IoT does not slow down its growth and has reached a new level of maturity. What can we expect in 2024?
IoT is no longer a buzzword.
Today, it is a mature technology (or set of technologies) offering a wide range of possibilities. The market is aware of it, and the conversations have shifted from general discussions about how they could benefit from IoT adoption to well-defined needs and requirements, as well as determining the best IoT components to address them.
Don't get me wrong, the public relevance of the term "IoT" remains strong, indicating sustained interest in the field. However, it is nevertheless easy to detect a greater knowledge of the sector and a greater awareness of its real potential to solve practical problems.
That's why, despite the uncertain and challenging macroeconomic scenario of the last few years, IoT has never stopped growing. This was also the case in 2023 when, according to IoT Analytics, the market witnessed significant developments and advancements. In 2023, the number of connected IoT devices grew to approximately 16.7 billion, reflecting the continued growth (+16% YoY) and relevance of IoT in various industries.
When at the end of 2020 the number of connected IoT devices equalled the number of non-IoT devices, we said we entered the IoT Golden Age. Now, IoT devices already make up 62% of the total, and analysts agree that their number will double to over 30 billion by 2025, while the global market value of the IoT market is expected to reach USD 33.7 billion this year and USD 250 billion by 2034.
The momentum is still very strong, and this is great news for the industry.
Another interesting aspect of the market's evolution, and I believe another sign of its maturation, is that some large companies, such as Microsoft and Google, have shifted their IoT commitments to focus on AI. This shows that standardized and one-size-fits-all solutions are no longer what the market is looking for. Instead, the market is increasingly oriented towards tailor-made solutions. As a consequence, we observe a more fragmented market with specialized players on the end solutions side, while market consolidation continues on the connectivity side. One example is the recent acquisition of Senet by Netmore.
With this in mind, below are our 10 most relevant trends to watch in 2024.
As usual, we have relied on expert opinion as well as our direct experience of the constantly changing market to compile this list. Enjoy the reading!
Artificial intelligence (AI) has taken center stage in 2023. It is a mature technology that has already demonstrated its enormous potential in multiple fields.
If, as mentioned at the beginning of this article, 'IoT' is no longer a buzzword, 'AIoT' (AI+IoT) is at the height of its hype with searches for this term having increased fivefold in a very short time. The immense amount of data that IoT is able to collect, put at the disposal of advanced AI and ML (Machine Learning) models, can transform entire sectors, from the industrial sector to environmental monitoring, and generate a significant positive impact.
A possible slowdown in its adoption may depend on concerns about the security and privacy of data, lack of specific know-how, and the expectation of regulations that will place limitations on the use and evolution of AI.
Edge computing involves processing data closer to the source (IoT devices) rather than sending everything to the cloud. This is a trend that has been ongoing for several years already. Moving some of the processes from the cloud to the edge ensures faster response times, less dependence on network infrastructure, and, in certain contexts, greater simplicity.
The evolution of hardware has made this trend possible, the demand for it is constantly growing and, in some cases, even considered an essential requirement.
In 2024, we do not expect a slowdown in this trend; in fact, we anticipate it will further advance with the attempt to equip edge computing systems with artificial intelligence tools.
IoT platforms are becoming increasingly popular in the market. We are not surprised because the benefits are countless. Mainly, they bring significant simplification, which lowers the barrier to entry, increases adoption, accelerates time-to-market, and offers the right balance between standardized functionality and customization.
The growth of this market segment has led to the presence of multiple players. Increased competition has contributed to the rapid evolution of these platforms, which has taken place mainly in two directions. On one hand, there has been an increasing specialization/fragmentation with solutions dedicated to specific verticals (e.g. industrial solutions). On the other hand, innovative functionalities have been introduced, such as integrated AI tools, Connectivity as a Service functionalities, or advanced data visualization. In any case, IoT platforms will play a prominent role in the massive adoption of the Internet of Things.
This technology creates a real-time digital replica for experimentation and analysis, allowing businesses to optimize operations by utilizing IoT sensors. It also allows testing different future scenarios to predict the outcome and ultimately helps in the decision-making process. The fields of application are numerous, and this technology has already demonstrated its effectiveness in many sectors such as smart cities, the industrial and energy sectors, smart buildings, construction, and in supporting the achievement of sustainability goals. The digital twin market is growing at a 30% annual growth rate due to these systems' ability to handle large amounts of data in complex environments.
