Is There A Rapid Increase in IoT Adoption? – Manufacturing & IoT in 2025

In an era marked by the convergence of technology and industry, the Manufacturing sector stands at the forefront of a transformative wave propelled by the Internet of Things (IoT). Ubiquitous connectivity, data-driven insights, and real-time decision-making have become imperatives for staying competitive in a landscape where efficiency and precision reign supreme.

A recent survey commissioned by Ubisense has provided illuminating insights into the current state of IoT adoption within the manufacturing sector. The study, conducted in collaboration with Arlington Research, offers a comprehensive snapshot of industry trends and practices. The full report can be accessed here.

The Ubisense Survey Findings

The survey paints a vivid picture of the manufacturing landscape in 2023. It reveals that more than three-in-five manufacturers (62%) have embraced IoT technologies in their manufacturing or assembly processes. This surge in adoption underscores a growing recognition of the immense potential that IoT holds for streamlining operations and enhancing productivity.

One of the noteworthy findings is that just over two-in-five manufacturers (43%) are currently leveraging real-time location systems (RTLS). This statistic highlights the increasing importance of precise asset tracking and management within modern manufacturing environments. By harnessing the power of RTLS, companies can gain unprecedented visibility into their operations, enabling them to optimize processes and respond swiftly to dynamic production demands.

Economic Climate as a Catalyst for IoT Investment

In a climate marked by economic uncertainties, the manufacturing industry has demonstrated remarkable resilience and adaptability. The survey reveals that three-quarters of organizations (76%) express a heightened inclination towards investing in IoT technologies. This statistic speaks volumes about the industry’s forward-thinking approach, recognizing that technological innovation is a cornerstone for sustained growth, even in the face of economic challenges.

The prevailing sentiment among manufacturers is that IoT offers a tangible pathway towards operational agility and cost-effectiveness. By integrating IoT solutions, companies can harness data-driven insights to make informed decisions, minimize waste, and optimize resource allocation. This strategic shift towards IoT adoption is indicative of a collective drive within the industry to future-proof operations and secure a competitive edge.

Navigating Efficiency Challenges with IoT

While the benefits of IoT adoption in manufacturing are substantial, the survey also sheds light on persisting challenges. More than a third of manufacturers (36%) acknowledge recurring difficulties in measuring operational efficiency. This underscores a critical gap in existing processes, highlighting the need for data-driven solutions that empower manufacturers to quantifiably assess and enhance their operations.

Furthermore, an equivalent proportion of respondents (36%) frequently grapple with the issue of misplaced tools, equipment, parts, and materials. This inefficiency not only leads to operational delays but also represents a significant drain on resources. By leveraging IoT-powered tracking and monitoring systems, manufacturers can mitigate these challenges, ensuring that assets are precisely located and readily accessible when needed.

Additionally, the survey highlights that a substantial portion of manufacturers (35%) contend with disruptions in sequencing and production timelines. This finding underscores the critical role that IoT can play in orchestrating seamless workflows, ensuring that processes adhere to prescribed timelines and minimizing deviations from the planned sequence.

Top Concerns in Manufacturing

Inflation, the ongoing energy crisis, and supply chain disruption emerge as the top three concerns weighing on the minds of businesses in the manufacturing sector, with 19%, 16%, and 16% of respondents citing these respectively. These concerns reflect the intricately interconnected global economy, where fluctuations in one area can reverberate through the entire manufacturing process.

The surge in inflation rates has raised operational costs for manufacturers, impacting everything from raw material procurement to logistics. The energy crisis, perpetuated by geopolitical and environmental factors, is pressuring manufacturers to seek sustainable alternatives and optimize energy consumption. Supply chain disruption remains a perennial concern, magnified by the complex interdependence of global supply networks.

Real-Time Visibility: A Crucial Imperative

In an era defined by precision and efficiency, the ability to gain real-time visibility into critical aspects of the production process is a decisive factor for success. However, our survey uncovers that less than three-in-five manufacturers have achieved real-time visibility of production machinery (59%), parts or materials (59%), and products or work in progress (58%).

This revelation underscores a critical gap in the industry’s pursuit of operational excellence. Without real-time visibility, manufacturers face the risk of operating in the dark, making it challenging to respond swiftly to disruptions or optimize processes in real-time. The need for advanced IoT solutions, such as real-time location systems (RTLS), is paramount in bridging this gap.

The Value of IoT and RTLS: Unearthing Hidden Inefficiencies

Steven Manifold, Chief Marketing Officer at Ubisense, captures the essence of the challenge: “It is the hidden nature of much of the process inefficiencies that exist in operations that makes IoT and RTLS technology so valuable. The data gap that exists between what is planned and what actually happens is especially large where processes are largely manual, human, or complex.”

This insight encapsulates the transformative power of IoT and RTLS technologies. By providing a comprehensive, real-time view of operations, manufacturers can uncover inefficiencies that may otherwise remain hidden in the complexity of manual processes. These technologies empower manufacturers to bridge the gap between planned processes and actual execution, facilitating data-driven decision-making and enabling swift interventions to enhance efficiency.

A Roadmap for the Future

As manufacturers grapple with a rapidly evolving global landscape, the strategic imperative of embracing IoT technologies becomes increasingly evident. The benefits extend far beyond mere operational efficiency, encompassing a broader spectrum of competitive advantages, from enhanced adaptability to greater sustainability.

In addressing the top concerns of inflation, energy crises, and supply chain disruptions, IoT emerges as a linchpin for resilience and responsiveness. Real-time visibility of critical elements in the production process forms the cornerstone of this transformation, providing manufacturers with the tools they need to navigate challenges and seize opportunities.

In conclusion, the findings from our survey underscore a pivotal moment in the evolution of manufacturing. With IoT and RTLS technologies at the forefront, manufacturers have an unprecedented opportunity to revolutionize their operations and thrive in an era defined by precision, efficiency, and adaptability. Embracing this technological wave is not merely an option; it is a strategic imperative for those who seek to lead the way in the manufacturing landscape of the future.

Further Questions and Answers for 2025

Question 1.

How did COVID-19 influence the adoption of IoT technologies?

How COVID-19 Accelerated IoT Adoption

The influence of COVID-19 on the adoption of IoT technologies has been profound. As businesses faced unprecedented challenges, there was a rapid shift towards incorporating IoT solutions to navigate the new normal.

Key Factors Driving IoT Adoption During the Pandemic:

• Remote Operations & Automation: With social distancing measures in place, many companies leaned heavily on IoT technologies to maintain operations remotely. IoT devices enabled remote monitoring and automation, significantly reducing the need for on-site personnel.
• Supply Chain Optimization: The pandemic highlighted vulnerabilities in global supply chains. IoT solutions helped companies track and manage inventory in real-time, mitigating disruptions and improving logistics efficiency.
• Healthcare Innovations: IoT devices became crucial in managing patient care and monitoring health metrics remotely, leading to more efficient healthcare services and reducing the burden on physical facilities.
• Sentiment From Industry Leaders: CEOs across various tech sectors have consistently noted the pandemic as a catalyst for digital transformation, with IoT technologies playing a pivotal role.

In essence, COVID-19 acted as a major catalyst, accelerating the integration of IoT technologies across industries, as confirmed by assessments of industry trends and executive commentaries. The pandemic pushed companies to embrace IoT on a broader and more aggressive scale than ever before.

Question 2.

How are economic concerns affecting IoT investment confidence?

How Economic Concerns are Impacting IoT Investment Confidence

In recent times, economic volatility has significantly shaped investment strategies, especially in the realm of the Internet of Things (IoT). Throughout 2023 and extending into 2024, discussions during earnings calls with corporate leaders have been dominated by economic worries. This apprehension has cast a shadow over the IoT sector.

Lingering Impact of Uncertainty

Even if the immediate haze of economic uncertainty starts to lift by 2024, its ripple effects are predicted to linger. Confidence in investing in IoT technologies is currently quelled, as both consumers and businesses exhibit caution. This delay in robust spending is borne out of a need to watch market trends closely before committing significant resources to new IoT initiatives.

Consumer and Business Hesitance

Such caution stems from damaged business and consumer confidence. When facing uncertain economic times, both end users and organizations tend to pull back on expenditures, prioritizing essential spending and delaying new projects. This reactionary measure is evident in the “wait-and-see” attitude toward IoT investments, as stakeholders prefer stability before engaging with innovative technologies.

