IoT and IPv4: Addressing 75 Billion Devices When Addresses Are Scarce
Industry forecasts project tens of billions of connected devices. Yet the entire IPv4 address space holds only 4.3 billion addresses. How do IoT deployments handle this math? The answer reveals where address demand actually comes from—and why it matters for holders considering leasing their space.
The Addressing Reality
Here’s what doesn’t happen: each IoT sensor getting its own public IPv4 address. The numbers simply don’t work, and it’s not necessary for most use cases anyway.
What actually happens:
Private addressing: The vast majority of IoT devices receive private addresses (10.x, 172.16-31.x, 192.168.x) and sit behind NAT. A factory floor with 10,000 sensors might use a handful of public addresses for its gateway infrastructure.
IPv6 where possible: Many IoT deployments use IPv6 end-to-end, particularly in greenfield installations and mobile networks. This avoids the IPv4 constraint entirely.
Shared pools: Cellular IoT often uses carrier-grade NAT, with thousands of devices sharing a relatively small pool of public addresses.
The devices themselves don’t create public IPv4 demand. The demand comes from what serves them.
Where the Real Demand Is
IoT-driven address demand concentrates in the service layer:
Backend platforms: Every IoT deployment needs servers to receive data, run analytics, and serve applications. These platforms need public addresses for connectivity.
API endpoints: Devices may sit behind NAT, but they need somewhere to send data. Public-facing APIs require public addresses.
Edge infrastructure: Gateways, concentrators, and edge compute nodes often need direct public connectivity for management and data aggregation.
Connectivity providers: Companies offering IoT connectivity services—whether cellular, satellite, or LoRaWAN—need address space for their infrastructure.
So while the 75 billion device projection doesn’t translate to 75 billion addresses needed, it does translate to substantial infrastructure growth—and that infrastructure needs addresses.
What This Means for Address Holders
If you hold IPv4 blocks you’re not fully using, IoT-related businesses represent growing demand for leased space:
Platform companies building IoT backends for specific industries (agriculture, manufacturing, logistics) need addresses for their services.
Connectivity providers building out IoT network infrastructure need public addresses for gateways and management.
Enterprises deploying large-scale IoT internally may need additional addresses beyond their existing allocations.
Our lease-out guide covers listing your space, structuring agreements, and managing ongoing relationships. IoT-related demand typically wants stable, longer-term arrangements—which can mean predictable revenue for holders.
Assessing Your Opportunity
If you’re considering leasing to this market:
Inventory your space. What do you actually use versus what’s allocated but idle? Even a /24 has value in today’s market.
Understand the demand profile. IoT service providers typically need /24 to /20 blocks, prefer longer terms, and care about address reputation for deliverability.
Consider your timeline. Are you holding for future internal use, or is this space genuinely surplus? Leasing commits you to availability for the contract period.
Review your RIR’s rules. Transfer and usage policies vary by region. Our lease-out guide covers the basics across major RIRs.
The Bottom Line
IoT’s billions of devices don’t each need an IPv4 address—but the platforms, services, and infrastructure supporting them do. This creates sustained demand for public address space at the enterprise level.
For holders with unused allocations, IoT-related businesses represent a growing source of legitimate lease demand. The space is in use; you receive recurring revenue; and the addresses serve real infrastructure rather than sitting idle in a registry database.