Last Updated:
This rapid expansion in internet of things (IoT) market is not merely a statistic, it signals a transformative shift in how businesses utilize data to drive innovation and efficiency.
The true potential of IoT lies in its synergy with cutting-edge technologies such as Artificial Intelligence (AI), blockchain, and 5G.
Authored by Suraj Nair:
The internet of things (IoT) is not merely a technological trend; it is a transformative force reshaping our world and redefining how we live and work. At its core, IoT encompasses a network of physical objects embedded with sensors, software, and connectivity capabilities, enabling the devices to exchange data and interact seamlessly with each other to provide beneficial use cases. As we stand on the precipice of this digital revolution, projections indicate that by 2030, an astounding 75 per cent of all devices will be IoT-enabled. This rapid expansion is not merely a statistic; it signals a transformative shift in how businesses utilize data to drive innovation and efficiency.
The global Internet of Things (IoT) market is projected to experience remarkable growth, soaring from $478.36 billion in 2022 to an impressive $2,465.26 billion by 2029. This significant expansion reflects a compound annual growth rate (CAGR) of 26.4%, as detailed in a report published by MarketsandMarkets. This staggering growth presents organizations with unparalleled opportunities to harness the power of data generated by IoT devices. By unlocking valuable insights from the data generated by IoT devices, businesses can optimize operations and enhance customer experiences across various sectors—from streamlining supply chains to improving healthcare outcomes and creating smarter cities.
However, the true potential of IoT lies in its synergy with cutting-edge technologies such as Artificial Intelligence (AI), blockchain, and 5G. The integration of these technologies enables a more cohesive and efficient approach to problem-solving in our increasingly complex world. As we look ahead to 2024 and beyond, several incremental technology trends are poised to shape the IoT landscape.
Sensors
Sensor manufacturers are currently prioritising several key advancements to enhance IoT applications. First, there is a strong focus on miniaturization, allowing ultra-small high-performance sensors to be integrated into devices with limited space, such as wearables and smart gadgets. Second, improving accuracy and reliability achieved through advancements in sensor materials and signal processing techniques is critical. Third, low-power operations are essential for reducing overall power consumption in IoT solutions. Lastly, the development of multi-functional sensors combining various sensing capabilities into a single compact package is gaining traction, facilitating diverse applications across consumer, industrial, and healthcare sectors.
Devices
Original Device Manufacturers (ODMs) and chipmakers are continuously innovating to enhance their product offerings. Their primary focus remains on miniaturization and reducing power consumption through advancements in chip design and the integration of lower power communication protocols. Additionally, edge computing is becoming increasingly important, as it allows computation to occur closer to data sources, thereby minimizing latency and enhancing security. This is particularly vital for applications requiring rapid responses, such as autonomous vehicles and healthcare monitoring systems.
Connectivity
Connectivity is fundamental to IoT, enabling data collection and transmission between the physical and digital realms. Recent trends have shifted focus from merely enhancing 5G broadband capabilitiesto exploring network slicing within 5G infrastructure for tailored IoT applications. Low-power long-range protocols like NB-IoT and LTE-M are gaining momentum for their ability to provide extensive coverage and prolonged battery life. Moreover, there is an increasing interest in satellite connectivity for IoT devices deployed in areas lacking terrestrial networks.
IoT Platforms
AWS IoT and Microsoft Azure IoT continue to lead the market by offering comprehensive services for device management, analytics, machine learning, and AI with a strong emphasis on scalability and security. Following Google’s announcement to shut down its core IoT services in August 2023, Google Cloud Platform has shifted focus to other services that can support IoT solutions. Azure’s recent introduction of IoT operations aims to simplify the onboarding of industrial assets while facilitating data flow from factory operations to the cloud for improved decision-making. As these platforms evolve, they are integrating more advanced AI and machine learning capabilities to keep pace with rapid technological advancements.
Consumption Endpoints
Consumers are increasingly engaging with IoT use cases through various integrated mechanisms that fit seamlessly into their daily routines. These interactions may occur via native applications on mobile devices or tablets, hybrid platforms, or browser-based applications running on desktops or laptops. Wearables and infotainment units have seen a major adoption and natural interfaces such as voice commands and gesture recognition are becoming commonplace in smart homes and connected vehicles. Additionally, emerging technologies like smart glasses and augmented/virtual reality surfaces are gaining popularity, further enriching consumer experiences.
The AI Explosion
The integration of Artificial Intelligence (AI) is one of the most transformative trends driving the IoT landscape. As AI algorithms evolve alongside innovations in hardware architecture designed for training and inference tasks, devices are increasingly becoming capable of processing vast amounts of data from sensors. Recent advancements, including lightweight convolutional neural networks (CNNs) and quantization techniques, facilitate efficient vision analytics at the edge. This integration of artificial intelligence (AI) and the Internet of Things (IoT) promotes intelligent automation, predictive maintenance, and data-driven decision-making across various industries.
Therefore, the future of IoT in 2024 and beyond is characterized by a convergence of disruptive technologies, innovative use cases, and unprecedented connectivity. From AI-powered automation to blockchain-enabled security, the possibilities are endless. However, realizing the full potential of IoT requires a concerted effort to address security concerns, navigate supply chain challenges, and embrace emerging trends. By staying abreast of these developments and fostering collaboration across industries, we can harness the transformative power of IoT to create a smarter and more connected world.
(The author is director-technology and COE Leader-IoT and telematics at Quest Global)