1. eSIM Orchestration: Shifting Dynamics
The dawn of the SGP.32 IoT standard in 2025 will upend traditional roles in IoT connectivity. We anticipate the fragmentation of roles—network operators, resellers, and a newly minted eSIM orchestrator. These orchestrators will manage profile provisioning, often tied to single-pane-of-glass (SPOG) platforms for seamless connectivity abstraction. Expect seismic shifts in how market players adapt and compete.
2. Verticalization: The Rise of Industry-Specific IoT
Generic IoT solutions are becoming relics of the past. Companies increasingly view IoT through the lens of specific use cases—smart grids, fleet automation, and beyond. Vendors must evolve, shedding horizontal strategies in favor of vertical expertise. Success will hinge on the ability to craft tailored offerings with vertical-specific buying behaviors in mind.
3. AIoT: The Power Duo
Artificial Intelligence paired with IoT is a game-changer. By embedding AI into IoT devices, businesses can amplify functionality, unlock new services, and drive unparalleled value. This trend accelerates as companies adapt their product roadmaps and architectures to seize opportunities in this burgeoning AIoT market.
4. Geopolitics and Market Fragmentation
Tensions over supply chains, software bills of materials (SBOMs), and national security are polarizing IoT markets. With policies like the EU’s NIS2 Directive and the UK Procurement Act, hardware and vendor choices are increasingly influenced by geopolitical considerations. Vendors face a critical challenge: balancing compliance with innovation.
5. Distributed AI Management
Managing AI applications across IoT ecosystems requires robust orchestration strategies. From edge devices to cloud platforms, maintaining AI workflows and storage is critical. Distributed AI architectures and workload optimization will dominate the conversation, creating a blueprint for the future.
6. 5G Monetization in IoT
Mobile Network Operators (MNOs) are racing to unlock revenue from their 5G investments. The spotlight is on IoT as a vehicle to monetize capabilities like ultra-low latency, network slicing, and enhanced APIs. In particular, 5G Stand Alone (SA) is expected to lead the charge, with implications for both enterprise and consumer markets. Looking further ahead, the development of 6G promises to revolutionize IoT by introducing even greater bandwidth, enhanced energy efficiency, and capabilities such as real-time holographic communications and AI-native network architectures. While still in its early stages, 6G is set to redefine the boundaries of connectivity and create unprecedented opportunities for IoT innovation.
7. Regulatory Compliance: The Looming Burden
IoT’s regulatory landscape is more intricate than ever. Compliance requirements, from data sovereignty to national resilience, dominate strategies for solution providers. Laws like the EU Data Act and the UK PSTI Act highlight the need for robust provisioning and compliance frameworks. Vendors must adapt swiftly to meet these demands.
8. Public Network Transitions: LTE, NB-IoT, and LoRaWAN
The advent of 5G forces reevaluation of legacy network technologies. Mobile operators are grappling with LTE phase-outs and decisions about NB-IoT and LoRaWAN. A prevailing trend is the pivot back to leveraging existing mobile infrastructure, sidelining standalone public IoT networks.
9. Satellite IoT: Friend or Foe?
Non-Terrestrial Networks (NTN) represent a turning point in connectivity. Will satellite augment or cannibalize cellular markets? As NTN technologies mature, companies must decide how to leverage—or counteract—these emerging solutions.
10. Channels and Partnerships: Maximizing Margins
As IoT vendors contend with margin pressures, strategic refinement of channels, resellers, and partner programs is paramount. Market segmentation, precision targeting, and optimized sales strategies will determine success in a competitive landscape.