VC funding for IoT firms has fluctuated significantly in recent years, both in investment size and deal volume. As a result, companies are increasingly being guided toward M&A opportunities to support growth and liquidity. During the first three quarters of 2026, the median VC investment reached $4.7 million. 

IoT M&A activity reached 270 transactions through Q3 2026, representing a 12% increase compared to the same period in 2025.  At that pace, M&A deal volume is expected to reach up north of 360 deals by the end of the year. Private Equity firms remained active in this market, accounting for the buyers in 21% of these transactions.  

Disclosed IoT deal values totaled $46.2B during the first nine months of 2026, exceeding the annual total for 2025. Only 29% of M&A transactions disclosed financial terms as buyers preferred to keep their M&A strategies private. 

Ondas led IoT M&A activity through Q3 2026, announcing 5 acquisitions, followed by Accenture with 3 deals. Five Private Equity firms — TA Associates, EQT, Main Capital Partners, Standard Capital Partners, and Montagu Private Equity each announced 2 transactions. Strategic buyers also remained active, with Mitsubishi Electric, Motorola Solutions, BiomX, dormakaba, Precise Biometrics, and Durst Group each announcing 2 deals.