The future of IoT technology: Trends to watch in 2025

British technologist Kevin Ashton first introduced the term "Internet of Things" (IoT) in 1999 while at Procter & Gamble, envisioning a future where everyday objects connect to the internet and exchange data. That vision is now a reality, with IoT reshaping industries through smarter, data-driven decision-making. Industries using IoT devices need to keep up with new trends to stay competitive. As IoT expands worldwide, reliable connectivity is a must. That’s where eSIM technology comes into play, offering flexible, secure, and cost-efficient connectivity across borders without the need for physical SIM cards.

In 2025 and in years to come, IoT will boost automation, improve operations, and open new revenue streams, helping businesses stay competitive by increasing efficiency and cutting costs. But which innovations will define the next phase of IoT growth? In this blog post, we’ll look at seven key trends shaping the industry, from AI-powered analytics to reliable 5G networks, and how they impact businesses managing global communications.

The growing role of IoT solutions in business

IoT is changing how businesses function by connecting devices that collect and share data in real time. This technology helps companies automate tasks, track operations more accurately, and make better decisions, ultimately improving efficiency and innovation. As more businesses adopt IoT, the ability to gather and act on real-time insights is becoming a competitive advantage.

From sensors in factories to smart devices in hospitals, IoT powers a vast network of connected technology. Industries like manufacturing, healthcare, logistics, and agriculture use it to cut costs, boost productivity, and create safer, more responsive systems. With the right IoT solutions, businesses can anticipate problems before they happen and adapt quickly to changing demands.

What powers an effective IoT ecosystem?

IoT solutions rely on strong connectivity, the right hardware, and smart software to communicate, process data, and deliver real-time insights. The key components include:

Reliable connectivity

IoT devices connect through wired or wireless networks like Wi-Fi, Bluetooth, 5G, and LPWAN to enable real-time communication. Reliable connectivity ensures consistent data transmission across different environments. The best network choice depends on factors like range, power use, and data volume.

eSIM technology

eSIMs provide multi-network connectivity, allowing IoT devices to switch between networks for global, uninterrupted coverage. This flexibility is essential for IoT deployments in remote areas or across multiple regions where a single network may not be reliable.

Edge computing

Once data is collected, it is processed locally on the device (edge computing) or in the cloud. Edge computing reduces latency, enabling faster, real-time decision-making for critical applications. Processing data closer to the source also improves speed, security, and efficiency.

Cloud integration and AI

Cloud storage and AI-driven analytics help businesses process and utilize IoT data for automation, predictive maintenance, and smarter operations. These technologies enable scalable data management, allowing businesses to uncover trends, optimize workflows, and proactively address issues before they escalate.

Data security

Since IoT devices are always sharing data, strong security is a must to prevent breaches. Keeping both devices and their data safe from unauthorized access helps maintain a secure and reliable network.

Sensors and actuators

IoT devices use sensors to detect changes in their environment and actuators to respond accordingly. This allows them to gather real-time data and take automated actions, such as adjusting settings or triggering alerts (e.g., optimizing traffic signals or adjusting streetlights for pedestrians).

How IoT is changing the business landscape

The adoption of IoT is accelerating, with businesses across industries integrating connected devices to enhance operations. 2025 IoT growth statistics include:

Global IoT Market Size: $1.06 trillion by 2025

The growing IoT market signals a surge in connected devices across industries. For businesses, this means increased investment in automation, smart infrastructure, and data-driven decision-making. Consumers can expect more seamless, connected experiences in smart homes, healthcare, and everyday devices.

Number of Connected IoT Devices: Over 18 Billion by 2025

With billions of IoT devices in use, businesses must prioritize scalability, connectivity, and cybersecurity to manage vast networks of smart devices. For consumers, this expansion translates to greater convenience—ranging from smart assistants to connected cars and wearable tech.

Industrial IoT (IIoT) Market: $275.70 Billion by 2025

Manufacturing, energy, and logistics sectors are heavily investing in IIoT solutions to enhance productivity, predictive maintenance, and automation. This means businesses can cut costs, reduce downtime, and improve efficiency, while consumers benefit from faster production cycles, smarter supply chains, and reduced product costs.

Healthcare IoT Market: $534.3 Billion by 2025

The rise of remote patient monitoring, smart medical devices, and AI-driven diagnostics will reshape healthcare. Businesses in healthcare will need to invest in secure IoT ecosystems to enhance patient care, while consumers will experience better access to telemedicine, personalized treatment plans, and improved health monitoring through wearables and connected medical devices.

IoT Devices in Use: Over 18 Billion by 2025

As IoT adoption grows across homes, cities, and industries, businesses must prepare for data overload, network infrastructure upgrades, and cybersecurity challenges. Consumers will experience more automation in daily life, from smart appliances adjusting to habits to AI-driven systems enhancing convenience, security, and efficiency.

7 IoT trends in 2025 and beyond

In 2025, IoT will advance through 5G expansion, AI-driven automation, and edge computing, enabling faster, more intelligent networks. Meanwhile, non-terrestrial networks (NTN) and enhanced security protocols will ensure more reliable, scalable, and secure global IoT deployments. Here are a few to look out for in the coming years:

1. Mass adoption of 5G IoT

As 5G networks grow, IoT applications will become more reliable and responsive. Faster speeds and better connectivity will let devices communicate in real-time, which is essential for industries like automotive, healthcare, and smart cities. Self-driving cars will process sensor data instantly, and telemedicine and remote health monitoring will be more effective and accessible worldwide.

2. Edge computing for real-time processing

Edge computing speeds things up by processing data closer to where it's created instead of relying on distant cloud servers. Edge computing is especially useful for industries that require split-second, real-time decisions, like self-driving cars and industrial automation. By handling data on the spot, businesses can work more efficiently, use less bandwidth, and respond quickly for critical operations.

