What is IoT?
IoT stands for the Internet of Things. The main purpose behind this tech is to create links between physical devices and the internet. These smart gadgets and appliances can communicate over the web, keeping in sync and working in perfect harmony to improve our lives.
Here’s an example: imagine a room with a big TV and an automated lighting system. When you sit down in the evening to watch a movie, you turn the TV on, and the lights dynamically adjust, dimming to simulate a theater-going experience. The same logic can be applied to almost any hardware, from conveyor belts to data centers and medical systems.
That’s why IoT ecosystems hold so much potential. Combining IoT functionality with forward-looking ideas can help us make any business sector better, be it an automotive industry or oil and gas industry. This tech can create sustainable urban centers, optimize supply lines, build reliable security systems, and much more.
But is 2025 the right year for launching a profitable startup in the IoT sector? To answer this question, first, let’s take a look at the IoT market.
An overview of the IoT market
Today’s IoT market is more vibrant than ever. Every year, more and more devices are connected to the IoT ecosystem. In 2022, the number of connected devices amounted to just 13 billion, and by 2030, it’s expected to reach an impressive 32 billion. This suggests that IoT technology is rapidly gaining popularity and may soon achieve mainstream status.
The growing popularity of IoT devices becomes even more obvious compared to conventional, non-IoT hardware: smartphones, laptops, and so on. The number of active IoT connections has risen from 0.2 billion in 2010 to more than 24 billion in 2024. By contrast, the number of standard connections almost hasn’t changed: from 8 billion in 2010 to 10 billion in 2024.
The number of connected IoT devices from 2010 to 2024, in billions. Source: Statista
When it comes to the consumer segment of the IoT industry, experts predict that China will continue to hold a leading position. By 2033, the country is expected to have 7.5 billion IoT connections, compared to 5 billion in the US. We at Purrweb worked on an IoT app for a Chinese power bank station, so we learned a lot about the local IoT market.
Many companies working in the IoT sphere are generating significant revenue year-by-year. The government IoT sector is the most profitable: by 2030, its recurring revenue is expected to surpass $54 billion. Other lucrative IoT verticals include transportation, retail, energy, manufacturing, and healthcare.
Top IoT trends in 2025
Now that we’ve looked at the IoT market, let’s get into the most relevant IoT trends you can use to grow your business.
5G integration
Large urban centers like London and Barcelona use 5G in traffic management systems. This helps them deal with traffic jams and prevent accidents on the road.
The next generation of mobile internet is becoming increasingly widespread. 5G is not available everywhere yet but mass coverage is only a matter of time. Here are the main benefits offered by 5G to IoT platforms:
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- Improved app performance
- Secure connections
- Smoother user experience
- Optimized energy usage
Companies already implemented it to make their IoT applications more user-friendly. 5G allows them to increase connection speed and reduce latency, resulting in a much more efficient network. This can be particularly useful in urban management, enabling quick communication between each element of city infrastructure, such as lights and cameras.
5G can also be used to optimize healthcare workflows. For example, simplifying remote patient monitoring in real-time, thanks to increased connection speed, or protecting sensitive data through improved security.
All in all, you can use 5G to offer something to any customer segment, from agriculture to logistics. Soon, it will be available everywhere, so it’d be smart to take advantage of this rising trend early on.
Blockchain
IBM offers a range of blockchain-based solutions that are compatible with IoT devices. Their products are used across many industries, including logistics and supply management.
One of the most popular technologies in recent years, blockchain has been on the rise in the IoT world too. It’s often used to enhance the security of IoT applications, because of the robust encryption mechanisms of the blockchain network.
All IoT devices can be hacked, especially if the network is spread across dozens of such gadgets, which can store sensitive data. For example, the average smart home ecosystem can include up to 50 automated appliances, such as IoT sensors, locks, doorbells, and speakers. The wider the IoT network, the higher the risk of being hacked.
That’s where blockchain can help. It has decentralized data storage, which helps protect connected devices from breaches. This feature is invaluable for many industries, and companies like IBM offer blockchain solutions to companies that want to protect their IoT data.
