The rise of industrial IoT means smarter buildings – and smarter logistics

In a world that’s always moving, sometimes it’s the stationary objects that drive change. Commercial buildings are no longer the static, concrete shells of the past. They’re becoming intelligent ecosystems.

With supply chains becoming increasingly complex and sustainability now a necessity, our buildings must do more than house our operations – they must enhance them. And that’s precisely what’s happening. IoT technology has been around for years, but its role in building infrastructure is evolving now – expanding from isolated applications to fully integrated, building-wide systems. This “industrial IoT” is making facilities smarter – and that’s helping businesses operate smarter.

At DHL, we’re investigating these technologies and integrating them across our global network to future-proof our operations and advance our sustainability goals. From predictive maintenance to energy balancing, integrating IoT into our buildings is helping us boost efficiency, improve safety, and cut greenhouse gas (GHG) emissions.

We’ve come a long way in building more innovative and intelligent infrastructure – and the journey is far from over. In this guide, we share the advantages we’re seeing and explore what’s next for industrial IoT and building IoT solutions in the logistics industry.

At the heart of industrial IoT is robust technology – a sophisticated network that enables smart infrastructure to function as intelligent ecosystems inside buildings. This network begins with the integration of IoT devices – including sensors, actuators, and controllers – that monitor everything from equipment performance to environmental conditions.

But you don’t have to start with a complex system to see results. Many industrial IoT setups begin with a handful of devices connected via available Wi-Fi networks. Even at this basic level, companies can start collecting valuable data, gaining new insights, and improving operational visibility without major infrastructure changes.

As systems grow more advanced, dedicated IoT gateways play an increasingly important role. These devices act as the bridge between OT (operational technology) and IT systems – managing diverse data formats, translating industrial protocols, and ensuring seamless communication between devices and cloud platforms. Gateways that support edge computing bring additional intelligence to devices in the network, allowing real-time data processing and decision-making at the source. This reduces latency, lowers bandwidth demand, and supports time-critical applications – and it’s the start of what people are calling the Artificial Intelligence of Things (AIoT) or Physical AI.

Each additional device and gateway makes a building smarter, but for an industrial IoT system to truly succeed, the entire network must be reliable, secure, and scalable. Only then can buildings, such as logistics facilities like ours, evolve from passive structures into active, responsive hubs of operational intelligence.

So, how exactly do these systems make buildings smarter? After testing and deploying industrial IoT systems in many of our facilities worldwide, we have seen the added value firsthand. Our buildings are becoming active enablers of our operational success. Here are the three main benefits:

In logistics, even minor inefficiencies can cause major cost and time losses. That’s why Industrial IoT is such a powerful tool for boosting operational performance. By embedding sensors and smart tracking devices throughout our warehouse, hubs, and sorting centers, our logistics teams gain real-time visibility into inventory, assets, and equipment. These systems can automatically streamline a range of tasks – from locating pallets to flagging potential bottlenecks and even detecting wear in machinery before it becomes a problem – all without human intervention.

IoT-enabled indoor navigation and localization add another layer of precision, helping to streamline workflows and reduce unnecessary movement. Workers can be guided along the most efficient routes to complete their tasks, saving time and improving efficiency. This technology can also support smarter resource planning and equipment usage, helping teams allocate assets where they’re needed most.

Industrial IoT systems can even improve inventory management. In fact, IoT-enabled inventory systems can achieve over 95% accuracy, significantly reducing stock discrepancies and their associated costs.

The result? Faster throughput, fewer disruptions, and smoother daily operations. Industrial IoT blurs the line between physical infrastructure and daily operations. Whereas a conventional building just provides space, a smart commercial building becomes an active participant.

Industrial and commercial buildings are full of moving people, machines, and goods. Managing safety in such dynamic environments is critical – and increasingly, it’s being supported by smart infrastructure. Many safety technologies have been around for years – from surveillance cameras to access controls – but now, industrial IoT is bringing these systems online and integrating them into the building’s wider digital ecosystem.

Cameras, for example, now act as visual sensors – supporting remote entry systems, continuous monitoring, and even AI-driven analysis. When connected through industrial IoT systems, these once-standalone devices become part of a cohesive safety network. AI-powered solutions can even analyze video feeds to identify unsafe behavior and trigger alerts automatically – enabling a more proactive approach to risk detection.

Together, these technologies are reshaping workplace safety. Studies show that industrial IoT applications can reduce workplace accidents by up to 40%. And it’s not just about cameras. Environmental sensors tracking temperature, humidity, air quality, and noise levels contribute to healthier, more compliant workspaces.

For us, this means smarter buildings are safer buildings – not just for equipment and inventory, but for our people who keep our logistics networks and our customers’ supply chains moving.

Today, energy use in buildings isn’t just a cost or a climate issue – it’s a capacity issue, too. Especially in logistics, where operations are becoming increasingly electrified, energy demand is set to rise dramatically. While the energy footprint of buildings is expected to increase only slightly by 2030, we estimate that overall consumption of electricity could grow by more than 250% – primarily driven by the expansion of electric vehicle (EV) charging infrastructure. Heavy-duty electric trucks play a significant role in this. A single e-truck can consume as much power as 60 electric vans.

This surge in demand makes industrial IoT an essential tool for managing energy availability and cost – and a key enabler of sustainable logistics. With smart meters and IoT gateways, we can monitor energy use in real time, right down to individual systems and devices. Adaptive lighting and automated HVAC controls respond to occupancy and usage patterns, reducing waste without compromising comfort or performance.

The impact is substantial. Intelligent IoT energy management solutions can cut energy use by 20–30%, directly reducing operational costs while supporting decarbonization goals.

But managing consumption alone won’t be enough. The future of smart logistics facilities depends on our ability to coordinate production, storage, and usage intelligently. This includes leveraging industrial IoT to forecast demand, optimize local renewable generation (such as solar), and manage the load on charging infrastructure – all while maintaining grid stability and cost efficiency.

At DHL, we’re already piloting inter-facility energy balancing, turning logistics campuses into interconnected energy ecosystems. These intelligent energy networks will be vital to meeting rising demand – and industrial IoT will be at the heart of keeping them running smoothly.

You never really know what’s around the next corner, but we’re always on the lookout for future trends in logistics. Here are a few emerging technologies in industrial IoT we’re keeping our eye on:

• AI + IoT = intelligent forecasting
  The integration of Artificial Intelligence (AI) enables predictive analytics, allowing facilities to anticipate energy demand, schedule maintenance, and optimize processes before inefficiencies occur.
• Private 5G networks
  Faster, more secure, and more reliable than Wi-Fi, private 5G unlocks high-speed data transfer for latency-sensitive applications such as robotics, safety systems, and indoor navigation.
• Edge computing for real-time action
  With edge computing, we can process data locally – at the edge of the network – enabling ultra-fast response times, which are ideal for time-critical decisions, such as re-routing goods or initiating maintenance protocols.

As logistics grows more connected, responsive, and sustainable, buildings are playing a bigger role than ever. Industrial IoT is turning infrastructure into a source of real-time intelligence – enhancing operations, reducing emissions, and keeping people and goods moving safely.

At DHL, we believe industrial IoT will become a cornerstone of smarter, more responsive supply chains and logistics operations. We’re building on what we’ve learned – but this is only the beginning.