Smart Tech, Sustainable Future: Global view of how IoT is leading the Green Transition

11 May Smart Tech, Sustainable Future: Global view of how IoT is leading the Green Transition

Posted at 04:40h in Blog by Rinkesh D

Banner image generated using ChatGPT, OpenAI, May 09, 2025

This article is part of a series on Tech-based Social Startups in India. You can find the full series and read the other articles in the series here, here, and here.

“The most profound technologies are those that disappear. They weave themselves into the fabric of everyday life until they are indistinguishable from it.”

~ The computer for the 21^st Century, Mark Weiser [1]

Internet of things (IoT) and its sub categories like Industrial IoT (IIoT) are one of the most talked about tech innovations which are becoming more and more wide spread. This article seeks to examine how this tech helps achieve one of the most important goals of our times, Sustainability, and climate action.

What is IoT?

IoT refers to network of internet connected devices [via internet or other networks] which have inbuilt tech [sensors, software, etc.] to exchange data. According to Oracle,

“The Internet of Things (IoT) describes the network of physical objects — “things”—that are embedded with sensors, software, and other technologies for the purpose of connecting and exchanging data with other devices and systems over the internet. These devices range from ordinary household objects to sophisticated industrial tools” [2].

A good short hand is generally when the word ‘Smart’ is used in relation to tech objects or goals or solutions, generally some sort of ‘IoT’ is involved.

Idea of a connected device is not a new one. The first version was created by Stanford Artificial Intelligence Lab, called Prancing Pony Vending Machine in the 1970s, named after Prancing Pony pub of the Lord of the Rings. A similarly connected coke vending machine also existed in the Carnegie Mellon University’s Computer Science Department [3].

However, with recent advances in technology in a wider number of fields has made IoT possible and practical for real-world use. As per a white paper by Cisco, “Cisco IBSG estimates IoT was “born” sometime between 2008 and 2009” [4].

Recently, the use of IoT has exploded and has gone mainstream. As per McKinsey & Company’s ‘State of IoT – Spring 2024’ report, IoT remains a top corporate tech priority and this trend has intensified by the recent AI wave [5]. In fact, estimates by Statista suggest there are 18 billion IoT devices in the world with an annual revenue of $390.5 Billion in 2024 [6].

IoT and Sustainability

IoT is increasingly playing an important role in the Sustainability sector. It is getting play in large number of sectors beyond its standard play of emission measurements and electricity consumption. It is also now used for water monitoring, waste management. It is being used in Agriculture to improve efficiencies and similar usage is seen in Logistics too [7].

As per Eseye 2024 State of IoT Adoption Report, “94% of respondents say sustainability is important when designing an IoT device, with 58% believing it to be very important; only 7% saying it was not important at all.” As per the report, the 3^rd most important goal from IoT adoptions is that it helps them meet their Sustainability goals [8].

Key IoT applications driving net zero goals include smart cities, smart campuses, and smart buildings, Smart energy and water management, Smart Logistics, Agri tech among others [9]. Take the example of real estate, where an estimated 25% of energy consumed is wasted. Approximately 75% of buildings in the EU are energy inefficient. Using IoT sensors to retrofit these buildings can make them more energy efficient [10]. Some of the benefits of IoT-driven sustainability include real-time analytics, energy efficiency, enhanced urban mobility [11]. Similarly, IoT form a very important element of Smart Cities.

Global snapshot of IoT adoptions for Sustainability

While there seems to be no single source for usage of IoT in sustainability, an overview of various areas can give us an idea about the role IoT plays in this sector.

Smart Meters: As per IoT Analytics, as of 2023 1.06 billion smart meters (electricity, water and gas) have been deployed worldwide. North American market has the most adoption. Also, Smart meter market is dominated by electricity meters [12]. Adoption in India is very low. This is despite the fact that the Indian government had in 2021 set the target of installing 250 million smart electric meters by 2025. We seemingly are unlikely to meet this goal as by end of 2023, a mere 3% of this goal had been achieved. By November 2024, this has risen to 7.3 million, with 11 States and 2 Union Territories yet to install smart meters [13].

Image source: https://iot-analytics.com/wp-content/uploads/2024/02/Global-Smart-Electricity-Meter-Adoption-2024-vweb.png

EV charging and smart grid: Another area where IoT is having a major impact is in EV charging and Smart grid infra. This helps advance the goal of sustainability by improving infrastructure for renewable energy usage, EV adoption and bring more efficiencies and cost savings. As per a survey of US and UK EV charging and Smart Grid business by Eseye 2024 State of IoT Adoption Report, 88% of these enterprises aim to expand their IoT estates in the next 18 months. They are the among the most satisfied customers with 65% reporting that IoT integration has helped them increase their revenue. They also value social or human impact made by their IoT deployments [14]. While the benefits of IoT adoption in India or EV and Smart Grid is clear, the rate of adoptions is low [15].

