Blogs
17 September 2025
Reading Time: 4 mins
Eseye
IoT Hardware and Connectivity Specialists
LinkedInSupply chains are the circulatory system of the global economy. From factory floors to portside cranes and delivery fleets, every link depends on real-time coordination and visibility. IoT has become central to that mission, embedding intelligence into assets, vehicles, and warehouses to increase efficiency and resilience.
In 2025, our State of IoT Adoption survey shows supply chain and logistics as one of the strongest growth markets for IoT. Device estates are scaling, priorities are shifting, and despite ongoing challenges, the sector is determined to keep pushing forward.
Supply chain businesses double up to treble IoT device estates
IoT is no longer an experiment in supply chain. Most organizations now manage estates between 1,000 and 10,000 connected devices. In 2025, 35% reported operating 1,000 to 5,000 devices, while 33% sit in the 5,000 to 10,000 range.
Growth is far from slowing in 2025 and moving into 2026. More than a quarter (27%) expect to double up to treble their deployments within the next 18 months.
This builds on the momentum we saw in 2024, when supply chain and logistics tied for the highest IoT estate expansion rate across all industries, with 89% planning to grow estates and 38% expecting to double them.
From margin gains to sustainable, resilient supply chains
In 2024, IoT was all about outperforming rivals. Competitive advantage (80%) and increased revenue (74%) topped the list of benefits. By 2025, the picture has shifted.
- Sustainability now leads, cited by 56% of respondents.
- Social value follows at 39%.
- Product diversification ranks third at 36%.
This pivot suggests a maturing mindset. IoT in supply chain is no longer just a tool for margin gains; it is a lever for resilience, accountability, and long-term impact.
Why hardware failures and security breaches still undermine IoT
The sector’s biggest hurdle in 2025 is technical device complexity, named by 23% of respondents. A striking 85% say project failures are rooted in hardware issues, underlining how device performance can make or break IoT initiatives.
Security remains another persistent risk. In 2024, it was the top challenge (41%), and in 2025, 79% of businesses reported experiencing an IoT-related breach in the past year. Given that connected assets are constantly in motion, exposed to multiple networks and often left unattended, these figures are troubling but unsurprising.
Connectivity failures also remain an issue. In 2024, 71% of supply chain respondents admitted that devices were failing to connect due to hardware problems. One year later, the message is clear: without better device design and robust connectivity management, deployments will continue to struggle.
83% of supply chain leaders trust managed IoT connectivity services
Supply chain and logistics has long recognized the value of expert support. In 2024, 88% of organizations said they preferred to work with a managed IoT connectivity provider. In 2025, that figure remains high at 83%.
The slight dip suggests businesses are exploring ways to balance in-house and outsourced expertise, but the message is clear: the overwhelming majority still view managed services as essential.
A clear example is Neokohm, a Brazilian logistics company that connects 3.5 million vehicles across 95% of the country’s vast territory. With Eseye’s multi-network connectivity, Neokohm overcame patchy coverage and persistent connection failures, achieving:
- Reliable tracking across Brazil’s fragmented operator landscape.
- Reduced connection dropouts that previously left cargo unmonitored.
- Real-time visibility into vehicles and cargo, improving both security and efficiency.
- Stronger trust from customers who rely on accurate, always-available data.
For Neokohm, managed IoT connectivity is not just about uptime. It is about safeguarding vehicles, protecting cargo, and meeting customer expectations in one of the world’s most challenging logistics environments.
In such a complex sector, expert support is non-negotiable. Managed services enable companies to scale with confidence. From proactive monitoring and remote updates to network optimization across borders, they reduce the burden on in-house teams and ensure IoT estates stay secure, reliable, and compliant.
Why supply chain firms plan a 65% net investment increase
Despite the challenges, supply chain and logistics is not easing off IoT growth. In 2025, the sector reports a 65% net increase in IoT investment plans, one of the strongest commitments of any industry surveyed.
This willingness to invest reflects a clear understanding: IoT is no longer optional. It is the engine that keeps global supply chains moving, and the foundation for efficiency, sustainability, and resilience in the years ahead.
Can IoT keep global supply chains in high gear?
Supply chain and logistics has always been about anticipating and overcoming disruption. IoT now sits at the center of that mission.
The sector has matured rapidly, pivoting from short-term revenue gains to long-term resilience and sustainability. But persistent challenges, from device failures to security breaches, show that success is not guaranteed.
The lesson is clear: this industry cannot afford fragile IoT. It needs secure, reliable, and scalable connectivity designed for assets that never stand still.
Supply chains are keeping IoT in high gear. The question is whether organizations will invest not just in more devices, but in better strategies and stronger partnerships to ensure every connected asset delivers lasting value.
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