Progress in the Internet of Things (IoT) will be accelerated through the deployment of new network technologies, such as 5G and future 6G and the increased flexibility achieved with them, as well as the rapid integration of Artificial Intelligence (AI). The future of IoT appears to have unlimited prospects, which not only include the ability to connect billions of devices simultaneously but also involve harnessing the enormous volume of generated data to automate various business processes. As IoT networks and platforms evolve to overcome these challenges, service providers will further invest in information technology and networking, opening up new possibilities and revenue streams.
The financial performance of IoT companies has shown strong upward trends in recent years, as evidenced by the work of Pandow et al. [1], through the study of the average profitability of five selected companies (Spirent Communications, Infineon Technologies, Nuance Communications Inc., Silicon Laboratories Inc., B-Scada Inc.) from 2013 to 2018. As seen in Figure 1, the average performance of these companies ranged between 20% and 30% throughout the examined period.
The average cost of a common sensor has dropped to €0.30 today, meaning that whether it’s for household devices or industrial equipment, it’s easily accessible for all. At the same time, the number of connected devices has grown from 815 million in 2015 to 30 billion in 2020, and it is expected to reach 75 billion by 2025 [1], a number roughly three times higher than that of 2019 (Figure 2).
The attitude of businesses towards IoT has been changing rapidly in recent years, partly due to the COVID-19 pandemic. From being a potentially beneficial investment for businesses a few years ago, it has become a necessity of the new era. The pandemic has slowed down economic growth, leading to the postponement of several investments by the industry, as well as infrastructure projects that would have supported further IoT development. The installation and expansion of 5G networks, for example, which significantly enhance IoT functionality, have taken a back seat as economies worldwide were affected by the pandemic. On the other hand, IoT technologies have proven essential in facilitating remote work, monitoring workspaces and production lines, ensuring air quality and overall hygiene in public spaces, and minimizing the risks of pathogen transmission. Despite the economic slowdown caused by the pandemic, the IoT market is projected to grow at double-digit annual growth rates in the coming years. The pandemic has highlighted the extent to which public health could benefit from the adoption of IoT systems, including remote diagnostics and telemedicine. A study by S&P Global predicts that sales of IoT-enabled medical devices in US hospitals will grow by nearly 20% annually until 2024, reaching $319 million, up from $136 million in 2019.
Despite the challenges posed by the pandemic in the current phase, the future of IoT looks bright. An exciting new wave of IoT applications will emerge in the near future, which will come to life through a more intuitive interface between humans and machines. The Internet of Things will forever change the way we interact with machines and with each other. Exciting augmented reality applications will redefine various sectors such as healthcare, manufacturing, transportation, and more. As IoT continues to advance, it holds tremendous potential for innovation, efficiency, and a transformative impact on numerous aspects of our lives.
1. Pandow B. A., Bamhdi A. M., Masoodi F., 2020, Internet of Things: Financial Perspective and Associated Security Concerns, International Journal of Computer Theory and Engineering, vol. 12, nr. 5, October 2020, I.A.C.S.I.T., http://www.ijcte.org/vol12/1276-G1791.pdf