451 Digital Industries Insider – August 2025

Introduction

This edition of Digital Industries Insider explores the accelerating convergence of AI, edge computing and operational technologies across industrial sectors. From utilities and smart buildings to fleet management and cybersecurity, the report reveals a shift from experimentation to execution — with AI at the center of strategic transformation. The rise of domain-specific industrial AI is a standout theme. Industrial models are increasingly deployed at the edge, trained on multimodal data, and integrated into control systems, digital twins and robotics. Meanwhile, substation virtualization is gaining traction in utilities, offering scalable, secure and software-defined infrastructure. Elsewhere, smart buildings are evolving into agentic ecosystems, where AI agents manage HVAC, lighting and energy optimization autonomously. Vendors such as Schneider Electric SE, Honeywell International Inc. and Johnson Controls International PLC are embedding AI into platforms that unify building operations and workplace experience. To meet climate targets, private companies and policymakers are leveraging digital technologies to accelerate the electrification of commercial fleets, placing new demands on charging infrastructure and grid readiness.

The Take

The digital industries landscape is experiencing a profound shift, driven by the increasing maturity and integration of AI, IoT and digital twin technologies. This transformation is not merely about adopting new tools but fundamentally reshaping how industries operate, manage assets, and address critical challenges such as sustainability and cybersecurity.

Insights for technology vendors: The shift to domain-specific, edge-native AI opens new markets for vendors that can deliver explainable, resilient models tailored to industrial environments. Success hinges on vertical integration, partnerships with operational technology (OT) providers and support for multimodal inputs. Vendors must prioritize interoperability, cybersecurity and outcome-based delivery — especially in sectors such as utilities, manufacturing and smart buildings, where legacy systems and regulatory constraints demand precision and trust.

Insights for digital enterprises: Enterprises should focus on AI solutions that integrate with existing infrastructure, support real-time decision-making and offer measurable return on investment (ROI). Edge deployment is critical for latency-sensitive applications, while digital twins and agentic systems can enhance predictive maintenance and workforce efficiency. Success requires cross-functional collaboration between IT and OT, investment in data governance, and a pragmatic approach to scaling intelligent systems.

Insights for technology investors: AI-native platforms with edge deployment and agentic automation are winning investor attention, especially in grid, building and fleet modernization. M&A is heating up in OT security and autonomous systems, favoring vendors with scalable, interoperable architectures. Investors should back firms bridging IT/OT gaps, embedding AI into infrastructure, and proving ROI through real-time optimization. Legacy-heavy sectors such as utilities and commercial buildings offer upside for disruptors, while fragmented point solutions are losing ground.

Digital industry focus: Domain-specific industrial AI

Industrial AI is evolving rapidly, driven by the need for context-aware, multimodal intelligence in high-stakes environments. Unlike general-purpose large language models, these models interpret sensor data, control logic and technical documentation with precision.GAMMA2 from Nuclearn Inc., which is trained on 4 TB of nuclear data, exemplifies this shift.

Edge deployment is a defining feature. Vendors such as International Business Machines Corp., Red Hat Inc. and Hangzhou DeepSeek Artificial Intelligence Co. Ltd. are miniaturizing models for constrained environments. AI is increasingly fused with digital twins, robotics, and embedded platforms such as QNX OS for Safety, enabling real-time simulation and autonomous decision-making.

This transformation is not limited to manufacturing. In utilities, GridOS platform from GE Vernova Inc. integrates AI for dynamic line ratings, distributed energy resources (DER) management and visual analytics via its Alteia SAS acquisition. In smart buildings, Nantum AI (from Prescriptive Data Inc.) and 75F Inc. deliver agentic platforms that optimize HVAC, energy use and fault detection without hardware overhauls.

Implications: Domain-specific AI is essential for operational resilience, safety and efficiency. Enterprises must prioritize models that are explainable, interoperable, and tailored to their unique data and workflows.

Survey insights: Successful organizations move from IoT strategy to outcome-driven execution

Enterprise IoT is maturing, but execution — not ambition — is the new battleground. 451 Research's Voice of the Enterprise: Internet of Things, Enterprise Check-In 2025 survey reveals that while operational efficiency is now the top-cited benefit of IoT, scaling and infrastructure management remain persistent pain points. Internal and customer sentiment is generally positive, but it hinges on clear value delivery. Success correlates strongly with cross-functional collaboration, technical readiness and strategic clarity — not just vision. Vendors must shift messaging from aspirational to actionable, helping customers move from pilot to production with measurable outcomes.

