The global Internet of Things (IoT) market is projected to grow at an impressive annual rate of 13.5%, reaching US$1.8 trillion in revenue by 2028.
This growth represents a substantial increase from the US$959.6 billion recorded in 2023. The surge in market size is largely driven by the expanding application of IoT in various business sectors, supported by advancements in technologies such as 5G and artificial intelligence (AI). However, to fully realize this potential, challenges like security vulnerabilities and the absence of standardized protocols need to be addressed.
According to GlobalData’s recent report – ‘Internet of Things’ – enterprise IoT will increasingly dominate market contributions, anticipating a rise from 70% of total revenue in 2023 to 72% by 2028. Conversely, the consumer segment is expected to see a decline in its market share from 30% in 2023 to 28% in 2028. The evolution of new wireless technologies, which can be deployed on land and in space, offers a greater variety of connectivity options for IoT devices.
Enhanced 5G technology is paving the way for IoT applications that demand reduced complexity, lower costs, and minimized power consumption. One notable innovation is the 5G-satellite non-terrestrial network (NTN), which facilitates data transmission and reception for devices in remote or underserved areas via satellite. This technology will benefit devices that need constant connectivity and long battery life, without the necessity for all of 5G’s advanced features like high bandwidth and low latency.
AI’s integration into the IoT landscape is catalyzing significant growth, leading to the concept of Artificial Intelligence of Things (AIoT). By merging AI capabilities with IoT devices, software, and services, organizations can enable automated operations and predictive maintenance. AI can function across several domains — it can operate directly on IoT devices with some constraints, in the cloud, or through a hybrid approach.
