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The most important trends in the air for IoT in 2025

Ulf Seijmer, Chief Innovation Officer at Induo. Ulf Seijmer, Chief Innovation Officer at Induo.
Ulf Seijmer, Chief Innovation Officer at Induo.

We are now perhaps halfway to 6G considering that we are writing 2025 in the calendar and 5G was launched in 2020. For IoT, 4G was the starting point, 5G is important for larger rollout and 6G will eventually have an impact. As for IoT, IoT turned 25 as a term in 2024, “The Internet of Things” (IoT) is said to have been coined by British technology pioneer and computer scientist Kevin Ashton in 1999.

Despite its respectable age as a concept, IoT continues to transform in innovative ways. IoT is constantly evolving and has gone from being a technical solution to a strategic necessity for companies and organizations.

What's happening in the IoT air?

To understand what's happening in the air, we must first look outside and identify the trends that are currently taking place. IoTarea. Sustainability, security and AI are at the heart of IoT's development and are on the verge of defining how we build a connected future.

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If we start with AI, it is a known fact that AI loves data, and that IoT can generate huge amounts of it. Therefore, AI is the perfect companion to IoT networks when it comes to data analysis. Beyond this, AI can also be used as a powerful tool to protect and secure IoT systems against threats and vulnerabilities. AI's potential in IoT goes far beyond traditional data analysis — in some cases, AI aims to become an integral part of IoT devices, enabling simple IoT devices to make smarter decisions locally, while also coloring how networks will need to evolve.

The most important trends in the air for IoT in 2025

Edge data management

Edge computing or edge processing addresses the limitations of centralized cloud solutions. By processing data locally near the data source, latency can be minimized, which is crucial for applications that need to function without interruption and with short response times. Examples of such are self-driving vehicles or industrial automation where high reliability and resilience are needed. Edge is valuable for energy efficiency, as processing takes place close to the source and less energy is used for data transport, on the other hand, the devices cannot be powered by batteries as higher energy consumption is required for edge computing than in a sensor that “only” measures and sends data on. Today we may associate an IoT sensor with battery operation with 10 years between battery changes, but that image of IoT is the same as so-called LPWAN (Low Power Wide Area Network) may therefore be subject to change.

It's in the air that it happens.

In 2025, many people will move LPWAN technology into space. So-called NTN networks, Non-terrestrial Networks, are base stations that are flown in orbit around the Earth and can cover all corners of the world. Both LoRaWAN and 5G can operate via satellite and this is already underway. 5G can use satellites as RF repeaters since release 17 without the ability to decode packets, while satellites in release 19, which has not yet been released, can receive and forward data packets. In 2025, it is likely that other LPWAN RF technologies such as Mioty will also make their way into space. Starlink will also launch IoT from satellites in 2025, but with LTE CAT-1, CAT-1 Bis and CAT-4 technology, which can be considered LPWAN technology (so not “LoW Power”).

More than we may have previously suspected, both security and AI are driving what will happen in the networks and how the networks must develop, something that seems to color the development and increase the demands on the different technologies. At the same time, I think that the biggest technologies, 4G/5G and LoRaWAN are starting to move in the same direction.

5G -RedCap new LPWAN technology?

If we stay on Earth, 5G RedCap (Reduced Capacity) looks set to gain a greater foothold in 2025. RedCap is as small as buttermilk, it is not the fastest, it is not the most energy-efficient, it offers intermediate speeds around 150 Mbit/s and is intended for more demanding types of sensors. RedCap could be the technology that can provide the next generation of sensors with stable connectivity in terms of capacity. RedCap is also capable of communicating on the frequencies used for private 5G networks, where current 3GPP LPWAN technologies (NB-IoT and LTE-M) do not work. RedCap offers both short response times and good transmission speed, so in contexts where sensors are to process a lot of data locally, and perhaps be equipped with AI and also operate in slightly more demanding environments, then I think RedCap fulfills its purpose.

LoRaWAN

What about LoRaWAN? Cisco announced in late 2024 that it would exit the LoRaWAN market. From 2025, it will no longer sell LoRaWAN products and support will end around 2030. There is no planned migration path for existing customers, which means that organizations that rely on Cisco's LoRaWAN solutions will need to seek alternative suppliers to ensure continuity.

LoRaWAN otherwise follows the direction and development of the IoT market in general with plans for increased levels of encryption, easier software updates and the possibility of local AI processing of data. However, many of these ideas seem to move LoRaWAN from a pure LPWAN technology closer to more energy-intensive hardware.

The LoRa Alliance's roadmap also describes the introduction of "crypto agility," which enables the use of both current and future encryption methods in addition to LoRaWAN's link layers, without the need for to change the existing structureThis ensures that LoRaWAN can adapt to and implement new encryption methods as they develop, strengthening protection against future threats.

By supporting over-the-air (FOTA) software updates, devices will be able to be updated securely remotely, reducing the risk of vulnerabilities. These planned improvements underscore the industry’s focus on strengthening security protocols and protecting networks in 2025 and beyond. In addition, discussions are underway to integrate edge computing into The LoRaWAN architecture to improve network performance and efficiency through faster data processing and decision-making directly at the data source.

Open RAN – A more open network for the future of IoT

A future bubbler? Open RAN is a network architecture that breaks with the tradition of building proprietary standards, where hardware and software are locked to a single vendor. Instead, Open RAN uses standardized interfaces and components, enabling operators to combine hardware and software from different manufacturers. It is a solution that aims to reduce costs, increase flexibility and accelerate the pace of innovation in mobile networks.

Driven by organizations like O-RAN Alliance, and with support from technology giants such as Nokia, Ericsson and Qualcomm, Open RAN is expected to gain increasing importance between 2025 and 2030. More and more operators are implementing the technology for both 5G and future IoT solutions, especially in regions where cost-effective solutions are crucial to expanding network coverage.

For IoT, Open RAN offers the possibility of creating networks where technologies such as LoRaWAN and 5G not only coexist but also integrate seamlessly. This opens up new applications, especially in environments where different technologies need to work together – from industrial IoT systems to smart cities.

The development is being driven by organizations such as the O-RAN Alliance, with support from technology giants such as Nokia, Ericsson and Qualcomm. Open RAN is expected to gain real significance in 2025-2030, as more network operators begin to implement the technology in both 5G and future IoT solutions. Already today, we are seeing pilots and deployments at the forefront, especially in regions where cost-effective solutions are crucial to expanding networks.

For IoT, Open RAN means the ability to create networks where technologies like LoRaWAN and 5G not only coexist, but also integrate more seamlessly. This opens up new applications, especially in environments where different technologies must work together – from industrial IoT systems to smart cities.

2025 looks set to be an exciting year with a rather changing landscape, in many areas we will see a need for faster development than we might have first thought. [This column was first published in Techtidningen]

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