As the IoT market matures, enterprise ambitions have evolved far beyond simple device connection. The new imperative is guaranteeing secure, reliable, and seamless global connectivity. This shift elevates the need for robust, verifiable performance, with many leaders now requiring pre-deployment testing in controlled private LTE environments to mitigate risk before scaling.
This new landscape, however, is not without its challenges. Few businesses are able to achieve the near-100% uptime needed for mission-critical applications and how unreliable connectivity directly hinders the progress of artificial intelligence (AI) initiatives. Additionally, there are persistent device-level complexities and escalating security risks that organizations face.
We sat down with Nick Earle, Executive Chairman of Eseye, to unpack the key findings from the company’s 2025 State of IoT report. The discussion dives into manufacturing’s push toward Industry 5.0 and edge intelligence, the growing divergence in IoT strategy between the U.S. and UK and the barriers holding back global deployments.
RFID Journal: Thanks for taking time to talk about your report. What are the most important non-negotiables businesses should look for when choosing an IoT connectivity partner?
Nick Earle: My pleasure. The conversation around connectivity has fundamentally matured. Five years ago, businesses were asking, “Can I get my device connected?” Now, they are asking, “Can you guarantee my device will stay connected, securely and simply, anywhere in the world?”
Our 2025 report shows that the non-negotiables are now about eliminating complexity and risk. Businesses are tired of managing logistical nightmares. For instance, 76% want to create one single product stock-keeping unit (SKU) to cut costs and simplify design. This is huge. It means they want to build one device they can ship anywhere. To do that, they need a partner that offers true global coverage from a single eSIM, which 78% demand.
The other key shift is from trust to verification. Businesses have been burned by poor performance. That’s why 77% now demand access to a controlled private LTE environment to run device connectivity tests before deployment. They want to prove it works in the real world, not just in a lab, before they ship thousands of units.
The AI Effect
RFID Journal: Your report mentions device-level failures are common. How can pre-deployment testing in private networks prevent this? And with IoT the foundation for AI, what happens to AI initiatives when IoT connectivity fails?
Earle: You have hit on the core problem. We maintain that hardware is called hardware for a reason…it’s hard, and our research proves it: 76% of business leaders agree that most IoT project failures stem from an issue at the device level.
A private testing environment, which 77% of businesses now want, is the insurance policy against this. It allows an organization to simulate real-world network conditions: high congestion, network hand-offs, weak signal. It lets them do this on their final-form device. It’s where you discover that the antenna you chose is inefficient, or the modem firmware crashes when it tries to switch networks. It’s about finding those mission-killing flaws before you’ve deployed 10,000 units, not after.
As for AI, the link is direct and brutal. AI is the ‘brain’, but IoT is the ‘central nervous system’ feeding it data. If that nervous system is faulty, the brain gets garbage data, or no data at all. Our report shows this isn’t theoretical: 34% of businesses explicitly state that poor IoT connectivity is already holding back their AI and machine learning efforts. As we say in the report, without reliable IoT connectivity, AI is flying blind.
RFID Journal: Why do so few businesses achieve the near-100% uptime needed for mission-critical IoT, and what’s the solution? And with IoT security breaches on the rise, where are the biggest device-level vulnerabilities that businesses are overlooking?
Earle: One of the most alarming findings in our report is that only 2% of businesses currently achieve the 98%+ uptime required for mission-critical IoT. This shows a massive, persistent gap between what mission-critical applications need and what the market is getting. The primary cause is a false economy: businesses are still buying connectivity like a commodity. Our data shows 75% of companies continue to choose cost over quality, even though three-quarters of them admit cheap connectivity providers don’t deliver. The solution is a mindset shift: treat connectivity as a strategic component, not a line item.
On security, the problem is accelerating. We found 75% of businesses reported an IoT-related breach in the past 12 months, a staggering 25% jump from 2024. The biggest vulnerability they are overlooking is the SIM itself. Many organizations use consumer-grade SIMs, trading cost for security. These SIMs lack advanced encryption and are susceptible to cloning— 35% of companies directly link their rising security breach risk to these very limitations in their connectivity infrastructure.
Reliability Concerns
RFID Journal: What are the key challenges organizations face when trying to achieve reliable connectivity across multiple regions?
Earle: This remains a central headache for any global enterprise. It’s no surprise that achieving ‘reliable multi-region connectivity’ tied as the number one barrier to IoT success in our 2025 report, cited by 20% of all respondents.
The challenge is easy to picture for any business managing physical assets. A connected asset, whether it’s a smart container or a piece of industrial machinery, is often manufactured in one country, shipped across multiple others, and then operated in a final one. That single device has to navigate a minefield of different carrier contracts, local data sovereignty laws, and, most critically, permanent roaming restrictions.
The old model of trying to manage this with different local SIMs for each region is an operational and inventory nightmare. This deep-seated complexity is precisely what’s driving the market’s demand for a single, intelligent eSIM that can manage these challenges automatically.
RFID Journal: Manufacturing shows strong investment, but what’s the biggest hurdle holding back true Industry 5.0 adoption?
