This report identifies key demand-side trends in the IoT services space to assist companies in their IoT digital transformation journeys. It provides an overview of key IoT trends and enterprise challenges that Avasant considers important to highlight.
Industrial IoT adoption is accelerating as enterprises transition from Industry 4.0 to Industry 5.0, integrating connected machinery, robotics, and AI-driven automation to enhance efficiency, safety, and sustainability. AIoT convergence with edge and 5G is powering real-time insights, autonomous actions, and early use of agentic AI pilots. As deployments scale, IT–OT cybersecurity has become a critical priority, with providers embedding zero-trust frameworks and AI-driven monitoring. Digital twins are gaining momentum for simulation, disruption testing, and decarbonization modeling. At the same time, IoT is becoming more human-centric, enabling adaptive, personalized experiences through multimodal sensing and emotion-aware analytics.
The Internet of Things Services 2025 Market Insights™ aids enterprises in identifying important market trends and challenges for their IoT transformation projects.
The industry insights and recommendations are based on our ongoing interactions with enterprise CXOs and other key executives, targeted discussions with service providers, subject matter experts, and Avasant Fellows, and lessons learned from consulting engagements.
About the report (Page 3)
Executive summary (Pages 6–9)
Demand-side trends (Pages 10–17)
Key contacts (Page 18)
Read the Research Byte based on this report. Please refer to Avasant’s Internet of Things Services 2025 RadarView™ for detailed insights on the service providers and supply-side trends.
Avasant’s research and other publications are based on information from the best available sources and Avasant’s independent assessment and analysis at the time of publication. Avasant takes no responsibility and assumes no liability for any error/omission or the accuracy of information contained in its research publications. Avasant does not endorse any provider, product or service described in its RadarView™ publications or any other research publications that it makes available to its users, and does not advise users to select only those providers recognized in these publications. Avasant disclaims all warranties, expressed or implied, including any warranties of merchantability or fitness for a particular purpose. None of the graphics, descriptions, research, excerpts, samples or any other content provided in the report(s) or any of its research publications may be reprinted, reproduced, redistributed or used for any external commercial purpose without prior permission from Avasant, LLC. All rights are reserved by Avasant, LLC.
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