The IoT is a smart bet and AI is a major accelerator, according to a Verizon business IoT survey of 500 companies.

The survey found soaring enthusiasm for the IoT, with multiple emerging technologies acting as catalysts.

Efficiency and productivity gains demonstrate return on investment (RoI), while excitement for AI and AI video, 5G and 5G RedCap, network slicing, private wireless, eSIM and more is fuelling forward optimism.

The survey of 500 companies that use IoT services in their operations found considerable optimism around RoI, growth potential and ongoing use of the technology. Respondents were US companies in varied industries.

Respondents indicated that while measurable RoI was within grasp and emerging technology was fuelling further optimism, there was a need for strong network foundations and well-managed IT integration to deploy IoT at scale. Integrating novel technologies with legacy systems, updating network foundations, and securing and operationalising the full ecosystem at scale often benefits from partnership and outside expertise.

“The internet of things is a data powerhouse,” said Daniel Lawson, senior vice president at Verizon. “A business’ connected machines, IT systems and overall operations produce an enormous amount of data – location, condition, anomaly, threat, operational progress and continuity, and so on. IoT is how those data get collected and parsed to provide businesses with insights about how things are going and how they can be improved. This survey tells us that IoT is highly valuable and scalable when implemented correctly, benefits from a full connected ecosystem, and is about to get a lot more interesting and dynamic with AI and other emerging technologies.”

AI is a driver, with 84% of enterprises considering AI a key technology for IoT, while 70% say it has accelerated their IoT deployments. And 82% report that combining AI with video and camera data can deliver valuable insights for real-time decision-making.

More than half of organisations cite efficiency and productivity gains as the primary driver for IoT investment. Almost all (98%) enterprises surveyed expect real benefits from their IoT deployment within two years, with most anticipating returns in less than 12 months.

IoT deployments of 10,000 or more devices are expected to more than triple next year, according to respondent data.

Partnership and complementary technologies are foundational, with 87% saying systems integration support from a mobile network operator is important or critical for successful IoT deployment. More than half (52%) intend to use private wireless networks for their IoT projects in the next 12 to 24 months, a 24% increase over current usage.

Around 81% of organisations surveyed in the middle of an IoT deployment see value in 5G.

Emerging technologies will fuel the future with 74% of companies planning to adopt 5G RedCap, and 74% expect to integrate satellites into their IoT roadmap. Some 78% see network slicing as essential to customising IoT performance, especially in logistics and supply chain applications (60%).

Cyber security is still a big problem with 43% saying it is their biggest challenge in IoT deployment.

There is a surge in eSIM adoption. ThingSpace data show 240% growth in the YoY monthly average for eSIM connectivity. Personal mobility (non-auto), energy and utilities, and logistics and supply chain industries are leading the pack in prioritising eSIM.

A majority (59%) in manufacturing and warehousing cite cost savings as the key driver for IoT deployments. A personalised customer experience is the leading IoT application in retail, currently or soon to be deployed by nearly 83% of respondents.

Most respondents in logistics and supply chain are currently deploying real-time shipment tracking (58%), and significant percentages plan to leverage IoT for warehouse automation (44%) and predictive maintenance (44%) in the next 12 to 24 months.

Almost all (94%) automotive OEMs agree that 5G delivers the speed and bandwidth they need. A large majority of transportation respondents (72%) currently use IoT for fleet management.

Remote patient monitoring is the leading IoT use case in healthcare, deployed by 56% of respondents.

Smart meters (60%) and smart grids (48%) are the most common energy use cases today, with renewable energy management (40%) and energy storage optimisation (38%) cited as use cases that respondents intend to explore in the next 12 to 24 months.

An infograph of key findings in the survey can be found at www.verizon.com/business/resources/infographics/2025-iot-market-insights-infographic.pdf and more information is available at www.verizon.com/business/products/internet-of-things/#marketinsights.