In a world where technological advancements are accelerating at a rapid pace, businesses remain sensible about real-world gains. Enterprises are enthusiastic about deploying new technologies, but it’s up to vendors to show how their solutions meet their most urgent priorities. ABI Research has identified 13 key technology trends for 2026 to help the sector navigate the next wave of innovation.
In 2026, the pace of digital transformation will continue to accelerate, although not at an explosive rate. With Artificial Intelligence (AI) solutions increasingly being integrated into enterprise systems, computing requirements are shifting. In the connectivity space, 6G deployments are ramping up and novel use cases are emerging. For the cybersecurity industry, compliance and changing customer attitudes are dictating product strategy.
Our analysts see 2026 as mostly being a year of gradual modernization. The hope of visionary technologies has been replaced by the need for solutions that offer quick wins and solve immediate challenges.
In this article, ABI Research’s global analyst team identifies the top 13 technology trends we expect to shape 2026 across Artificial Intelligence, Cloud and Connectivity, and Security and Digital Trust. These latest developments are an amalgamation of analyst conversations, internal forecasts, and vendor activity.
Table of Contents:
Artificial Intelligence
1. Open Standards Will Reshape AI Data Centers
In 2026, open standards for AI infrastructure will become foundational to modern data center design. Interoperable frameworks like the Open Compute Project and Ultra Accelerator Link are making it easier to assemble modular AI clusters using best-in-class components from multiple vendors. ABI Research Senior Analyst Paul Schell tells us, “Such standards are important for building the next generation of AI data centers because they dismantle proprietary ecosystems and foster a more competitive environment.”
What This Means for Tech Vendors: This trend reflects the need for tech vendors to align their AI solutions with open ecosystems. Success will depend on compatibility with shared standards, especially in networking and interconnect layers. Those who ignore this shift risk being excluded from the next generation of AI customers.
2. Manufacturers Will Accelerate AI Implementation or Fall Behind
Manufacturers that delay AI initiatives will face growing pressure in 2026. Predictive maintenance will remain the top use case, but verticals like automotive and aerospace are moving faster toward AI-driven process optimization using digital twins. Process industries such as chemicals, pharma, and food & beverage will also increasingly deploy AI tools to avoid quality issues.
“The year 2026 will be when manufacturers that have not commenced Artificial Intelligence (AI)-based projects to solve operational challenges in a meaningful way will realize they are at risk of falling behind competitors.”—Michael Larner, Distinguished Analyst
What This Means for Tech Vendors: Vendors targeting the industrial sector must show a clear path to value. Solutions that blend AI with domain-specific insights, like predictive analytics and simulation, will outperform generic platforms.
3. Agentic AI Will Stay in Pilot Mode
While Agentic AI remains a promising concept, ABI Research expects real-world adoption to be limited in 2026. For example, the telecommunications sector is only beginning to trial Agentic AI for Radio Access Network (RAN) automation. On the industrial front, manufacturers will experiment with agents that recommend actions like scheduling downtime. However, companies will steer clear of full autonomy in high-risk environments.
What This Means for Tech Vendors: Focus on embedding smart Agentic AI assistants in low-risk, repeatable tasks. Technology suppliers should target enhancements to existing design and simulation tools, rather than full workflow autonomy. Trust, compliance, and transparency will be critical to mass adoption.
4. Physical AI Will See a Surge in Productization
Physical AI, including robotics supported by AI edge processing, will accelerate in 2026. Partnerships between robotics startups and major System Integrators (SIs) are creating market-ready solutions for greenfield verticals like life science, hospitality, retail, and healthcare. New approaches in training data generation and cloud-based model development will reduce time to market.
What This Means for Tech Vendors: Vendors in edge AI, synthetic data, and robotic platforms should expect more deal flow. Integrators will seek hardware and software solutions that are scalable, data-efficient, and tailored to specific verticals.
Cloud and Connectivity
5. 6G Will Be Framed Around Practical Use Cases, Not Hype
As 6G enters early development, the telecom industry will take a measured approach. After unmet expectations with 5G, vendors and operators will promote 6G as a gradual evolution with practical enhancements. Senior Research Director Dimitris Mavrakis says that the first experiments “will be more about using hybrid models that combine 5G-Advanced with select elements of 6G technology, such as integrated sensing and AI-driven orchestration, and targeting a specific niche market of industrial automation and immersive Extended Reality (XR) applications.”
