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Driven by the need for intelligent connected devices in industrial and commercial applications, the number of connected Internet of Things (IoT) devices globally will grow to more than 31 billion in 2018, according to new analysis from business information provider IHS Markit. The commercial and industrial sector, powered by building automation, industrial automation and lighting, is forecast to account for about half of all new connected devices between 2018 and 2030.
“The IoT is not a recent phenomenon, but what is new is it’s now working hand in hand with other transformative technologies like artificial intelligence and the cloud,” said Jenalea Howell, research director for IoT connectivity and smart cities at IHS Markit. “This is fueling the convergence of verticals such as industrial IoT, smart cities and buildings, and the connected home, and it’s increasing competitiveness.”
In its latest IoT Trend Watch report, IHS Markit identifies four key drivers and the trends that will impact the IoT this year and beyond:
Innovation and competitiveness
- The IoT opportunity has attracted numerous duplicative and overlapping wireless solutions such as Bluetooth, Wi-Fi, 5G, NB-IoT, LoRa and Sigfox. Standards consolidation lies ahead, but confusion and fragmentation will dominate in the near term.
- Enterprises are leveraging the location of data as a competitive advantage — and as a result, a hybrid approach to cloud and data center management is taking hold. More and more companies will employ both on-premises data centers and off-premises cloud services to manage their IT infrastructure.
- 5G builds upon earlier investments in M2M (machine-to-machine) and traditional IoT applications, enabling significant increases in economies of scale that drive adoption and utilization across all sectors of industry. Improved low-power requirements, the ability to operate on licensed and unlicensed spectrum, and better coverage will drive significantly lower costs across the IoT.
- Cellular IoT gateways, which facilitate WAN connectivity, will be integral to edge computing deployments. 2018 will bring increased focus on compute capabilities and enhanced security for cellular IoT gateways.
Standardization and security
- Cybersecurity is a leading concern for IoT adopters. IoT deployments face critical cybersecurity risks because there are potentially many more IoT devices to secure compared to traditional IT infrastructure devices, presenting increased risk to traditional communications and computing systems, as well as physical health and safety.
- Despite the promise it holds, blockchain — a technology for securely storing and transferring data — is not a panacea. Initially, IoT applications for blockchain technology will focus on asset tracking and management.
Wireless technology innovation
- IoT platforms are becoming more integrated. Currently, there are more than 400 IoT platform providers. Many vendors are using integration to compete more effectively, providing highly integrated functionality for IoT application developers and adopters.
- Significant innovation will occur when IoT app developers can leverage data from myriad deployed sensors, machines and data stores. A key inflection point for the IoT will be the gradual shift from the current “Intranets of Things” deployment model to one where data can be exposed, discovered, entitled and shared with third-party IoT application developers.
About IHS Markit
IHS Markit is a world leader in critical information, analytics and solutions for the major industries and markets that drive economies worldwide. The company delivers next-generation information, analytics and solutions to customers in business, finance and government, improving their operational efficiency and providing deep insights that lead to well-informed, confident decisions. IHS Markit has more than 50,000 business and government customers, including 80 percent of the Fortune Global 500 and the world’s leading financial institutions. Headquartered in London, IHS Markit is committed to sustainable, profitable growth.