American cryptographer Bruce Scheiner once said, “The internet is no longer a web that we connect to. Instead, it’s a computerized, networked, and interconnected world that we live in.”
This is not just only an opinion – this is indeed the current reality of our society.
IoT Analytics predicts an 18% rise to 14.4 billion IoT devices by 2023, which might reach 27 billion by 2025 – which is literally 3x times more than our global population. By 2030, McKinsey predicts that the worldwide impact of IoT will amount to $12.5 trillion.
In 2023, we expect these significant IoT advancements to materialize and pursue the path of IoT digitalization.
Let’s explore in more depth what trends shall we expect this year:
1. Sustainability & Environmental Considerations
The International Declaration on the Internet of Things for Sustainable Development laid forth a plan and vision for IoT to advance the UN’s Sustainable Development Goals.
How can this be achieved?
Well, real-time environmental performance is enhanced, operating costs are optimized, and management is made easier, driven by IoT’s ability to analyze various contextual data (e.g. temperature, wind strength, and humidity) and dynamic data (e.g. energy and water usage).
And businesses can use these innovations to do much more.
Building operations, such as climate control, illumination, and security, can be managed with automated IoT processes.
This allows businesses to reduce energy consumption, optimize space, and lessen the environmental impact.
2. Edge Computing
In 2023, a major shift in the revenue generated by edge computing is projected by Frost & Sullivan, with a total of $3.71 billion, up 172% from 2022.
Due to the lower price point and larger computational power, IoT devices can manage data collected at the edge (namely on the device itself, before passing the data over), allowing for faster processing, substantial bandwidth savings, hindering network congestion, and streamlining high-density deployments.
Private wireless networks and edge computing will become more widely used as customers need a local data storage and real-time processing to enable latency-sensitive applications such as mixed reality (MR), augmented reality (AR), extended reality (XR), deep learning (DL), autonomous cars, and more.
3. Widespread 5G Connectivity
Finally maturing, 5G as an IoT connectivity solution will capture a sizable portion of the market in the years ahead, particularly as a drop-in replacement for older cellular technologies beginning in 2023.
Ericsson released a study predicting that by 2024, 5G networks would reach more than 40% of the world’s population, with cellular IoT connections topping 4 billion.
For applications like mobility solutions, autonomous driving, and healthcare that need to transmit massive volumes of data with extremely low latency, 5G provides vast bandwidth compared to low-power technologies.
4. Real-Time Data Processing
2023 will witness an increase in the number of IoT devices and apps requiring a bigger bandwidth to transfer more data.
And the more bandwidth you have, the more you can do.
Thus, more businesses will use IoT to facilitate centralized, real-time data processing.
The enormous data quantities created have been one of the main challenges with IoT technology.
But there is still a significant time lag between the collecting of data and its processing and analysis in most fields, despite the widespread use of machine learning (ML) and machine-to-machine (M2M) processing.
To change this, the focus will shift to real-time analysis in various contexts, including video, in 2023.
5. Security as a Driving Criterion
Statista estimates that in 2022, the number of IoT cyber attacks will exceed 112 million worldwide, almost 4 times the 32 million cases detected in 2018.
Eventually, these developments propelled the IoT industry to start employing the concept of Security by Design, in which connected products are designed with security in mind from the beginning.
Security must be layered at the network and device levels with numerous endpoints.
In this case, the network may be shielded against attack by using software that can detect threats on the network and allow infected devices to be isolated.
6. Industrial Automation & Smart Manufacturing Processes
To simplify processes, boost output, increase quality, and decrease overhead expenses, businesses will speed up their use of industrial IoT solutions in 2023.
The rise of digital twins in the Industry 4.0 paradigm may be attributed to the availability of data analytics and the IoT, which provide businesses with the means to implement initiatives like predictive maintenance and defect detection.
7. Metaverse & Immersive Experiences
New revenue channels for technology companies stemming from the growing demand for immersive experiences will create.
In 2023, IoT will be for interacting with the real and virtual worlds in the metaverse.
According to the Blockchain Council, “IoT will allow virtual spaces to interact and access the real world seamlessly, whereas Metaverse technology will offer the necessary 3D user interface for the IoT device cluster.
This will provide a user-centred IoT and metaverse experience to the users.”
Quite soon, IoT providers should be prepared to provide IoT software, sensors, and devices for metaverse integration.