Future of IoT Technology: 8 Trends for Businesses to Watch in 2025

The Internet of Things (IoT) technology is on an upward trajectory, with industries pushing its limits so relentlessly and quickly that it is becoming a challenge to keep up. The reasons behind this growth are varied, with three most obviously leading the charge: demand for real-time remote monitoring (for instance, in healthcare), the widespread adoption of smart payment systems (in digital banking), and the urgent need for robust digital infrastructures across industries.

MobiDev has been assisting businesses in their technology implementation endeavors since 2009. Years of expertise that we put into practice help companies unlock the full potential of IoT. In this article, we will share our observations and predictions as to what businesses can expect from IoT in 2025.

Trend #1: AIoT – Intelligent IoT Technology Systems

Artificial Intelligence (AI) and IoT come together in powerful synergy. When implemented effectively, they can upgrade business processes that are vital for every company but are also time-consuming. Yes, we mean gathering, interpreting, and following up on vital insights swiftly. At first, it seems like a perfect combination: IoT collects data, the IoT sensors feed the ML data pipeline, and AI delivers analysis-driven discernment. However, the success of algorithms depends on the quality of the data they’re being fed. So, a robust IoT sensor integration is crucial when it comes to AI app development.

Why it matters: AI’s input in IoT is simple yet significant — it transforms raw IoT data into actionable insights. ML algorithms enhance decision-making through predictive analytics. For orgs, it’s a chance to finally capitalize on tons of information they’ve collected over the years. This is one of the AI trends that will accelerate business growth across domains in 2025.

Example: AIoT systems analyze sensor data to detect anomalies and predict equipment failures before they happen. Companies like Siemens have reported reductions in downtime of up to 50% using predictive maintenance solutions powered by AIoT. Another impressive case of AI-powered IoT utilization is the AI-powered traffic management systems implemented by Seoul. This futuristic city AI-powered traffic management system can identify patterns and adjust traffic light timing to enhance traffic flow. A prime example is also Seoul itself, a leader in smart city development. With its expansive public Wi-Fi network providing widespread connectivity and Samsung’s AI-driven transportation systems optimizing traffic, the city showcases the potential of such integrations.

Trend #2: Edge Computing – Low Latency & Better Performance

Edge computing alters the Internet of Things (IoT) operations by conducting data processing near its source. This reduces latency and minimizes bandwidth usage. According to Statista, the global edge computing market is projected to reach 350 billion USD by 2030, largely driven by its critical role in fueling IoT’s expansion.

Why it matters: Imagine a factory equipped with thousands of IoT sensors. Relying on cloud-based systems to process such vast amounts of data remotely often leads to delays. Edge computing, on the other hand, enables local data processing for instantaneous decision-making.

Example: Siemens uses edge IoT in its factories to monitor equipment and diagnose issues within milliseconds, cutting downtime by 20%. Amazon Go stores leverage edge computing to track shopper behavior in real-time, enabling seamless automated checkouts.

At MobiDev, we explored edge biometrics for office security. By utilizing face and voice recognition, employees could be authenticated at the office entrance with a simple glance at the camera. All processing occurs on a single-edge device, showcasing the practical and secure applications of this technology.

Trend #3: Focus on IoT Security and Privacy

The extensive connectivity brought by IoT has underscored a key issue—the vulnerability of unsecured devices to cyber threats. A 2023 study by Cybersecurity Ventures projected that cybercrime costs could reach $10.5 trillion by 2025, with IoT devices becoming a primary target. For businesses, ensuring the security of IoT systems is no longer optional—it’s essential.

Why it matters: without the necessary protections in place, IoT systems can serve as thresholds for malicious actors, endangering sensitive customer and/or business data. For customers, it implies the risks of identity theft and financial fraud. For businesses, it may lead to financial losses and erosion of client trust (which may incur bankruptcy).

Example: Enterprises now use IoT devices secured with blockchain solutions to prevent tampering and forgery in supply chain management. Smart home products, like connected thermostats or security cameras, now come with enhanced security settings that ensure only authorized users can access the data.

CUJO AI is an example of cybersecurity and network intelligence solutions that enables network operators globally to improve the digital life protection of their customers in and outside the home. MobiDev developed mobile applications for users to manage CUJO devices with both simplicity and the user experience in mind.

Learn more about CUJO:

View the success story

Trend #4: IoT Connectivity — 5G and Beyond

Statista predicts the explosion of connected IoT devices, surging to 32.1 billion by 2030. For businesses, this highlights the need to study and adopt advancements to hold their edge.

Why it matters: IoT networks have their hurdles, the most pressing one being wireless data transmission speeds. Smart sensors, wearables, edge computing, and intelligent home systems all require effective connectivity methods. 5G, Wi-Fi 7, LPWAN, and satellite systems deliver exactly that.

Example: 5G-powered smart grids can redistribute power in real-time which is a crucial step toward sustainable energy consumption. Similarly, in healthcare, wearable IoT devices enhanced with 5G allow for patient monitoring with minimal delays.

