The Internet of Things (IoT) is moving from pilot projects to the heart of enterprise transformation, according to the new 2025 Verizon Business IoT Market Insights Report. The survey, conducted across 500 U.S. enterprises, reveals surging confidence in the return on investment (ROI) and scalability of IoT, with artificial intelligence (AI), 5G, and new connectivity innovations like RedCap and network slicing serving as major accelerators.
For a growing number of businesses, IoT has become a strategic asset that fuels both revenue growth and operational efficiency. The report highlights that 98% of enterprises expect meaningful benefits from IoT deployments within two years, and more than half already cite productivity and efficiency gains as their primary motivators for adoption.
“The Internet of Things is a data powerhouse,” said Daniel Lawson, Senior Vice President, Global Solutions and IoT, Verizon Business. “A business’s connected machines, IT systems, and operations produce enormous amounts of data — location, condition, anomaly, threat, operational progress, and more. IoT is how that data is collected, parsed, and turned into actionable insight. What this survey shows is that IoT’s value is undeniable — and it’s about to get even more transformative with the integration of AI and next-generation networks.”
The report’s findings underscore how AI is amplifying IoT’s impact, helping enterprises make sense of the deluge of sensor-generated data. Seventy percent of organizations say AI has accelerated their IoT investments, while 84% view AI as a fundamental enabling technology for their IoT strategies. Meanwhile, 82% report that combining AI with camera and video data delivers valuable, real-time insights for faster, more informed decision-making.
However, with greater connectivity comes new challenges. Cybersecurity emerged as the single biggest concern for 43% of respondents, highlighting the need for secure network foundations and specialized expertise in managing IoT ecosystems at scale.
Beyond AI, the report identifies a strong link between IoT success and the deployment of next-generation connectivity solutions. Eighty-one percent of organizations currently rolling out IoT deployments see value in 5G, particularly as it enables high-speed, low-latency connections for mission-critical use cases. A large number of respondents — 74% — plan to integrate 5G RedCap (Reduced Capability) or enhanced RedCap into their IoT roadmaps, signaling growing adoption of optimized connectivity for massive IoT applications.
The study also points to a significant rise in the use of private wireless networks, with 52% of enterprises planning adoption within the next two years, and an increased emphasis on network slicing and satellite integration to support reliability and customization in industries like logistics and manufacturing. IoT deployments are also scaling rapidly — while only 8% of cellular IoT implementations exceeded 10,000 devices in 2025, that number is projected to more than triple to 27% in 2026.
From sector to sector, the survey reveals the tangible business impact of IoT across industries:
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In manufacturing and warehousing, 59% of respondents cite cost savings as the key driver for IoT investments.
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In retail, 83% of companies are focused on delivering personalized customer experiences through IoT-enabled insights.
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The logistics and supply chain sector is rapidly adopting IoT for real-time shipment tracking (58%), warehouse automation (44%), and predictive maintenance (44%).
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In automotive, nearly every OEM surveyed (94%) agreed that 5G delivers the speed and bandwidth essential for connected vehicle innovation.
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The transportation sector reports 72% adoption of IoT for fleet management, while 56% of healthcare organizations are using IoT for remote patient monitoring.
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In energy and utilities, smart meters and smart grids lead current deployments, while 40% of respondents are now exploring IoT use cases for renewable energy management.
Lawson noted that IoT’s growth is closely tied to robust network and integration strategies: “Deploying IoT at scale requires interoperability across clouds, secure device management, and the ability to operationalize insights efficiently. That’s where partnerships and managed services play a critical role in helping enterprises unlock IoT’s full potential.”
With AI-driven automation, 5G-enhanced connectivity, and new standards like RedCap and eSIM converging, enterprises are entering a phase of IoT maturity that promises both scalability and innovation. Verizon’s survey suggests that IoT is no longer an experiment on the edge of operations — it’s becoming the foundation of digital business transformation.
As organizations look ahead to 2026, the message is clear: IoT’s ecosystem is expanding fast, its ROI is measurable, and its synergy with AI is unlocking new frontiers in data-driven decision-making.