The blockchain network allows businesses to share important data with their partners safely. That’s especially useful for logistics and manufacturing companies since their workflows are complex and need to be carefully tracked at every step. Blockchain allows them to exchange IoT data such as cargo temperature, position, and delivery time.
Digital twin
Siemens offers an IoT software suite for businesses called Insights Hub. It uses the digital twin technology to help companies with predictive maintenance and data analysis.
You’ve probably heard of smart home apps like Samsung SmartThings. They let users manage an interconnected network of IoT appliances, from smart lights to air humidifiers. You can control these IoT gadgets using a mobile app, which serves as an extension of your smart devices.
Imagine that your phone stores a virtual copy of each home appliance. That’s exactly how the digital twin technology works — it allows us to remotely control physical devices. Your phone remembers all of your gadgets’ settings, giving you the freedom to change them from the comfort of your couch.
The digital twin is used for data collection, remote monitoring, and predictive analytics across many industries, helping them improve the quality of their products. These include science, healthcare, energy, and manufacturing.
Artificial intelligence and machine learning
Even consumer security devices are powered by AI and machine learning. Arlo’s smart cameras can tell the difference between people, animals, and objects in real-time.
Everybody’s talking about AI. It has already made a big impact on almost every industry, and IoT is no exception. Today, artificial intelligence is used in many smart devices, and that number is only going to grow.
AI and machine learning can radically extend the capabilities of IoT hardware, especially when it comes to data analytics. AI allows devices to learn from experience and external data sources.
This applies even to complex IoT machines, such as automated agriculture systems. Using AI, they can analyze weather patterns and accurately predict changes in the environment.
We’ve only just begun to tap into the real potential of artificial intelligence for the IoT. Soon, almost everything will be automated, and AI will play a key role in achieving that.
Edge computing
Tech corporations like Nvidia offer their own hardware chips that enable edge computing for autonomous devices. This feature allows gadgets to process data independently.
We all know that internet connections aren’t always reliable. This often affects not only consumers but also even large businesses that rely on cloud platforms. If all company data is stored in the cloud, it might be difficult for an app to quickly access it. That’s because cloud data centers are often located miles away from where the business is located.
The edge computing tech offers a solution. Instead of relying on cloud storage, many edge devices perform some actions locally. This allows them to collect data at increased rates and become more autonomous.
Picture an IoT camera that monitors car traffic. This device needs to process data in real time: pinpoint traffic jams and analyze potential dangers on the road. Instead of sending all of its recorded data to a cloud server for analysis, the camera processes most of it locally. This helps save time, as edge devices don’t have to depend on external data centers.
Edge computing will only become more popular in the coming years. It helps reduce internet connection latency and spread the workload across an entire network of IoT devices.
Smart cities
Companies like Libelium offer IoT software for urban centers. With features like air quality monitoring, these solutions can help improve the living conditions in large cities.
Given the size of modern cities, it’s becoming increasingly difficult to manage them without the help of advanced tech. Smart cities rely on IoT devices like traffic lights and cameras. They’re used to improve urban infrastructure: optimize traffic flow, monitor water quality, and provide public transport schedules.
The concept of smart cities may sound futuristic, but it’s already being used by dozens of urban centers. For example, cities like Barcelona, Tokyo, and Amsterdam have implemented IoT systems for smart traffic management, parking, lighting, and more.
Energy management
Companies like BuildingIQ offer IoT software that helps optimize the energy consumption of commercial workspaces. This is achieved through sensors that measure their surroundings.
It feels like skyscrapers are getting taller and taller every year. Imagine how much energy is required to power all the facilities inside these giant buildings. Not only does this cost a lot, but it also affects the environment.
This is why IoT software for energy management is facing increased demand. Global business keeps expanding, with large corporations burning through ungodly amounts of resources each year.
Energy management platforms are designed to give businesses more control over energy distribution. By connecting to IoT devices, these apps can offer data-driven insights that help companies optimize their energy consumption. The potential of this segment is still largely untapped, and the demand for these solutions will only continue to rise.
