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State of enterprise IoT in 2025: Market recovery, AI integration, and upcoming regulations

by April 14, 2025
by April 14, 2025

State of enterprise IoT in 2025: Market recovery, AI integration, and upcoming regulations

State of enterprise IoT in 2025: Market recovery, AI integration, and upcoming regulations

Enterprise IoT spending is projected to grow at a 14% compound annual growth rate (CAGR) through 2030, according to new analysis from IoT Analytics based on its State of IoT Spring 2025 report.

The projection follows a slower growth year in 2024, when spending increased by 10%—the lowest rate observed since IoT Analytics began tracking the market.

The report attributes the 2024 slowdown to broader macroeconomic uncertainty, particularly within the manufacturing sector and in Europe. In contrast, demand for software and connectivity services remained comparatively resilient.

Industries showing higher levels of adoption

Process manufacturing and automotive are identified as leading industries in enterprise IoT adoption. At the same time, energy and infrastructure sectors have seen growing engagement, driven by initiatives around monitoring and optimization. Among use cases, real-time tracking and inventory management recorded the most significant gains, reflecting increased focus on supply chain visibility and predictive logistics.

IoT market recovery driven by AI, cloud, and sustainability

Looking ahead, IoT Analytics expects the next phase of growth to be supported by AI integration, cloud and edge computing, and sustainability-related initiatives across energy, utilities, and infrastructure. While these drivers are gaining momentum, factors such as tariffs, supply chain disruptions, and pricing volatility may introduce further uncertainty in 2025. The magnitude and duration of these effects remain difficult to assess at this stage.

Key insights:

  • IoT enterprise spending grew 10% in 2024, its lowest rate in over a decade, according to IoT Analytics’ State of IoT Spring 2025 report (published February 2025).
  • Hardware segments struggled the most, while software and cloud-based solutions continued to expand.
  • India experienced 14% YoY IoT spending growth, while Europe experienced slower IoT adoption rates.
  • New IoT products in late 2024 heavily focused on AI, security, and connectivity.

Select analyst quotes:

Knud Lasse Lueth, CEO at IoT Analytics, comments that “The enterprise IoT market expanded at its slowest pace in over a decade in 2024, but early indicators suggest a rebound in 2025, driven by software and AI-focused solutions. While AI captures most of the attention today, it is important to remember that data—much of it generated by connected devices—is its essential fuel. IoT therefore remains a foundational enabler, even if it no longer dominates the headlines.”

graphic: Enterprise IoT market snapshot, by IoT Analytics, April 2025

The post State of enterprise IoT in 2025: Market recovery, AI integration, and upcoming regulations appeared first on IoT Business News.

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