Long-term Recovery

The path to recovery in IoT investment sentiment might be gradual. Historical patterns suggest that restoring confidence, especially after periods marked by financial instability, takes time. As the economic landscape stabilizes, renewed interest in IoT technologies is expected to follow, potentially unlocking further growth in the sector. However, this reconstruction of enthusiasm will likely proceed with caution, paving the way for a cautious yet progressive renewal of IoT investment strategies.

Question 3.

How is sustainability driving IoT initiatives?

How is Sustainability Driving IoT Initiatives?

1. Accelerating Impact of Sustainability Legislation
   In recent years, sustainability has become a pivotal force in shaping IoT (Internet of Things) initiatives. The momentum largely springs from climate-focused legislation enacted by various governments around the world. For instance, laws such as the UK’s Sustainability Disclosure Standards and the EU’s Renewable Energy Directive are compelling corporations to align with stricter environmental guidelines. These regulations have prompted a significant increase in boardroom discussions regarding sustainability, reflecting a growing urgency to integrate eco-friendly practices in business operations.
2. Enhancing Reporting Efficiency through IoT
   As sustainability regulations become more prevalent globally, businesses are turning to IoT solutions to manage and report their environmental impact efficiently. IoT technologies, including energy meters and air quality monitors, form the backbone of automated sustainability reporting. These devices provide real-time data on energy consumption or pollutant levels, enabling companies to not only comply with environmental standards but also optimize resource usage and minimize waste.

By leveraging IoT, companies are not only meeting regulatory requirements but also contributing to the broader goal of combating climate change. This technology facilitates transparency and accountability, ensuring that businesses can demonstrate their commitment to sustainability to stakeholders and consumers alike.

Question 4.

What factors led to the slowdown of IoT device growth in 2021?

Key Factors Slowing IoT Device Growth in 2021

IoT device expansion faced several hurdles in 2021, slowing its anticipated growth trajectory. Here’s a detailed look at the factors contributing to the slowdown:

1. Chip Shortage Crisis
   The global semiconductor shortage played a pivotal role in stifling the growth of IoT devices. This scarcity affected the production and delivery of essential components, limiting the availability of new devices and impeding the market’s recovery.
2. COVID-19’s Lingering Effects
   The pandemic continued to reverberate through supply chains. COVID-19 restrictions led to logistical challenges, including a shortage of shipping containers and port congestion. This disruption made it difficult for companies to maintain steady production and delivery schedules.
3. Transition from Legacy to Modern Networks
   The shift from older 2G/3G networks to more advanced 4G/5G technologies also contributed to the slowdown. While this transition is crucial for future growth, it temporarily slowed down deployments as industries adapted to new chipset technologies.

Despite these challenges, innovations like LPWA networks and NB-IoT technology witnessed significant growth, signaling resilience and potential for recovery in the IoT sector.

Question 5.

How did the chip shortage affect the IoT market recovery in 2021 and beyond?

Impact of the Chip Shortage on IoT Market Recovery in 2021 and Beyond

In 2021, the IoT market faced significant hurdles due to the ongoing chip shortage. This shortage stifled recovery efforts and slowed growth as demand for devices far outstripped supply capabilities.

Key Effects Include:

• Delayed Product Launches: Many companies faced setbacks in launching new IoT devices as they struggled to secure the necessary components. This led to prolonged development cycles and delayed market entries.
• Increased Costs: As the availability of semiconductor chips plummeted, prices soared. This not only increased manufacturing costs but also squeezed profit margins across the industry.
• Production Bottlenecks: IoT manufacturers had to navigate production challenges, with some resorting to redesigning products to use more readily available components.

The situation is expected to persist, potentially up to 2023, until additional production capabilities come online to meet the growing demand. During this period, companies are likely to explore alternate sourcing strategies and invest in supply chain resilience to mitigate the risks associated with similar disruptions in the future.

By understanding these impacts, industry players can better strategize to overcome such challenges while aiming for a more stable market landscape in the years ahead.

Question 6.

What role does IoT play in sustainability reporting?

The Role of IoT in Sustainability Reporting

The Internet of Things (IoT) is increasingly vital in enhancing sustainability reporting for businesses worldwide. As environmental, social, and governance (ESG) factors gain prominence, IoT emerges as a cornerstone technology to facilitate streamlined reporting processes. But how exactly does IoT contribute to this critical function?

Automating Data Collection and Reporting

IoT plays a transformative role by automating the collection and management of essential data related to sustainability. Innovative sensors, like energy meters, water quality detectors, and air pollution monitors, enable real-time tracking of various environmental parameters.

• Energy Meters: These devices monitor electricity usage continuously, providing companies with invaluable insights into energy consumption patterns. With this data, businesses can not only report usage metrics accurately but also devise strategies to optimize energy efficiency.
• Water Quality Sensors: By measuring factors such as pH, temperature, and turbidity, these sensors ensure compliance with environmental standards. This immediate feedback helps organizations maintain sustainable water usage and waste management practices.

Supporting Regulatory Compliance

With increasing global regulations on sustainability, IoT solutions enable companies to remain compliant with various laws and standards. Countries around the world are implementing sustainability frameworks that prompt businesses to adopt transparent reporting practices. IoT devices offer automated and precise data that align with these legal requirements, reducing the burden of manual audits and minimizing errors.

Enhancing Corporate Strategies

The integration of IoT into sustainability initiatives also aligns with broader corporate strategies. Boardroom discussions increasingly focus on sustainability, not merely as a compliance issue but as a competitive advantage. Between recent years, the emphasis on ESG factors in business conversations has surged dramatically, indicating a shift in corporate priorities. IoT technologies support this shift by providing the data needed to make informed decisions that foster long-term sustainability.

By transforming how data is captured and reported, IoT empowers companies to take decisive action towards sustainability, effectively bridging the gap between environmental responsibility and business efficiency.

Question 7.

How did COVID-19 continue to affect IoT products and supply chains in 2021?

In 2021, the persistent impact of COVID-19 profoundly affected IoT products and their supply chains. One of the major issues was the severe disruption in logistics, as ongoing local restrictions hampered the availability of essential shipping resources. This resulted in a shortage of vessels, trucks, and shipping containers, leading to significant delays.

Moreover, the pandemic-induced port congestion further exacerbated these challenges, creating bottlenecks that slowed the movement of goods and the flow of IoT products across the globe. These logistical obstacles not only delayed product deliveries but also led to increased costs for companies trying to navigate the tumultuous supply chain environment.

Additionally, the global shortage of semiconductors, influenced partly by pandemic-related demand shifts, further strained the production of IoT devices. Companies across various industries had to grapple with these shortages, forcing them to reevaluate their production schedules and seek alternative solutions to meet consumer demand.

The combined effects of these factors created a ripple effect, impacting everything from production timelines to consumer availability of IoT products throughout 2021.

Question 8.

What are the reasons for the lowered forecast for IoT device connections?

Reasons Behind the Lowered Forecast for IoT Device Connections

The expectations for IoT device connections have been adjusted downward due to three main factors. Here’s a breakdown of each:

1. Economic Uncertainty and Investment Hesitation
   • In 2023 and beyond, economic instability has been a significant concern for business leaders. Conversations among CEOs during earnings calls throughout 2023 and into 2024 emphasized deep-rooted worries about the economy. While there is hope for a more stable economic environment in 2024, the aftereffects of this uncertainty are anticipated to linger. This prolonged apprehension impacts both consumer sentiment and business investments, leading to cautious spending on connected technologies.
2. Ongoing Chipset Supply Challenges
   • Although there has been some relief in chipset availability by 2023 and the first half of 2024, lead times for chips remain longer than normal, reminiscent of the pre-pandemic era. This bottleneck is compounded by burgeoning demand, which exceeds the current supply capacity. Initiatives like the US Chip and Science Act and EU Chips Act aim to enhance production capabilities, but realizing the benefits of these measures will take time. Thus, the industry should anticipate ongoing constraints in chip supply matching demand across various chipset categories.
3. Slow Economic Recovery in China
   • China’s economic performance was sluggish in 2023, accompanied by ongoing deflationary pressures, although there are signs of slight improvement. This tepid growth has put financial strain on Chinese industrial entities, with a notable proportion operating at a loss by mid-2024. Until the financial health of these companies strengthens, investments in industrial IoT remain stifled, contributing to the conservative outlook for IoT connections.

These elements collectively shape a cautious forecast for the growth of IoT devices, underscoring the broader economic and supply chain challenges influencing the technology sector.

Question 9.

How many connected IoT devices were there by the end of 2023?

By the end of 2023, the number of connected Internet of Things (IoT) devices reached 16.6 billion. This marked a substantial increase of 15% compared to the previous year, 2022.

Question 10.

