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Published on 10th Dec, 2025
Published by Vi Business
The Internet of Things (IoT) market in India is booming at an unprecedented pace. The IoT applications are no longer a conceptual framework but rather a reality that delivers measurable results in diverse sectors. From reducing downtime in factories through predictive maintenance to introducing precision farming techniques in agriculture and intelligent traffic management, it is revolutionising the way we operate. For Indian MSMEs, this technological shift presents a critical opportunity to streamline their operations, reduce operational costs and strengthen competitive positioning.
Read to understand how MSMEs can leverage IoT across various sectors to future proof their businesses and master operational excellence that was once accessible only to large businesses.
The Internet of Things’s journey started with simple sensors and remote monitoring, and today it has evolved into a smart network that collects, analyses, predicts and acts upon data with minimal human intervention.
The global IoT market has witnessed an upward trajectory, with India emerging as a significant player. Indian enterprises have recognised how Internet of Things applications can help them handle critical operational challenges, from supply chain management and energy optimisation to productivity enhancement and predictive maintenance. The market data reflects the adoption of IoT applications. India's IoT market was valued at USD 1.4 billion in 2024 and is forecasted to grow at a CAGR of 10.2% to reach USD 3.6 billion by 2033.
Source: https://www.imarcgroup.com/
This growth trajectory positions IoT as a cornerstone technology for India's digital transformation and economic competitiveness.
The manufacturing, logistics, and production sectors are adopting IoT technologies and leveraging connected technologies to increase efficiency and boost productivity.
Internet of Things applications can be used for predictive maintenance in factories. For example, you can monitor equipment health continuously with the help of factory floors equipped with IoT sensors. Advanced AI-powered IoT sensors are revolutionising this approach, reducing machine downtime by 30-50% by predicting failures with increasing accuracy. The emergence of digital twins for manufacturing allows companies to create AI-driven virtual replicas of physical factories, enabling them to test process changes in a digital environment before real-world implementation, reducing risk and optimising outcomes.
IoT-enabled tracking systems can make inventory management easier, as they give greater real-time visibility into stock levels, location, and movement patterns. This helps to optimise restocking cycles and reduce costs and minimise wastage. Hyper-personalised manufacturing powered by AI-driven mass customisation will enable industries to produce on-demand products at scale, transforming traditional production models.
For Indian MSMEs in manufacturing, these industrial IoT applications enable them to achieve an operational excellence that lets them carve a place for themselves in the market alongside the big companies. This increasing adoption of IoT in the industrial sector is reflected in the market data with India's Industrial IoT market size valued at USD 9.40 billion in 2024 and predicted to reach USD 28.15 billion by 2033, showcasing a CAGR of 12.90%.
Source: https://www.imarcgroup.com/
IoT has revolutionised supply chains from linear processes to a responsive network. Autonomous supply chains powered by AI-integrated blockchain solutions are enhancing transparency and efficiency in supply chain management, moving beyond traditional tracking to intelligent, self-optimising networks.
GPS-enabled tracking systems provide precise location data for goods and help to enhance delivery accuracy and customer communication. Temperature-sensitive goods can be closely monitored throughout transit, ensuring that their quality is not compromised.
Warehouse operations benefit substantially from automated systems that assist pickup and packing processes, reducing scope for error and boosting productivity. IoT applications enable businesses to meet the demanding needs of the modern customers who are infamous for their impatience and expect speed without any compromise in the quality of the products and services.
Industrial IoT applications like gas detectors alert workers to dangerous environments, and devices like fatigue monitoring systems allow workers to be vigilant about their health and energy levels. For MSMEs in construction, mining, or manufacturing, these IoT applications help in managing valuable human resources and reducing accidents.
The introduction of private 5G networks in factories will further enhance real-time monitoring and automation capabilities, enabling 5G-powered smart factories that respond instantaneously to changing conditions. This next-generation connectivity will unlock new possibilities for remote operations, augmented reality maintenance support, and seamless machine-to-machine communication at unprecedented speeds.
IoT-enabled fleet management systems are transforming how businesses monitor and manage their commercial vehicles. We can witness the boom of the fleet management market through market data that shows how the fleet management software market size was valued at USD 27.55 billion in 2024 and is predicted to grow from USD 32.34 billion in 2025 to USD 116.56 billion by 2032, showcasing a CAGR of 19.76% during the predicted period. Source: https://www.fortunebusinessinsights.com
Real-time GPS tracking provides complete visibility into vehicle locations, routes, and driver behavior, enabling MSMEs to optimise fuel consumption and improve delivery schedules. Vi Business IoT solutions deliver a 30% reduction in fuel costs through real-time tracking and route optimisation.
Advanced telematics solutions monitor engine health, tyre pressure, and maintenance needs through AI-powered diagnostics, preventing costly breakdowns and extending vehicle lifespan.
This predictive maintenance approach has resulted in a 40% improvement in fleet uptime, dramatically reducing operational costs. For logistics companies managing India's 3.5 million commercial vehicles, these IoT applications translate to reduced downtime, improved asset utilisation, and enhanced customer satisfaction through accurate delivery time predictions.
