- Enterprise IoT is forecasted to account for 72% of market revenue by 2028
- Artificial Intelligence of Things (AIoT), which involves embedding AI into IoT devices, software, and services, is seen as acting as a further catalyst for IoT adoption
The global Internet of Things (IoT) market is poised to grow 13.5 percent to $1.8 trillion in revenue over the next five years, according to a report from GlobalData, a leading data and analytics company.
This growth is expected to be driven by the rise of enterprise applications, enhanced by new technologies like 5G and artificial intelligence (AI). In the GlobalData’s latest Strategic Intelligence report, “Internet of Things,” enterprise IoT is forecasted to account for 72% of market revenue by 2028, up from 70% in 2023, while the consumer segment will make up 28% in 2028, down from 30% in 2023.
As it has across all industries, AI is increasingly vital has led to Artificial Intelligence of Things (AIoT) which involves embedding AI into IoT devices, software, and services. Combining data collected by connected sensors and actuators with AI supports automated operations and predictive maintenance. AI can run in the cloud, on IoT devices directly with some limitations, or on both the cloud and the device.
The Importance of AIoT
William Rojas, Research Director, Strategic Intelligence at GlobalData, said AIoT 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,” said Rojas in a statement.
Security Concerns
Security remains a concern for IoT deployments due to no globally accepted IoT security standards. The fragmented security standards landscape and weak security of many IoT devices could hold back further IoT adoption. As a result, many IoT devices have limited computing capacity and cannot run effective security software that leaves them and the networks to which they are connected vulnerable to cyberattacks.
According to Rojas, embedded AIoT can also play a role in enhancing security at the IoT device level.
“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,” he said. “Where more heavy compute resources are needed with low latency, then edge computing will be the best option.”
Other Expansion Opportunities
Expansion IoT connectivity options are expected to come from new terrestrial wireless and satellite technologies. Enhanced 5G now supports IoT use cases that demand lower complexity, reduced cost, and decreased power consumption. 5G-satellite non-terrestrial networks (NTN) is a new access technology that will enable devices in very remote locations to upload and download data via satellites.
These new access technologies are ideal for devices that require continuous connectivity and extended battery life but do not need the full range of 5G features, such as higher bandwidth and lower latency.