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.
Why read this Market Insights?
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.
Methodology
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.
Table of contents
About the report (Page 3)
Executive summary (Pages 6–9)
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- Defining the Internet of Things
- Key drivers and enterprise response
- Avasant recognizes 29 top-tier providers offering IoT services
Demand-side trends (Pages 10–17)
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- IoT adoption has moved from pilots to scale, with industrial IoT leading in manufacturing and driving the shift from Industry 4.0 to Industry 5.0.
- The convergence of AI is enabling IoT services to deliver real-time insights, autonomous actions, and seamless connectivity through edge and 5G integration.
- Scaling IoT deployments and IT-OT convergence are elevating cybersecurity as a critical enterprise priority.
- Enterprises are adopting digital twins to manage complexity, simulate disruptions, test design changes, and optimize processes across industries.
- Human-centric and emotion-aware IoT is emerging to deliver adaptive, personalized, and safe experiences.
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.