IoT is facing a new era of innovation and opportunity, and according to Ulf Seijmer, Chief Innovation Officer at Induo, there are three clear trends that will shape the IoT landscape in 2025: sustainability, security, and the integration of AI. In this analysis, Ulf shares his insights on what's around the corner for the IoT industry and how companies can benefit from these advances.

#3: Sustainability in focus

Sustainability is one of the most prominent trends in IoT today. IoTdevices can collect and analyze large amounts of data that help us optimize energy use, reduce resource consumption and thereby reduce our carbon footprint. IoT not only provides insights into the current situation but also helps business to track how well they manage to reduce their environmental impact over time.

For larger companies, sustainability reporting is becoming increasingly important, and IoT offers new opportunities to collect data in a more systematic way. With smart sensors and connected devices, organizations can continuously monitor and report their environmental impact. This makes it easier to meet today's stringent requirements for sustainability efforts, as well as to document and present concrete results to stakeholders and authorities.

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By using IoT for continuous optimization, companies can not only improve their operations but also track their environmental impact in a way that was not previously possible. Today, smart solutions can not only measure the amount of waste a company generates but also, using AI and cameras, analyze how “clean” that waste is.

IoT also plays a key role in more efficient logistics solutions, where GPS tracking and route optimization are key tools. These solutions help companies minimize driving distances and save fuel, which not only contributes to reduced emissions but also to better profitability. When vehicles are monitored in real time, companies can avoid unnecessary detours and ensure that transports are carried out in the most efficient way, while meeting the requirements for a lower carbon footprint.

IoT is going from being nice-to-have to truly central for all companies working with sustainability reporting.

#2: IoT security – a challenge

As the IoT As the number of cyberattacks on IoT systems increases, the importance of security also increases. The number of cyberattacks on IoT systems has increased by as much as 400% in the past year, showing that these systems are becoming increasingly vulnerable. This development has resulted in new global security standards and regulations being introduced to protect both users and systems. In Europe, comprehensive legislation will apply from August 2025. These new standards and regulations send a clear message that security must be built into every IoT device and platform to protect users from potential threats and intrusions.

Two pro tips to keep an eye on in IoT security:

Post-quantum cryptography (PQC): PQC has become a important security measure in IoTThis technology protects against threats that may arise from quantum computers, which is relevant because future quantum computers could crack today's encryption standards. Starting work on PQC now could provide business an early start that can ensure their IoT infrastructure is ready for future security challenges.

Zero Trust: Another crucial security approach that is becoming increasingly common in IoT is “Zero Trust.” Instead of assuming that everything within a network is trustworthy, Zero Trust is based on the principle that nothing and no one should be trusted implicitly. Every request for access must be verified and approved, creating a significantly more secure environment for IoT applications and minimizing the risk of attacks.

#1: AI meets IoT – a powerful partnership

One of the most exciting trends in IoT that continues to emerge is the rise of AI. AI loves data, and IoT can generate vast amounts of it. By combining AI and IoT (AIoT), we can increase the accuracy and efficiency of data analysis, with a computer reportedly able to analyze data 300 million times faster than a human. AI can also strengthen security with better analytics and insights.

AI can also be used to identify security gaps or detect anomalies in IoT networks in real time, making AI not only an analytics engine for IoT data but also a powerful tool for protecting and securing IoT systems from threats and vulnerabilities.

One insight is that AI also goes beyond security and data analytics – we are also increasingly seeing AI directly embedded in IoT devices, enabling them to make smarter decisions further out in the network. This is known as edge intelligence, resulting in increased security and speed. Bringing AI closer to where data is generated can allow IoT hardware to act faster and with greater precision. This is especially valuable in industrial IoT, where AI-powered automation can operate faster and more accurate decisions directly on the production floor.

A look ahead

With sustainability, security and AI at its core, IoT is poised to revolutionize our businesses and societies. When we balance innovation with security, we can look forward to a future where IoT is not only technically impressive, but also practically and responsibly integrated across the organization.