The Internet of Things is a set of technologies that is having a powerful impact on a wide range of industries, from manufacturing to healthcare and education. However, the rapid evolution in this field makes it essential to constantly track IoT trends, if your goal is to introduce a solution that will correspond to ongoing market needs and expectations. And that’s what we’re going to discuss in this article.
IoT market overview
Before diving deep into IoT trends, let’s take a look at this industry in general and consider some figures that reflect the market growth.
According to analysts, in 2023 revenue in the IoT industry is experiencing significant growth and is around $1,770 billion worldwide—up 21% over the previous year.
The highest interest in adopting IoT technology and consequently the biggest IoT market volume can be observed in the automotive segment. In 2023, that market volume amounted to over $397 billion.
Forecasts for the near future are also quite optimistic, with market volume expected to hit $2,227 billion by 2028. That means the CAGR for the period 2023-2028 will be over 13%.
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Top IoT trends you should be aware of
Our company has been working in the software development industry since 2005. Over this time, we have done our best to stay attuned to all the latest market trends to deliver advanced solutions that will bring the highest value to users. IoT technology is one of our areas of strongest expertise. We are constantly analyzing all the changes and updates that are being introduced in this segment, and now we are ready to share our list of IoT trends expected to have the strongest impact on the industry in 2024.
Trend 1. Edge computing
When developing IoT solutions, a key issue is the quality and stability of the connection that devices will interact with. This factor is crucial to ensure speedy data processing and transmission, and timely response to the results of data analysis. For example, if any sensors have detected an unauthorized door opening in your house, action needs to be taken as soon as possible. However, if the speed of data exchange is too slow, an alert may come too late to react effectively.
This problem can be solved thanks to the introduction of a new computing model known as edge computing. It offers the benefit of data processing as close as possible to where information was gathered. If it’s not necessary to send information to a central processing center, it’s possible to reduce the time required to process larger volumes of data.
This proximity of data ensured by edge computing can bring vital benefits for businesses and open new opportunities for IoT technology. Enhanced response time and faster insights can become strong competitive advantages. Reduced bandwidth usage, higher efficiency, and improved IoT security are among other benefits of edge computing.
Trend 2. Artificial intelligence and Machine Learning
Any discussion of top IoT trends can’t fail to mention Artificial Intelligence and Machine Learning. While these technologies are transforming a lot of industries and spheres of our lives, new opportunities come from leveraging IoT technology and AI in tandem. A commonly used name for this symbiosis is AIoT.
IoT solutions able to gather huge volumes of information in real time can ensure unique insights into a business’s processes, customer behavior, external factors, etc. However, gathering data is only one part of the functionality of such systems. You also need to take care of efficient data processing. And here is when Artificial Intelligence and Machine Learning enter the game.
Potential applications of these technologies in the IoT sector are very broad. For example, Artificial Intelligence and Machine Learning can be used for identifying trends, detecting deviations in data, and making predictions (predictive maintenance being a good example of such a use case). Moreover, AI and ML are among the key technologies for creating smart home appliances that can apply various scenarios based on environmental factors. Another well-known use case is self-driving cars.
Trend 3. Digital twins
A digital twin is a virtual representation of any real-life object or process. Such solutions allow enterprises to test various updates and changes virtually before investing in their implementation. Because digital twins allow a quite precise simulation of how various objects will function under various circumstances, users can detect related risks without interfering with the work of their actual systems, equipment, or machinery.
Though implementing such solutions requires investment, ultimately they save enterprises money.
Trend 4. 5G connectivity
5G is known as the next-generation standard for cellular networks, which is being actively developed and adopted these days. 5G is more advanced than 4G, as it offers higher download and data transmission speeds to devices, as well as more bandwidth. Thus, 5G ensures better connection stability, lower device latency, and better signal coverage.
Thanks to these characteristics, 5G is expected to become the standard for IoT solutions, such as real-time robotics, emergency systems, and self-driving vehicles.
Trend 5. Higher attention to IoT security
IoT security is one of the most important aspects developers who work with IoT technology need to bear in mind. IoT systems process huge volumes of highly valuable information, the damage or loss of which can lead to serious consequences for the reputation of your business.
Using edge computing can be viewed as one approach to making IoT systems more secure. However, protective measures taken at the stage of development are not the only option. It’s also essential to invest in advanced cybersecurity tools to protect your devices, introduce a strong password management policy, and use network security solutions, including access management tools and firewalls.
Trend 6. Voice-controlled IoT devices
Some IoT trends are closely related to applying the capabilities of Artificial Intelligence to the development of IoT solutions. Because AI can, for example, be used to process voice commands in natural languages, it’s possible to allow users to interact with IoT devices with voice commands: switch them on or off, change their settings, ask them to perform certain tasks, get real-time feedback, etc.
