Smart Vending at Scale: Why the Sector Must Secure its Future

Eseye

IoT Hardware and Connectivity Specialists

LinkedIn

Smart vending has been part of the IoT story from the very beginning. The first internet-connected device was a vending machine, and decades later the sector still stands as a benchmark for how connected technology can deliver real-world value.

In 2025, our fifth annual research survey found that over half of smart vending estates (56%) manage 5,001 to 10,000 machines, while 17% operate at massive scale with 10,000 to 100,000. But the latest findings suggest the market may be hitting saturation.

This is a pivotal moment. The fundamentals are proven, but the risks are growing. To stay ahead, smart vending must focus on making connected machines more secure, more reliable, and more sustainable.

Smart vending growth slows after early scale

Smart vending was among the first industries to reach IoT scale. In 2024, 78% of companies still intended to expand their estates, with nearly one third planning to double the number of devices.

A year on, the picture has cooled. Expansion is still happening, but budget pullbacks and cautious investment are becoming more common. While 35% of respondents plan to increase IoT budgets, half expect to reduce spend, the second-highest cutback of any industry we surveyed.

For a sector that has already achieved large-scale rollouts, the challenge now is less about adding machines and more about improving performance, security, and efficiency across existing estates.

Why sustainability still leads as top IoT benefit

Sustainability remains a top driver for IoT in smart vending. In 2025, 41% cited it as their leading benefit, ahead of social impact (36%) and revenue generation (33%).

In 2024, sustainability also topped the list (62%) and revenue was deprioritized. But the benefits remain clear. Inventory automation reduces waste around sell-by dates. Predictive maintenance extends equipment life and reduces part replacements. And the machines themselves operate with a far smaller footprint than traditional retail, using significantly less energy and space.

Costa Express machines, for example, can fit into spaces as small as 2m high and 80cm wide. On average they consume 210–420 kWh per month, compared with 360–840 kWh for commercial coffee machines in shops. The sustainability advantage is tangible.

Security breaches threaten vending confidence

In 2025, the biggest challenge for smart vending is technical device issues, cited by 21% of businesses. The scale of the problem is clear: 81% say most IoT project failures stem from device-level problems, and 85% experienced a security breach in the past year.

This is not surprising. Vending machines are deployed in public areas such as car parks and shopping centers. Their multiple components and access points make them vulnerable to tampering, downtime, and connectivity failures.

In 2024, smart vending companies already reported more security breaches than any other industry at 61%. One year later, that figure has climbed even higher. It underlines a sector where exposure is built in, and resilience must be designed in.

Why 86% of vending firms rely on managed IoT

Despite the challenges, confidence in managed IoT connectivity services is strong. In 2025, 86% of smart vending businesses said they prefer to work with a managed connectivity provider.

That is a recognition of reality: in a market where the technology is proven but the margin for error is shrinking, expert support is no longer optional. Managed services can deliver the monitoring, remote updates, and real-time troubleshooting needed to keep thousands of distributed endpoints online and secure.

For smart vending, this support is critical. The industry cannot afford downtime that frustrates users, drains revenue, and undermines confidence.

Beyond scale: building trust in every machine

Smart vending helped write the first chapter of IoT adoption. Today, it is a global industry with millions of connected machines delivering convenience, efficiency, and sustainability.

But success has also made the risks more visible. As estates mature and the market approaches saturation, device reliability, security, and lifecycle management will determine which players stay ahead.

In this article

• Smart vending growth slows after early scale
• Why sustainability still leads as top IoT benefit
• Security breaches threaten vending confidence
• Why 86% of vending firms rely on managed IoT
• Beyond scale: building trust in every machine