Earle: The manufacturing sector is all-in. They are reporting the highest net budget IoT increases for 2025 (a 76% net increase) and 86% are actively scaling their deployments.
But they are hitting a new wall. Their barrier isn’t vision, it’s complexity as the biggest hurdle has shifted from security to access to technical IoT support (24%). As they move towards Industry 5.0, with 86% of them saying they need edge intelligence, they’re finding that designing, deploying, and managing a fleet of smart, data-processing devices is vastly more complex than just connecting them. They don’t just need a connectivity vendor anymore; they need an expert partner who understands the device, the edge, and the network.
Rising Profile of Sustainability
RFID Journal: Supply chain leaders are focusing on sustainability. How does IoT help them achieve resilience beyond just ROI?
Earle: This was one of the most fascinating findings for us. For supply chain leaders, the primary driver for IoT has fundamentally shifted. In 2024, their top benefits were competitive advantage (80%) and increased revenue (74%). In 2025, the number one benefit is sustainability (56%).
This suggests a maturing mindset: one that sees IoT as a lever for resilience, not just return. The industry has learned that sustainability gives resilience. IoT provides the granular visibility they need to achieve both. It’s no longer just about ROI from finding a lost pallet. It’s about building a resilient, future-proof operation. IoT data allows them to audit supply chains, prove their ESG credentials, reduce waste, and optimize energy use.
RFID Journal: Sustainability is now the top IoT benefit. Beyond revenue and efficiency, how should businesses start measuring the social and environmental ROI of their IoT projects?
Earle: This is the first time in five years of our report that sustainability has beaten revenue and efficiency as the number one declared benefit of IoT, cited by 44% of all businesses. It’s a profound shift.
Businesses need to move beyond just measuring their carbon footprint. Our data shows they are already starting to do this, with 38% citing ‘positive social or human impact’ as a key outcome.
A tangible way to start measuring this is at the device itself. We found 76% of businesses are now prioritizing sustainable IoT design. This provides a clear measurement framework. Are you limiting the production of disposable devices that can’t be recharged, reused or recycled? This also includes pushing for newer, more integrated technologies like iSIM, which integrates the SIM function directly into the device’s main processor, reducing component count, power consumption, and physical waste. Are you measuring component sourcing and the use of localized materials? IoT provides the data for smarter resource usage and waste reduction, the metrics are right there to be captured.
Continental Divide
RFID Journal: The report highlights a growing divergence between U.S. and UK IoT ambitions. What is driving this five-year trend?
Earle: Our five-year data shows a clear ‘tale of two speeds’. The U.S. is scaling confidently, while the UK has hit the brakes. The data is stark: in 2021, 91% of UK firms planned IoT budget increases; by 2025, that has plummeted to just 33%. The U.S. market, while also more cautious, remains robust, declining from 86% in 2021 to 61% in 2025.
Our analysis attributes this UK loss of momentum to significant macroeconomic headwinds and fiscal restraint. But the strategic implication is what’s critical. The U.S. is building a significant lead in IoT maturity and infrastructure. The UK, meanwhile, is becoming more cost-sensitive and is particularly struggling with device-level performance and complexity, which is now their top challenge. This isn’t just a temporary trend, it’s a widening gap in ambition and execution.
RFID Journal: How critical is processing data at the edge for the future of industrial IoT and smart manufacturing?
Earle: It is not just critical; it is the entire future of the industry. Our data from the manufacturing sector shows 86% of leaders state their devices must become more intelligent and process data at the edge to support Industry 5.0.
The reason is simple. A smart factory cannot wait for a round-trip to the cloud. You need real-time data for predictive maintenance on a production line or for computer vision in quality control. As Julien Bertolini, IoT Expert at Volvo Group, stated on a recent episode of our IoT Leaders podcast, edge IoT is where they “combine real-time monitoring, predictive maintenance, and computer vision… that’s where we see the future of smart manufacturing headed.” Sending all that raw sensor and video data to the cloud is slow and expensive. The edge is what makes real-time, AI-driven action possible.
RFID Journal: Looking ahead, what is the single most important factor for achieving true global IoT interoperability?
Earle: The adoption of the new SGP.32 standard. We see this as a pivotal moment for IoT. For years, the industry has been held back by proprietary, locked-in SIM technology that creates friction.
SGP.32 is the game-changer because it finally delivers true commercial and technical flexibility. It standardizes the way a device can remotely download and switch network profiles without needing complex, pre-arranged carrier agreements. The market is desperate for this. Our report shows 78% of enterprises want global coverage from a single eSIM and 76% value the ability to switch providers on demand. SGP.32 is the technology that will finally deliver that, and it will be the foundation for the next wave of truly global, interoperable IoT.
However, the standard itself is just the framework, not the complete solution. While SGP.32 provides the capability to switch, it doesn’t by itself solve the complexity of managing a global estate. True interoperability will still depend on a sophisticated orchestration layer to manage those network profiles, ensure service quality, and navigate the complex commercial landscape. It’s about moving the problem from hardware lock-in to ecosystem management, which is a complex transition that still requires significant expertise.