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IoT or the Internet of Things, and Edge Computing, have taken a radical shift with the advent of 2025 as it is about transforming business operations at that time. All such technologies are going to prove to be backbone architectures in the digital transformation journey for many industries. So, let us take a look at the major future trends of IoT and Edge Computing in 2025, along with opportunities and advancements in the future.
The market size for 5G IoT accounted for USD 13.2 Billion in 2023, which went on to grow at a CAGR of 35.1% from 2023 to 2028, thereby estimating a market size of USD 59.7 Billion in 2028.
One of the most drastic changes happening in 2025 will be the application of 5G networks into all possible IoT applications. The potential offers for ultra-low latency and high-speed capabilities are available only to 5G IoT devices for real time data processing and are high in automating industries like manufacturing, healthcare, and transportation. Another future of 5G IoT is connected smart cities and autonomous vehicles.
Edge AI integration will initiate the revolution for IoT devices. IoT devices will be smart and independent of cloud services through high-end edge processing, and further network flow requirements will be reduced due to this technology.
The market size of edge AI is expected to grow from around $ 24.05 billion in 2024 to around $356.84 billion by 2035. Such edge AI will empower industries to make live, data-driven decisions, especially in manufacturing and healthcare.
The number increased from 12 billion in 2021 up to 16 billion in 2023, and there are no indications that it will slow down. IoT Analytics pegs its bets on the fact that, by the year 2025, there will be more than 27 billion IoT devices in use. The emerging necessity of purging such huge amounts of IoT devices was the very reason for a call to action to strengthen IoT security.
With increasing IoT devices, security will still be one of the key concerns given the advancements in smart devices. Expect to see highly advanced IoT security protocols towards the end of 2025 that will have AI-powered threat detection and most importantly blockchain-based capabilities. These technologies will be vital in processes like protecting sensitive data generated by connected devices and securing businesses from cyber threats and attacks.
In dollars, the AI edge computing industry is expected to increase by USD 69.72 billion from 2023 to 2028 while the CAGR within that forecast period climbs to 38.6%.
Edge computing in 2025 will increasingly integrate AI-driven edge analytics and will allow businesses to glean real-time insights from IoT devices, leading to predictive maintenance and inventory optimization and real-time monitoring of systems in the energy, transportation, and smart homes industries.
As of 2023, the IoT cloud platform market globally was worth around USD 14.72 million. By 2024, the market is expected to grow to USD 17.91 billion and touch USD 102.01 billion by 2032 at a CAGR of 24.3% in this forecast period.
In the next few years, there will be a more potent prediction of IoT and cloud computing integration. This will give an opportunity for businesses to extend their IoT solutions across the economies of scale of storage and computation while benefiting from the low latency nature of edge computing. A seamless IoT-cloud connection will be essential for organizations to streamline operations and enhance customer experiences.
The size of the global Internet of Things Smart Homes market was valued at USD 99.3 billion in the year 2023 and is expected to grow from USD 124.42 billion in the year 2024 to USD 755.98 billion by the end of the forecast period in 2032 at a compound annual growth rate of 25.3% during the forecast period (2025-2032).
Smart homes will continue to grow in 2025 with all this IoT and edge computing. The smart building would probably have more intelligent building systems, better management of light, security, heating, and conditioning, and eventually become even smarter by AI and edge technology autonomy to provide an increasingly personalized user experience.
It is also anticipated that the global market for Industrial Automation IoT will witness significant growth in revenue from the installation of its technology. It is expected to reach US$275.70bn by 2025 with a CAGR of 13.34% (CAGR 2025-2029) and will cumulate market volume growth to US$454.90bn by 2029.
Smart homes will continue to grow in 2025 with all this IoT and edge computing. The smart building would probably have more intelligent building systems, better management of light, security, heating, and conditioning, and eventually become even smarter by AI and edge technology autonomy to provide an increasingly personalized user experience.Through IoT, robots increase safety and productivity at the floor level in industrial manufacturing environments.
In 2023, the Edge computing in the Healthcase market had a value of USD 4.5 billion. It is expected to grow up to USD 43.8 billion by 2033, with a CAGR of 26.3% during the period under review, 2024-2033.
Transformations will take place in health care with IoT and edge computing. Personalized treatments with real-time data processing and AI-powered analytics at the edge will enable healthcare professionals to deliver health-monitoring treatments more quickly and predict health problems in patients. This would yield improvements in patient care and reduce hospital readmissions, particularly in critical care and elder care.
The global IoT management market reached $662.21 billion in revenues in 2023 and is forecast to grow to $3,352.9 million by 2030.
Moving with the evolution of IoT, the interoperability of devices will be among future trends by 2025. It's in this potentially great space that manufacturers and software developers will be all out to forge open standards that allow their respective brands to communicate fairly well with other brands.
It is estimated that the Global Edge Computing for Autonomous Vehicles Market will reach a value of 7.5 billion US dollars during 2023 while the amount expected to be raised is around 38.4 billion dollars by 2031 - Growing with a CAGR of 22.65% during the forecast period, 2024-2031.
Edge computing will be very important for the functioning of autonomous vehicles in the year 2025. For processing huge amounts of data from IoT sensors locally (at the edge), real-time decision-making will be essential. Self-driving cars and trucks will rely on edge computing for their navigation in complex environments, assessment of road conditions, and ensuring passenger safety.
In 2025, the potential of IoT and edge computing promises technology-driven revolutions. The applications of 5G IoT devices and intelligent systems with Edge AI and cloud computing integration are expected to improve efficiency, enhance user experiences, and co-create opportunities to transform businesses. With all these incredible developments, businessestaking the side of IoT and Edge computing trends will definitely be the closest to reality in the upcoming digital world.
Envisioned in the future for all businesses would be the adoption of such innovative technologies to keep pace with and even beat competition within the market, thereby channeling the possible ways of creating new revolutions for the future.