How did the COVID-19 pandemic initially affect IoT supply and demand in 2020?

Initial Impact of COVID-19 on IoT Supply and Demand in 2020

The COVID-19 pandemic had a profound impact on the Internet of Things (IoT) landscape in 2020, shaking both supply and demand dynamics.

Supply-Side Challenges

1. Production Halts: Factories faced periodic shutdowns, significantly interrupting the production of IoT devices and components.
2. Disrupted Supply Chains: Access to essential raw materials became a major hurdle as global supply chains were strained under restrictions and lockdowns.

Demand-Side Effects

1. Budget Freezes: Many companies froze their tech budgets in the first half of the year, leading to a sharp decline in new IoT projects and investments.
2. Delayed Initiatives: As demand began to recover in the latter half of 2020, numerous IoT projects had already been postponed or altogether canceled due to earlier disruptions and uncertainty.

Despite these challenges, the latter part of 2020 saw a resurgence in demand, although supply continued to face obstacles. These initial impacts set the stage for how the IoT market adapted and evolved in the post-pandemic environment.

Question 11.

How is cellular technology influencing the growth of connected IoT devices?

Impact of Cellular Technology on IoT Device Growth

The landscape of connected Internet of Things (IoT) devices is rapidly evolving, significantly driven by advances in cellular technology. By mid-2021, there was an 18% year-over-year increase in the number of IoT devices utilizing cellular networks, exceeding a substantial mark of 2 billion devices. This growth underscores the critical role cellular technology plays in expanding IoT connectivity.

Influence of Major Markets

In countries like China, the infrastructure for cellular IoT is robust, enabling these regions to dominate a large portion of the global market. In the past year, one major telecom player in China witnessed a remarkable growth of 42%, boosting its market share considerably. Globally, players outside of China also maintain a significant presence, with companies like Vodafone and AT&T contributing notably to the global spread, holding notable market shares.

Pandemic Resilience and Technology Transition

Interestingly, IoT initiatives in some parts of the world were less impacted by the COVID-19 pandemic. This resilience allowed for continued implementation of projects, even as other industries faced lockdown-induced disruptions.

Technological Shifts in Cellular Connectivity

The technological landscape is experiencing a shift. The era of 2G and 3G IoT connections is waning, making room for massive deployment of modern technologies. The anticipated rollout of 5G promises to unlock new potential, offering enhanced speeds and connectivity options. Meanwhile, 4G LTE connections continue to grow robustly, buoyed by the adoption of new categories such as LTE-Cat 1 and LTE-Cat 1 bis, which cater to diverse connectivity needs.

In summary, cellular technology is pivotal in scaling IoT device connectivity, driving both existing and emergent technologies towards unprecedented growth and innovation.

Question 12.

What is the current market sentiment for digital and IoT companies in 2022?

Exploring the Market Sentiment for Digital and IoT Companies in 2022

The outlook for digital and IoT companies in 2022 is predominantly positive, although slightly tempered from the high levels seen in late 2021. The global pandemic has played a significant role in speeding up the implementation of IoT technologies, as confirmed by industry leaders and the analysis of financial reports.

Sector Insights:

• Connectivity Services: Companies in this domain are experiencing top-tier enthusiasm due to their critical role in IoT infrastructures.
• General Software and Cybersecurity: These sectors also show strong market optimism, driven by their essential contributions to secure and efficient IoT solutions.
• Cloud Technologies: With the surge in data collection and processing needs, cloud solutions remain a favorite in the market.

Industry Leaders’ Views:

• Business leaders report robust demand across various sectors, with expectations that favorable conditions will persist through the year.
• The pandemic has accelerated the shift towards Industry 4.0, driving continued development in IoT applications, especially in industrial, enterprise, and energy markets.

Regional Dynamics:

• North America: Leading the charge with the highest sentiment, reflecting optimistic market expectations and a strong inclination towards IoT adoption.
• Asia-Pacific: Trailing slightly behind, with specific challenges in regions like China due to ongoing pandemic-related restrictions impacting business growth potential.

Overall, despite some regional and sectoral variations, the general sentiment for digital and IoT companies in 2022 remains optimistic, backed by a solid demand for innovative and efficient technological solutions.

Question 13.

What factors are contributing to the slower growth forecast for IoT devices in 2024 compared to 2023?

Factors Contributing to Slower IoT Device Growth in 2024 Compared to 2023

Forecasts for the growth of IoT devices in 2024 are tempered by several key factors:

1. Economic Concerns: A Lingering Shadow

   Economic uncertainty, prevalent throughout 2023 and likely extending into 2024, continues to affect investment confidence. This ongoing financial trepidation slows recovery and hampers spending, as businesses and end users adopt a cautious approach. Even if these uncertainties diminish over the year, the hesitation to invest could leave marks on the market for IoT devices well into the future.

2. Supply Chain Challenges: Persistently Long Lead Times

   Although there has been some improvement in chipset supply since 2023, long lead times remain a significant bottleneck. The demand for chipsets has weakened, paralleling a sluggish economy, yet lead times still surpass pre-pandemic standards. Despite efforts to boost production with initiatives like the US Chip and Science Act and the EU Chips Act, it will be years before supply adequately meets the robust demand across various chipset types.

3. China’s Economic Struggles: A Brake on Industrial IoT

   China’s economy, experiencing only modest growth in 2023, continues to face deflationary pressures, impacting the industrial sector profoundly. Approximately a third of Chinese industrial companies were in the red by mid-2024, echoing economic stresses not seen since the late 1990s financial crisis. This financial strain limits new investments in IoT technologies, delaying potential growth in this critical global market.

In summary, the combination of economic uncertainties, prolonged supply chain issues, and sluggish recovery in key markets like China complicates the outlook for IoT growth heading into 2024.

Question 14.

What macro themes are affecting the IoT device forecast beyond 2022?

Key Macro Themes Impacting the IoT Device Forecast Post-2022

Escalating Inflation

Inflation rates have surged beyond 5% annually in many significant global economies. This rise is prompting expectations of heightened interest rates, likely leading to an economic cooldown. Such financial pressures are pushing companies to tighten their operational efficiency. As a result, investments in IoT projects might be impacted as businesses prioritize cost management.

Geopolitical Instability and Supply Chain Disruptions

The ongoing conflict in Ukraine is a significant disruptor of supply chains, further fuelling inflation concerns. Essential materials like Neon and Hexafluorobutadiene gases, crucial for semiconductor manufacturing in the lithography processes, face potential shortages. These disruptions pose challenges to IoT device production as the availability of chips heavily depends on stable supply chains.

Demand for Skilled Digital Talent

There’s a growing “war for talent” as organizations scramble to secure skilled professionals for digital initiatives, including IoT, AI, and cloud projects. Demand for expertise in areas such as AI, edge computing, and 5G has seen dramatic increases as evidenced by a notable uptick in related job advertisements. This scarcity of skilled labor could slow down IoT development and innovation.

With these macroeconomic factors in play, organizations are laser-focused on maintaining operational efficiency amidst rising costs. The IoT landscape beyond 2022 will be shaped by how these challenges are addressed, alongside the ever-evolving technological advancements.

Question 15.

What are the leading IoT connectivity technologies, and how is the market share distributed?

What Are the Leading IoT Connectivity Technologies, and How Is the Market Share Distributed?

In the realm of Internet of Things (IoT) connectivity, three predominant technologies stand at the forefront: Wi-Fi, Bluetooth, and cellular networks. Each of these technologies holds a significant portion of the market and plays a crucial role in the development and deployment of IoT devices worldwide.

Wi-Fi

Wi-Fi leads the charge, accounting for 31% of all IoT connectivity. The majority of devices shipped in 2023 were equipped with advanced Wi-Fi 6 and 6E technologies. These newer iterations offer enhanced speed and reliability compared to older versions. As a result, industries like smart homes, healthcare, and building automation significantly benefit from these improvements. Looking ahead, the emergence of Wi-Fi 7 in 2024 is anticipated to bolster market share, further optimizing IoT device performance.

Bluetooth

Capturing 25% of the IoT connectivity market, Bluetooth is another key player. The development of Bluetooth Low Energy (BLE), also known as Bluetooth Smart, has been pivotal for devices that need reliable connectivity while conserving battery life. This makes BLE the go-to choice for devices such as smart sensors and asset trackers. Moreover, evolving standards like IO-Link Wireless are expanding Bluetooth’s role in industrial applications by facilitating communication between sensors and control systems.

