Three in Four Failed IoT Projects Undermined by Poor Hardware Design, Eseye Report Finds

Eseye

IoT Hardware and Connectivity Specialists

LinkedIn

Two-thirds of businesses (66%) also report regular IoT connectivity issues.

The majority of Internet of Things (IoT) project failures are caused by issues at the device level, according to the new 2025 State of IoT report from global IoT firm Eseye. The research, which surveyed 1,200 senior decision-makers, found that three-quarters of businesses (76%) agree that a widespread “hardware blind spot” is undermining project success. 

This is compounded by frequent connectivity problems, with two-thirds of businesses (66%) reporting that their IoT devices fail to connect “regularly” or “always” because of a hardware issue.

This leads to significant operational consequences, with the report showing that “unreliable connections are leading to a loss of operational efficiency and increased costs for 35% of IoT adopters”.

Anand Gandhi, SVP Global Enterprise Sales at Eseye, said: “For years, the focus of IoT has been on the big picture: the data, the analytics, the cloud. These findings are a stark reminder that none of it matters if the physical device in the field cannot do its job reliably. An IoT deployment is only as strong as its weakest link, and this report shows that for three-quarters of businesses, that weak link is the hardware.”

“Choosing the right components, from the processor to the antenna and the SIM, isn’t just a technical detail, it’s the foundation of a successful project. Overlooking the device-level engineering is the number one reason that billions of pounds of investment in IoT are being put at risk.”

Eseye will be discussing the report’s findings and showcasing solutions to these device-level challenges at the IoT Tech Expo Europe in Amsterdam on the 24th and 25th of September 2025. The team will be available for meetings at Stand 24. Anand Gandhi will also join a panel session on Thursday 25 September discussing ‘The Future of IoT Connectivity’.

Research methodology

The research was conducted by Censuswide, among a sample of 1,200 senior decision makers and implementers of IoT strategy (who have undertaken at least 1 IoT project in the last 12 months), with IoT devices deployed across at least 3 countries and that connect through cellular networks. (Minimum of 50 respondents per market per sector in the following industry sectors: Supply chain / logistics, Healthcare / medical devices (telehealth), Manufacturing (consumer electronics etc), EV charging / Smart Grid, Smart Vending (not retail per se) and Agritech (i.e. companies leading with animal livestock technology, crop health and protection, agriculture manufacturers).

Company size must be 500+ employees. (600 respondents across the UK and 600 respondents across the USA).

The data was collected between 28.05.2025 – 03.06.2025.

Censuswide abides by and employs members of the Market Research Society and follows the MRS code of conduct and ESOMAR principles. Censuswide is also a member of the British Polling Council.

Eseye

IoT Hardware and Connectivity Specialists

LinkedIn

Eseye brings decades of end-to-end expertise to integrate and optimise IoT connectivity delivering near 100% uptime. From idea to implementation and beyond, we deliver lasting value from IoT. Nobody does IoT better.