT is positioned to meet this demand,” he stated. “Not to mention the recurring revenue goldmine. IoT can also unlock a host of opportunities to scale businesses into new, lucrative markets resellers may not be operating in.”
But many resellers and MSPs have yet to fully grasp the scope and potential of IoT, particularly when it comes to cellular IoT connectivity. A key reason for this is a fundamental misunderstanding of what IoT entails. “It’s easy to equate IoT with providing connectivity and a router and think that’s where the role ends,” added McPhillips. “This narrow view misses the broader value and potential of cellular IoT as the backbone of transformative solutions. It’s about delivering resilient, secure and flexible connectivity that underpins entire IoT ecosystems.
“Furthermore, cellular connectivity is treated like a commodity service, akin to broadband or mobile voice plans. This mindset undervalues the strategic role cellular plays in enabling IoT use cases such as asset tracking, smart metering or environmental monitoring.”
For IoT to thrive in the channel, resellers must view cellular IoT as more than just a commoditised connectivity layer, it’s the foundation for delivering transformational end-to-end solutions
McPhillips also noted that a lack of awareness about IoT-specific networks is slowing market growth. Low power wide area networks (LPWAN) like NB-IoT and LTE-M are optimised for IoT applications but they are still underutilised, he pointed out. “These networks offer low power consumption and an extended range, making them ideal for IoT solutions,” commented McPhillips. “But many in the channel are either unaware of their capabilities or unsure how to leverage them. Yet these specific cellular technologies are making IoT more accessible and scalable, particularly in industries with tight margins or remote operations. For resellers and MSPs, it opens up new markets with cost-effective solutions that drive sticky recurring revenue.”
IoT is also becoming essential in critical infrastructure sectors like energy, healthcare and public safety because they demand highly reliable, secure and scalable connectivity. “Resellers who can offer cellular IoT solutions tailored to critical infrastructure needs will position themselves as strategic partners in industries where reliability, resilience and security is non-negotiable,” added McPhillips. “Businesses are looking for IoT connectivity solutions that ensure end-to-end encryption and secure data transmission, particularly in industries like finance, healthcare and government. Cellular IoT, with its inherent security advantages over Wi-Fi or other unlicensed spectrum solutions, is well positioned to meet these demands.”
Even so, many resellers and MSPs dismiss IoT as overly complex or only applicable to niche industries. “There’s often a lack of clear entry points into the IoT space when, in reality, something like cellular IoT connectivity can fit seamlessly into existing portfolios and serve current customers well,” added McPhillips. “Resellers just need the right support to seize that opportunity.”
As resellers see real world success stories we expect the pace of adoption to accelerate
Unlocking the full potential of IoT requires a shift from a transactional to a partnership-driven model where collaboration is essential, believes McPhillips. “Providers have a responsibility to educate their partners, not just on the technical aspects of cellular IoT but also on how to position and easily sell these solutions,” he explained. “They should be helping to pinpoint high potential use cases, collaborating on go-to-market strategies, sharing market insights, introducing new solutions tailored to emerging trends, and providing tools for managing and optimising IoT deployments over time.”
Uptake trending
That said, McPhillips is seeing a promising uptake of cellular IoT connectivity in the channel, especially as more resellers and MSPs recognise its potential to drive recurring revenue and differentiate their offerings. “However, the level of adoption varies significantly depending on the vertical and the type of solutions involved,” he added. “In sectors like retail and security, cellular IoT adoption is more advanced. Resellers are increasingly upgrading point-of-sale systems and CCTV cameras with more resilient, secure and flexible connectivity.
“These are practical, easy-to-understand use cases where managed cellular IoT connectivity delivers clear business outcomes, improving operational efficiencies, reducing costs and keeping systems online at all times. As resellers become more familiar with IoT technology and see real world success stories we expect the pace of adoption to accelerate.”
Those resellers and MSPs who have embraced cellular IoT connectivity are creating significant value. This is why McPhillips describes IoT as a ‘gateway’ to long-term recurring revenue. “It’s very sticky, often serving as the backbone of critical operations and tending to integrate deeply into customers’ operations, with exceptionally low churn and lots of value add,” he stated.
It is clear to see that resellers would be wise to view cellular IoT as more than just a commoditised connectivity layer, it’s the foundation for delivering transformational end-to-end solutions. Even better, there is no need to reinvent business models to make the most of the IoT market opportunity. “Many resellers and MSPs are sitting on untapped potential in their current base and with the right approach they can unlock significant value by leveraging cellular IoT,” stated McPhillips. “Cellular connectivity also enables resellers to serve industries where other connectivity options, like Wi-Fi or fixed line, fall short. All these things have resulted in record breaking multiples in the M&A space when IoT revenues are involved.”
Many resellers already serve industries or businesses that are primed for cellular IoT connectivity. For instance, logistics companies likely use some form of fleet or asset tracking, but they could benefit from cellular IoT for real-time, cross-border tracking with no coverage gaps. Retailers might use basic POS systems but could enhance operations with multi-network SIMs that keep systems online and payments flowing no matter what. “By auditing their current customer base resellers can identify businesses where cellular IoT solutions can solve immediate challenges or drive efficiencies,” added McPhillips. “These incremental steps can quickly demonstrate the value of IoT while opening the door to larger, more complex deployments.”