Cellular IoT

Cellular IoT technology forms about 21% of the global market. This sector has experienced a notable growth rate, driven by the adoption of cutting-edge technologies such as LTE-M and NB-IoT. As older 2G and 3G networks are gradually phased out, newer options like LTE-Cat 1 and its variations continue to gain ground. This transition is part of a broader trend towards more efficient and scalable connectivity options.

In conclusion, Wi-Fi, Bluetooth, and cellular networks are the pillars of IoT connectivity today. Each technology caters to different aspects of the IoT ecosystem, with their distinct strengths contributing to their respective market shares.

Question 16.

How is cellular IoT technology expanding in the market?

How is Cellular IoT Technology Expanding in the Market?

Cellular IoT technology is seeing significant growth, accounting for nearly 21% of IoT connections worldwide. In 2023, these connections increased by an impressive 24% compared to the previous year, outpacing the overall growth of IoT connections globally. This surge is largely driven by the adoption of advanced technologies like LTE-M, NB-IoT, LTE-Cat 1, and LTE-Cat 1 bis, while older standards like 2G and 3G are gradually being phased out.

The Rise of 5G and New IoT Innovations

The year 2024 brought the introduction of 5G RedCap technology, which is significantly contributing to the IoT landscape. Unlike technologies that need low latency for time-sensitive applications, RedCap focuses on cost efficiency and ease of use. It offers download speeds up to 150 Mbps, upload speeds of 50 Mbps, with latency under 100 ms. These features are transforming how IoT devices are used in various sectors:

• Consumer Electronics: Enhancing connectivity and performance for everyday gadgets.
• Enterprise Solutions: Streamlining operations with low-complexity IoT integrations.
• Industrial Applications: Improving processes and efficiency through robust IoT deployments.

Particularly, RedCap’s capability to handle high-quality video transmission has made it a popular choice for video surveillance, offering a budget-friendly alternative to full-scale 5G solutions.

In summary, cellular IoT technology is rapidly expanding its footprint by leveraging newer, more efficient technologies and responding to diverse market needs, from consumer to industrial applications.

Question 17.

What percentage of enterprise IoT adopters plan to increase their IoT budget in 2024?

In 2024, over half of enterprise businesses using IoT are planning to boost their IoT budgets. Specifically, 51% of these companies intend to invest more, with 22% of them anticipating a budget increase exceeding 10% compared to the previous year.

Question 18.

What regional differences in IoT market sentiment are observed in 2022?

Regional Differences in IoT Market Sentiment in 2022

In 2022, the sentiment surrounding the Internet of Things (IoT) market exhibits noticeable regional disparities. North America emerges as a frontrunner in positive sentiment, scoring 116 on a sentiment scale. This region’s optimistic outlook reflects strong market growth and a solid recovery from pandemic disruptions, enabling businesses there to capitalize on IoT opportunities more effectively than elsewhere.

On the other hand, the Asia-Pacific region, particularly China, shows a more tempered enthusiasm with a sentiment score of 103. The sentiment dip is largely attributed to renewed COVID-19 lockdowns, which pose significant challenges to business operations and growth prospects. These lockdowns have stymied market momentum, impacting both local companies and foreign businesses operating in the area.

Such differences highlight how regional dynamics, such as pandemic responses and economic conditions, substantially influence market sentiments in the IoT sector. These insights underscore the importance for businesses to tailor their strategies according to regional outlooks to maximize growth potential in diverse markets.

Question 19.

What trends were observed in users transitioning from 2G/3G to 4G/5G IoT?

Trends Observed in the Transition from 2G/3G to 4G/5G IoT

Users are increasingly moving away from older 2G and 3G networks, showing a significant shift towards adopting 4G and 5G technologies for Internet of Things (IoT) applications. This transition is marked by a notable 24% increase in 4G IoT connections. Such growth is largely attributed to the rising use of advanced chipsets, specifically those based on LTE Cat 1, Cat 4, and Cat 6.

Key Insights

• Adoption of Advanced LTE Categories: Technologies like LTE Cat 1 bis are gaining traction as a viable alternative to low-power wide-area (LPWA) solutions, presenting an appealing option for various IoT implementations.
• Shift Towards Higher Connectivity Options: The movement towards these newer networks indicates a demand for enhanced connectivity and more robust data transmission capabilities offered by 4G and 5G.

As IoT devices become more complex and data-intensive, the need for reliable and faster connections is driving this shift, making 4G and 5G adoption critical in modern IoT deployments.

Question 20.

What is the expected number of global IoT connections by 2025?

By 2025, the number of Internet of Things (IoT) connections worldwide is projected to reach around 27 billion. This anticipated increase is expected as supply challenges diminish, paving the way for accelerated growth in the sector.

Question 21.

What was the growth rate of global IoT connections in 2021?

In 2021, global IoT connections experienced an 8% growth, reaching 12.2 billion active endpoints. This marked a noticeable slowdown compared to the robust expansion seen in earlier years.

Question 22.

What trends in IoT connectivity should be monitored for future developments?

Key Trends in IoT Connectivity to Watch

As the IoT landscape continues to evolve, several significant trends are reshaping how devices communicate. Here are two critical developments to keep an eye on for future advancements:

1. Convergence in LPWAN Technologies

The Low Power Wide Area Network (LPWAN) sector is witnessing a shift from competitive differentiation to cooperation and convergence among various connectivity technologies. This trend is transforming traditional single-technology solutions into multi-connectivity systems that integrate multiple LPWAN frameworks. This move is facilitating the creation of comprehensive solutions that bundle diverse technologies into seamless platforms. The implication is a broader compatibility across devices and applications, which is poised to drive advancements in fields like logistics and mobility. Future multi-LPWAN modules could provide integrated end-to-end connectivity solutions, meeting the diverse needs of various industries.

2. Expansion of LEO-based Satellite Connectivity

Low Earth Orbit (LEO) satellite technology is emerging as a formidable player in IoT connectivity. Its appeal lies in its ability to deliver extensive coverage, low latency, and robust reliability. This is particularly beneficial for industries such as agriculture, maritime, and logistics where real-time data transmission is crucial. Being closer to Earth, LEO satellites offer faster data speeds and more consistent communication, a necessity during challenging conditions and natural disasters. The growing adoption of LEO-based connectivity is encouraged by advancements in integrating satellite options into LPWA chipsets, with companies like Qualcomm leading the charge. Such integration allows IoT devices to communicate beyond traditional network boundaries, stimulating innovation and growth across the IoT sector.

These trends not only promise to enhance the performance and user experience of IoT technologies but also suggest a framework for future growth and innovation, making them essential developments to monitor closely.

Question 23.

How many wired IoT end nodes were there globally in 2023?

In 2023, the global tally of wired IoT end nodes reached 23.4 billion. This figure encompasses all wired Internet of Things endpoints, extending beyond just the aggregation nodes.

Question 24.

What are the challenges facing chipset supply in the IoT market?

Challenges Facing Chipset Supply in the IoT Market

The Internet of Things (IoT) market faces several hurdles when it comes to chipset supply, with economic uncertainties, long lead times, and global economic factors playing significant roles.

Economic Concerns Affecting Demand

Economic uncertainty is a major factor putting pressure on chipset demand. Throughout 2023 and looking into 2024, economic issues have dominated discussions among CEOs, prominently affecting investment confidence. Even if the economic situation begins to stabilize, the residual impacts might linger, causing end-users to adopt a cautious approach to spending, affecting the market’s overall growth.

Supply Constraints Despite Improvement

Although there have been strides in improving chipset availability, lead times remain troublesome. There has been notable progress in supply throughout 2023 and into the first half of 2024, primarily because of weakened demand reflecting the sluggish economy. Despite these improvements, lead times are still longer than they were before the pandemic, posing a challenge for manufacturers.

Anticipated Supply Expansion

There’s ongoing work to expand manufacturing capacity through government initiatives like the US Chip and Science Act and the EU Chips Act. However, while these plans are ambitious and include new facility constructions, achieving a balance where supply meets or exceeds demand is predicted to take several years.

Impact of China’s Economic State

The economic performance of China is a crucial factor affecting global chipset supply. In 2023, China experienced sluggish growth and ongoing deflationary pressures, influencing industrial expenditure. Many Chinese industrial entities faced financial difficulties, limiting their capacity to invest in new IoT technologies. Until these economic conditions improve, the ripple effects will likely restrict chipset demand growth, further impacting the IoT market.

In summary, the IoT chipset supply chain grapples with prolonged economic uncertainties, inefficient lead times, and external economic factors, all of which are pivotal in shaping its future trajectory.

Question 25.

What is the forecast for the number of connected IoT devices by 2030?

