As government agencies strive for greater efficiency and data-driven decision-making, the Internet of Things (IoT) is emerging as a powerful enabler across federal, state, and local operations. The 2025 trend report, IoT for the Public Sector: Moving from Risk to Reward, explores how public agencies are deploying connected devices to enhance service delivery, increase automation, and improve community outcomes.
Turning Devices into Mission Enablers
Public sector IoT adoption is rising rapidly, with the market expected to grow from $12 billion in 2019 to $30 billion by 2027. Devices are helping agencies manage assets, monitor environments, and optimize infrastructure—from adaptive traffic signals in smart cities to wearables that support rural healthcare. These innovations free personnel to focus on high-value tasks and strategic goals, reinforcing IoT’s role as a mission-critical technology.
Mitigating the Security Risks of IoT
Despite its promise, IoT brings serious cybersecurity challenges. Many devices have limited processing capabilities, run outdated software, or were not designed with security in mind. In fact, 61% of government IoT devices run on outdated firmware, and 20% of all exploitation attempts now target IoT systems.
To address these vulnerabilities, agencies are turning to Zero Trust architectures, emphasizing continuous monitoring, access control, and policy enforcement. Key security priorities include automating device discovery, integrating IoT into enterprise security operations, and preventing lateral movement within networks.
The Visibility Challenge
One of the biggest barriers is simply identifying all the IoT devices in use. Up to 30% of devices on government networks are unmanaged or unknown, creating security blind spots. Education, standardization, and improved inventory management are essential to overcoming these challenges and building a more secure IoT foundation.
The Role of AI in Secure IoT
Artificial Intelligence is essential for scaling and securing IoT deployments. AI supports tasks like virtual patching, anomaly detection, predictive maintenance, and data management—enabling agencies to process massive volumes of data and respond in real time.
To dive deeper into how IoT is driving transformation across public sector missions—and the strategies agencies are using to overcome key risks—download the full Market Trends Report: IoT for the Public Sector. This report offers expert insights, use cases, and practical guidance to help government leaders unlock the full potential of connected technology, securely and at scale.