3. AI-powered IoT (AIoT)

The combination of Artificial Intelligence (AI) and IoT, known as AIoT, is creating new opportunities for automation and predictive analytics. AI-powered IoT devices can process large amounts of data, recognize patterns, and make smart decisions on their own. This technology is improving predictive maintenance in manufacturing, streamlining supply chains, optimizing smart energy grids, and enhancing smart homes with more intuitive automation and efficiency.

4. Proliferation of digital twins

Digital twin technology, which creates virtual versions of physical assets, is becoming more popular across industries. Businesses can improve performance, predict issues, and prevent failures by simulating real-world conditions. In healthcare, digital twins of patients can help customize treatments. In logistics, they can make supply chains more efficient.

5. Greater emphasis on IoT security

As IoT networks grow, cybersecurity is more important than ever. Security strategies will focus on strong encryption, secure access protocols, and AI-powered threat detection. With cyber threats becoming more advanced, organizations—especially in healthcare and finance—must strengthen protections to safeguard data and meet regulations.

6. Expansion of non-terrestrial networks (NTN)

Satellite-based IoT connectivity is set to reshape global communication, ensuring devices stay connected even in remote or challenging locations. NTNs will be especially useful for industries like logistics, agriculture, and maritime operations, where traditional networks may not be enough. Businesses can ensure reliable IoT connections worldwide with low-earth orbit (LEO) satellites.

7. Sustainability and energy-efficient IoT

In 2025, sustainability and energy-efficient IoT will be a major focus as businesses work to reduce environmental impact and use resources more wisely. IoT-powered smart grids, energy-efficient sensors, and AI-driven automation will help cut energy waste, boost efficiency, and lower carbon footprints. As industries shift to greener IoT solutions, technologies like low-power wide-area networks (LPWAN) and battery-efficient devices will help support long-term sustainable connectivity.

Industries impacted by IoT applications

As IoT continues to grow, its impact is reaching industries by improving connectivity, automation, and data-driven decision-making. Businesses gain efficiency, cut costs, and find new revenue opportunities but face challenges like cybersecurity risks, infrastructure expenses, and regulatory requirements. The chart below outlines the industries affected by IoT, showing the benefits and demonstrating real-world examples:

IoT type	Industries	Examples	Description	Benefits
Consumer IoT (CIoT)	Consumer electronics, smart homes	Smart speakers, fitness trackers, smart thermostats	Personal smart devices for home automation, wearables, and connected appliances	Convenience, automation, and enhanced user experience
Industrial IoT (IIoT)	Manufacturing, energy, transportation	Predictive maintenance, industrial automation, smart grids	IoT solutions used in industries for automation, predictive maintenance, and efficiency	Operational efficiency, cost savings, predictive maintenance
Enterprise IoT	Business, IT, office automation	Asset tracking, workplace automation, connected security systems	IoT deployments in business settings to improve operations and productivity	Improved productivity, data-driven decision-making, security
Commercial IoT	Retail, healthcare, hospitality	Smart POS systems, inventory tracking, digital signage	IoT in retail, healthcare, and hospitality for inventory tracking, security, and automation	Enhanced customer experience, optimized operations, cost reduction
Smart city IoT	Urban development, government	Smart traffic lights, waste management, environmental monitoring	Urban IoT applications for smart traffic, waste management, and public safety	Improved urban infrastructure, sustainability, efficiency
Agricultural IoT	Agriculture, farming	Soil sensors, automated irrigation, livestock tracking	IoT in farming for precision agriculture, automated irrigation, and livestock monitoring	Increased crop yields, reduced resource consumption, automation
Healthcare IoT (IoMT)	Healthcare, medical technology	Remote patient monitoring, smart medical devices, connected hospitals	Connected medical devices for remote patient monitoring and smart healthcare systems	Better patient outcomes, remote monitoring, proactive healthcare
Automotive IoT (connected vehicles)	Automotive, transportation	Connected cars, fleet management, autonomous vehicles	IoT in vehicles for enhanced safety, fleet management, and autonomous driving	Enhanced safety, reduced traffic congestion, autonomous mobility

Challenges facing the future of IoT

Managing and integrating the massive amounts of data generated by IoT devices is a growing challenge. These connected devices produce huge amounts of unstructured data, making storage, processing, and analysis more complicated. AI can help make sense of this data, but compatibility issues between different platforms often slow progress. Without common standards and open APIs, businesses struggle to connect IoT systems, making it harder to scale and operate efficiently.

Scaling IoT and meeting security regulations bring additional challenges. With IoT expansion worldwide, different platforms need to work together to avoid fragmentation and security risks. At the same time, stricter data privacy rules mean businesses must follow clear policies and use automated compliance tools.

With eSIM APIs, companies can remotely manage devices, switch networks as needed, and maintain secure, compliant connections across different regions. Investing in flexible, secure infrastructure is key to protecting data, building trust, and keeping IoT running smoothly on a global scale.

Preparing for an IoT-enabled future

The future of IoT depends on reliable connectivity, automation, and global scalability. As businesses adopt 5G, AIoT, edge computing, and non-terrestrial networks, flexible and secure connectivity becomes a must. Telnyx’s eSIM API simplifies traditional SIM management, offering multi-network connectivity across 650+ networks, OTA provisioning, and private LTE and 5G support.

Unlike other solutions, Telnyx provides full API-driven control, enabling easy eSIM activation, carrier switching, and data tracking for better cost efficiency and reliability. With built-in security features like private wireless gateways, Telnyx ensures secure and scalable IoT connectivity across industries. Whether managing a global fleet, industrial IoT, or next-gen healthcare, Telnyx keeps your devices connected—anytime, anywhere.