What is the forecast for the number of connected IoT devices by 2030?

The forecast projects that by 2030, there will be an estimated 40 billion connected Internet of Things (IoT) devices globally. While earlier predictions were somewhat higher, they have been adjusted based on fresh insights and the latest market trends. Despite these modifications, the growth in IoT continues to show a strong upward trajectory with increasing connectivity across various industries and consumer applications.

Question 26.

What is the projected growth rate for connected IoT devices by the end of 2024?

Connected IoT devices are anticipated to see significant growth by the end of 2024. From a count of 16.6 billion devices at the close of 2023—marking a 15% increase from the previous year—the number of these devices is expected to rise by 13%. This projection suggests that connected IoT devices will reach approximately 18.8 billion by the conclusion of 2024.

Question 27.

What were some significant IoT-focused acquisitions between Q3 2021 and Q1 2022?

Between the third quarter of 2021 and the first quarter of 2022, multiple high-profile acquisitions took place in the IoT sector. These acquisitions, primarily involving companies skilled in AI, analytics, IoT software, and semiconductor technologies, made up around 45% of significant IoT-related deals during this period.

The driving force behind many acquisitions was the need for acquiring companies to enhance their technology offerings and minimize reliance on external partners. Among the notable transactions were Panasonic‘s significant purchase of Blue Yonder, valued at $8.5 billion, and Generac Power Systems’ acquisition of Ecobee at $770 million. These moves reflect a strategic push to fortify technological stacks and diversify product offerings.

Overall, these transactions highlight the ongoing importance of innovating and integrating various technologies in the evolving IoT landscape.

Question 28.

How is AI being integrated into IoT applications?

How is AI Being Integrated into IoT Applications?

AI is rapidly intertwining with IoT, creating innovative solutions across various sectors.

1. Prominence in Executive Agendas
   AI’s significance has skyrocketed among corporate leaders, with discussions around AI taking a leading role in earnings calls. This surge in interest highlights AI’s growing integration in IoT, especially as companies explore the potentials of generative AI and edge AI. The trend is unmistakable as AI reshapes businesses and consumer experiences alike.
2. Advancements in Manufacturing
   AI technologies, particularly generative AI, are carving out a space in the manufacturing industry. This shift is evident through innovative deployments that enhance production capabilities and streamline operations, showcasing AI’s transformative impact.
3. Focused Investments in Edge AI
   Edge AI is emerging as a cornerstone of IoT development due to its capability to improve safety, precision, and operational efficiency. Major tech firms like NVIDIA and AMD are pivotal, driving the widespread adoption of these technologies. By processing data closer to where it is generated, edge AI allows for quicker decision-making, making it indispensable in applications ranging from autonomous vehicles to smart cities.

In conclusion, the integration of AI into IoT is not just a trend but a fundamental shift that is redefining industries through greater connectivity and smarter technologies. As this integration deepens, AI is expected to further revolutionize how we interact with our environment.

Question 29.

Which three key technologies dominate global IoT connectivity?

When discussing the dominant technologies in global IoT connectivity, three key players stand out: Wi-Fi, Bluetooth, and Cellular IoT.

Wi-Fi

Wi-Fi accounts for about 31% of IoT connections worldwide. With the introduction of Wi-Fi 6 and Wi-Fi 6E, there’s been a notable surge in improved wireless communication. These newer versions outpace their predecessor, Wi-Fi 5, in speed and reliability, enhancing the overall performance of IoT devices. This makes Wi-Fi particularly influential in sectors such as smart homes, healthcare, and modern buildings. The future looks promising, with Wi-Fi 7 poised to further boost IoT-based connectivity.

Bluetooth

Bluetooth technology supports 25% of connected IoT devices globally. Its Bluetooth Low Energy (BLE) variant is especially popular due to its efficiency in maintaining connection while minimizing power usage. This makes it ideal for battery-powered devices like smart sensors and tracking equipment. The technology is seeing growing adoption even in industrial settings, thanks to its adaptability for wireless sensor communication.

Cellular IoT

Cellular IoT is another major player, encompassing technologies like 4G, 5G, LTE-M, and NB-IoT. Together, they account for nearly 21% of IoT connections worldwide. Recent advancements have driven significant adoption, especially as older networks like 2G and 3G are phased out. This shift has translated into steady growth in cellular IoT, making it an integral part of the connectivity landscape.

These three technologies collectively shape the backbone of IoT connectivity, each playing a distinct role in various applications and industries.

Question 30.

What are the key trends in AI and IoT for 2024?

Key Trends in AI and IoT for 2024

The landscape of artificial intelligence and the Internet of Things (IoT) is rapidly evolving, with several significant trends emerging in 2024. These advancements are reshaping industries and driving new discussions among corporate leaders.

1. AI’s Pervasive Influence

AI remains a critical focus for corporate leaders as it steadily integrates with IoT systems. The technology’s growing importance is underscored by its prominence in executive conversations, notably becoming a major topic in earnings discussions. The generative AI market, in particular, has exploded from a nascent phase to a booming industry within a remarkably short timespan.

2. Generative AI’s Manufacturing Intrusion

Generative AI is making significant inroads into the manufacturing sector. Its ability to enhance operational efficiencies and innovate processes is exemplified by recent developments, such as the release of advanced AI tools designed to support industrial operations.

3. Surge in Edge AI Adoption

Edge AI is gaining traction as a fundamental component for improving IoT applications. This trend is driving substantial investments, particularly in technologies that bolster safety, accuracy, and efficiency. Semiconductor giants are playing pivotal roles in advancing these technologies, setting the stage for edge AI to revolutionize how IoT systems function.

< Person>Salil Raje, a notable figure in adaptive computing, aptly captures this transformative period by highlighting the potential of edge AI to fundamentally alter our technological landscape. As we move forward, these trends in AI and IoT will continue to shape the future, offering new possibilities and challenges alike.

Question 31.

How is the Chinese economic situation impacting IoT expenditures?

How is the Chinese Economic Situation Impacting IoT Expenditures?

Slow Economic Growth Dampens Investment

China’s economic pace in 2023 was less than robust, facing hurdles like deflation, although there’s a slight easing. This sluggish growth has been particularly tough on industrial sectors. A large chunk of these firms, about 30% by mid-2024, were operating at a loss, echoing the financial struggles reminiscent of the late 1990s’ Asian financial crisis. As a result, these financial constraints are curbing fresh investments in industrial IoT projects. Until these companies’ financial outlook brightens, IoT expenditures will likely remain restrained.

Effects of Inventory Strategies and Sanctions

The landscape for IoT investments is further complicated by global inventory strategies and political factors. While domestic demand for cellular IoT modules has risen, mainly due to government-driven initiatives, this demand hasn’t fully alleviated the oversupply. Worldwide, companies are implementing low-inventory approaches to avoid oversupply, and ongoing U.S. Sanctions on Chinese-made chips limit these products’ global reach. Consequently, these factors contributed to the closure of nearly 11,000 companies in China’s chip and module sector in 2023, illustrating the squeeze on IoT-related investments.

In summary, China’s economic slowdown and external pressures like sanctions and inventory controls are significantly hindering the growth and expansion of IoT expenditures.

Question 32.

What challenges do companies face in finding digital talent for IoT projects?

Challenges Companies Face in Sourcing Digital Talent for IoT Projects

In today’s fast-evolving tech landscape, businesses are grappling with the critical challenge of recruiting skilled professionals for Internet of Things (IoT) initiatives. One of the primary issues is the increasing demand for digital transformation, artificial intelligence (AI), cloud computing, and IoT expertise simultaneously.

Rising Job Demand

The job market data reflects this surge in demand. Between mid-2021 and early 2022, the number of job postings requiring IoT skills surged significantly. This trend is mirrored in the demand for other related skills:

• AI: Positions mentioning AI skills saw an impressive increase.
• Edge Computing: There was a noticeable rise in job ads seeking expertise here.
• 5G Technology: Job postings featuring 5G capabilities rose sharply.

Skill Gap

This surge in job openings brings to light a significant skills gap. Companies are struggling to find candidates with the right set of skills to support these cutting-edge projects. The skills needed are both specialized and rapidly evolving, making it difficult for education systems to keep up.

Competition for Talent

The competitive environment further complicates matters. Companies find themselves vying not only within their industry but also against tech giants that can offer lucrative compensation packages and benefits, often outmatching smaller businesses.

In essence, finding talent with the requisite skills for IoT projects is becoming increasingly difficult due to rising demand, a widening skills gap, and intense industry competition.

Question 33.

