The Internet of Things (IoT) and embedded systems landscape is evolving rapidly in 2025, pushing the boundaries of automation, intelligence, and connectivity. From smarter edge computing to sustainable hardware, today’s innovations are setting the stage for the next decade of digital transformation.
Let’s dive into the top 5 emerging trends shaping the future of IoT and embedded systems in 2025.
1. AI at the Edge (Edge AI) is Going Mainstream
Edge AI has transitioned from concept to implementation. Rather than sending data to the cloud, AI models are now being deployed directly on edge devices such as microcontrollers and sensors.
Why it matters:
- Faster decision-making with reduced latency
- Enhanced privacy (less cloud dependency)
- Lower bandwidth usage
Example: Real-time object detection on a security camera using a low-power MCU like the STM32H7 with TensorFlow Lite Micro.
2. Matter and Interoperability Standards Are Finally Here
The Matter protocol, backed by Apple, Google, Amazon, and others, is revolutionizing smart home interoperability. 2025 marks the year when cross-brand compatibility is not just expected—it’s standard.
Why it matters:
- Devices from different manufacturers can communicate seamlessly
- Simplified user experience
- Accelerated product development cycles
Implication for developers: Support for Matter is becoming a must-have for smart devices.
3. Energy Harvesting & Ultra-Low Power Design
With the explosion of IoT nodes in the field, battery replacement is no longer practical. The trend is shifting toward self-powered or energy-efficient designs using ambient energy sources like solar, RF, or thermal gradients.
Why it matters:
- Supports sustainable IoT deployments
- Enables maintenance-free sensor networks
- Critical for remote and industrial IoT applications
Popular tech: Nordic’s nRF series and Ambiq’s Apollo MCUs with sub-microamp sleep currents.
4. Secure by Design: Hardware-Level Security is the New Norm
As attacks on IoT devices increase, 2025 is witnessing a shift toward hardware-enforced security models.
What’s changing:
- Built-in secure bootloaders
- Trusted execution environments (TEEs)
- Hardware cryptographic accelerators
Why it matters:
- Protects IP and user data
- Essential for medical, automotive, and smart infrastructure applications
Toolkits gaining traction: ARM TrustZone, Microchip CryptoAuthentication, and NXP’s EdgeLock.
5. RISC-V and Open Hardware Adoption Grows
RISC-V is maturing from a research novelty to a production-grade alternative to ARM. It offers customization, licensing freedom, and growing ecosystem support.
Why it matters:
- Reduces cost for startups and OEMs
- Promotes innovation in processor design
- Backed by major players like SiFive, Alibaba, and Intel
Trend to watch: More SoCs and development boards shipping with RISC-V cores by default.