How To Create an IoT App for Your Business

If you’re hoping to increase efficiency, improve safety, make smarter decisions, or improve the customer experience in 2025 and beyond, creating an Internet of Things (IoT) app might be the solution you’re looking for. But even in the manufacturing sector, where IoT has been known to address significant pain points, adoption rates are hovering at just 35%. 

There’s a reason for that — creating an IoT app requires a significant investment of time and resources. So in this guide, I’ll provide an overview of what an executive needs to know about the process before giving an IoT app the green light. 

When Should You Consider IoT App Development?

Every business is different, but here are just a few examples of when you might want to consider creating an IoT app: 

• You’d like to use real-time data from your devices
• Manual monitoring is slowing you down
• Better operational visibility would improve decision-making
• You’d like to use sophisticated insights to enhance the customer experience 
• New dashboard services would add value for your clients

What IoT Apps Can Do

IoT apps are used to connect physical devices to the digital world. 

But the real value comes from automation and insights you couldn’t get otherwise. For example, through an IoT app, your devices could communicate with each other and make decisions based on real-time data, often without human intervention.

IoT Opportunities in Key Industries

85% of organizations are already using IoT technology, and 88% consider IoT critical to their success. And we don’t have to guess about ROI. IoT apps have already been shown to reduce unplanned downtime by 30–50%, reduce equipment outages by 25%, lower utility costs by 10–15%, and reduce labor costs by 20–30%.

But how an IoT app would bring value to your organization will vary depending on the industry you’re in.

Here are just a few examples that I think paint a clearer picture of what’s possible. 

Agriculture

Here are just a few use cases where IoT tech could be revolutionary: 

• Monitoring soil moisture, weather conditions, and crop health in real-time
• Automatically triggering irrigation systems based on soil data
• Tracking livestock health through wearable sensors
• Using GPS to efficiently manage equipment across large farms

Manufacturing

Industrial IoT apps are a popular way to address many of these challenges: 

• Monitoring equipment performance to predict failures before they happen
• Tracking production in real-time to optimize workflows
• Catching quality issues early through automated sensors
• Optimizing supply chain operations with connected data
• Eliminating manual tasks and reducing human errors 

At Capmation, we’ve actually created a number of IoT solutions for our manufacturing clients over the years, including a real-time machine monitoring and reporting web app that gave managers instant insights into performance, downtime, and production KPIs. We also designed a paperless process automation system to streamline repetitive manual workflows. 

Logistics and Transportation

You can use IoT solutions to streamline your entire supply chain:

• Tracking vehicle location, fuel consumption, and driver performance
• Monitoring warehouse inventory with automated sensors
• Ensuring temperature-sensitive goods stay within required ranges
• Automating sorting and warehouse management processes
• Optimizing delivery routes based on real-time data

Retail

Here’s where the smart use of IoT can make your staff — and your customers — happier:

• Tracking inventory levels in real-time across all locations
• Analyzing customer behavior through in-store sensors
• Automatically reordering products when stock runs low
• Optimizing product placement based on traffic patterns
• Using smart shelving to detect when items need restocking

Healthcare

There are a number of ways healthcare organizations can use IoT technology to improve patient outcomes while reducing costs: 

• Monitoring patients remotely through wearable devices that track vital signs, sleep patterns, and activity levels
• Enabling continuous glucose monitoring for diabetic patients with real-time alerts for dangerous levels
• Tracking medical equipment locations throughout facilities to reduce search time and improve response speeds
• Automating medication dispensing and reminders to improve patient adherence
• Detecting early signs of contagious illnesses through connected thermometers and symptom tracking
• Providing remote assistance for visually impaired patients through connected devices and professional support networks

Hospitality

Even the hospitality industry could use IoT tech to delight their guests and save money. Here’s how: 

• Controlling room temperature, lighting, and security systems remotely
• Allowing guests to manage room features through smartphone apps
• Optimizing energy usage based on occupancy patterns
• Automating check-in and check-out processes
• Monitoring and maintaining equipment across multiple properties

Key Components You'll Need

Every IoT application requires four main elements:

• Hardware, including sensors, processors, and communication modules, to collect and transmit data
• Network protocols like Wi-Fi, Bluetooth, cellular, or MQTT 
• Platforms like Azure IoT Hub, serverless Azure Functions, or Power BI
• Software to process data, provide insights, and allow users to control connected devices

An Overview of the Development Process 

Building an IoT app typically follows these steps:

1. Define requirements 
2. Choose your platform that matches your needs
3. Select your hardware based on your needs and any environmental considerations
4. Develop the user interface, backend systems, and data processing capabilities 
5. Connect all components and test your system 
6. Protect any sensitive data with encryption, authentication, and access controls 
7. Launch the app and monitor it to ensure reliability 

What Can Go Wrong When Building IoT Apps?

An IoT app can be a game-changer, but that’s only when everything goes right. 

Unfortunately, 75% of IoT projects fail, and 75% of projects take twice as long as promised and run 45% over budget.

Why IoT Apps Often Require External Help

Building an IoT application isn't just another software project! Here’s why many companies shouldn’t attempt to create an app entirely by themselves: 

• IoT development demands expertise that most organizations don't have
• Internal teams tend to struggle with integration and app scalability
• Most internal cybersecurity teams are focused on traditional IT infrastructure, not embedded devices 
• IoT projects require a lot of coordination, and often stall because of misalignment and competing priorities 
• It’s tempting for internal teams to think of an IoT tool as a one-off initiative instead of seeing the bigger picture 

If your internal team is learning IoT through trial and error, there’s a big risk it’ll end up costing more and taking much longer than you thought. And there’s also the very real risk that your project will be abandoned completely. 

Pro Tips To Increase IoT App Development Success

There’s always a learning curve when creating an IoT tool for the first time. 

However, if your in-house team has all the skills required to build an IoT app in-house, here are a few things I’d recommend to increase your odds of success: 

• Start with a small proof of concept before scaling it up
• Ensure strong cloud integration, so your data can flow securely into dashboards and reports 
• Incorporate quality assurance automation early to guarantee reliability
• Provide robust documentation, manuals, and end-user training to reduce friction and mistakes

How Much Does an IoT App Cost?

Simple applications can range from $40,000 to $80,000, while medium complexity projects cost between $60,000 and $150,000. Advanced applications with multiple integrations and sophisticated features can exceed $300,000.

Your final cost depends on several key factors: 

• The number and types of devices you need to connect
• Security requirements and authentication features
• Third-party integrations and APIs
• The user interface
• Testing requirements across different devices and environments 
• Any custom hardware or specialized cloud infrastructure required

Keep in mind that these are only development costs! You'll also need to budget for ongoing expenses like cloud hosting, device connectivity, maintenance, and future updates as your system scales.

When Should You Work With an IoT App Development Company?

I’d definitely recommend fully outsourcing IoT app development if your team doesn’t have the skills needed in-house or if you have special compliance requirements. You could also bring in a skilled partner for certain phases of your project, like when you’re scaling beyond a pilot into your full production environment. 

Just be sure that your partner has proven experience in your industry and a track record of delivering secure, scalable IoT solutions. 

At Capmation, we bring deep expertise in IoT development across agriculture, manufacturing, logistics, retail, healthcare, and hospitality sectors. Plus, having a nearshore team means we can help our clients save money without sacrificing speed or quality. 

Interested in learning more about how we approach IoT projects? Click the link below to see how we helped a manufacturing client maximize uptime.