GlobalData’s latest Strategic Intelligence report suggests that the IoT market’s $959.6 billion in 2023 will rise by a compound annual growth rate (CAGR) of 13.5%, with enterprise IoT set to account for 72% of market revenue by 2028.
While enterprise adoption is set to rise, the report stated that the consumer segment will drop from 30% in 2023 to just 28% in 2028.
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The report suggests that new terrestrial wireless and satellite technologies will expand IoT connectivity, particularly for devices needing continuous connectivity and extended battery life without requiring full 5G capabilities.
Enhanced 5G was highlighted for supporting IoT applications that demand lower complexity, cost, and power consumption, while satellite-based non-terrestrial networks (NTN) are set to serve remote devices by enabling data transmission via satellite.
The report also highlights Artificial Intelligence of Things (AIoT), which sees AI tech embedded into IoT devices and services.
The combination, GlobalData suggests, will support use cases like automated operations and predictive maintenance, enabling data collected by connected sensors and actuators to be analysed either in the cloud or on device.
William Rojas, research director for strategic intelligence at GlobalData, said: “Technologies in the form of embedded AI acceleration microprocessors, combined with the addition of new wireless access technologies, will act as a further catalyst for IoT adoption across enterprise and consumer sectors.
“Deployments that might have initially used only one type of IoT sensor are expanding to include a wide range of sensors as the cloud analytics processing capability continues to expand.”
GlobalData’s report warns, however, that security remains a concern for IoT deployments, with fragmented security standards and weak device security holding back adoption.
Given that some IoT devices have limited computing capacity and cannot run effective security software, the analyst firm warned that the hardware is effectively vulnerable to cyberattacks.
“Unlike other technological methods and tools such as AI, cybersecurity, and cloud computing, IoT is a digital ecosystem consisting of interdependent connectivity and data layers that aggregate, store, and process telemetric, image, and video data from IoT sensors,” Rojas added.
“Embedded AIoT can also play a role in enhancing security at the IoT device level. Where more heavy compute resources are needed with low latency, then edge computing will be the best option.”
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