How is the ongoing war in Ukraine affecting the semiconductor industry?

Impact of the Ukraine Conflict on the Semiconductor Industry

The ongoing war in Ukraine is significantly disrupting global supply chains, with the semiconductor industry feeling a notable impact. Key materials required for chip manufacturing, such as Neon and Hexafluorobutadiene gases, are becoming scarce.

Essential Role of Materials

• Neon Gas: Critical for the lithography process, Neon is primarily sourced from Ukraine. The conflict hampers its production and availability.
• Hexafluorobutadiene: Also crucial for semiconductor lithography, its supply is similarly affected by the instability in the region.

Supply Chain Disruptions

These supply challenges lead to increased production costs and delays, potentially escalating prices for electronic devices worldwide.

In summary, the Ukraine war is straining essential supply channels for semiconductor manufacturing, contributing to broader inflation concerns and exacerbating existing global chip shortages.

Question 34.

What are the challenges facing IoT-focused startups in securing funding?

Challenges Facing IoT-Focused Startups in Securing Funding

In recent times, IoT-focused startups are grappling with a notable challenge: securing adequate funding. Over the past year, there’s been a marked decrease in global investments in this sector, posing significant hurdles for emerging companies.

Steep Competition and Market Saturation

• Increasing Number of Startups: The burgeoning number of IoT enterprises has made the market highly competitive. This dense environment often makes it difficult for new entrants to distinguish themselves and prove their unique value to investors.

Shifting Investor Preferences

• Demand for Proven ROI: Investors are becoming more prudent, seeking more mature companies with a track record of return on investment (ROI). Startups must now provide substantial evidence of their profitability and long-term viability to attract funding.

Economic Uncertainty

• Global Economic Shifts: Recent economic instability has led investors to be more cautious, resulting in decreased willingness to fund high-risk ventures. This caution impacts startups struggling to demonstrate their resilience in fluctuating markets.

Technological and Security Challenges

• Rapid Technological Evolution: The rapid pace of technological change in IoT creates pressure on startups to continuously innovate. At the same time, they face security concerns, which can deter investors worried about potential vulnerabilities in IoT products.

Regulatory Hurdles

• Compliance and Regulations: Navigating the complex landscape of regulations in different geographic regions adds another layer of difficulty for these startups. Ensuring compliance can be costly and time-consuming, factors investors often consider when evaluating funding opportunities.

Summary

In summary, IoT-focused startups must tackle various obstacles, from intense competition and cautious investors to economic fluctuations and technical challenges. Successfully overcoming these hurdles is vital to attracting the necessary investment for growth and innovation.

Question 35.

What developments are highlighted in the State of IoT Summer 2024 report?

Key Developments in the IoT Market: Summer 2024 Overview

The State of IoT Summer 2024 report unveils significant trends shaping the Internet of Things landscape. Here’s a breakdown of the major developments discussed:

1. Integration of Advanced AI Technologies

AI Trends: The report places AI technologies, including generative and edge AI, at the forefront of IoT advancements. Notably, business leaders have increasingly focused on AI, mentioning it in a substantial percentage of recent earnings calls. This showcases the rapid rise of generative AI from being a nascent idea to a thriving market force within a year.

Manufacturing Impact: Generative AI is making notable strides in manufacturing, exemplified by the introduction of intelligent industrial systems that enhance operational capabilities.

Edge AI Investments: The growth of edge AI is significant in 2024, emphasizing its role in boosting the safety, accuracy, and efficiency of IoT applications. Companies like NVIDIA and AMD are pivotal in driving the widespread adoption of edge AI technologies.

2. Security Enhancements in IoT

Threat Landscape: There has been a staggering 400% increase in IoT-targeted cyber threats, with manufacturing sectors being the most vulnerable. This trend highlights the urgent need for enhanced security measures.

Regulatory Measures: In response, governments worldwide are setting stricter IoT security standards. The UK and EU have implemented key regulations, while the US has launched a labeling system for secure consumer IoT products.

Emerging Security Methods: Two advanced security approaches are gaining traction—post-quantum cryptography and zero trust security. These methods are crucial for fortifying IoT systems against potential threats posed by evolving AI capabilities.

3. Sustainability and IoT Initiatives

Driving Forces: Sustainability is becoming a primary motivator for IoT developments. New environmental laws and standards, such as those in the UK, India, and the EU, have exponentially increased the focus on sustainability in corporate discussions over recent years.

Automated Reporting: IoT is transforming sustainability reporting through automation. Advanced sensors are used for real-time monitoring of energy, water quality, and air pollution parameters. These innovations are vital for meeting global environmental standards and optimizing resource use.

In summary, the Summer 2024 report underscores the pivotal roles of AI, security, and sustainability in the evolving IoT ecosystem. These developments highlight a dynamic shift towards smarter, more secure, and eco-friendly IoT solutions.

Question 36.

What percentage of global IoT connections rely on Wi-Fi?

How Much of the Global IoT Depends on Wi-Fi?

Wi-Fi accounts for a significant chunk of all IoT connections, representing 31% globally. As of 2023, the majority of Wi-Fi-enabled devices on the market, specifically 75%, feature the advanced Wi-Fi 6 and 6E technologies. These upgrades deliver enhanced speed and improved stability compared to earlier versions, like Wi-Fi 5.

The latest Wi-Fi iterations have revolutionized IoT communication, facilitating seamless interaction among devices. This is notably apparent in sectors such as smart homes, building management, and healthcare.

Looking forward, Wi-Fi 7 shipments have begun in 2024, anticipated to make up 7% of Wi-Fi-enabled IoT shipments, further pushing the boundaries of wireless connectivity.

Question 37.

What is the significance of post-quantum cryptography and zero trust security in IoT?

The Role of Post-Quantum Cryptography and Zero Trust Security in IoT

The Internet of Things (IoT) is becoming increasingly fundamental in various sectors, yet it’s facing a surge in cyber threats. Two innovative cybersecurity strategies have emerged as key players in tackling these threats: post-quantum cryptography (PQC) and zero trust security.

Why Post-Quantum Cryptography?

Post-quantum cryptography is pivotal due to its forward-thinking approach in safeguarding IoT devices against future threats from quantum computing. Traditional encryption methods might soon be vulnerable as quantum computers have the potential to break standard algorithms with their superior processing power. PQC is designed to counter this by employing algorithms that even quantum computers would find difficult to decipher.

• Preparation for the Future: PQC anticipates the rise of quantum computing, ensuring that IoT systems remain secure even as technological capabilities evolve.
• Enhanced Security Layers: By incorporating PQC, organizations can enhance their existing security frameworks, making them resilient against both current and emerging threats.

The Impact of Zero Trust Security

Zero trust security is a transformative approach that drastically changes how IoT security is managed. Unlike traditional security measures that rely on perimeter defenses, zero trust operates on the philosophy that threats can originate both outside and within a network.

• Verification Over Assumption: This model requires continuous verification of every device and user trying to access the network, minimizing the risk of unauthorized access.
• Focused on Micro-Segmentation: By segmenting the network, zero trust limits the spread of potential breaches, confining them to the smallest possible area.
• Dynamic Threat Response: The continuous monitoring intrinsic to zero trust enables rapid identification and mitigation of threats, maintaining the integrity of IoT systems.

Conclusion

Both post-quantum cryptography and zero trust security are crucial in the evolving landscape of IoT security. They not only equip businesses with tools to handle contemporary cyber threats but also prepare them for future technological challenges, ensuring comprehensive protection of their IoT infrastructure.

Question 38.

How are governments responding to the rise in IoT-targeted cyber attacks?

How Governments Are Responding to the Rise in IoT-Targeted Cyber Attacks

In response to the increasing threat posed by cyber attacks on Internet of Things (IoT) devices, several governments worldwide are stepping up with legislative measures and programs focused on enhancing security protocols.

• United Kingdom: Setting a precedent, the UK has taken bold steps by mandating cybersecurity standards specifically for IoT devices. This move underscores the country’s commitment to safeguarding its digital landscape from potential threats.
• European Union: Meanwhile, the EU has implemented regulations requiring that all products sold within its borders adhere to predefined security benchmarks. These standards aim to ensure a baseline level of protection for consumers and businesses alike.
• United States: Across the Atlantic, the US has initiated a voluntary labeling program to guide buyers of consumer IoT products. This program aims to promote transparency and encourage manufacturers to implement robust security features.

Governments are actively shaping a secure digital future by setting and enforcing stringent standards, thus mitigating the risks associated with the proliferation of IoT devices.

Question 39.

How did VC investments in IoT firms change in early 2022?