What This Means for Tech Vendors: Winning enterprise customers in the 6G era will hinge on credibility. Vendors and Mobile Network Operators (MNOs) must avoid overpromising and instead show targeted use cases for niche workflows. Demonstrating Return on Investment (ROI) through early 6G deployments will carry more weight than vague “transformation” promises.
6. Cloud Sovereignty Will Be a Differentiator in Enterprise Deals
In 2026, enterprises will move beyond basic data residency to demand full transparency and control across their cloud stack. This shift toward sovereignty is driven by regulatory uncertainty, geopolitical tension, and the need to mitigate platform risk. According to Principal Analyst Leo Gergs, “Enterprises will increasingly evaluate clouds on transparency, control, and supply chain clarity. This will favor providers like STACKIT or NextGen Cloud that deliver open compute, predictable economics, and contractual guarantees against unilateral platform changes.”
What This Means for Tech Vendors: Vendors that offer sovereign-ready solutions will gain customer trust. Partnering with regional cloud providers, supporting open compute, and offering modular licensing will be vital to client acquisition.
7. New AI-First Neoclouds Will Stall in Western Markets
The neocloud market saw significant momentum in 2025 as enterprises seek cloud service providers that can support sovereign AI, specific use cases, and regional compliance. However, ABI Research anticipates saturation in North America and Europe in 2026. This trend stems from high infrastructure costs, utilization challenges, and increased price competition—all slowing the addition of newcomers. With no strong business case for new neocloud launches, attention will turn to platform differentiation and customer retention.
What This Means for Tech Vendors: There is still room for neoclouds to grow through superior inference platforms and training tools, but market consolidation is coming. Engaging with the enterprise domain should be a key priority for neocloud providers as they aim to scale.
8. LEO Satellites Will Redefine In-Flight Wi-Fi
Airlines will roll out in-flight Wi-Fi powered by Low Earth Orbit (LEO) satellites at scale. Unlike technically constrained legacy systems, LEO backhaul provides high-speed, low-latency connections that transform the passenger experience. Early adopters like Hawaiian Airlines have proven the model works. Other airliners, notably British Airways, are following suit in 2026.
What This Means for Tech Vendors: Vendors in the wireless and satellite markets should move quickly to support these rollouts. Opportunities will emerge in network integration, passenger services, and customer analytics. Airlines will look for technology partners that can help turn connectivity into brand loyalty and revenue generation.
9. LTE Will Remain Dominant in IoT, Despite 5G Growth
Even as wireless carriers sunset Long Term Evolution (LTE) and chipmakers shift to 5G, LTE will account for 93% of all cellular Internet of Things (IoT) module shipments in 2026. In fact, this trend will sustain through 2030, when its market share will still be an impressive 76%. LTE strikes a good balance between cost, performance, and power efficiency. 5G, on the other hand, is deemed overkill and/or inadequate for most IoT applications today.
“Baseband modem semiconductor manufacturers Qualcomm and MediaTek have long stopped LTE development, switching all efforts to 5G. But despite this foundational shift—from the silicon all the way to the network—the IoT will only increase its dependence on LTE; and not on LTE as a fallback technology, but as the only, or highest-level technology.”—Dan Shey, VP, Enabling Platforms
What This Means for Tech Vendors: Semiconductors and Original Equipment Manufacturers (OEMs) should refrain from abandoning LTE-based IoT solutions prematurely. Support for Cat-1bis will be essential, especially in price-sensitive verticals. Until Reduced Capability (RedCap) and enhanced Reduced Capability (eRedCap) costs drop, LTE will continue to reign supreme.
Security and Digital Trust
10. CRA Compliance Will Drive Embedded Security Investment
By September 2026, manufacturers will be required to report product vulnerabilities under the European Union (EU) Cyber Resilience Act (CRA). Full compliance will follow by the end of 2027. This regulatory push will force device makers to embed security earlier in the product lifecycle, including risk modeling, threat analysis, and ongoing updates.