5G: The Future of Mobile Networks

Before deploying edge devices, sensors, or other IoT-enabled technologies, companies should have dedicated connectivity infrastructure in place. Mobile networks like LTE are generally the go-to workaround for outdoor implementations. But they always come with bandwidth limitations and security issues. Enter 5G. Faster speeds and greater capacity make 5G networks capable of processing large amounts of data within the IoT ecosystems. This ensures the scalability and performance that is needed for industries relying on these technologies.

Wi-Fi 7

Wi-Fi 7 was launched last year, introducing noteworthy upgrades compared to its previous version. Expanded bandwidth is one of the most valuable of these, permitting 320 MHz channels, doubling the Wi-Fi 6’s capacity. Another Wi-Fi 7’s breakthrough is support for 4K Quadrature Amplitude Modulation (4K-QAM) ensuring faster data transmission rates. This advancement is beneficial for bandwidth-heavy data transmission (e.g., streaming ultra HD video).

LPWAN

Low-power wide-area network (LPWAN) technology was originally created for the IoT. It ensures long-distance connectivity requiring minimal bandwidth. Low operating costs and a long range make this type of connectivity ideal for machine-to-machine communication with low data transfer needs. Devices connected via LPWAN are energy-efficient and cost-effective, especially when it comes to managing large numbers of IoT appliances scattered across expansive areas.

Satellite Connectivity

IoT networks are indispensable for devices operating in remote or geographically isolated areas. Satellite connectivity networks, like Globalstar, help organizations ensure seamless communication across vast regions. For instance, Traksat’s satellite-powered IoT devices allow humanitarian workers to report emergencies and request aid in real-time. GPS data arrives at the central hub instantly so that rescue teams can react ASAP.

Trend #5: Wearable IoT Technology

Wearable devices collect and transmit valuable data, providing insights that enable smarter decisions. Be it manufacturing (for workers’ safety monitoring) or healthcare (health metrics observation), the potential applications are vast. It was expected though, that wearables would be much more widely used than they are today. The reality is their limited capabilities hold them back. This is why they are still secondary to smartphones or laptops for many complex tasks. Still, they have a unique potential for niche-specific use that cannot be overlooked.

Why it matters: so far, wearable devices have made the most impact in the medical field. Appliances that continuously monitor patient vital indicators are now indispensable for healthcare professionals. Automatic emergency alerts are basically life-savers. Meanwhile, the collection and transmission of real-time health data speeds up critical decisions, allowing for more proactive and precise emergency interventions.

Example: IoT is aiding in glucose monitoring for millions of patients with diabetes. The thing is, intermittent or manual testing has always been hindered by fluctuating glucose levels. IoT devices with embedded or wearable body sensors minimize the risk of fatalities via automated monitoring of patient glucose levels. They detect abnormalities in sugar levels early on so that intervention happens before significant damage to patient health occurs.

AR and VR Devices Powered by IoT

The integration of IoT into AR technologies has unlocked enhanced functionalities by delivering real-time contextual data. This dynamic interaction between IoT and wearable technology offers several real-world applications that demonstrate its growing impact:

• Surgical Assistance: Augmented reality (AR) headsets equipped with IoT sensor data enable surgeons to access critical, real-time information during operations, streamlining precision and decision-making.
• Factory Simulations: Virtual reality (VR) headsets allow manufacturers to analyze digital twin simulations of factory setups. IoT sensors feed data from the physical factory floor to evaluate and compare performance metrics.
• Warehouse Navigation: AR tools integrated with IoT technology guide warehouse workers to locate items efficiently. Sensor-based tracking devices pinpoint item locations and provide real-time navigation, significantly boosting productivity and accuracy.

Trend #6: Green IoT Technologies

According to the International Energy Agency, the carbon footprint left by us using devices, the internet, etc., accounts for roughly 1-1,5% of global greenhouse gas emissions. These emissions amplify the greenhouse effect by confining heat and boosting global temperatures. Green IoT (GIoT) technologies were created to push energy-efficient hardware and software practices to the market. The goal is to lower energy consumption and carbon emissions using green RFID tags, eco-friendly sensor networks, green cloud computing systems, etc.

Why it matters: Today businesses find themselves trapped by eco-conscious consumers and investors. Implementing green technologies is now more of a must than an option. It ensures a competitive advantage, customer loyalty, and an opportunity to explore new markets. IoT’s role in smarter resource management is already visible across sectors.

Example: In precision farming, IoT-connected devices track soil moisture helping farmers keep them at required levels. They also optimize irrigation thereby reducing water consumption. Netafim, a global leader in sustainable irrigation solutions, helps farmers increase yields while lowering water, fertilizer and power consumption.

Trend #7: Smart Homes and Smart Offices

Google Assistant, Amazon Echo, and Apple’s Siri,—these digital assistants have altered the smart home and smart office industry. Mordor Intelligence notes the smart home market will expand at a CAGR of 25% through 2025, reaching a $246 billion market cap. IoT for smart office automation helps businesses reduce costs when coming back to full-time working mode from the post COVID-19 era.