How Did VC Investments in IoT Firms Change in Early 2022?

In the first quarter of 2022, venture capital investments in Internet of Things (IoT) companies soared to unprecedented levels. The total funding reached an impressive $1.2 billion, which marked a significant increase from the $266 million recorded during the same period in 2021.

Key Developments:

• Investment Growth: The surge in investment represented a substantial year-over-year leap, highlighting increased investor confidence in the sector.
• Fewer, Larger Deals: There were fewer deals compared to previous quarters, but the average size of funding rounds grew significantly. This trend points to a focus on larger, more promising IoT ventures.
• Investment Focus Areas:
  • Artificial Intelligence and Analytics: A major portion of the funds was channeled into companies working on AI solutions and data analytics, underscoring the importance of data-driven technologies.
  • Cybersecurity: The emphasis on securing IoT platforms was also a priority, reflecting the market’s awareness of potential vulnerabilities.
  • IoT Connectivity: Investments in connectivity solutions were notable as businesses sought to enhance the scalability and efficiency of IoT systems.

Overall, early 2022 set a new benchmark for VC funding in the IoT space, driven by strategic investments in key technological areas. The landscape has shifted towards quality over quantity, with emphasis on transformational ideas and robust solutions.

Question 40.

Why is LEO-based satellite IoT connectivity gaining popularity?

Why is LEO-Based Satellite IoT Connectivity Gaining Popularity?

LEO-based satellite IoT connectivity is rapidly becoming a favored choice for various industries, and with good reason. The low Earth orbit (LEO) satellite system offers a breadth of advantages that traditional satellites simply cannot match.

Comprehensive Coverage and Reduced Latency

First and foremost, LEO satellites provide extensive global coverage. Orbiting much closer to Earth than their geostationary counterparts, they ensure minimal communication delays. This close proximity results in significantly lower latency, making it ideal for applications that require real-time data processing—an essential feature for industries that rely heavily on immediate data exchange.

Industrial Applications and Advantages

Industries such as agriculture, maritime, and logistics are major beneficiaries of this technology. For instance, in agriculture, LEO satellites can facilitate precise data collection for crop monitoring. The maritime industry benefits from enhanced navigation and tracking of vessels, even in the most remote oceanic expanses. Meanwhile, the logistics sector can optimize supply chain operations through real-time tracking and management of shipments.

Reliability and Resilience

Another compelling reason for the popularity of LEO-based connectivity is its reliability and resilience. This system can maintain communication lines even during challenging environments, such as remote locations or in the face of natural disasters. It provides a robust solution where ground-based connectivity might falter, ensuring that data transmission remains uninterrupted.

Ongoing Technological Advancements

Finally, continuous advancements in LEO satellite technology are further elevating performance levels and improving user experiences. New developments promise even faster data rates and increased satellite lifetimes, which translates to ongoing enhancements in service quality.

In summary, the growing popularity of LEO-based satellite IoT connectivity is driven by its superior coverage, low latency, and unmatched reliability, making it a pivotal innovation across multiple sectors.

Question 41.

What is the role of wired IoT aggregation nodes in global IoT connections?

The Role of Wired IoT Aggregation Nodes in Global IoT Connections

In 2023, the global landscape of Internet of Things (IoT) connections prominently featured wired IoT aggregation nodes. These nodes, though accounting for just 4% of the 16.6 billion IoT connections worldwide, serve as crucial hubs in the IoT ecosystem. Their primary function is to act as central data transmission points, facilitating the flow of information to and from various devices.

Wired IoT aggregation nodes include gateways, programmable logic controllers (PLCs), industrial PCs (IPCs), input/output primaries (I/O-primaries), and routers. These devices are essential for ensuring robust and stable connectivity in scenarios where wireless connections may not be ideal or feasible.

While there were 0.7 billion wired IoT aggregation nodes in 2023, they were just part of a more extensive network. The remaining 15.9 billion connections were comprised of wireless alternatives, both aggregation nodes and end devices, which depend on wired counterparts for connecting to the internet.

Moreover, a deeper inspection of the wired IoT market reveals a much broader picture. Beyond the aggregation nodes, there are approximately 23.4 billion wired IoT end nodes across the globe. These end nodes, often embedded with sensors, communicate through wired aggregation nodes, highlighting the latter’s pivotal role in facilitating seamless and efficient data exchange within the IoT ecosystem.

Question 42.

What are the communication technologies considered part of connected IoT devices?

Communication Technologies in Connected IoT Devices

When discussing the communication technologies integral to connected IoT devices, it’s essential to focus on the diverse range of networks that support these systems. This diversity ensures that IoT devices can operate efficiently across various environments.

Wired Technologies

• Ethernet and Field Buses: These are crucial for industrial settings, providing reliable connections for devices like industrial PLCs and I/O modules.

Cellular Networks

• Generations of Cellular: Ranging from 2G to 5G, cellular technology is pivotal for IoT, enabling mobile connectivity that can reach vast geographic areas.

Low-Power Wide-Area Networks (LPWAN)

• These networks operate on both licensed and unlicensed spectrums, offering long-range communication suitable for devices that require minimal energy consumption.

Wireless Personal Area Networks (WPAN)

• Technologies such as Bluetooth, Zigbee, and Z-Wave: They are designed for short-range communication, ideal for consumer electronics and smart home devices.

Wireless Local Area Networks (WLAN)

• Wi-Fi and Related Protocols: They provide essential connectivity for IoT devices in both residential and commercial settings, supporting devices over moderate distances.

Wireless Neighborhood Area Networks (WNAN)

• These networks, including mesh technologies like Wi-SUN, facilitate communication for smart city applications, leveraging non-short-range connections.

Additional Technologies

• Satellite and Proprietary Networks: These offer extensive coverage, essential in remote locations where conventional networks cannot reach, and include some bespoke solutions that are custom-designed for specific applications.

Notably, traditional computing devices like laptops and smartphones, as well as simple communication tech like RFID and NFC, are not categorized under connected IoT devices. This distinction emphasizes the advanced communication needs unique to IoT systems.

Question 43.

What is the forecast for NB-IoT and LoRa/LoRaWAN technologies in the coming years?

Forecast for NB-IoT and LoRa/LoRaWAN Technologies

In the next five years, NB-IoT (Narrowband IoT) and LoRa/LoRaWAN technologies are set to lead the Internet of Things (IoT) market. These technologies are expected to hold their ground as the most influential in the sector, paving the way for widespread adoption and integration in various industries.

Market Leadership

• Dominant Players: NB-IoT and LoRa/LoRaWAN are predicted to maintain dominance, thanks to their robust frameworks and proven effectiveness across multiple applications.
• Use Cases: These technologies are well-suited for deployments that require extensive coverage and low power consumption, such as smart metering, asset tracking, and agriculture monitoring.

Competitive Landscape

• Emerging Competitors: LTE-M and Sigfox are poised to follow, albeit at a considerable distance, securing third and fourth positions, respectively.
• Niche Applications: Although other IoT technologies may not capture significant market share worldwide, they will still find value in specific scenarios where their unique features are required.

This forecast highlights the enduring prominence of NB-IoT and LoRa/LoRaWAN, reinforcing their vital role in shaping the future of IoT connectivity.

Question 44.

What were the key applications driving growth in the LPWA market?

The Low Power Wide Area (LPWA) market experienced significant growth fueled by two primary applications. Firstly, asset tracking and monitoring emerged as major contributors to this expansion. These applications cater to diverse sectors, ensuring that businesses can efficiently manage and oversee their valuable resources.

Additionally, the rise of smart meters played a crucial role, particularly in the Narrowband IoT (NB-IoT) segment. These devices are widely used in the energy sector, improving efficiency and measurement accuracy. Furthermore, advancements in the buildings and infrastructure industry also propelled growth, as companies sought smarter solutions for management and resource optimization.

In summary, the LPWA market thrived due to innovations in asset management and the adoption of intelligent, industry-specific technologies.

Question 45.

How NB-IoT Technology Fueled IoT Connection Growth in 2021

In 2021, the IoT landscape experienced a significant transformation, largely fueled by the surge in Narrowband IoT (NB-IoT) technology. This specialized communication method catapulted IoT connections to greater heights, boasting an impressive 61% year-over-year increase.

NB-IoT’s appeal lies in its ability to support diverse applications, particularly those requiring extensive coverage with minimal energy consumption. Water and gas metering emerged as prominent beneficiaries, showcasing how NB-IoT can enhance operational efficiency in utilities management.

