IoT Market Expected to Surge to $1.8 Trillion in Five Years Amid Edge AI Boom

Key Takeaways

The global IoT market is projected to grow from $959.6 billion in 2023 to $1.8 trillion by 2028, expanding at a CAGR of 13.5%.
Enterprise IoT is expected to dominate the market, constituting 72% of total revenue by 2028, driven by advancements in 5G and AI technologies.
Concerns over IoT security continue, with fragmented standards posing challenges for widespread adoption, although AI could enhance device-level security.

Growth Projections for IoT Market

The global Internet of Things (IoT) market is anticipated to nearly double in value over the next five years, reaching $1.8 trillion by 2028 from $959.6 billion in 2023. This growth is linked to advancements in 5G and artificial intelligence (AI) technologies, as well as new satellite-based non-terrestrial networks (NTNs) that enhance connectivity in remote areas. Data analytics firm GlobalData highlights these trends in its latest report, emphasizing the increasing role of AI in IoT.

By 2028, enterprise IoT is expected to comprise 72% of total market revenue, an increase from 70% in 2023. This shift is driven by enterprises adopting 5G technology for private networks and integrating AI at the edge of their operations. In contrast, the consumer IoT segment is projected to decrease from 30% to 28% over the same period, reflecting a more significant focus on enterprise applications.

The report also sheds light on the concept of AIoT, which combines IoT capabilities with AI technology. AI is recognized as a catalyst for IoT growth, facilitating automated operations and predictive maintenance through the integration of connected sensors and AI-driven data processing. William Rojas, research director at GlobalData, notes that the development of embedded AI acceleration microprocessors and advanced wireless access technologies will propel both enterprise and consumer IoT deployments.

New NTN constellations, which include low-Earth orbit (LEO) and geostationary orbit (GEO) satellites, are enhancing IoT coverage in uninhabited areas, enabling comprehensive tracking and monitoring services critical for various industries such as shipping, agriculture, and mining. Despite these advancements, security concerns remain prominent. GlobalData emphasizes the risks posed by fragmented standards and weak security protocols, which could hinder further IoT adoption. Many IoT devices, due to limited computing power, cannot run effective security software, making them vulnerable to cyberattacks.

However, AI has the potential to improve security at the device level. Rojas points out that IoT represents a complex digital ecosystem with various interconnected layers that manage data from IoT sensors. He suggests that integrated AI technologies can enhance security measures and that edge computing will provide the necessary computing resources for applications requiring low latency.

In summary, while the IoT market is poised for significant growth led by enterprises and AI integration, addressing security vulnerabilities remains a critical challenge for future developments.

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