Device security has become the weakest link in the enterprise IoT chain, as data from IoT firm Eseye reveal over three-quarters (76%) of businesses were exposed to a cyber security breach in the past 12 months.

This is up from 58% in 2024. The findings come from Eseye’s 2025 State of IoT report.

The EV charging (82%) and manufacturing (85%) sectors were the hardest hit, with the report further warning that poor connectivity is amplifying these security risks and creating significant operational consequences. When asked about the top risks their company faces due to connectivity limitations, leaders cited a cluster of critical issues, including the inability to gather timely and accurate data (36%), failure to meet regulatory compliance (36%), and damage to company reputation due to connectivity issues or security incidents (36%).

“Security isn’t a check-box exercise, it’s a continuous, year-round commitment,” said Paul Marshall, chief customer officer at Eseye. “Organisations must embed a security-first mindset into every stage of the IoT lifecycle, from initial device design to long-term deployment and maintenance. I strongly advise proactively assessing vulnerabilities. A crucial step is to engage a trusted, independent third party to perform an advanced penetration test. This is the only way for them to genuinely stress-test their entire architecture and ensure their devices remain robust and resilient against the ever-evolving threat landscape.”

The report, based on insights from 1200 senior enterprise IoT decision-makers, highlights a critical shift in risk perception towards the network edge. A growing security concern is evident, with 76% of businesses now attributing most IoT project failures to vulnerabilities at the device level, up significantly from 58% the previous year. This surge underscores the increasing recognition that endpoint security gaps are not just operational issues but core threats to enterprise resilience and data integrity.

The findings are based on a survey, commissioned by Eseye (www.eseye.com) and conducted by independent market research firm Censuswide (censuswide.com). The data were collected in May and June this year. The research surveyed 1200 senior decision-makers with responsibility for IoT strategy and implementation in enterprises across the UK and USA.

For a free copy of the report, go to www.eseye.com/resources/whitepapers/2025-state-of-iot-report/.