By enabling stable, long-distance connections with lower costs, NB-IoT gradually became the backbone for various implementations. Its expansion across different industries underscored its role as a catalyst for broader IoT connectivity, setting a new standard for future technological advancements.

Question 46.

How is LPWAN Technology Evolving in the IoT Market?

In recent years, the Low-Power Wide-Area Network (LPWAN) sector has experienced notable transformations. These changes have shifted the focus from competing LPWAN technologies towards a model of co-existence and integration.

Key Developments in LPWAN

1. Strategic Acquisitions: Recent acquisitions in the industry, such as UnaBiz’s acquisition of Sigfox and Semtech’s acquisition of Sierra Wireless, have set the stage for greater interoperability. These strategic moves have been pivotal in encouraging companies to offer platforms that support multiple LPWAN technologies simultaneously, rather than adhering to a singular approach.
2. Collaboration Across Platforms: To facilitate this multi-technology framework, companies are increasingly collaborating with various service providers. For instance, through partnerships with entities like The Things Industries and Actility, companies can now integrate and manage diverse LPWAN technologies via unified software platforms.
3. Shift in Business Model: Organizations within this space are evolving from mere technology providers to comprehensive solution partners. By bundling several LPWAN technologies, they aim to offer seamless, orchestrated solutions that enhance connectivity and efficiency.

Future Trends

Emergence of Enhanced Connectivity Solutions: As the industry continues to innovate, we can expect the development of multi-LPWAN connectivity modules. These advancements promise to deliver end-to-end connectivity solutions, particularly in sectors such as logistics and mobility. By incorporating various LPWAN technologies into a single module, businesses can ensure robust connectivity across different applications.

This evolution highlights a pivotal shift in the IoT market, presenting opportunities for more integrated and flexible solutions that cater to diverse needs. As LPWAN technology continues to advance, its role in driving IoT connectivity is set to expand, making it a cornerstone for future innovations.

Question 47.

Shifts in the LPWA Market: Licensed vs. Unlicensed Technologies

In the first half of 2020, the low-power wide-area (LPWA) market saw a dominance of unlicensed technologies like LoRa and Sigfox, which captured 53% of the market. Meanwhile, licensed technologies such as NB-IoT and LTE-M held the remaining 47%.

Fast forward a year, the scenario flipped. Licensed technologies, primarily driven by NB-IoT, rose to the forefront with a 54% market share. This shift was largely fueled by an impressive 75% year-over-year growth in NB-IoT connections during the first half of 2021.

Notably, NB-IoT emerged as the top technology, achieving a commanding 44% share. This surge pushed LoRa to second place, holding 37% of global LPWA connections. Overall, the LPWA market experienced a significant rebalancing, favoring licensed options over their unlicensed counterparts.

Question 48.

Understanding RedCap Technology and Its Influence on IoT Devices

RedCap technology represents a significant evolution in the world of cellular IoT. Instead of focusing on ultra-fast speeds and minimal latency like some advanced applications, RedCap shifts the spotlight to affordability and simplicity. This makes it an attractive option for a wide range of IoT devices across consumer, enterprise, and industrial sectors.

Key Features of RedCap Technology:

• Moderate Speed: Delivers download speeds of up to 150 Mbps and upload speeds reaching 50 Mbps.
• Efficient Latency: Maintains latency levels below 100 milliseconds, supporting a variety of applications without compromising performance.
• Affordable Implementation: Offers a cost-effective solution compared to standard 5G options, making it accessible for broader usage.

Impact on IoT Devices

RedCap is reshaping the landscape for IoT by catering to use cases where speed isn’t the top priority. For instance, it excels in enabling high-quality video transmission, which is crucial for video surveillance systems. By providing a cheaper yet sufficient alternative to traditional 5G technologies, RedCap helps businesses adopt advanced video capabilities without a hefty price tag.

In essence, RedCap technology fuels the expansion of IoT by bridging the gap between cost and performance, allowing more devices to leverage cellular technologies without breaking the bank. This makes it a cornerstone for the ongoing proliferation of IoT applications in diverse fields.

Question 49.

Why Bluetooth Low Energy is the Go-To for Battery-Powered IoT Devices

Bluetooth Low Energy (BLE) stands out as the optimal choice for battery-powered IoT devices, and here’s why:

1. Energy Efficiency: BLE is designed to use minimal power, making it ideal for devices that need to operate on small batteries for extended periods. This energy efficiency is particularly beneficial for items that are not frequently charged, such as smart home sensors.
2. Consistent Connectivity: Despite its low power consumption, BLE ensures reliable connectivity. This enables IoT devices to communicate effectively without frequent disconnections, which is crucial for home automation and asset tracking systems.
3. Widespread Adoption: BLE’s technical capabilities have led to widespread adoption across various industries. Even sectors like industrial automation are exploring BLE technology for tasks such as wireless communication between sensors and actuators.
4. Compatibility and Innovation: BLE is built on solid technical standards, supporting smooth communication between a wide range of devices. This compatibility extends its usefulness beyond consumer electronics to more complex industrial applications.

In summary, BLE’s unique combination of low power usage, reliable connectivity, and widespread compatibility makes it the preferred choice for battery-powered IoT devices.

Question 50.

How Does IoT Analytics Define Connected IoT Devices?

IoT Analytics characterizes connected IoT devices in a unique way. They focus on counting devices that act as active nodes or gateways. These gateways serve as central hubs that gather data from various end-user sensors or actuators, rather than tallying every individual sensor or actuator.

By concentrating on these key nodes, IoT Analytics emphasizes the pivotal components within a network that facilitate streamlined data processing and communication. This approach provides a clearer picture of the infrastructure and its operational components, rather than simply the multitude of individual endpoints.

Extra Questions:

How is the demand for IoT solutions despite market challenges?

In a climate marked by economic uncertainties, the manufacturing industry has demonstrated remarkable resilience and adaptability. The survey reveals that three-quarters of organizations (76%) express a heightened inclination towards investing in IoT technologies. This statistic speaks volumes about the industry’s forward-thinking approach, recognizing that technological innovation is a cornerstone for sustained growth, even in the face of economic challenges.

Positive Market Sentiment
Despite market challenges, the demand for IoT solutions remains robust. Industry sentiment analysis indicates strong positivity, particularly in sectors like connectivity services, general software, cybersecurity, and cloud services. These areas are seeing the highest demand, underscoring their critical role in supporting digital transformation.

CEO Insights
Leaders in the IoT space highlight this momentum, with many noting an accelerated adoption of IoT technologies post-pandemic. One CEO remarked on the widespread demand across various end markets, suggesting that current favorable conditions are expected to persist throughout the year.

Impact of COVID-19
The pandemic has acted as a catalyst for Industry 4.0, pushing companies to collect and utilize business-critical data from the network’s edge. This shift not only underscores the strategic importance of IoT technologies but also highlights how external challenges can drive innovation and adoption.

In summary, while economic challenges loom, the IoT industry’s proactive investments and strategic advancements form a resilient backbone for future growth. This dual approach of embracing technology and responding to market dynamics positions the sector for continued success.

Question 2.

How is inflation impacting global growth forecasts and the IoT market?

Answer

“Inflation, the ongoing energy crisis, and supply chain disruption emerge as the top three concerns weighing on the minds of businesses in the manufacturing sector, with 19%, 16%, and 16% of respondents citing these respectively. These concerns reflect the intricately interconnected global economy, where fluctuations in one area can reverberate through the entire manufacturing process.

The surge in inflation rates has raised operational costs for manufacturers, impacting everything from raw material procurement to logistics. Global growth forecasts are declining as inflation intensifies to over 5% annually in most major economies. This escalation raises expectations of increasing interest rates, which could lead to a cooling down of the economy, affecting investment and spending across various sectors, including the Internet of Things (IoT) market.

The energy crisis, perpetuated by geopolitical and environmental factors, is pressuring manufacturers to seek sustainable alternatives and optimize energy consumption. Meanwhile, supply chain disruption remains a perennial concern, magnified by the complex interdependence of global supply networks. These disruptions not only inflate costs but also slow down production timelines, further squeezing margins.

In this challenging landscape, businesses are compelled to adapt swiftly, leveraging technology and innovation to maintain competitiveness. The IoT market, despite these hurdles, continues to evolve, with companies exploring smart solutions to mitigate the adverse effects of these global economic pressures.”

Sub-Questions

What are the anticipated economic consequences of rising inflation?

Rising inflation is expected to lead to increased interest rates, which could result in an economic slowdown.

How is inflation affecting global growth forecasts?

Inflation is leading to a decline in global growth forecasts, as it intensifies beyond 5% annually in many major economies.