Agri tech:

“Agri tech has reaped the greatest sustainability related benefits from IoT, with 64% saying it has contributed to their ESG goals” claims Eseye 2024 State of IoT Adoption Report. This is achieved as IoT helps increase crop productivity and reduce waste. In the same report, 64% of Agri tech companies state that IoT has helped them achieve their IoT goals [16]. According to Shrikaant Kulkarni, Adjunct Professor, Victorian Institute of Technology, Sydney, Australia, IoT achieves this by offering “..real-time data on a range of agricultural characteristics, including soil moisture, temperature, humidity, and crop health, through a network of linked devices and sensors.” This data in turn is analysed with AI/ML to get to improve efficiencies in the sector [17].

As per a report by Grand View Research, “Global agriculture IoT market size is estimated at USD 28.65 billion in 2024 and is expected to grow at a CAGR of 10.5% from 2025 to 2030,” Further integration of AI/ML capacity with IoT will increase the market. opportunity for IoT Agri tech [18].

Image Source: https://www.grandviewresearch.com/industry-analysis/agriculture-iot-market-report

Smart Waste Management: Smart Waste Management is another area where IoT is making big impact as municipal government worldwide are adopting IoT alongside and integrated with other technologies like AI to help in waste collection, segregation and disposal. In fact, with increase in the volume of waste generation, adoption of these technologies has become essential. As per a report by Allied market research, the value of global Smart Waste Management Market is $2.2 billion in 2023. It is further projected to grow at a CAGR of 15.6% reaching $8.3 billion by 2032. North America is leading in this sector followed by Europe [19]. We will discuss some examples of Smart Waste Management in India in the next part of this series.

Smart cities: IoT plays an important role in Smart Cities and in making them Sustainable cities in line with UN SDG Goal 11. In fact, some of the sectors discussed above like Smart Waste Management, Smart Grid, etc. can be seen as a component of Smart cities infrastructures. There are no definite figures available on the number of Smart cities [definition of a “smart city” varies across different regions and organizations]. However, UN report on Smart cities states that “69% of municipalities have a strategic agenda for smart city development.” Moreover 54% of all the countries in the world have issued a national level Smart cities plan [20]. We can also measure their growing importance by their current and projected revenues. As per a report by Coherent Market Insights, the global Smart City Market is expected to be “$729.98 Bn in 2025 and reach $1,953.61 Bn by 2032, exhibiting a CAGR of 15.1% from 2025 to 2032” [21].

Image Source: https://unhabitat.org/sites/default/files/2024/12/un_smart_city_outlook.pdf

Others: IoT is also helping Sustainability goals in areas of Manufacturing and Supply chain and logistics, by increasing efficiencies and helping reduce resource usage [22].

Conclusion

The integration of IoT across sectors such as energy, agriculture, waste management, and smart infrastructure underscores its transformative role in driving sustainability. With real-time data, increased efficiencies, and reduced environmental footprints, IoT is proving to be a critical enabler of the global green transition.

The growing adoption of IoT across critical sectors signals its increasing importance in advancing sustainability goals worldwide. From the deployment of over 1.06 billion smart meters globally to the $28.65 billion agriculture IoT market projected to grow at 10.5% CAGR, IoT technologies are creating measurable impact. Sectors like Agri Tech report importance of companies achieving ESG goals. Despite this global momentum, India lags in key areas—having installed only 7.3 million smart meters against a target of 250 million by 2025. These disparities underscore the urgent need for targeted policy interventions, ecosystem enablement, and scalable innovations. If harnessed effectively, IoT can be a cornerstone of the global green transition—fostering not just smart systems, but smarter, more sustainable societies. We will explore IoT adoption in India in the next article in the series.

Footnotes:

[1] https://ics.uci.edu/~corps/phaseii/Weiser-Computer21stCentury-SciAm.pdf

[2] https://www.oracle.com/in/internet-of-things/

[3] https://web.archive.org/web/20200709220602/https://web.stanford.edu/~learnest/spin/sagas.htm ; https://www.cs.cmu.edu/~coke/history_long.txt

[4] https://www.cisco.com/c/dam/en_us/about/ac79/docs/innov/IoT_IBSG_0411FINAL.pdf

[5] https://iot-analytics.com/state-of-iot-10-emerging-iot-trends-driving-market-growth/#:~:text=According%20to%20the%20latest%20148,market%20rather%20than%20a%20disrupter.

[6] https://www.statista.com/statistics/1183457/iot-connected-devices-worldwide/; https://www.statista.com/statistics/1194709/iot-revenue-worldwide/

[7] https://www.businessinsider.com/iot-technology-precision-agriculture-transforming-farming-2025-5?; https://soracom.io/blog/iots-role-in-sustainability-smart-applications-for-a-greener-planet/

[8] https://info.eseye.com/2024_State_of_IoT_Adoption_Report

[9] https://www.eseye.com/resources/iot-explained/net-zero-and-iot-how-to-achieve-a-sustainable-future/; https://info.eseye.com/2024_State_of_IoT_Adoption_Report

[10] https://www.eseye.com/resources/iot-explained/net-zero-and-iot-how-to-achieve-a-sustainable-future/

[11] https://www.eseye.com/resources/iot-explained/net-zero-and-iot-how-to-achieve-a-sustainable-future/