### Understanding the Current State of IoT in 2025

By Ken Figueredo at More with Mobile.

#### A Troubled Start to the Year

At the beginning of the year, the Internet of Things (IoT) sector found itself in a challenging position, with industry analysts pointing to a decline in various IoT businesses and what they termed ‘calamitous’ exits from the market. Case in point, Germany’s prominent company, Software AG, decided to divest its industrial IoT interests in Cumolocity. Shortly afterward, U-blox announced its inability to secure a buyer for its cellular IoT division, leading to its subsequent shutdown. LightReading highlighted this trend as yet another calamity impacting the IoT landscape, setting a bleak tone for the industry.

However, the outlook did begin to brighten throughout the year. Advancements such as Vodafone’s strategy to ‘hyperscale’ IoT operations, along with the emergence of generative AI tools, contributed to this positive shift. Despite the optimism stemming from these developments, it is crucial to recognize potential vulnerabilities associated with the growing reliance on IoT technologies. As we progress into 2025, we will examine further industry developments that indicate a complex relationship between success and its accompanying challenges, especially as the economy increasingly adopts IoT solutions.

### The Role of IoT Solution Providers

Reflecting on my experience since 2007, when I first began tracking corporate initiatives within the IoT arena, it’s clear that the landscape has evolved significantly. Initially, mobile network operators (MNOs) dominated the industry, looking for innovative markets to fuel growth. Fast forward to 2025, where approximately fifty initiatives underline the vital role of IoT solution providers. This shift emphasizes the necessity of creating value by resolving everyday business challenges. Major players in this realm include organizations like AWS IoT, Siemens, Microsoft, and PTC, illustrating a diverse array of entities committed to advancing the IoT narrative.

#### Connectivity and Industry Layers

The solutions offered by these providers primarily map to the upper layers of the IoT stack. Below this tier resides crucial industry layers that deal with ‘connectivity’ and ‘connected devices.’ Connectivity manifests through various means, such as MNOs, MVNOs (mobile virtual network operators), LPNOs (low-power network operators), and satellite connectivity providers. A notable trend in 2025 is the increasing cooperation between the cellular and satellite sectors, demonstrated by a policy executive’s observation that it has become routine to encounter satellite industry professionals in meetings hosted by the GSMA.

Furthermore, the connectivity aspect remains foundational for the industry. Vodafone’s collaboration with Mobily to enhance its presence in Saudi Arabia, SingTel’s alliance with FloLive to tackle global IoT deployments, and Verizon’s addition of partnerships with SingTel and Skylo to support its global IoT efforts exemplify this ongoing collaboration.

### Navigating the IoT Industry Chain

In terms of connectivity, partnerships frequently emerge as one MNO collaborates with another from a different geographic locale. This form of collaboration represents a horizontal industry initiative central to effective IoT deployment. However, achieving complete IoT solutions requires a more integrated approach that spans the entire industry chain, highlighted by the surprising fact that over 60% of initiatives in 2025 have crossed industry boundaries. Solution providers shine in this regard, showcasing their cross-segment collaboration efforts by partnering with other solution providers, MNOs, vendors, and investors.

### Vendors Paving the Way for New Segments

The vendors represent another key segment of the industry landscape, frequently focusing on initiatives aimed at enhancing connected devices and their capabilities. For instance, G+D recently launched a credit card-sized IoT tracker specifically designed for shipping applications, while Sequans has strategically pursued acquisitions to enhance its RedCap initiatives.

Another hot topic within the industry is Edge IoT, which continues to garner attention. Qualcomm has been particularly active in demonstrating how this aspect is evolving through various corporate initiatives, including acquiring Edge Impulse to bolster AI and IoT capabilities. Additionally, Qualcomm has set up an AI and IoT engineering center in Abu Dhabi, and its acquisition of Arduino aims to enhance developer access to edge computing and AI technologies.