What This Means for Tech Vendors: Cybersecurity companies offering secure components and lifecycle security services will experience increased customer demand. Those that can support secure boot, encrypted storage, attestation, and vulnerability reporting will be critical partners for OEMs navigating compliance.
11. Physical Credentials Will Remain Central to Government ID Programs
It is clear that digital-first identity systems are unlikely to become standard. Most governments will still rely heavily on physical credentials through 2026. Physical documents, such as diver’s licenses and passports, have long life spans. Physical security is already a proven technology, making it essential for continued trust and accessibility in the wake of ever-more sophisticated attack methods. ABI Research cybersecurity analysts view mobile ID as more of a companion to physical credentials.
What This Means for Tech Vendors: Technology providers in printing, secure materials, and document personalization should continue focusing on physical ID technology. Innovation opportunities abound in updating physical security elements and supporting hybrid ID ecosystems that blend physical and digital formats.
12. The Biometric Payment Card Will Fade into a Niche Showcase
Interest in biometric payment cards has waned due to high costs and complex onboarding. Zwipe’s bankruptcy in March 2025 is emblematic of this latest trend. To extract returns from their prior investments in biometrics, digital payment providers are pivoting to other markets like secure access and cold wallets. Going forward, the technology will shift from mainstream ambition to specialty use cases, with fewer launches expected in 2026.
What This Means for Tech Vendors: It is time to reassess messaging around biometric payment cards. Vendors should treat the technology as a brand positioning tool, rather than a mass-market opportunity. Research Director Phil Sealy says that “Rather than being viewed as a next-generation innovative card technology for the masses, it (biometrics) will act as a vendor showcase, used as an example of technological capabilities and leadership.”
13. Supply Chain Cyberattacks Will Increase in Scope and Severity
Supply chains saw a huge uptick in cyberattacks in 2025, with the year 2026 expected to see more frequent and expensive attacks. According to Verizon’s 2025 Data Breach Investigations Report, third-party vulnerabilities now account for 30% of all data breaches. Connected cloud platforms are a clear security liability right now, compounding the impact of a breach.
At the same time, ABI Research survey results indicate that roughly 87% of supply chain leaders have either implemented public cloud infrastructure or are evaluating suppliers. This will elevate the risks tied to shared software platforms.
What This Means for Tech Vendors: There is a growing prioritization of third-party risk tools, Software Bill of Materials (SBOM) management, and endpoint protection across both Information Technology (IT) and Operational Technology (OT) environments. Offering end-to-end visibility into digital supply chains will be a key differentiator in winning enterprise trust.
Learn More
The year 2026 will not be defined by hype cycles, but by pragmatic moves that position technology vendors for long-term growth. From strengthening digital sovereignty to monetizing AI in data centers and industrial plants, success will hinge on clear operational value, regulatory foresight, and trusted ecosystems.
ABI Research will continue tracking how these trends evolve in the future and advising our clients on how to turn disruption into opportunity. For further analyst expectations, download our free whitepaper, 62 Technology Trends That Will—and Won’t—Shape 2026.
Frequently Asked Questions
What are the most important technology trends in 2026?
The most important technology trends in 2026 include practical AI adoption, open standards in data centers, cloud sovereignty, evolving connectivity models like 6G, and increasing cybersecurity regulation. These trends emphasize real-world value over experimentation.
Why do technology trends matter for businesses in 2026?
Technology trends help businesses prioritize investments, manage risk, and stay competitive. In 2026, organizations must focus on solutions that deliver measurable ROI, regulatory compliance, and operational efficiency.
How are technology trends in 2026 different from previous years?
Unlike earlier years driven by hype, technology trends in 2026 are defined by gradual modernization and deployment at scale. Enterprises are favoring proven technologies that solve immediate challenges, rather than speculative innovation.
Which industries are most affected by technology trends in 2026?
Manufacturing, telecommunications, cloud services, cybersecurity, and supply chain are among the industries most impacted. AI integration, connectivity upgrades, and security compliance are reshaping product strategy and buyer behavior across these sectors.