How IoT is Driving Sustainability Across Industries in 2025

­In 2025, IoT is expected to emerge as a powerful force in advancing sustainability initiatives across industries, helping organizations reduce their environmental impact while improving operational efficiency.

IoT is not just a product, but the architecture around a product, using sensors, connectivity and other tools to bring value from data in the world around us. At DigiKey, we recognize the significant potential in IoT development, especially in enhancing sustainability practices. We’re committed to collaborating with design engineers to identify and implement optimal solutions that integrate IoT products and services effectively. Our goal is to guide them through this rapidly evolving technology landscape and ensure a seamless, enriching experience.

IoT can play a powerful role in driving sustainability across industries, from manufacturing to agriculture, building management and more.

Manufacturing

Traditional manufacturing models are known for prioritizing efficiency over sustainability – and being resource-intensive. A truly sustainable future demands a paradigm shift. Flexible manufacturing systems offer a promising path forward. By embracing adaptability and agility, manufacturers can reduce waste, optimize resource utilization and start adopting principles of circularity where resources are continuously recycled and reused.

Manufacturing facilities are leveraging IoT devices to monitor and optimize their production processes. Smart meters and sensors track energy consumption, water usage and waste production in real-time. Predictive maintenance algorithms prevent equipment failures, reducing downtime and unnecessary resource consumption. Utilizing IoT-enabled inventory systems allows for order optimization, minimal overstock and traceability of items in the warehouse and as they are shipped.

With important drivers in place, the shift to flexible manufacturing is positively impacting sustainability and efficiency efforts. One DigiKey supplier – Analog Devices Inc. (ADI), a global semiconductor leader in security, AV and low-voltage products – is seeing this impact. ADI customers are investing in adaptable manufacturing within their own plants. This enables production lines to be changed quickly when necessary, building capabilities to react faster to different regional requirements.

Facility operations

When considering how to optimize facility operations, it’s fundamental to begin by looking at material flow, industrial vision, automated robotic systems, and increasingly, IoT technologies – key areas that are helping move the industry toward a more sustainable future.

Optimizing material flow within and between facilities minimizes transportation distances, reduces fuel consumption and lowers emissions. For example, ADI is implementing a net-zero warehouse to equalize energy from renewable sources as it consumes them. In our warehouses, DigiKey uses automation to increase productivity, utilize space better and maintain inventory accuracy in our product distribution center. We also bundle orders to save on packaging, space and freight costs when shipping products. Every sustainable action or practice put into action adds up from an environmental perspective.

Another area driving sustainable manufacturing innovation is automated robotic systems that improve warehouse efficiency, reduce labor costs, lower the risk of errors and minimize the environmental impact of transportation.

Building management

Modern buildings are now equipped with interconnected sensors that continuously monitor energy usage, occupancy patterns and environmental conditions. These sensors form part of a broader IoT ecosystem that enables seamless communication between devices and systems. AI-powered building management systems analyze this data in real-time to automatically optimize HVAC systems, lighting and other utilities based on actual demand and environmental factors.

Additionally, IoT systems can detect anomalies, such as equipment inefficiencies or unexpected energy spikes, allowing for a heads-up on predictive maintenance and reducing downtime. They also support remote monitoring and control, enabling building managers to make adjustments from anywhere, improving operational agility and reducing the need for on-site interventions.

This intelligent automation leads to a significant reduction of energy usage, which not only helps cut carbon emissions but also offers cost savings. These savings can be reinvested into future sustainability projects, such as renewable energy installations, green building certifications or further IoT upgrades. 

Agriculture

IoT sensors in agriculture are transforming how crops are produced. Today’s growers are using innovative technology to manage their farm operations and to combat rising issues related to increasing input costs, climate change, soil degradation, water scarcity and other macro issues. They are using digital tools and applications to monitor soil moisture, fertilizer applications, watering systems, plant maturation and more to improve their crop yield and build profitability.
 

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Figure 2: Agriculture technology solutions that support precision agriculture and other sustainable farming practices require a wide variety of parts and components, including sensors, automation systems, software and hardware to create products that monitor and collect data during the growing process

Agriculture technology solutions that support precision agriculture and other sustainable farming practices require a wide variety of parts and components, including sensors, automation systems, software and hardware to create products that monitor and collect data during the growing process. These solutions provide farmers with granular data about their fields to help maximize yield, starting with planting assistance through field mapping, tracking soil health, and identifying targeted application of resources like crop protection and fertilizer, minimizing the amount needed. Further, precision irrigation scheduling can reduce water waste by up to 40% while maintaining or improving yield.

Small-scale farmers are increasingly adopting these technologies thanks to more affordable IoT solutions and many lower-cost, reliable connectivity options.

Municipal management

City administrators are increasingly deploying IoT networks to manage urban resources more efficiently and sustainably. These smart technologies are transforming how cities operate, making them more responsive, data-driven and environmentally conscious.

Smart street lighting systems, for example, use motion sensors and ambient light detectors to automatically adjust brightness based on natural light, foot traffic and vehicle movement. This not only reduces energy consumption but also extends the lifespan of lighting infrastructure and enhances public safety.

Connected waste management systems utilize IoT-enabled bins that monitor fill levels and send alerts when they need to be emptied. This allows for dynamic route planning, reduced fuel usage and lower labor costs, while promoting recycling and minimizing landfill overflow.

Smart water networks are equipped with sensors that detect leaks, monitor water pressure and track usage in real-time. These systems can prevent water loss, reduce maintenance costs and ensure safe water quality.

Shared mobility solutions, including bike and scooter programs, are also benefiting from IoT. GPS and connectivity features allow users to easily locate available vehicles, while operators can monitor battery levels, usage patterns and maintenance needs. This supports low-emission transportation options and helps reduce traffic congestion.

IoT in 2025 and beyond

Looking ahead at IoT innovations, the team at DigiKey is keeping close tabs on IoT enablers (IoTe). With more than 20 years of experience in this space, we're bringing the pieces of IoT together to make that ecosystem more accessible. We see a great opportunity for DigiKey to simplify complex and often daunting areas by breaking terminology down and providing design engineers the tools and resources they need to succeed. We’re working hard to identify where our customers encounter unnecessary hurdles and challenges in the design process due to outdated system architectures, legacy hardware, service integration and complex software development.

While IoT continues to drive sustainability initiatives, challenges remain. Device durability, battery life and electronic waste are ongoing concerns in 2025 and beyond. However, innovations in biodegradable electronics and energy harvesting technologies are promising solutions. Integrating IoT with renewable energy systems and circular economy principles will likely define the next phase of sustainable technology.

IoT technology has become an indispensable tool in the fight against climate change and resource depletion. As these systems become more sophisticated and accessible, we expect even greater adoption across industries, leading to a more sustainable future.As a distribution leader in IoT products, DigiKey offers a wide variety of solutions to aid in sustainable practices across industries.

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