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AI, machine learning, 5G and other connectivity services are set to see steady growth in 2024
December 13, 2023
IoT technologies including AI, machine learning (ML), 5G and other connectivity services, are expected to converge in terms of maturity in 2024, rising to meet businesses’ ongoing labor and supply chain needs.
Omdia’s report, 2024 Trends to Watch: IoT, said the macroeconomic picture in 2024 is one of greater stability than seen in the past few years, creating a more hospitable climate for businesses to deploy and grow IoT strategies.
Citing Goldman Sachs, the report said cooling inflation and robust job markets mean key sectors such as manufacturing will recover from the pressures of the past year, with global real gross domestic product (GDP) forecast to grow 2.6% year-over-year in 2024.
According to the report, ramp-up and refinement of IoT technologies will provide significant potential in helping companies meet ongoing labor and supply chain issues, as well as meeting sustainability targets by identifying and mitigating inefficiencies.
“2023 was a breakout year for the exploration of consumer applications for AI/ML, and 2024 will see IoT enterprises evolving their strategies,” the team wrote.
AI and ML were identified as priorities for IoT enterprises and, according to Omdia’s 2023 IoT Enterprise Survey, more than 90% of IoT enterprises are either currently or plan on using the tech.
With the anticipated rise in connected devices as businesses pursue smart strategies, the importance of these technologies is set to grow.
“With devices supporting greater computing, AI and ML will provide the intelligence and decision-making capabilities that are essential for making sense of the vast amounts of data that IoT devices generate,” the team said, “allowing for true automation of previously manual processes, while IoT prices the real world context and feedback that AI needs to make accurate and timely decisions.”
To support AI and ML adoption, Omdia highlighted the need to support in-house experts so businesses can remain ahead of the trend.
Companies across industries are expected to ramp up deployment of eSIM and iSIM, leading to increased calls for 5G connectivity tools including RedCat and NTN
“Specific verticals such as energy & utilities, remote monitoring, and smart cities will see early adoption of the eSIM/iSIM for IoT,” the team said. “Other verticals such as automotive, consumer, and transportation will continue to adopt the eSIM/iSIM solutions that are popular in the consumer market.”
According to the report, eSIM/iSIM technology is expected to improve IoT deployments for enterprises by expanding their network coverage, increasing security and providing them with the ability to negotiate lower tariffs.
Finally, the Omdia team forecasts that global IoT revenues from satellite connectivity will grow from $385 million in 2021 to $1.2 billion in 2027, with 2024 seeing 36.7% growth year-over-year.
While this represents only a small connectivity market, it remains an important one given ongoing geopolitical tensions and instabilities.
“The war in Ukraine has highlighted the fragility of terrestrial networks, and many enterprises and governments believe that communications must be made more resilient,” the team wrote. “IoT communications need increased resiliency…Investment has flooded into the satellite market, particularly for start-ups launching low earth-orbit (LEO) satellites.
“The market will likely consolidate heavily within the next five years. While the consumer market for consumers will be much larger, satellite IoT will provide a nice secondary line of revenue.”
Assistant Editor, IoT World Today
Scarlett Evans is the assistant editor for IoT World Today, with a particular focus on robotics and smart city technologies. Scarlett has previous experience in minerals and resources with Mine Australia, Mine Technology and Power Technology. She joined Informa in April 2022.
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