The Internet of Things has been bubbling away in the background for years, but in 2025 it feels as though the UK is finally seeing its breakout moment. From connected factories and predictive maintenance to smart energy grids and even door handles that disinfect themselves, IoT is no longer a futuristic buzzword – it’s now a commercial reality.
The UK’s startup scene is proving particularly fertile ground, with a new wave of innovators tackling real-world challenges across sectors as varied as healthcare, logistics and sustainability. What’s most exciting is how these companies are moving beyond prototypes into scalable, revenue-driven models that create measurable impact.
As we look ahead, IoT startups in Britain are not just tinkering with gadgets; they are rewriting how industries function, embedding intelligence into the physical world. This makes 2025 an ideal time to take stock of the UK’s brightest players in the space!
Why IoT Matters in 2025
The appetite for IoT solutions in the UK is growing because the challenges businesses face are becoming sharper. Energy costs remain stubbornly high, labour shortages continue to bite, and efficiency is no longer just nice to have – it’s actually about survival. IoT offers answers. A well-placed sensor, linked to the right platform, can monitor, predict and optimise with a speed and accuracy humans simply can’t match. It’s about extending intelligence into the everyday – tracking assets, spotting faults before they escalate, and helping companies reduce both costs and emissions.
Beyond commercial benefits, IoT is aligning with bigger national priorities like decarbonisation and digital transformation. For startups, this creates a fertile market where demand is already outpacing supply. The winners in this space will be those that marry technical capability with usability, providing tools that integrate seamlessly into existing workflows rather than creating yet another layer of complexity.
The UK as a Launchpad for IoT Innovation
While Silicon Valley often dominates conversations around connected tech, the UK has quietly carved out its own reputation as a hub for IoT innovation. Part of this comes down to diversity – indeed, the country’s strong base of universities, advanced manufacturing hubs and thriving fintech and retail sectors all create a broad canvas for IoT experimentation.
Government initiatives and investment in 5G and smart infrastructure have also played their part, laying the groundwork for startups to deploy and scale rapidly. Another factor is mindset. UK entrepreneurs have shown a knack for focusing on practical applications that solve pressing business problems rather than chasing flashy concepts.
This pragmatism has bred trust with early adopters, helping IoT startups gain traction in industries that are notoriously risk-averse. With international investors increasingly looking to the UK as a testbed for scalable IoT models, the momentum behind this ecosystem looks set to accelerate further in 2025.
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8 of the Best New IoT Startups in the UK to Watch in 2025
These are eight exciting IoT startups in the UK that are worth keeping an eye on.
Auravision.ai
Founded in 2017 and based in London, Auravision brings AI-driven analytics to physical retail environments, without needing new sensors. Their software transforms standard security cameras into powerful tools, offering real-time insights into customer movement, demographics and engagement. It’s essentially Google Analytics for brick-and-mortar stores, helping brands optimise layouts, staffing and conversion rates.
What makes Auravision stand out is its non-invasive, plug-and-play approach that uses deep-learning to analyse low-res footage. Moving forward, its potential lies in expanding into smart buildings and retail chains hungry for data-driven operational improvements and better in-store performance.
75F.io
Founded in 2012, 75F specialises in full-stack, IoT-based building management. Their smart sensors, controllers and AI-driven automation optimise energy use, indoor air quality and occupant comfort across offices, hotels, hospitals and retail spaces.
Unique to the market, 75F provides rapid installation (with significant energy savings and fast payback) without needing retrofits or expensive upgrades.
The system’s self-optimising capabilities and vertical integration keep costs down while delivering sustainability goals. Their future looks bright, with continued rollout of energy-efficient automation systems and support for net-zero ambitions in commercial building management.
Augury
Although Augury is US-born, its impact in the UK industrial IoT scene is growing fast. They’ve pioneered AI-infused machine health monitoring with their Halo R4000 series – edge-AI sensors that deliver smart diagnostics, self-healing connectivity and rugged resilience in tough environments.
The innovation lies in embedding AI at every stack layer – from sensor to gateway to cloud – enabling prescriptive maintenance in real time. As Augury partners with Bluetooth gateway specialist Cassia, they’re leading a shift toward seamless, scalable predictive maintenance in manufacturing. The future, it seems is in even smarter systems, fewer breakdowns and smoother scaling in industrial IoT.
ISTARI
Founded in 2020 and headquartered in London, Istari Global is a cybersecurity and resilience firm with a global footprint across Europe, the US and Singapore. While not strictly IoT-exclusive, its services intersect heavily with IoT use cases – that is, helping organisations build robust cyber defences around connected infrastructures.
By blending threat intelligence, advisory services, and resilience engineering, Istari supports businesses navigating the complex security challenges of widespread device connectivity. Their path ahead may see deeper involvement in IoT-specific security solutions – an area where protection is increasingly mission-critical.
Tweaq
Founded in London in late 2020, Tweaq has created the world’s first smart, self-disinfecting door handle. Their IoT-enabled product, “Rise,” automatically eliminates over 99% of bacteria and viruses in under three seconds after each use – no manual cleaning needed!
Built with sustainability in mind, the handles use reusable cartridges and offer real-time usage data for smarter hygiene management. Its appeal lies in blending health, convenience and data – all in a discreet, everyday object. The future sees scaling across offices, hotels, clinics and public spaces, where cleanliness and intelligence go hand in hand.
Giganet
Headquartered in Reading and founded in 2023, Giganet provides high-performance broadband infrastructure tailored for IoT and smart building environments. Their full-fibre cabling delivers low-latency connectivity essential for edge devices and micro data centres to relay data quickly and reliably.
Giganet combines infrastructure innovation with industry-standard compliance and strong partner support. While their focus is more foundational than applications-level IoT, they are establishing the reliable backbone that high-density connected systems depend on. Looking ahead, Giganet may deepen its role in enabling vast IoT ecosystems across sectors and geographies.
Hark
Based in Leeds and founded in 2016, Hark Systems specialises in industrial IoT with an energy analytics focus. Their cloud-based platform connects to industrial assets and energy systems, spotlighting inefficiencies, preventing downtime and automating maintenance alerts.
The main strength of Hark lies in blending simplicity and depth – it allows asset managers and energy teams to monitor complex infrastructures in one place.
Hark is standing out through its mission to reduce waste and maximise yield, particularly where visibility has traditionally been poor. The next frontier is broader industrial adoption and deeper automated optimisation features.