Kallitsa Savvidou

In 2026, innovation in the IoT space accelerates and the Internet of Things further evolves as the essential infrastructure on which, with the integration of Artificial Intelligence (AI), the environment is not only sensed and predicted, but perceived and acted upon, opening up a new horizon of opportunities. In 2026, IoT moves from observing the environment to acting on it. This transformation positions IoT as a fundamental engine of change, as the convergence of smart sensors, ubiquitous connectivity, multimodal generative models, robotic autonomy, Edge Computing and new regulations shapes an environment in which technological innovation is key to competitiveness. As a result, companies need to rethink how they innovate, how they protect their value and how they scale their operations in a world increasingly oriented toward autonomous action and real time outcomes. Below, we present five key IoT innovation trends that are transforming critical sectors and demonstrate the consolidation between the digital and the physical, with an explanation of their impact, implications and the capabilities required of businesses, institutions and cities. In 2026, IoT is no longer just about sensing: it perceives and acts thanks to AI. 1. Physical AI: AI that acts, not just predicts Physical AI marks the biggest conceptual leap since the emergence of IoT. It is no longer enough to measure and analyse: in 2026, AI enters its sensorimotor phase, where robots, devices and vehicles are capable of perceiving, reasoning and executing autonomous actions in the physical world. AI enters a phase where it not only decides: it executes in the physical world. This shift is made possible by multimodal models that combine vision, language and action, trained in hyper realistic simulators that replicate environments across industrial, urban or logistics settings. What is learned in these artificial environments is transferred to the real world with unprecedented levels of fidelity, enabling robots, vehicles and devices to understand a scene, interpret instructions in natural language and execute complex tasks with millimetric precision. At the same time, there has been a qualitative leap in sensing technologies and actuators. High resolution cameras, solid state LiDAR, force sensors, directional microphones and short range radar deliver a dynamic three dimensional view of the environment. These are not simple sensors: they are “sensory organs” for systems that must decide in milliseconds how to grasp a fragile object, avoid an unexpected collision or reposition themselves in response to a change in their surroundings. From sensors to “organs”: environmental perception becomes three dimensional and real time. Edge Computing provides the other half of the breakthrough by enabling critical decisions to be made locally, without depending on cloud latency or availability. What once took seconds now happens in milliseconds. In parallel, interaction between humans and machines becomes significantly more fluid. Fine manipulation, mobility in unpredictable spaces and contextual interpretation of gestures or verbal instructions bring these technologies into environments where, until recently, human presence was irreplaceable. A robot can understand not only what it has to do, but how to adapt to the variations that naturally arise in any physical process. This technical convergence opens up a new operational field where AI no longer just optimises… it acts. And when it acts, it demands governance. Functional safety, decision traceability, the ability to audit the sequence that led to a specific action and the option to perform a rollback in the face of unexpected changes become essential pillars. Physical AI requires the integration of data, robotics, security and regulatory frameworks into a single operational model. For companies, the impact is immediate. Processes that once depended on trained operators can now be executed autonomously; hazardous tasks are automated with safety guarantees; production lines gain flexibility by reconfiguring in minutes; human variability is reduced, increasing the final quality of products and services. Physical AI is not a substitute: it is a capability amplifier that consolidates the integration between the digital and the physical. Physical AI amplifies capabilities and requires governed autonomous action with full traceability. 2. Autonomous land and water mobility: multimodal autonomy as infrastructure Autonomous mobility exemplifies Physical AI in action, materialising sensorimotor intelligence in transport systems that perceive, decide and coordinate autonomously. Vehicles integrate Physical AI sensors with AI, 5G and Edge Computing to process environments in milliseconds via V2X, anticipating risks beyond line of sight and coordinating cooperative manoeuvres with traffic lights, radar and infrastructure. Autonomous mobility turns transport into a cooperative, predictive and connected system. This technological foundation enables new business models. Real robotaxi services are already operating, with thousands of autonomous rides each week in cities mainly in the United States and China. This is complemented by mobility as a service models, autonomous fleets for last mile logistics, subscription based shared vehicles and even networks where owners can monetise their cars when they do not need them. In addition, the data generated by millions of connected vehicles makes it possible to create high value services: real time traffic optimisation, predictive infrastructure maintenance and data driven urban planning. Connected vehicle data opens up a new layer of urban and logistics services. The social impact is equally significant. Automation in mobility reduces driving errors, one of the main causes of traffic accidents worldwide. Cooperative driving helps reduce congestion, energy consumption and emissions, while autonomous mobility expands access to transport for older people, people with disabilities or those without a driving licence. It is no coincidence that the global autonomous vehicle market is projected to exceed two trillion dollars over the next decade. But the transformation is not limited to roads. Advances in autonomy are also reaching the water. Rivers, ports and coastal areas already operate vessels capable of completing entire journeys autonomously, from navigation to docking. In cities such as Stockholm, autonomous ferries help reduce crew requirements in a context of global maritime professional shortages, improve safety by reducing variability between captains and achieve fuel savings of up to 15% through precise navigation. This model signals a future where sustainable water mobility will be as relevant as land mobility. This entire ecosystem depends on one critical element: connectivity. 