While 2024 has grown optimistically towards the Enterprise Internet of Things (IoT), studies analyzing IT trends have shown that the sector has actually grown at the lowest rate for over a decade. However, IoT analysis shows that a recovery in the IoT market is projected in 2025, indicating a higher level of adoption in industries driven by artificial intelligence (AI), cloud and sustainability.
Last year, the market rose primarily due to the increased need for IoT connectivity in areas where traditional ground networks cannot easily provide, for example, mining and maritime industries. IoT Analytics says that IoT Enterprise expenditures will increase by 10% in 2024, and based on the status of the Spring 2025 report, enterprise IoT spending is projected to grow at a combined annual growth rate (CAGR) of 14% through 2030.
The report attributes the 2024 slowdown to wider macroeconomic uncertainty, particularly in manufacturing and Europe. In contrast, demand for software and connectivity services was relatively resilient.
The new IoT products for the second half of 2024 have been found to focus on AI, security and connectivity. The hardware segment was the hardest, but software and cloud-based services continued to expand. India experienced 14% IoT spending growth compared to the previous year, while Europe experienced slower adoption rates for IoT.
The report identifies process manufacturing and automobiles as the major industries in corporate IoT adoption. At the same time, the energy and infrastructure sectors are seeing increased engagement driven by monitoring and optimization initiatives. Among the use cases, real-time tracking and inventory management reflect the highest profitability record and focus on supply chain visibility and forecast logistics.
Commenting on the trends revealed in the report, IoT Analytics CEO Knud Lasse Lueth said: Basic enablers don’t control the headlines. ”
Going forward, IoT Analytics expects AI integration across energy, utilities, infrastructure, cloud and edge computing, and sustainability-related initiatives will support the next phase of growth. While these drivers are gaining momentum, factors such as tariffs, supply chain disruption and pricing volatility could lead to even more uncertainty in 2025. It warns that it remains difficult to assess the magnitude and duration of these effects at this stage.
AI and IoT integration is already moving APACE. In March 2025, to launch the Dragonwing Suite Suite to represent industrial and embedded IoT, networking and cellular infrastructure services, Qualcomm Technologies announced it would enhance its developer delivery and expand its AI-capability leadership to AI-resistant products and IITs.
Explaining the rationale for the transaction, Qualcomm noted that the widespread adoption of AI in IoT services is driven by the ability to enhance or automate workflows through rapid data collection, AI-enabled analytics and enhanced decision-making, allowing businesses to benefit from increased operational flexibility and efficiency.
