Industry executives and experts share their predictions for 2026. Read them in this 18th annual VMblog.com series exclusive.
By Siva Sivaraj, VP of Technology and Innovation at ITC Federal
While it’s been impossible to avoid topics like AI and cybersecurity over the past year, there’s one under the radar technology positioned for massive change in 2026-the Internet of Things (IoT).
The mandated transition to IPv6-only networks for most networked assets-80% of networks must transition by the end of FY 2025-will create major change for organizations that utilize network connected devices.
The impact will be especially notable in the federal government and defense communities. For the defense and critical infrastructure sectors, the focus will be on cost-savings and national security applications, while civilian agencies will look to applications like simulators that utilize high-fidelity simulation, massive sensor networks and advanced data analytics.
Moving into 2026, the evolution of the IoT will be defined by its integration with AI, stringent Zero Trust architecture security mandates, and massive IPv6 enabled scaling and adoption in mission-critical areas. Here’s what to keep an eye on in each of these areas.
IoT Convergence with AI and Edge Computing
The high volume of granular IoT data requires fast local processing to achieve real-time feedback. We’ll see a shift toward edge-accelerated IoT architectures-where data processing occurs at a simulator location-and faster routing, thanks to IPv6.
The result will be mission-focused organizations like federal agencies pushing data processing and AI modeling closer to sensors at the edge, so they can execute applications where immediate decision-making is critical.
One impactful example will be predictive maintenance. IoT sensors on simulator hardware stream operational data, enable AI models to predict component failure before it happens and maximize training uptime.
AI-driven predictive maintenance anticipates equipment failures, drastically reducing downtime and replacement costs. The General Services Administration’s smart buildings initiative is an early example, expected to save millions on energy and operations costs.
Zero Trust for Every Device
In 2026, security will continue to shift from a network perimeter to a device and data focus. Every IoT sensor or device will be treated as untrusted and must be continuously verified. High-security organizations like federal agencies will seek solutions that integrate ZTA principles from the start, particularly secure onboarding and granular access control.
IoT devices represent one of the largest security risks to the federal network due to their long lifespans, lack of native security and difficulty patching. The imperative to secure these endpoints is driven by guidelines from government organizations, like CISA and NIST, which are explicitly being updated to incorporate ZTA for IoT. This will drive actions on IoT security solutions to meet the strict ZTA compliance deadlines.
Without a stringent zero trust approach, teams will be at risk for creative, under-the-radar breaches from devices they previously would not have been considered a security risk.
Massive IPv6 Enabled Scaling and Density
The core impact of IPv6 is the virtually unlimited address space, directly eliminating the most significant networking bottleneck for high-fidelity training systems. This monumental scaling will enable agencies to transition from traditional, bulky simulation networks to Massive IoT (m-IoT) architectures within training environments.
This will drive a transition from centralized, high-performance servers, specialized interfaces and proprietary network protocols to decentralized, low-power endpoints, edge processing, and GovCloud back-end.
Legacy simulation-specific, high-cost networks will be retired, and their functionality will be migrated to the secure, scalable m-IoT enterprise platform to achieve the goal of massive cost reduction and operational efficiency. This will create a broad range of use cases including:
- Simulator Density: A single simulator can now host hundreds of unique, directly addressable IoT sensors without complex network address translation that introduces latency and fragility. As a result, organizations can now increase the fidelity and complexity of training scenarios, leading to better prepared personnel.
- Training Range Expansion: The vast address space allows for the creation of persistent, globally routable digital twin environments where every virtual sensor, simulated troop and physical training aid can have its own IP address for seamless data streaming. This means unlimited possibilities, including a zero trust approach applying access controls to every asset based on a unique, persistent identity.
Accelerated Adoption in Mission-Critical Areas
While general adoption may remain cautious, the federal sector will see the most significant and accelerated IoT deployment in the coming year.
In the national security space, IoT is essential for real-time intelligence, surveillance, and reconnaissance and logistics. Across all efficiency-focused organizations, smart or connected buildings and fleet management will be impacted by sensors for monitoring energy consumption, HVAC systems and physical security. GPS IoT devices will be enabled for real-time tracking, route optimization and maintenance of massive federal vehicle fleets.
The potential improvements and outcomes are centered on massive cost reduction, heightened operational efficiency, and achieving ambitious sustainability goals. These possibilities, supported by a mature approach to buying and managing IoT systems and cybersecurity guidance designed for IoT, will create new possibilities as we enter 2026.
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ABOUT THE AUTHOR
Siva Sivaraj is the Vice President of Technology and Innovation at ITC Federal. He leads the design and delivery of innovative, mission-focused solutions that drive cloud modernization, digital transformation, and enterprise architecture initiatives across ITC�s portfolio. With over 20 years of experience, Siva has a proven track record of leading large-scale transformation programs, aligning technology strategies to customer missions, and delivering measurable results for federal agencies and Fortune 500 companies. Before joining ITC Federal, Siva served as Director of Solutions Architecture at CGI Federal, where he led modernization efforts for multiple federal clients. He has also held senior leadership roles at OM Group, Amentum, and Maximus, where he advanced enterprise technology strategies and mission outcomes. He holds an MBA in Project Management from Aspen University and a Bachelor�s in Information Technology from the University of Madras.