### The Growing Influence of Governments on IoT

As IoT increasingly integrates into the fabric of the economy, the role of governments in shaping the market will undeniably intensify. A few noteworthy developments underscore future trends. For example, European regulators have approved a unified framework governing non-cellular satellite IoT, which marks a significant progression from the previous fragmented regulatory environment. Additionally, we can expect Middle Eastern regulatory bodies to follow suit.

In India, initiatives are underway to create an IoT-ready UPI (Universal Payments Infrastructure) intended to streamline transactions through smart devices, extending beyond just mobile phones. This would pave the way for making payments through diverse smart devices, such as TVs, refrigerators, washing machines, automobiles, and smartwatches.

Moreover, starting January 4, 2027, the USA will mandate that all federally procured connected devices bear a U.S. Cyber Trust Mark. This will require devices to meet certain baseline cybersecurity standards, encompassing secure software updates, data protection measures, and vulnerability reporting mechanisms. Such regulations are anticipated to have broad implications for the overall IoT market.

### Balancing Promise with Peril

As we approach the conclusion of the year, initiatives undertaken by major players like Vodafone and 1NCE reveal a burgeoning realm of possibilities within the IoT space. Vodafone’s Americas Managing Director, Dennis Nikles, outlined plans to realize Vodafone’s goal for hyperscaling IoT operations. This strategy will necessitate a paradigm shift — embracing partnerships over competition and simplifying processes to mitigate complexity and reduce costs.

In a similar vein, 1NCE’s launch of its ‘Fixers’ line signifies a move beyond standard connectivity offerings by leveraging insights gained from serving over 27,000 customers. This offering will provide advisory services centered on devising more effective IoT solutions, optimizing the use of existing intelligent products, and troubleshooting technical issues.

As IoT devices and systems become ubiquitous, the opportunities for value creation expand significantly, yet the risks also escalate. Illustrating this concern, French authorities arrested two crew members aboard a passenger ferry suspected of introducing malware that could potentially enable remote control of the vessel.

In a separate incident, Andrej Karpathy, a co-founder of OpenAI, conducted an experiment with the Claude Code AI to determine its ability to infiltrate his home automation system. After issuing prompts, Claude Code successfully identified and connected to various devices across his network, controlling his home’s functionalities such as lighting and HVAC.

### Prospects and Challenges for 2026

The advancements observed throughout 2025 suggest a shifting mindset within the industry. Larger organizations are beginning to recognize new markets and growth opportunities that transcend mere connectivity. The convergence of IoT with complementary technologies such as AI, digital twins, and data analytics will likely reshape public infrastructure and industry landscapes in the coming years. However, it is imperative to address potential negative repercussions arising from malicious actors and the unintentional consequences of reliance on generative AI.

### Leveraging AI legalese decoder for Clarity

In navigating this increasingly complex IoT landscape where regulatory measures and legal frameworks are evolving, understanding legal documentation can be particularly challenging. This is where solutions like the AI legalese decoder come into play. By simplifying complex legal jargon into plain language, the AI legalese decoder can empower organizations to grasp their legal obligations and responsibilities regarding IoT technologies.

This tool can aid in interpreting new government regulations and compliance requirements, ensuring that companies are fully aware of their legal standing. By clarifying legal terms and frameworks related to IoT implementation, organizations can make informed decisions that align with compliance, thereby mitigating risks associated with non-compliance and potential liabilities.

#### Final Thoughts

The future of IoT looks promising, filled with both opportunities and threats as it intertwines with various technological advancements. While AI legalese decoder serves to demystify legal texts, empowering organizations to navigate their legal landscape effectively, adaptability will remain crucial in capitalizing on the benefits of IoT while addressing inherent risks and challenges.

About the Author: Ken Figueredo consults companies on business strategy and new market offerings related to digital strategy and connected innovation. His recent focus is on innovation strategy and the long-term technology roadmap for AI, IoT, and 6G systems. In terms of application domains, Ken’s recent work involves data-driven business models, intelligent transportation, and smart city topics. He has collaborated with major mobile operators, institutional investors, and equipment vendors from Asia, Europe, and North America. For more information or to subscribe to our knowledge network, please contact Ken Figueredo at ([email protected]) or sign up at www.more-with-mobile.com