4G and 5G networks in urban and coastal environments, satellite communications in open waters, onboard Edge Computing for immediate decisions and IoT platforms capable of integrating, analysing and securing the data flows that sustain autonomy. Without ubiquitous connectivity there is no autonomy: data is the infrastructure. 3. Intelligent and granular traceability: full lifecycle visibility The tracking sector is entering a phase of accelerated transformation, marked by the convergence of satellite technologies, massive connectivity and increasingly miniaturised devices. In 2026, the evolution will not only be incremental: it will be structural. We will move from tracking limited to containers or macro units to granular, intelligent and autonomous traceability. Traceability evolves from “where it is” to “what is happening” in every asset. At one end of the spectrum are advanced trackers for monitoring maritime containers, now enhanced by low earth orbit satellite communications and multi system sensors. At the other end, almost imperceptible trackers are emerging: smart labels, both active and passive, capable of being integrated into virtually any asset without altering its use or ergonomics. This optimisation of electronic design enables, for the first time, individual asset level tracking, transforming operational visibility into something deep, detailed and continuous. Today’s logistics landscape, marked by fragmented stakeholders, multimodality and unprecedented volumes, has made it clear that container level traceability is no longer enough. The industry demands greater granularity, traceability that reaches every box, pallet or critical unit, not only in the last mile. In 2025, we began to see a complex technological coexistence: passive tags activated by BLE receivers, label format NB IoT minitrackers, advanced RFID, energy autonomous sensors… technologies designed to tackle a common problem from different angles. The supply chain demands granularity: from the container to every critical unit. This year we will see this trend intensify. A new generation of advanced low cost trackers will emerge, capable of being deployed at massive scale. Combined with Artificial Intelligence, data will cease to be simple location updates and become an autonomous and secure logistics management system. In addition, this revolution will enable rigorous monitoring of reusable assets: pallets, boxes and returnable containers. A transparent and automated inventory will unlock true supply chain optimisation, from the warehouse to the final leg of transport. In 2026, tracking evolves from being an isolated functional component to becoming a transparent end to end system, fully integrated into logistics flows and asset management. Tracking shifts from an isolated tool to an end to end system embedded in operations. 4. IoMT: intelligent, traceable and connected healthcare The healthcare sector is undergoing profound transformation driven by the Internet of Medical Things (IoMT), an ecosystem that turns every clinical action and care interaction into structured, actionable data. This evolution supports the transition toward more efficient, preventive and patient centric healthcare models, at a time when care pressure, chronic conditions and the need for traceability make an integrated view of the entire clinical process essential. IoMT turns clinical activity into data and data into care decisions. In hospital environments, the adoption of connected medical devices, advanced sensors, wearables and interoperable clinical systems is enabling the shift from reactive infrastructures to intelligent healthcare environments, where monitoring occurs in real time and decision making is based on consolidated information. The precise location of critical equipment, full tracking of the patient pathway from arrival at the emergency department to discharge and the identification of bottlenecks in beds, operating theatres or care routes make it possible to optimise resources, reduce inefficiencies and strengthen clinical safety. This same approach extends beyond healthcare facilities. The ability to remotely monitor vital signs such as blood pressure, glucose levels or heart rate and send them to secure platforms for analysis opens the door to advanced telemonitoring models. These systems enable continuous follow up of chronic patients, more precise post discharge control and early alerts in the event of potential deterioration. The result is a far more preventive, personalised and sustainable care model, in which the patient becomes the true centre of clinical intervention. Telemonitoring enables early alerts and continuous follow up beyond the hospital. Another innovation gaining momentum is the use of avatars, lightweight robotics and telerehabilitation solutions. These technologies, particularly useful in paediatric and geriatric settings, transform rehabilitation sessions through gamified dynamics that increase motivation and treatment adherence. Devices capture objective metrics on patient progress, providing clinical teams with precise data to adjust therapy more efficiently and with greater longitudinal tracking capabilities. Rehabilitation and telerehabilitation robots and avatars This entire ecosystem is supported by advanced digital infrastructure integrating managed 5G connectivity, interoperable IoT platforms, healthcare grade Cyber Security and analytics capabilities able to process and correlate information from multiple devices and care contexts. This combination ensures that data flows securely, reliably and in real time, both within the hospital and in the patient’s home. The impact is clear: IoMT enables the construction of more efficient, traceable and outcome driven healthcare systems, in which every data point becomes an asset capable of improving diagnoses, anticipating risks, optimising processes and ultimately enhancing