The launch of the Apple Vision Pro will revitalize a trend that had lost momentum over time. Once again, significant technological advancements pave the way for new applications. The combination of new user interfaces with AI and real-time data collected through IoT sensors allows for enriched data, predictive analytics, and augmented connected workplaces. This opens up a plethora of possibilities in various domains, offering completely new scenarios. We are confident that in 2024, we will see the emergence of this new wave of innovation.
According to recent statistics, 72% of industries are familiar with the importance and benefits of adopting IoT solutions. The market today offers both highly specialized end-to-end solutions and the possibility to assemble tailor-made solutions using the components - software, hardware, and connectivity - that best suit the specific circumstances and objectives. In addition to mature and popular condition monitoring, asset tracking, predictive maintenance, and digital twin solutions, new categories of advanced solutions such as Augmented Connected Workforce (ACW) or Autonomous Indoor Vehicles (AIVs) are appearing on the market and generating industry interest.
Altogether, IIoT can significantly improve working conditions, and increase efficiency and productivity, while reducing costs, the risk of failure, and environmental impact.
Sustainability is a concept for which awareness and attention are now widely established. The association between sustainability and IoT is also well-recognized. In fact, IoT solutions are sometimes exclusively used for these purposes. This category also includes Environmental Monitoring solutions that enable better control of the territory, for example, to reduce the risks associated with increasingly frequent extreme weather events.
The volume of investment in this sector is growing, both at the public and private levels. However, it is still not quite sufficient to achieve the ambitious sustainability goals agreed upon at the international level, which can make a significant impact on decarbonization and climate change.
Furthermore, today we talk about "Green IoT" not only because of the benefits and positive environmental impact that IoT ensures, but also because of the increased focus on the entire IoT product lifecycle: green design, green production, green materials, green deployment, and green recycling. It is definitely a priority in 2024.
It is not a novelty that with the irruption of generative AI also came concerns and new challenges about the security and privacy of data ingested by AI models. The uncertainty increases with the absence of regulations on the subject (the first legislative interventions have just arrived and have to prove their effectiveness).
These issues are amplified in the IoT sector where data is the basis and key to its success and where the security of infrastructure and processes is already a central element in ensuring the stability of solutions that in some cases oversee production processes. In this and future years, great resources will be devoted to mitigating these risks and protecting sensitive data also from new types of AI-powered cyber-attacks.
Whether we are talking about hybrid 5G and satellite connectivity, such as the one Telefonica and Sateliot are working on, or, in the LPWAN (Low Power Wide Area Network) sphere, the convergence of LoRaWAN® and mioty® that we've embraced with our hybrid solution; whether we are talking about mixed infrastructure, on the cloud and on the edge, or integration between public and private networks, or, again, combining purely financial and operational goals with sustainability goals, the hybrid approach and convergence are increasingly positively adopted paradigms of the IoT industry.
They provide greater flexibility that can adapt to and meet diverse requirements and purposes while benefiting from what one or the other alternative can best offer. Advantages include, for example, reduced deployment costs, faster ROI, greater resilience in the face of technological evolutions, and above all, benefiting from a more customized solution.
Private networks are wireless networks that are owned and operated by enterprises or organizations. They provide a higher level of control, customization, and security for IoT applications, particularly in industrial settings. Private networks can utilize 5G and edge computing technologies to improve IoT performance and functionality.
The decision to use a public network or establish a private network depends on a number of factors, such as financial considerations, preferred communication protocols, and specific characteristics of the use case (e.g., type of data, and coverage requirements). There is no one-size-fits-all solution, but we have observed that private networks have been a robust option in the LPWAN market since at least 2015. With the increasing deployment of the Internet of Things in the industrial sector, the adoption of private networks is also growing, regardless of the company's size. We may expect a similar trend for other technologies by 2024.
These trends reflect the continuous evolution of IoT and its growing impact on various sectors, including industrial applications, smart cities, healthcare, and more. As the industry continues to expand and innovate, it is crucial for individuals and businesses to stay informed about these trends.
