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The Rise of New IoT-Enabled Business Models
The Rise of New IoT-Enabled Business Models

April 22, 2025

IOT

21

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Introduction

The Internet of Things (IoT) has emerged as a transformative force, reshaping industries and unlocking unprecedented opportunities for businesses worldwide. The Indian IoT market is poised for exponential growth, fueled by favorable government initiatives, technological advancements, and increasing digitalization across industries. According to a report by Market Research Future , India’s IoT market is projected to expand from $58.64 billion in 2025 to $293.70 billion by 2034, growing at a CAGR of 19.6% during the forecast period (2025–2034), with significant contributions from sectors such as manufacturing, healthcare, agriculture, and smart cities. The proliferation of IoT devices and the exponential growth of data these industries generate have paved the way for innovative business models centered around IoT data monetization. From Platform as a Service (PaaS) to decentralised IoT networks, businesses are exploring diverse avenues to capitalise on this data-driven revolution.

 

PaaS: Empowering Businesses with IoT Platforms

Platform as a Service (PaaS) has become a cornerstone for IoT-enabled businesses in India. The country’s PaaS market is projected to grow at a CAGR of 22.80% during the forecast period (2025-2032), surging from $4.01 billion in 2024 to $20.74 billion by 2032. These platforms offer a comprehensive suite of tools and services for developing, deploying, and managing IoT applications. Companies like Bosch IoT Suite, Tata Communications' IoT Marketplace, and Wipro Holmes IoT Platform have gained traction in the Indian market, providing scalable solutions for IoT data management and analytics. PaaS models enable businesses to streamline operations, enhance efficiency, and drive innovation by harnessing the power of IoT data. To strive into the data-driven revolution, Vi Business recently launched IoT Smart Central, the most advanced, fully integrated, self-care platform for IoT Asset Management. It enhances business efficiency by connecting, controlling and managing customer’s IoT assets remotely through a single dashboard, allows to future proof all IoT deployments by offering fully integrated IoT connectivity and device management both in one platform, flexible & easy to integrate APIs with third party applications to manage IoT assets & in life operations seamlessly.

SaaS: Leveraging IoT Insights for Predictive Maintenance, Optimized Operations & Value-added Services

Software as a Service (SaaS) has revolutionised how businesses leverage IoT insights to deliver predictive maintenance solutions, remote monitoring services, and asset performance management tools to customers. India’s SaaS sector, projected to reach $50 billion by 2030, is undergoing rapid transformation fueled by AI integration, cybersecurity advancements, and cloud adoption in industries like banking and manufacturing. Over 60% of SaaS providers now embed AI into their platforms, aligning with Bessemer Venture Partners’ prediction of $1 billion in 2024 venture funding (a 25% YoY increase), targeting AI-driven innovation. By offering value-added services based on IoT insights, businesses can create new revenue streams. This could include premium analytics dashboards, consulting services based on data insights, or subscription packages that include IoT monitoring and support. For instance, startups like Altizon Systems and Flutura Decision Sciences have developed AI-driven SaaS platforms that empower industries such as manufacturing, healthcare, and agriculture to optimize processes and improve decision-making based on real-time IoT data. A leading logistics solution provider, Freight Tiger is providing IoT- enabled freight management platform that leverages freight data, gives insights, and helps optimise operations and distribution. This smart platform brings together location intelligence, visibility, fulfilment, freight management, and payment transaction details in one place. It helps provide actionable recommendations based on the data to improve logistic efficiency and streamline operations.

Asset Tracking, Monitoring, and Pay-Per-Use Models: Transforming Industries    

IoT-powered asset tracking and monitoring systems are reshaping industries across India by enabling real-time visibility into resource utilisation, driving efficiency, and fostering innovative pay-per-use models. In logistics, agriculture, and utilities, IoT sensors optimize fleet management, warehouse operations, and equipment usage, reducing downtime and costs through predictive maintenance and data-driven decisions.

Simultaneously, pay-per-use frameworks—supported by smart meters and IoT-enabled devices—are disrupting traditional ownership models, allowing businesses and consumers to pay only for actual consumption of energy, water, or shared assets like robotics and machinery.

This shift not only enhances cost-effectiveness and scalability but also promotes sustainability by minimising waste and encouraging resource efficiency. By prioritising outcomes over ownership, industries are accelerating India’s transition to a circular economy, where asset lifecycle optimization and IoT-driven transparency maximize ROI while aligning with global sustainability goals.

Decentralized IoT: Driving Innovation and Security

Decentralized IoT networks are emerging as a game-changer in the Indian landscape, offering enhanced security, scalability, and interoperability. Blockchain technology, coupled with IoT devices, enables secure data exchange and transactional integrity, eliminating single points of failure and reducing the risk of cyber threats. Globally, startups such as IoTeX and IOTA, alongside Indian counterparts like Trabso, O’RIGHT, and Datoms, are pioneering decentralized IoT solutions to empower businesses in building transparent, trustless ecosystems for data monetisation while ensuring data privacy and sovereignty.

The rise of new IoT-enabled business models is reshaping the Indian business landscape, unlocking unprecedented opportunities for innovation, efficiency, and growth. From PaaS and SaaS solutions to asset sharing, pay-per-use models, and decentralised IoT networks, businesses are harnessing the power of IoT data to drive value creation and competitive advantage. As the Internet of things ecosystem continues to evolve, businesses that embrace data-driven strategies and leverage IoT technologies will emerge as leaders in the digital economy, shaping the future of industries across India and beyond.

 Vi Business is enabling this shift by providing robust IoT solutions that empower enterprises to optimize operations, enhance customer experiences, and unlock new revenue streams.

 

 


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