2025 is shaping up to be a milestone year for IoT adoption and innovation across industries. From edge computing to smart building optimisation, emerging trends are expected to drive operational efficiency, sustainability initiatives, and entirely new use cases.
We spoke with several leading industry experts, whose insights provide a glimpse into the specifics of IoT advancements in the coming year. Here’s what to expect as the future of IoT unfolds.
Edge computing: The backbone of IoT evolution
For IoT to deliver on its promised potential, overcoming challenges like latency, bandwidth constraints, and real-time processing is vital.
Markus Persson, Global Industry Director, Telecoms at IFS, said: “The promise of IoT has long been heralded, but limitations in network infrastructure have hindered its full realisation. Enter edge computing—a game-changer for IoT deployments.
“By processing data closer to the source rather than relying on distant cloud servers, edge computing reduces latency, conserves bandwidth, and ensures real-time decision-making.”
Edge computing is already making waves in sectors such as smart cities, manufacturing, and telecoms. From enabling efficient traffic management to preventing equipment downtime, this near-instantaneous data processing brings a new level of precision and reliability to IoT systems.
“Many of our customers are at the forefront of this evolution, particularly in the industrial IoT space. By integrating edge computing into their ecosystems, telcos ensure seamless connectivity between sensors, machinery, and analytics platforms,” Persson adds.
“This capability enhances precision, automates decision-making, and minimises downtime, providing the steppingstone to new revenue streams and making edge computing indispensable for modern enterprises.”
Paired with edge computing is a growing commitment to sustainability. With telecom networks becoming denser and consuming increasing amounts of power, Persson highlights the role of IoT and AI in driving energy efficiency and mitigating carbon footprints:
“One approach that will gain further adoption in 2025 is the use of AI and IoT to optimise energy usage. While smart meters and sensors can monitor energy consumption in real-time, AI can identify areas where energy is being wasted and automatically adjust energy use based on demand.”
IoT will deliver a smarter supply chain in 2025
Supply chain management is entering a golden age of new capabilities, with IoT, AI, and digital twin technologies at the forefront.
Sharath Muddaiah, Head of Portfolio Strategy for IoT Solutions at G+D, predicts that these innovations will become indispensable tools by 2025.
“In 2025, the use of digital twin technology will become a standard practice within supply chain management. This is thanks to the proliferation of IoT sensors and application of AI to digital twins, which will enable the dynamic tracking of simulated changes in real-world conditions—providing a powerful tool for predictive analytics and risk management on demand.”
Muddaiah also highlights the increasing use of smart labels in industries such as retail, shipping, and insurance.
“2025 will also see a marked uptake in the use of smart labels. Reduction in the cost of smart labels, combined with improvements to the technology within such labels, will drive this trend,” explains Muddaiah.
“Additionally, the continued battle for retailers in the rise of ‘non-delivery fraud’ will see demand for smart labels increase in the consumer sector for high-value goods.”
Ever-increasing cybersecurity risk
With billions of connected devices projected to generate over $720 billion in global spending by 2030, IoT devices represent an increasingly appetising target for cybercriminals.
According to Mark Jow, Technical Evangelist for EMEA at Gigamon, the time for businesses to address this looming threat is now.
“The rate at which IoT devices are proliferating is increasing … creating a perfect storm for cyberattacks. Many of these devices at the edge are vulnerable, whether they are manufacturing devices, servers or process control boxes, as you cannot put normal defence mechanisms such as NDRs or EDRs on them.”
Concerningly, Jow warns that IoT security remains among the lowest priorities for firms.
“Alarmingly, IoT security ranks as one of the lowest priorities for security leaders, with just 36% claiming it as one of their top three concerns,” he notes.
As regulatory bodies introduce stricter IoT cybersecurity standards, businesses will need to rethink their approach to visibility and threat mitigation across sprawling device networks.
Smarter buildings, smarter workplaces
IoT’s ability to optimise energy use extends far beyond telecoms. Colm Nee, CTO of Enlighted, anticipates a surge in the deployment of AI-enabled IoT sensors in commercial office buildings.
“I predict that in 2025, more buildings will use AI to optimise space and spending on energy, the single largest operating expense in commercial office buildings. AI-enabled IoT sensors installed in buildings can generate – continuously and passively – data on room temperature, energy use, and the movement of employees and assets.”
This newfound insight will bring tangible savings, as businesses adopt automated systems that improve efficiency and sustainability:
“Next year, more companies will tap into this smart sensor data to reduce energy consumption by, for example, automatically adjusting temperature controls to cool a conference room only when it has more than six people meeting in it, and automatically turn off lights after everyone leaves it,” adds Nee.
These systems support sustainable practices while also contributing to better employee experiences and cost reductions.
Mesh networks connecting remote sensors
Peter Morales, CEO of Code Metal, sees mesh networking playing a transformative role in connecting the most remote sensors to IoT ecosystems by 2025.
“With the proliferation of Starlink, 5G, and LTE-enabled edge devices, we anticipate a rise in remote sensors that can relay AI-processed insights through low-powered mesh networks.
“These systems will enable high-bandwidth sensor data – like video – to be summarised locally, allowing even isolated sensors to extend their range and send key insights through a network of connected nodes.”
Such advancements in networking will be integral for applications like environmental monitoring, disaster management, and wildlife tracking.
AR, VR, and human augmentation
Caroline Monfrais, Europe Consulting Head at Wipro, envisions a pivotal role for AR and VR in transforming industries such as gaming, education, and remote work.
“In gaming, AR and VR will push the envelope of immersive gameplay, creating environments where players can physically interact with digital worlds in a way that deeply enhances the sense of presence and engagement.”
Education, too, stands to benefit, as students gain access to immersive learning experiences.
“Imagine history classes where students can virtually visit ancient civilisations, or science lessons where complex biological processes are explored from the inside,” adds Monfrais.
In work environments, AR and VR will break down geographic barriers, enabling teams to collaborate virtually as if they were in the same room.
Beyond AR and VR, Kiran Desai, Global Head: Cloud & Infrastructure at Wipro, highlights the opportunities presented by generative AI, autonomous systems, and brain-computer interfaces.
“These advancements will redefine operational capabilities, user interactions, and overall business landscapes. Businesses that embrace AI-driven personalisation, autonomous services, and advanced human-machine interfaces can create unique value propositions, setting themselves apart from competitors.”
IoT will remain a linchpin of digital transformation in 2025
While challenges such as cybersecurity vulnerabilities and regulatory hurdles remain, IoT will remain a linchpin of digital transformation in 2025.
With innovations spanning edge computing, smart sensors, digital twins, AR/VR, and mesh networking, organisations have never been so richly equipped to meet emerging challenges and pursue new opportunities.
As the sector progresses, stakeholders will need to increase adoption with foresight, integrating sustainability into operational strategies and investing in talent to harness the IoT’s transformative potential.
See also: Future of IoT connectivity: The role of 4G, 5G, and private networks
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