Vi's Smart Central platform provides 360-degree fleet management with seamless connectivity through multi-network switching, ensuring continuous operations even in remote locations. With AIS 140 certification compliance and secure cloud storage through Private APN and M2M SIM technology, businesses can meet regulatory requirements while maintaining data security with Vi Business IoT.
GPS technology integrated with IoT platforms revolutionises logistics operations by providing precise location tracking and intelligent route planning. Advanced systems analyse traffic patterns, weather conditions, and delivery priorities to suggest optimal routes, reducing fuel costs by up to 30% and improving on-time delivery rates. Vi Business' IoT-enabled SIM-based tracking provides 24/7 location visibility, ensuring businesses maintain complete control over their fleet operations.
For MSMEs in transportation and logistics, GPS-enabled solutions provide proof of delivery, enhance driver safety through geofencing alerts, and enable better coordination between warehouses and delivery teams. The expansion of e-commerce, last-mile delivery, and cold chain logistics has accelerated the demand for sophisticated GPS tracking systems. Dynamic route planning capabilities of Vi Business Enterprise IoT optimise fleet allocation with just a few clicks, achieving over 95% Vehicle Utilisation Index (VUI) and Big Cab Share (BCS).
Vi Business IoT's comprehensive solutions include fuel monitoring systems that track fuel levels in real-time, providing alerts for low fuel, unauthorised usage, and theft. Camera-based driver monitoring systems track alertness and vigilance, increasing safety for drivers, passengers, vehicles, and other road users. For employee transportation, automated roster-based fleet allocation with OTP verification at each pickup and drop point ensures security and efficiency. This level of visibility and control, previously accessible only to large enterprises, is now within reach for growing businesses through Vi's robust network, ensuring 100% uptime.
The transition to electric vehicles represents a new frontier in fleet management, with IoT solutions playing a crucial role in maximising efficiency and sustainability. The Vi Smart Mobility EV solution empowers businesses to monitor their EV fleet movement, vehicle performance, and battery management in real time. This end-to-end solution includes devices, platform connectivity, analytics, and managed services specifically designed for electric vehicle operations.
Battery management systems track charging cycles, battery health, state of charge and predict maintenance needs, extending battery lifespan and preventing unexpected failures. For MSMEs transitioning to EV-based fleets, these IoT applications provide cost efficiency through optimised charging schedules, reduced energy costs, and improved vehicle availability. The rise in electric vehicle adoption for sustainable logistics makes battery monitoring an essential component of modern fleet operations, enabling businesses to reduce their carbon footprint while maintaining operational excellence.
With the growing urbanisation, cities are succumbing to the pressure of delivering better services with limited resources. That is where IoT saves the day. It helps to create smart cities that are liveable and above all, sustainable.
Urban traffic congestion leads to losses in billions in terms of lack of productivity every year. IoT-enabled traffic management systems collect real-time data from cameras, sensors, and connected vehicles to optimise signal timing dynamically. This IoT application reduces congestion, lowers emissions, and improves emergency response times.
IoT-integrated parking solutions guide drivers to available spaces and end up saving time and reducing the time spent circling for parking, a major contributor to urban traffic. Internet of Things applications make public transport systems more reliable through predictive maintenance and real-time passenger information. More people using public transport translates to reduced private vehicles on the road and better traffic management.
Municipal water systems benefit significantly from IoT adoption. Smart metres detect anomalies indicating leaks or theft, while pressure sensors optimise distribution networks. This IoT integration can enormously reduce water loss in Indian cities.
Waste management can be revolutionised through sensor-equipped bins. These bins alert the authorities when collection is needed, optimising collection routes and reducing unnecessary trips. Street lighting systems that are powered by IoT adjust brightness based on ambient conditions and pedestrian presence, reducing energy consumption and encouraging sustainability.
IoT-integrated safety systems are another example of how applications of IoT are revolutionising the way we function.
This increasing adoption of IoT in the security sector is reflected in market data with Indian IoT security market size reaching USD 205.9 million in 2024 and predicted to reach USD 2,340.9 million by 2033, showcasing a CAGR of 31% during the forecast period.
Source: https://www.imarcgroup.com/
Surveillance networks with intelligent video analytics identify unusual patterns, alerting authorities to potential incidents. Environmental sensors monitor air quality, noise levels, and other parameters, providing data that help us make our cities better.
Emergency services have integrated command centres that aggregate data from multiple sources, enabling faster, more coordinated responses.
Remote patient monitoring enables medical teams to remotely track vital signs of patients with chronic conditions. Wearable devices collect health data that help people make informed lifestyle choices. For MSMEs in healthcare services, telemedicine platforms enhanced with IoT features enable them to cater to rural areas which have limited medical infrastructure.
Hospital asset tracking helps to keep track of critical equipment availability to ensure that they are available when needed, while environmental monitoring maintains optimal conditions in critical areas like operating theatres and pharmacies.
