Gartner Hype Cycle for IoT 2025: Key Trends Driving the Next Phase of Adoption

We believe this Hype Cycle for IoT 2025 shows a clear shift in the connected technology market. IoT is moving beyond broad platforms and toward more specific, value-led applications that combine connectivity, edge processing, AI, and machine learning to solve real business problems.

For IoT MVNOs and OEMs, the message is practical rather than speculative. The next phase of IoT adoption will depend on how easily connected products can be deployed, activated, secured, updated, and managed across markets. This is where eSIM has an important enabling role.

What Is the Gartner Hype Cycle?

The Gartner Hype Cycle evaluates innovations and trends impacting Internet of Things leaders. It will help CIOs extend IoT platforms into digital business initiatives and identify key technologies for developing value-added IoT applications and alliances.

Three IoT Trends for 2025

In our view, three themes stand out.

First, IoT is becoming more industry-specific. In our view, the report highlights a shift from general IoT platforms to packaged applications built for sectors such as healthcare, sustainability, manufacturing, oil and gas, and logistics. These applications increasingly include AI and ML capabilities, making reliable connectivity and high-quality data essential.

Second, more intelligence is moving to the edge. Edge computing, edge AI, edge analytics, and edge IoT networking are all gaining importance as enterprises process data closer to where it is created. This supports faster decisions, lower latency, better resilience, and stronger control of sensitive operational data.

“The trend of processing data where it offers the most value — typically at the edge — is reflected in innovations like edge computing, edge AI, edge GenAI, edge analytics, edge asset life cycle management and edge IoT networking. Many of these innovations are projected to reach mainstream adoption in two to five years; edge AI is expected to reach that milestone even sooner.”

Third, automation is becoming more connected. Intelligent applications, machine customers, cyber-physical systems, and IoT-enabled equipment-as-a-service all depend on connected devices that can act, adapt, and exchange data securely over time.

Where eSIM Fits

Gartner lists eSIM as a technology with transformational benefit with mainstream adoption expected within two to five years.

What’s interesting is its relevance beyond just connectivity, in how it supports scale.

For IoT deployments, eSIM can simplify manufacturing, reduce supply chain complexity, enable remote profile management, and support flexible connectivity across markets. This helps OEMs avoid hard-coding connectivity decisions too late, while giving MVNOs and connectivity providers a stronger foundation for localized, resilient IoT services.

What IoT MVNOs Should Do

IoT MVNOs should treat eSIM as a core part of their future service architecture. The opportunity is to move beyond connectivity resale and toward orchestration: combining local access, lifecycle management, roaming alternatives, security, and platform integration.

They should also prepare for hybrid connectivity models. As private 5G, satellite IoT, LTE-M, NB-IoT, and edge networking mature, customers will expect flexible options that match each use case. eSIM can help MVNOs deliver this flexibility without adding unnecessary operational complexity.

What IoT OEMs Should Do

OEMs should design eSIM into connected products early, not as a late-stage connectivity decision. This is especially important for products shipped across multiple regions, used over long life cycles, or dependent on reliable service activation in the field.

They should also assess In-Factory Profile Provisioning, or IFPP, as part of their manufacturing strategy. By enabling connectivity credentials to be provisioned during production or fulfilment, OEMs can simplify deployment and improve the customer experience from first power-on.

What Comes Next

Regulation and market demand may accelerate adoption. The EU Cyber Resilience Act is increasing focus on secure connected products, while global travel, digital payments, and major events such as the 2026 FIFA World Cup are making seamless mobile connectivity more visible to consumers and enterprises.

For IoT MVNOs and OEMS, the direction is clear: the next wave of IoT will be connected, intelligent, secure, and easier to activate at scale. eSIM is one of the technologies helping make that possible.

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Source: Gartner Report, Hype Cycle for IoT, 2025, By Kameron Chao, Alfonso Velosa, Pablo Arriandiaga, Scot Kim, Emil Berthelsen, Kameron Chao, Alfonso Velosa, etc., July 2025. Gartner and Hype Cycle are a trademark of Gartner, Inc. and/or its affiliates.

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