For some IoT-powered projects and systems, such as self-driving cars and smart home assistants, voice control has already become a standard feature.
Trend 7. Blockchain
Among the IoT trends, we also need to mention adoption of blockchain technology in developing IoT systems. Blockchain makes it possible to facilitate smooth interaction between different devices included in the network and to improve the security and protection of data. In general, blockchain can function as a data transfer layer and an environment for settling transactions between the connected devices.
A temper-proof ledger that is used by blockchain contributes to the authenticity and integrity of the data accumulated by the Internet of Things devices.
The blockchain IoT market is actively expanding, and a CAGR of 54% for the period from 2023 to 2032 clearly demonstrates this tendency. In 2022, its size was estimated at $280 million; by 2032, it is expected to reach almost $21 billion.
Trend 8. Smart cities
Not all IoT solutions used today are the very latest innovations. For example, smart home systems have been around for several decades. Of course, over time they are becoming more advanced and feature-rich. The introduction of Artificial Intelligence tools has greatly contributed to this development. Adoption of these systems is now common, and families in various corners of the world are already enjoying the benefits.
However, there are some systems and solutions powered by IoT technology that look promising but still require effort from developers and investors to reach mass adoption. Smart cities technologies are a good example. These are comprehensive systems that may connect various modules, aimed at enhancing the quality of living in a city, facilitating many activities and processes, and optimizing the use of resources.
Smart cities usually have functionality needed for real-time traffic monitoring, which helps to regulate traffic lights based on current conditions. This smooths movement in the city, avoiding traffic jams and minimizing road accidents.
In smart cities, IoT can be also used for water monitoring. Special sensors can gather information about the quality and use of water and transmit this data to the relevant authorities. The Internet of Things can also be applied to introducing smart lighting as well as enhancing security.
Trend 9. AR and VR
IoT technology is highly valued for its ability to deliver real-time contextual data, which can be of great use for solutions enriched with VR and AR devices. Here we’re talking about a lot more than entertainment; VR/AR has numerous potential uses in healthcare, warehouse management, and manufacturing, to name a few examples..
Real-time network data and information gathered by sensors can be shown to users wearing smart glasses or special head-mounted displays. This can be useful, for example, to surgeons during intricate operations. For distribution center employees, AR-powered IoT apps can help them more easily locate items and get directions.
Trend 10. Metaverse
IoT and metaverse are another interesting duo that deserves mention among IoT trends. One of the main challenges the metaverse faces today is its inability to draw data from the real-life world and integrate this information with the virtual environment. But IoT systems enriched with various cameras, sensors, and other devices can help to address this problem.
The Internet of Things can act as a bridge between the physical environment and the world being created in the virtual space. Thanks to the new opportunities of establishing data transmission ensured by IoT, users can seamlessly move from the virtual world to the real one. Eliminating the limitations that the metaverse has now will make it possible to boost its usefulness and expand the fields in which it can be applied.
It’s highly likely that in the near future, we will see a lot of promising IoT-powered projects in the sphere of metaverse gaming, real estate, or digital shopping.
The future of IoT solutions
The top IoT trends mentioned above are excellent proof that both business and consumer IoT solutions are becoming more powerful and efficient. They can help to solve a wide range of tasks of different types.
However, it makes sense to assume that development of IoT technology will continue and result in the introduction of new products that today we can’t even imagine. It will be boosted by the wider implementation of more advanced technologies, tools, and models such as edge computing or 5G connectivity.
There is a plethora of industries and fields that are actively applying IoT systems and apps these days. They include healthcare, manufacturing, agriculture, transportation and logistics, warehouse management, and others.
With expanded functionality, we can expect to see a growing number of IoT use cases in the future. As a result, more industries may join the list of active IoT adopters.
When considering using IoT technology for building solutions to meet the needs of your organization or a wider audience, it’s important to make sure your tech product meets industry standards and fully addresses the needs of end users. In other words, it is vital to consider both tech trends and the users’ requirements. That’s why, before building your product, we recommend a deep analysis of the market.
If you need the help of experts in this process or want to better understand how Internet of Things-powered systems can be applied at your company, you can always contact our team. We have rich expertise in working with this technology and provide professional IoT consulting and development services. Send us your inquiry to get more details about our potential cooperation.
What is the future of IoT?
Among the key trends in the development of IoT technology is the integration of IoT solutions with artificial intelligence. This combination helps significantly expand the functionality of such products by adding advanced analytics capabilities and ensuring better process automation.
How will IoT benefit in the future?
It is predicted that IoT technology will gain wider adoption within various sectors and industries. More companies will improve their efficiency and enhance productivity thanks to automating their workflow and gaining valuable insights. The mass adoption of smart cities technologies will bring these advantages to a very wide audience.