IoT adoption in the agriculture sector paves the way for targeted irrigation and fertilisation. For this, a precision farming technique is adopted in which soil sensors are installed to monitor moisture, nutrient levels, and pH. This IoT application reduces water consumption by up to 50% while enhancing crop yields.
Another IoT application in the farming sector is livestock monitoring through wearable sensors. These devices track animal health and location and alert farmers to potential issues early. Automated greenhouse systems ensure optimal growing conditions, enabling year-round production of high-value crops. For MSMEs working in the agriculture and farming sector, the integration of IoT not only boosts productivity but also encourages sustainability.
IoT integration in the retail world has helped businesses level up their customer experience. Intelligent shelves monitor stock levels automatically, and heat mapping helps businesses understand customer movement patterns and accordingly make store layout decisions. IoT enables businesses to deliver targeted offers to their customers so that they feel valued and foster a long-term relationship with their brand. For MSMEs in retail, these applications of IoT enable gathering valuable consumer insights and upgrading customer experience.
Modern IoT-integrated POS systems go beyond simple transaction processing, transforming the retail payment landscape. According to RBI data, India currently has 10.7 million POS terminals supporting 1 billion cards in circulation and 638 million digital payment devices. Innovation in POS terminals has introduced 3-in-1 Dynamic QR + Card + Sound Box solutions supporting NFC, UPI, and QR Code payments, meeting the diverse preferences of today's consumers.
For retail MSMEs, cloud-connected POS systems provide insights into sales patterns, peak hours, and product performance across multiple locations. Vi Business IoT solutions ensure seamless merchant activation with real-time SIM state transitions and flexible billing capabilities, reducing transaction failures and enabling continuous operations. Enhanced security through Private APN, IMEI lock, two-factor authentication (2FA), and Vi Cloud (ISO27001 certified) protect against fraud, data breaches, and cyber threats while ensuring compliance with evolving financial regulations.
Mobile POS devices enable businesses to serve customers anywhere in the store, reducing checkout times and improving the shopping experience. With merchant digital payments surging by 35% and India's retail sector being the 3rd largest globally, contributing 10% to GDP, IoT-enabled POS systems have become essential infrastructure.
Source: https://ibef.org/
Vi's M2M SIM with 13-digit numbering, along with data, voice, and SMS whitelisting, ensures secure transactions across retail stores, restaurants, shops, and fuel stations.
The surge in sound-based payment systems represents a breakthrough in merchant transaction confirmation. Certified Sound Box devices provide instant audio confirmation of successful payments, addressing connectivity challenges, and enhancing customer confidence. Pocket Sound Boxes and Dynamic QR Code Sound Boxes have seen increased adoption, particularly among small merchants who benefit from simple, reliable payment confirmation.
Vi Business IoT's comprehensive device and connectivity management through Smart Central ensures 90% reduction in post-facto issues related to device network performance. Device diagnostics and lifecycle management maintain optimal performance, while dual profile SIM cards provide "always connected" services for seamless transactions. The Network Coverage Tool provides real-time visibility into network presence across regions, enabling businesses to optimize deployment strategies.
For MSMEs in retail, these IoT solutions deliver 100% network availability, ensuring uninterrupted payment processing during peak business hours. The growth in UPI QRs by 39%, BQRs by 22%, and POS terminals by 17% demonstrates the rapid digital transformation of India's retail landscape. Vi Business IoT offers a one-stop solution for device and connectivity with flexible business models, enabling even small businesses to participate in India's fintech revolution while maintaining security, compliance, and operational efficiency.
From factory floors to city streets and hospitals, the Internet of Things is weaving connectivity into the fabric of modern life. Each application, whether preventing equipment failures, or improving urban mobility, demonstrates technology's power to solve real problems.
The Internet of Things is no longer a luxury but rather a business imperative in today’s fast-growing digital landscape. For Indian MSMEs, IoT offers a unique opportunity to enhance efficiency, reduce costs and accelerate business growth. However, it is critical that you choose the right partnership, one that offers robust connectivity, enterprise-grade solutions, and ongoing expertise.
IoT deployment requires more than just technology. It demands a partner that understands your business needs and delivers secure and comprehensive solutions. Vi Business is an ideal partner for MSMEs across various sectors to deploy enterprise-grade IoT systems into their business operations. Our IoT solutions are reliable, secure, and above all, scalable, meaning it can match your growth.
Device management is simplified through our advanced self-care platform, giving you complete visibility and control over your IoT deployments. Our enterprise-grade IoT eSIMs are designed to withstand harsh environmental conditions, ensuring connectivity reliability even in challenging operational environments. We also provide comprehensive device testing and certification services, helping you identify and resolve issues before deployment. This eliminates costly problems and accelerates your time to market.
For Indian MSMEs looking to leverage IoT, Vi Business offers the perfect combination of proven technology, industry expertise, and dedicated support. Our solutions help you enhance accountability, achieve faster implementation, and realise quicker returns on your investments.
Ready to transform your business with IoT? Explore Vi Business IoT solutions and discover how we can help you build smarter, more efficient operations.
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