Forrester maps ten edge & IoT trends set to shape 2025

Forrester has set out 10 trends it expects to shape edge computing and the internet of things in 2025, with a focus on AI at the edge, observability, security and sustainability use cases.

The analyst firm said edge computing and IoT had moved into the mainstream of enterprise technology planning. It linked that shift to greater demand for local decision-making, more distributed operations, and pressures on resilience and autonomy.

Forrester's list spans industrial deployments, networking and security architectures, retail technology, development tooling and incident response platforms. Several of the trends also reflect constraints on bandwidth, latency and reliability when organisations place computing closer to devices and operations.

AI at the edge

Forrester highlighted AI-driven edge intelligence for autonomy as a leading trend. It cited predictive maintenance models embedded on industrial gateways and the use of drones with computer vision for disaster response. The report framed these examples as situations where latency and local decision-making matter.

A related trend focused on agentic AI and AI PCs at the edge. Forrester pointed to advances in semiconductor technology and neural processing units. It said these developments enable local analytics on IoT devices. It also said this approach reduces latency and improves resilience in healthcare and manufacturing workloads.

Observability focus

The report identified observability as a strategic differentiator. Forrester said edge devices and IoT sensors produce large volumes of data across decentralised environments. It said organisations struggle when signals remain fragmented across sites, networks and device fleets.

Forrester said enterprises are investing in observability tools that unify inputs and monitor performance. It also said businesses use these tools to optimise reliability across distributed environments. The emphasis reflects the operational complexity of running applications across many remote locations and device types.

Security and networks

On security, Forrester said IoT security is moving beyond device discovery. It described security solutions that manage device lifecycles, assess risk and classify devices for stronger control and monitoring. It also said vendors are expanding integrations as organisations attempt to standardise security posture across mixed environments.

Forrester also flagged vendor activity in networking. It said networking vendors are chasing IoT enablement across areas such as SASE, WAN and private 5G. It described those approaches as immature for IoT needs. It also pointed to noncellular mesh networks as a low-bandwidth alternative that is gaining traction for distributed connectivity.

The report also said SASE is moving closer to the edge. It described integrated networking and security platforms that push Zero Trust capabilities to remote sites. Forrester linked this approach to stronger security without additional complexity or operational burden.

Sustainability use cases

IoT-enabled sustainability solutions also featured in Forrester's trends list. It said organisations are using IoT sensors for real-time monitoring of energy use, air quality and emissions. It also said these solutions drive efficiency and reduce scope 3 emissions across transportation, logistics and supply chains.

The focus reflects the growing role of operational technology data in environmental reporting and the demand for near real-time monitoring across facilities and third-party networks.

Retail and platforms

In retail, Forrester said mobile POS is reshaping store operations. It described retailers redesigning stores around mobile point-of-sale devices to streamline checkout and change the customer experience. It also pointed to resilience gaps when networks fail and the need for contingency planning.

Forrester also said edge development platforms are surging as enterprises look for simpler ways to manage distributed environments. It linked this to edge-optimised application delivery across remote sites. It also said these platforms enable real-time personalisation and IoT-driven insights.

Incident response

The final trend in the list centred on critical event management platforms that integrate edge and IoT. Forrester said CEM platforms are using edge computing and IoT sensors for rapid situational awareness. It also said this integration improves incident response and resilience in high-stakes environments.

The theme aligns with organisations adopting more automated workflows for operational risk and safety across facilities, logistics networks and public sector environments.

Forrester said the trends point to increasing convergence across AI, device fleets, networking and security tools. It also highlighted the operational overhead that comes with decentralised deployments and the need for new approaches to monitoring and governance.

"Edge computing and IoT are no longer niche technologies-they are foundational to enterprise resilience," said Michele Pelino, Principal Analyst, Forrester. "AI-driven edge intelligence and sustainability-focused IoT solutions will dominate 2025 as organizations seek to minimize latency, improve security, and meet environmental goals. Tech leaders must prioritize observability and cross-functional collaboration to unlock the full potential of these technologies."

Forrester expects more organisations to expand edge deployments across industries as they adopt local analytics, distributed security controls and IoT sensor networks tied to operational and sustainability objectives.