Business Investments in the IoT and Where they Happen

January 29, 2026

Blog

With the Internet of Things (IoT) reshaping industries worldwide and market projections estimating the IoT sector to exceed $2 trillion by 2030, businesses are no longer asking if they should invest in the IoT but where they should strategically allocate resources to build the best products and drive growth, efficiency, and competitive advantage.

Much of this growing interest in the IoT stems from the power of its generated data to deliver actionable insights, better customer experiences, smarter resource management, and entirely new services. Unlocking this potential requires companies to strategically navigate a complex landscape of tools, protocols, and platforms.

Building Ecosystems for Real-World Solutions

There are varying and distinct needs across the IoT, ranging from support for low-power, battery-operated products to requirements for high data throughput and long-distance communication. This is why the industry relies on several different wireless protocols. Device makers are increasingly adopting Bluetooth, known for its ubiquity and easy connectivity, in wearables, smart home products, and more. Customers needing higher bandwidth for edge devices without sacrificing excellent battery life often select low-power Wi-Fi as the ideal solution. Finally, businesses requiring reliable, long-range, low-data-rate communication across vast areas rely on Sub-Gigahertz frequencies.

However, this wide variation in wireless protocols can lead to customer pain due to a lack of interoperability. When devices are siloed within specific protocols, the user experience becomes fragmented. This is where standards like Matter come in. While broad adoption takes time, Matter holds the promise of simplifying device setup and control for end-users while reducing development complexity for manufacturers.

To address these needs, providers like Silicon Labs focus on customer success through deep investments in interoperable platforms, including the proven Series 2 and the next-generation Series 3, designed to enable secure connectivity across a diverse IoT ecosystem. The Series 3 platform represents a significant advancement in IoT security, with its SixG301 SoC achieving PSA Level 4 security certification—the highest level of security recognized by PSA Certified. This helps manufacturers secure devices, maintain their integrity, and meet strict compliance requirements, which is critical for applications that handle sensitive or high-value data. Built for long-term reliability, the Series 3 platform ensures devices remain secure and updatable in the field for years to come.

As the technology behind IoT improves, the industry is experiencing major, positive change despite recent market challenges. So, where are businesses currently directing their IoT investments for the greatest impact, and how are these new solutions addressing real-world challenges?

Accelerating Connected Healthcare Through Strategic Investment

Significant strategic IoT investment is flowing into connected healthcare, driven by the urgent need for more personalized, preventive, and accessible care. Medical device companies are experiencing substantial growth as connected healthcare designs transition into production.

The growth is particularly pronounced in Continuous Glucose Monitoring (CGM) systems. These devices, often using Bluetooth Low Energy (BLE) technology, provide crucial real-time glucose data that empowers patients with diabetes to better manage their condition. Industry analysts expect CGM applications to represent a significant portion of IoT revenue growth, underscoring the substantial opportunity in this expanding market segment.

Beyond CGM, investment is expanding into additional medical applications, including remote vital sign monitors and medicine delivery systems. Smart inhalers also leverage BLE to help asthma and COPD patients by tracking medication use and technique, yielding data that enhances adherence and enables personalized treatment strategies.

Modernizing Infrastructure with Smart Metering

Another area where the IoT is being effectively leveraged is in smart metering, with deployment accelerating across utilities worldwide. India's Smart Electric Metering Initiative, for example, is rolling out 250 million units, opening the door for IoT vendors to supply millions of sub-GHz products. Japan is also preparing its next metering cycle this year, creating another sizable opportunity.

These projects do more than automate readings: they enable advanced grid management, leak detection, and load balancing, while giving consumers detailed usage insights that promote conservation. The shift toward higher-content, multi-protocol solutions is clear. Japan’s smart meters now integrate both sub-GHz and Wi-Fi, while the US and Europe demand secure, long-range connectivity to support large-scale deployments.

Optimizing Retail and Supply Chains with IoT Solutions

The retail sector continues to eagerly adopt IoT to streamline operations and enhance the customer experience, with Electronic Shelf Labels (ESLs) representing a key growth driver for IoT platform providers serving this market. Forecasts predict the booming ESL market will more than quadruple, growing from $1.85 billion in 2024 to $7.54 billion by 2033.

ESLs are digital tags that allow retailers to dynamically update pricing, promotional information, and stock levels instantly across thousands of labels, eliminating tedious manual processes and ensuring pricing accuracy.

Aside from immediate efficiency gains like automated pricing, ESL technology creates a connected infrastructure throughout the retail space, opening opportunities for more agile marketing strategies. The network of intelligent endpoints throughout the store can also be used for precise in-store navigation (guiding shoppers via their smartphones to specific products) or personalized interactions (like displaying targeted offers or product details when a shopper is nearby).

In the industrial and commercial (I&C) sectors, businesses are also leveraging IoT for asset management and supply chain visibility with increasing sophistication. This includes real-time tracking for major logistics companies. Advanced wireless technologies, such as Bluetooth Channel Sounding, are simplifying these processes by enabling highly accurate distance measurement, which opens new possibilities for precise indoor location services and access control.

Enhancing Environments: Smart Home and Buildings

Beyond the smart metering and retail sectors, smart homes and building automation continue to be foundational areas for IoT adoption and embedded intelligence, seeing steady investment. Industry growth in home and life applications is being driven by continued stabilization in smart home deployments, including gateways and smart lighting systems. In response to demands for energy efficiency, convenience, and security, manufacturers are integrating connectivity into everything from appliances and lighting to HVAC systems and security sensors.

A breakthrough area of investment is also emerging in battery-powered Wi-Fi 6 applications. For many years, Wi-Fi's high power consumption limited its use to devices with a constant power source. This is changing, as companies are making remarkable strides with ultra-low power Wi-Fi 6 technologies. These advancements are bringing Wi-Fi capabilities to applications where they were previously impractical due to power constraints, such as security cameras and video doorbells.

This has enabled a new class of high-performance, battery-operated devices. For instance, commercially validated success is seen in battery-powered security cameras that can capture high-resolution 1080p video while operating on battery power for up to two years. This focus on ultra-low power operation opens new possibilities across multiple applications, from home security to remote monitoring systems.

Choosing the Right Partner for IoT Success

Companies looking to capitalize on the power of IoT need partners with a broad portfolio, deep expertise across wireless protocols, a commitment to low power, security, and AI/ML, and a clear vision for the future. Silicon Labs is proud to have deployed more than one billion wireless chips globally.