Wearable devices
Today, wearables are used even in logistics and manufacturing. Devices, such as the ProGlove hand wraps, help workers scan items, simplifying inventory management.
With the advent of the smart watch, wearable gadgets have become mainstream. They are especially common in the healthcare industry, letting users track their vital signs and manage chronic medical conditions.
But they aren’t just for healthcare, other industries also can take advantage of wearable devices. For example, they can be used at manufacturing plants to improve safety conditions. Factory workers can wear smart bracelets that warn them about mishandling hazardous equipment when they are about to operate it.
If you want to combine IoT technology with wearables, we recommend developing a user-friendly companion app for your device. By connecting their wearables to an app, users will personalize their experience and engage with your product for longer.
How can startups adapt to the IoT trends in 2025?
New trends can be inspiring. Edge computing, data twin technology, artificial intelligence — it all sounds so futuristic. But if you want to achieve success with your product, it’s important to know your limits. After all, you can’t incorporate every trend into your IoT app.
Here are a few recommendations to help startups keep up with the times and capitalize on new IoT trends:
💡 Use each trend strategically.
It’s important not to follow trends for the sake of it. Think about it this way: does a smart home app need an AI chatbot feature? Probably not. Try to put the user first by considering how your product can bring them the most value and implement trends wisely.
🤸 Be flexible
Imagine this: you’ve invested everything in NFTs, only to realize that this space isn’t as profitable as it was in 2020. Instead of continuing to bet every dollar on the same trend, try to branch out and experiment with new ones. Today’s market is ever-changing, so being flexible gives you a serious competitive edge.
🧑💻 Find the right app development company
IoT platforms are bigger than ever, but only a few of them stand the test of time and remain relevant. If you want your product to be profitable in the long term, hiring competent developers is crucial. They will link your app to IoT devices and make it future-proof.
We at Purrweb have experience creating user-friendly IoT applications that communicate with external devices. Whether it’s an app for smart vending machines, power bank stations, or e-bikes — we’ll make sure it can withstand high user demand for years to come.
Purrweb’s experience in IoT
We’ve been in the app development space for over 10 years and have had a chance to work on some cool IoT projects. Here they are:
Vendify
We developed an app for smart vending machines that sell refrigerated food. The concept is simple: the client scans a QR code on a Vendify fridge, which then, automatically opens. The user can take several products at once and the vending machine sees this in real time. Then, it calculates the total cost and processes the payment.
Our team designed the app from scratch and built the entire frontend. We focused on easy navigation, letting users quickly type in their credit card numbers and login details. As a result, the app’s user flow ended up being fast and intuitive.
Energo
Building a mobile app for IoT stations was tricky, but we delivered the project on time. We developed a cross-platform app and integrated it with the charging stations. Not only that, we also provided visual design for everything, both the software and the hardware.
Right from the start, we knew that onboarding new users was critical to the app’s success . That’s why we created a minimalistic design that emphasized all the key features. We created eye-catching animations and illustrations to keep the user’s attention while they get to know the app.
Shockers
On this project, we were tasked with making an app for smart stun guns used by police officers and security guards. The idea here was to track every shot fired by a stun gun right on your smartphone — an ambitious goal, but we managed to impress the client with a sleek and feature-rich app.
To test the concept, we even tinkered with the stun gun chip that enabled the tracking functionality. This way, we made sure that every IoT feature worked as intended.
Eventignite
This is a desktop platform for offline events such as conventions and exhibitions. It provides an interactive map of the venue allowing users to quickly find what they’re looking for on the conference floor.
The client asked us to optimize this app for low-spec devices, so we had to get creative. We succeeded: the app has no problem rendering interactive maps on any device, and users can browse them without interruptions.
Let’s recap
The IoT space is full of technological wonders. Nowadays, you can even create companion apps for self-driving cars or solar panels, the possibilities are almost endless. At Purrweb, we enjoy working on innovative product concepts, and we’d love to hear about yours. If you want to discuss your IoT project with us, fill in the form below, and get a free project estimation in 48 hours.
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