Digital transformation is one of the great evolutions that makes a great impact on global development. Digital transformation refers to implementing technologies in businesses or industry operations to automate tasks, reduce manual labor, digitalize various processes, etc. The digital transformation market size has grown exponentially in recent years. It will increase from $1755.44 billion in 2024 to $2116.91 billion in 2025 at a compound annual growth rate (CAGR) of 20.6%. The digital transformation market size is expected to see exponential growth in the next few years. It will grow to $4416.39 billion in 2029 at a compound annual growth rate (CAGR) of 20.2%.
Overview: The Role of IoT in Driving Digital Transformation
Various technologies are playing a leading role in digital transformation and IoT is one among them. IoT solutions is the technology that is making important impacts on solidifying digital transformation strategies. IoT’s ability to collect, monitor, and connect devices creates an IoT-powered ecosystem that has various benefits. IoT-powered sensors can collect data on every operation performed under digital transformation and can use it to analyze to reach a correct decision. IoT-powered connectivity establishes a good collaboration between devices to exchange information. IoT can benefit other technologies for analyzing their performance to detect weak points. Various future trends of IoT are making an impact on digital transformation like IoT integration with Artificial intelligence, 5G connectivity, digital twins, Internet of behavior, etc.
The Internet of Things market is expected to witness a significant surge in revenue, reaching a staggering US$1,059.00bn by 2025 worldwide. Looking ahead, the market is anticipated to grow at an annual growth rate of 10.17% (CAGR 2025-2029), resulting in a remarkable market volume of US$1,560.00bn by 2029. In terms of global comparison, the United States is expected to lead the pack, generating the highest revenue of US$379.90bn in 2025.
What is IoT on Digital Transformation?
The term “IoT” (Internet of Things) in the context of digital transformation refers to the network of physical devices that are embedded with sensors and software and connect to the internet. This network enables the devices to collect and exchange data, which can fundamentally change how businesses operate across different industries and enable a more data-driven approach to operations and customer experiences. Digital transformation strategies to digitize every aspect of industries can positively impact the IoT potential.
Also Read: Role of Internet of Things (IoT) in the FMCG Industry
Key Impact of IoT on Digital Transformation Strategies
There are various benefits or impacts of IoT on digital transformation strategies. Here are a few mentioned below.
Efficient and Advanced Data Analytics
Digital transformation depends mostly on analytics to make decisions. IoT-powered systems can collect vast amounts of data that can be analyzed using cloud computing technologies to make the correct decisions. Digital transformation strategies directly benefit as they can be executed with proper planning and are based on accurate decisions.
Establish Smart System
IoT one of the most important impacts is developing a smart system for any operations or aspects. IoT-powered sensors and devices can be implemented in any business or organization to create a smart ecosystem that fosters the proper drive of digital transformation by creating a better collaboration and information system. This strengthens the impact of digital transformation strategies to digitize operations.
Wearable Devices
Digital transformation also reached the healthcare industry to develop systems to better care for patients. With IoT-powered wearable devices like wristbands, smartwatches, fitness bands, etc, it is possible to monitor patients’ conditions and gather information in real-time with remote locations too. This also makes a great impact on digital transformation strategies for the healthcare industry.
Creates Better Ecosystem of Devices
IoT generally refers to connecting devices on the internet so this ability also plays an important role in efficiently executing digital transformation strategies. IoT generally connects the whole devices together over the internet in an organized manner. This enables the better and more accurate execution of digital transformation strategies within an organization.
Smart Cities Development
Digital transformation not only digitizes business operations but also contributes to smart city development. IoT also makes a great impact on digital transformation strategies for smart city development. IoT-powered sensors and systems can deploy across a city to monitor traffic patterns, air quality, and energy usage to optimize infrastructure management.
Also Read: How can The Internet of Things Transforms Businesses?
Accelerating Digital Transformation Through IoT: Top Trends to Watch
There are various top future trends that assure the digital transformation acceleration with IoT. Here are a few trends mentioned below.
- Artificial intelligence integration with IoT makes a new form of IoT called AIoT. This combination can be very deadly as this can gather data and analyze it within no time.
- Blockchain integration with IoT in the future can strengthen the IoT security system. Blockchain provides a decentralized network that signifies the security issues and takes prevention.
- Digital twins are another IoT-powered trend that uses IoT to develop a replica of original objects, systems, etc to enhance testing aspects without affecting the actual one.
- Internet of Behavior or IoB is another top IoT trend that analyzes the behavior of humans to understand why they are using technology or to understand the other aspects of human behaviors.
Also Read: The Impact of IoT on the Retail Business Today
Final Words
IoT is a great technology that fosters digital transformation across industries or the globe with its incredible potential and abilities. IoT can strengthen the execution of digital transformation strategies by providing data analytics, sensing, detection, monitoring, analyzing, etc.
There are various impacts of IoT on digital transformation strategies like providing an ecosystem, smart system development, wearable devices availability, etc. We have also seen some IoT trends like 5g, AI integration, Digital twins, IoB, etc that enhance the IoT impact for digital transformation for the upcoming future. Overall, IoT has the most potential than any other technology to make a great impact on digital transformation strategies to digitalize global development.