quality of care. The value of IoMT lies in turning clinical data into outcomes: anticipate, optimise and improve care. 5. Drones: operational intelligence for critical infrastructure and environmental sustainability In 2026, the drone ecosystem, both aerial and water based, reaches a level of maturity that enables its consolidation as a structural part of operations across cities, industries and critical infrastructure. The combination of regulatory progress, technological evolution and pressure for more sustainable operating models has driven the transition from isolated interventions to autonomous, continuous and fully auditable operations. Drones evolve from occasional tools to continuous, autonomous and auditable operations. In the aerial domain, the European Union has taken decisive steps to standardise technical and operational requirements enabling the scaling of unmanned systems. Regulations such as Delegated Regulation (EU) 945/2019 and Implementing Regulation (EU) 947/2019 laid the foundation for classifying missions according to risk level, defining design specifications and ensuring uniform certification criteria. Updates driven by EASA in 2025 strengthened this framework, introducing mandatory Remote ID and raising training requirements for operators. This has created a harmonised environment capable of enabling more complex flights, especially those known as BVLOS (Beyond Visual Line of Sight), which are crucial for industrial inspections, logistics operations and critical infrastructure monitoring. The European roadmap for large scale operations in very low level airspace, in force between 2026 and 2029, continues to advance this transition. The evolution of the SERA framework, updates to AMC/GM guidance and the progressive adoption of electronic conspicuity technologies and U space services make it possible to move toward safety levels comparable to manned aviation. With this regulatory support, aerial drones cease to be experimental tools and become reliable operational solutions, capable of carrying out autonomous inspections in refineries, detecting gas leaks or analysing structural integrity through drone in a box systems that operate recurrently and with virtually no human intervention. Regulation and U space enable BVLOS operations and recurrent “drone in a box” deployments. In parallel, water surface drones or USVs are emerging as a key technological response to one of the most urgent environmental challenges: the degradation of water quality in rivers, ports and coastal areas. The accumulation of floating waste, the proliferation of diffuse discharges and the deterioration of ecosystems near urban centres reveal the limits of traditional monitoring and cleaning methods, which are often slow, costly and dependent on favourable weather conditions. USVs make it possible to act precisely where human intervention is least safe or efficient, automating the cleaning and monitoring of rivers, ports and coastal areas. Equipped with electric propulsion and autonomous navigation based on GPS, LiDAR and obstacle avoidance systems, they can operate for hours, move between vessels and optimise routes without constant supervision. Aerial drones and USVs integrate as operational infrastructure: sustainable and auditable inspection, cleaning and monitoring. They also incorporate computer vision algorithms to identify and classify plastics in real time, as well as sensors that monitor water quality, sending data to analytics platforms that enable learning, anticipation and prevention, turning them into high resolution environmental monitoring tools. What truly defines 2026 is that these two dimensions, aerial and water based, are no longer separate worlds. The same principles apply in both cases: regulatory maturity, advanced sensors, reliable connectivity, Edge Computing and growing demand for sustainable and automated operations. In both air and water, drones are consolidating as autonomous and complementary actors capable of performing continuous missions with high levels of precision, traceability and regulatory compliance. Sustainability becomes a core driver of these deployments. In a context where energy efficiency, decarbonisation and environmental protection are strategic priorities, drones provide a way to operate with lower operational costs, reduced risk to people and significant potential for positive environmental impact. Whether inspecting critical infrastructure without shutting it down, monitoring large areas without combustion vehicles or cleaning aquatic environments without crewed vessels, autonomous systems represent a cleaner, more precise and scalable alternative. Overall, 2026 marks the year when drones, aerial and water based, move beyond occasional tools to become intelligent infrastructure, autonomous actuators that extend the human and technological capabilities of organisations. Their contribution combines innovation, efficiency, sustainability and safety, consolidating their role in the new generation of industrial, urban and environmental operations. Innovation, efficiency, sustainability and safety converge in the new generation of drone operations. Conclusions In 2026, IoT transcends its technological role to become the physical infrastructure of distributed intelligence, where Physical AI, autonomous mobility, granular traceability, IoMT and smart drones converge in an ecosystem of autonomous action and digital trust. The five trends converge in an ecosystem of autonomous action and digital trust. These five IoT innovation trends are interdependent components of an advanced operational architecture that requires managed IoT connectivity, sovereign Edge Computing and secure platforms capable of scaling physical intelligence without compromising traceability or security. For businesses, cities and institutions, 2026 represents the adoption of these capabilities to optimise processes and transform business models, competitiveness and sustainability. In a world where IoT innovation redefines the boundary between the digital and the physical, the ability to act on the environment with precision, autonomy and governance determines strategic leadership. In 2026, leaders are those who turn connectivity and data into governed autonomous action. Connectivity & IoT Advanced digital empathy: when technology learns to care October 27, 2025