Column: From the analysts...


The number of connected IoT devices in 2025 grows by 14%, exceeding 21 billion By IoT Analytics researchers


T


he number of active IoT connections is expected to grow 14% this year, reaching 21.1 billion. Te figure will jump to 39 billion in 2030, reflecting


a 13.2% compound annual growth rate (CAGR) from 2025. Tis latest forecast was revised slightly downward from the previous IoT Analytics update, due to ongoing capex deferrals and soſter than expected demand in China. Te forecast is lower than in 2023 due to continued cautious enterprise spending as inflation and interest rates remain high, alongside continued chipset supply constraints and ongoing geopolitical conflicts in Eastern Europe and the Middle East. Despite these macro factors, 51% of


enterprise IoT adopters plan to increase their IoT budget. “Te global IoT market is set to surpass


20 billion connected devices this year and is on track to exceed 50 billion by 2035,” said Knud Lasse Lueth, CEO at IoT Analytics. “As billions more devices come online, their data will increasingly fuel artificial intelligence and become the foundation for more intelligent systems across industries.”


Research approach IoT Analytics counts connected IoT devices as active nodes/devices or gateways that concentrate the end sensors and not every end node (sensor/actuator). Te following are communication


technologies considered part of these connected IoT devices: • Wired – Ethernet and field buses (e.g., connected industrial PLCs or I/O modules);


• Cellular – 2G, 3G, 4G and 5G; • Low-power wide-area network


08 November 2025 www.electronicsworld.co.uk


(LPWAN) – unlicensed and licensed low-power networks;


• Wireless personal area network (WPAN) – Bluetooth, Zigbee, Z-Wave, and other similar technologies;


• Wireless local access network (WLAN) – Wi-Fi and related protocols;


• Wireless neighbourhood area network (WNAN) – non-short-range mesh, such as Wi-SUN;


• Others – satellite and unclassified proprietary networks with any range. Computers, laptops, fixed phones,


mobile phones and consumer tablets, and simple one-directional communications technology such as RFID or NFC are not considered. IoT connections via more than one


communication standard are only counted once.


Concerns affecting forecasts Tere are several key concerns that are affecting this market: economic that weigh heavily on investment confidence, the supply of chipsets, which is likely to remain a constraint for years to come in the face of surging demand, and a sluggish Chinese economy that limits IoT expenditures. From 2023 and into 2024, economic


concerns remained the top topic of CEOs during earnings calls. Even if economic uncertainty has faded throughout 2024, its impact on connected devices was felt in 2025 and will continue to do so for years to come. End users and business confidence may take time to recover, leading to a ‘wait and see’ approach to spending. Over the past two years we’ve seen


Even if economic uncertainty fades


throughout 2024, its impact on connected devices may be


felt for years. End users and business confidence may take time to recover, leading to a ‘wait and see’ approach to spending


chipset supply considerably improving, with delivery lead times higher than pre-pandemic levels. While it is true that a lot of chip manufacturing capacity continues to be planned in Europe and the US – fuelled by government initiatives such as the US Chip and Science Act (2022) and the EU Chips Act (2022) – it will take many years until supply matches or surpasses demand for the majority of different chipset types. China typically has a significant effect


on the IoT market, however the country has been experiencing muted economic growth since 2023, and deflationary pressures continue to exist, even though seem to be easing. Te effects of this subdued growth are affecting Chinese industrial companies. In 2024, approximately 30% of Chinese industrial firms were losing money, beating the previous record set during the Asian financial crisis in 1998. Until the financial situation improves for these companies,


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