Why it matters: These are sensors that power smart locks, motion detectors, and energy-efficient systems which make homes smarter. They contribute to a safer and more convenient living space, especially when IoT firewalls come into play. For businesses, smart offices mean happier, more efficient employees and cost savings through energy optimization. For consumers, smart homes represent a higher quality of life with increased control and security.

Example: businesses can deploy IoT systems to automatically adjust lighting and HVAC systems based on occupancy, saving energy and creating optimal working conditions. Meanwhile, IoT cameras and access control devices ensure safety while using minimal human resources for monitoring.

Check out how MobiDev develop smart mirror and smart parking software, all with the help of IoT.

Trend #8: IoT Developments in Retail

The retail industry has been capitalizing on IoT for essentially two decades and still continues to do so. MarketsandMarkets’s predictions indicate its growth will level up with a CAGR of 19.6% over the 2020-2025 period. What areas benefit the most from IoT? Personalized shopping (possible with the help of beacon technology), real-time tracking (for supply chain management optimization), and smart inventory(enabled by IoT sensors) — these are the trends to change the retail industry.

Why it matters: Quality customer service is a top priority for all businesses, not just in retail. IoT facilitates two factors vital for keeping a competitive edge in the domain—hyper-personalized shopping experiences and operational automation. With its help, retailers can merge physical and digital operations, making cross-channel shopping smooth.

Examples: Checkout systems and shopping carts powered by IoT and AI (AI cameras, sensors, edge AI systems, ML, etc.) can significantly eliminate human error. In the network of interconnected devices embedded with sensors, collecting and exchanging data becomes easier. By enabling AI automated checkout in retail stores, IoT ultimately eliminates the need for human contact. Customers can make purchases quickly, conveniently, and effortlessly.

Trend #9: Industrial Automation with IoT

It’s difficult to imagine the manufacturing industry without IoT. From smarter resource allocation to improved product quality, the technology is making itself useful throughout all production processes. According to PwC, 90% of manufacturers believe digitizing production processes offers far more long-term rewards than risks. This is mainly due to automation levels rising with every new sensor network deployed on factory floors. The most important IoT in manufacturing use case though, is creating safer workplaces for frontline employees.

Why it matters: Industries like manufacturing always look for ways to reduce downtimes and costs. With predictive maintenance using machine learning, this becomes possible. IoT sensors collect data on machinery, detecting anomalies before failures occur. This reduces costly downtimes and ensures smooth operations. Meanwhile, digital twins make it possible for businesses to test potential scenarios using a virtual replica of their physical assets or entire production departments. Using IoT data digital twins to simulate possible outcomes allows firms to optimize processes before making real-world changes.

Example: SKF employs IoT-driven devices to closely observe their rotating equipment, making it possible to intervene before breakdowns happen. This results in more efficient maintenance planning. Similarly, ThyssenKrupp leverages IoT insights to estimate the conditions of their elevators. Timely repairs help the company minimize downtime.

Check out how MobiDev modernized an IoT application for wheel suspension control.

Trend #10. IoT Technology in Healthcare

According to Statista, IoT in the medical field is set to reach $134.40 billion by 2029.
Fortune Business Insights projects the global telemedicine market size to reach $432.31 billion by 2032, recording a CAGR of 19.0%.This rapid growth results from lessons learned during the global pandemic. The inefficiencies uncovered during peak numbers of infected patients and the challenges this imposed on healthcare workers were eye-opening. The healthcare sector desperately needed innovative solutions.

Why it matters: IoT can shift focus from cost-efficiency to quality patient care. Even developed economies struggle with insufficient funding for medical institutions. Real-time health monitoring systems are a big step toward patient-centric health care. For investors, funding further IoT development and use offers enticing growth possibilities given that this technology is bringing results already today (and not in potential).

Example: The use of IoT technology in healthcare is not limited to wearable devices and health apps. A great example is the merger of WebRTC with IoT networks, powering telemedicine app development. Telehealth, in turn, relies on edge devices for better performance, particularly in locations with poor internet connectivity). We shouldn’t disregard the ordinary hospital-room sensors also powered by IoT. They monitor vital health indicators, aiding doctors in making accurate diagnoses.

Future of IoT Technology: 2025 and Beyond

The IoT market is brimming with opportunities, with no sign of slowing down its rapid growth. The domain is fueled by increased adoption industries-wide, with healthcare, automotive, agriculture, and retail leading the charge.

For business leaders, this skyrocketing proliferation underscores the need to either adapt or risk falling behind. This applies to enterprises of all sizes. Affordable IoT innovations are leveling the playing field for both small and large-scale businesses.

We understand that navigating this complex landscape consumes a lot of valuable time. That is why MobiDev offers businesses assistance in leveraging the latest tech innovations. Combining time-tested practices with the freshest solutions, we deliver value every time.

Make your business future-proof. Contact us so we can help you discover IoT consulting & development services that fit your goals perfectly.