Key data points:

• Nearly half (48%) of respondents cite operational efficiency as the primary IoT benefit, surpassing innovation and transformation.
• Only 26% found scaling IoT projects easier than expected; 25% said the same about managing distributed infrastructure.
• Almost half (48%) of respondents attribute successful project outcomes to strong IT/OT collaboration, more than any other factor.

Figure 1: Executive buy-in and infrastructure deployment are the most challenging parts of enterprise IoT projects

Digital industries on the road

GE Vernova Orchestrate: Grid intelligence and AI — Johan Vermij, David Immerman

• Key themes: Utilities face grid strain and fragmented data; AI adoption is accelerating to support resilience and operational efficiency.
• GE Vernova’s GridOS platform integrates AI, DER management and visual analytics to enhance grid resilience and decarbonization.
• The vendor acquired Alteia, enhancing GridOS with DER management, dynamic line ratings and AI-powered visual analytics.

Esri user conference: Integrating everything, everywhere — Zoe Roth

• Environmental Systems Research Institute Inc. positioned geographic information systems (GIS) as a geospatial foundation for AI agents, digital twins and indoor spatial intelligence.
• The conference explored how geospatial data integration with edge AI enables real-time decision-making in sectors such as utilities, transportation and public safety, delivering location-aware intelligence that supports resilience, efficiency and sustainability goals.
• Highlights included 3D twins for ports, AI assistants for damage assessment and indoor GIS for asset tracking.

Digital industries technology developments

AI-driven HVAC at 75F: 75F’s wireless-first platform delivers plug-and-play HVAC automation for small and midsize buildings, using proprietary sensors and AI to optimize comfort, air quality and energy efficiency. Its mesh network and Saffron AI tool enable predictive maintenance and real-time control, with ROI typically achieved in under three years. The system integrates with major platforms and supports 40,000 devices across 2,000 customers, including WeWork Inc., Shell PLC and Hilton Worldwide Holdings Inc.

Fleet intelligence at Driivz Inc.: Driivz supports more than 150,000 electric vehicle chargers globally with a cloud-native platform that orchestrates energy flows, charger uptime and fleet utilization. Its smart energy management includes vehicle-to-grid support, real-time monitoring and predictive analytics, helping fleet operators optimize costs and sustainability. With major clients including Shell Fleet and EVgo Inc., Driivz is a key player in Europe's fast-charging infrastructure.

Unified security at Kastle Systems LLC: Kastle Systems offers a vertically integrated physical security suite as a managed service, combining video surveillance, access control and visitor management. Its EverPresence platform enables seamless credentialing across sites, while advanced video search and analytics enhance situational awareness. Kastle serves 60,000 customers and manages more than 1 billion square feet of space, positioning itself as a sticky alternative to fragmented point solutions.

Telefonaktiebolaget LM Ericsson's enterprise IoT focus: Ericsson Enterprise Wireless is the company's clearest bet on capturing the enterprise edge — an increasingly strategic domain where traditional telco infrastructure meets the operational realities of IoT, AI and digital transformation. With NetCloud as the orchestration layer and a growing portfolio of cellular routers, private 5G systems and edge compute integrations, Ericsson is positioning to compete not just with Cisco Systems Inc. and Hewlett Packard Enterprise Co., but with a broader set of cloud, security and industrial automation players.

Utility software boost at Honeywell: Honeywell acquired SparkMeter Inc.'s Praxis, GridScan and GridFin platforms to enhance its Forge Performance+ suite with real-time grid visibility and financial analytics. These tools help utilities optimize asset performance, monitor grid health and manage volatile rate structures. The acquisition supports Honeywell’s strategy to modernize infrastructure and compete in the software-defined utility space.

EcoStruxure Ltd. evolution at Schneider Electric: Schneider Electric deepens its integration with Planon to unify building operations and workplace experience through its EcoStruxure Building platform. The three-tier architecture combines connected products, edge control and analytics, supporting AI-driven HVAC optimization and occupancy-based services. Schneider targets data centers, healthcare and commercial real estate, with strong traction in North America and Europe.

Fortinet Inc.'s smart building play: Fortinet expands OT security for smart buildings with virtual patching, deep protocol support and deception tools. Its platform secures building management systems, HVAC and access control systems, bridging IT/OT gaps and enabling secure remote access. Fortinet’s learn-mode patching and protocol-level visibility make it a compelling choice for building operators.

Platform consolidation in OT security: IT security giants are acquiring OT capabilities to deliver unified, AI-driven cybersecurity platforms. Vendors such as Palo Alto Networks Inc., Zscaler Inc. and Honeywell are integrating agentic AI and outcome-based delivery models to secure critical infrastructure. The OT security market is poised for consolidation, with buyers seeking visibility, automation and resilience across hybrid environments.