Internet of things (IoT), once considered a futuristic concept, has now become the buzzword in the technology realm. Enterprises spanning across various industries, including transportation, logistics, healthcare and manufacturing, are increasingly embracing IoT-based solutions to streamline their operations, gain significant time and cost efficiencies, and introduce innovative value propositions for their customers. For telecom operators too, IoT has become a key growth area, given that the consumer retail business continues to face competitive headwinds. The global launch of 5G services has accelerated the growth and adoption of IoT technologies as 5G enables IoT devices to transmit and receive data more quickly and efficiently, facilitating real-time communication and decision-making. Further, 5G’s ability to support a massive number of simultaneous connections allows for the deployment of large-scale IoT networks, with millions of interconnected devices.
As businesses and consumers increasingly recognise the benefits of IoT solutions, the demand for connected devices and services is expected to continue to grow rapidly in the coming years. According to industry estimates, the global IoT market is likely to grow from $714.48 billion in 2024 to $4,062.34 billion by 2032, a compound annual growth rate of 24.3 per cent. Several recent technological breakthroughs are reshaping the landscape of IoT, with the technology becoming increasingly intertwined with a range of next-generation innovations including artificial intelligence, metaverse, blockchain and digital twins. Despite beginning its IoT journey much later than that of the developed economies, India is witnessing an impressive adoption of IoT. Key industries driving this adoption include utilities (water and electricity), manufacturing, transportation and logistics, automotive and healthcare. Additionally, the government’s initiatives such as the Smart Cities Mission and Digital India programme are contributing to the increasing demand for IoT products and services in the country.
A look at the evolving technological trends within the IoT sphere and the adoption of this technology in the Indian market…
Emerging technological trends in the IoT space
Artificial internet of things (AIoT): AIoT, the integration of artificial intelligence (AI) with IoT, has started playing a pivotal role in the connected devices ecosystem by enabling IoT devices to autonomously learn from their surroundings and act upon that knowledge without the need for human intervention. This integration yields significant advantages, particularly in predictive maintenance. Through data gathered by IoT devices from machinery and equipment, AI algorithms can anticipate maintenance requirements, thus reducing downtime and repair expenses considerably. For instance, in the manufacturing space, data collected by sensors on machine performance can be used by AI algorithms to forecast part failures and schedule maintenance pre-emptively. Furthermore, the integration of AI with IoT in smart homes can help optimise the energy consumption of connected devices such as lighting systems, smart thermostats and security cameras based on user habits. In healthcare, the synergy of AI and IoT can help analyse patient health data collected by wearables and medical sensors for analysis by AI algorithms.
Convergence of IoT and the metaverse: The fusion of IoT and the metaverse holds significant promise for creating immersive, interactive and interconnected virtual experiences that diminish boundaries between the physical and virtual worlds. Metaverse refers to an immersive and interconnected virtual universe, where users can interact with one another and digital objects in real time. By incorporating IoT into metaverse, enterprises can bring real-world data and interactions into this virtual environment, enriching the user experience and expanding the scope of applications. IoT devices can help transmit real-world data such as temperature, motion and sound and transmit to metaverse in real time, thereby making the virtual environment more responsive and reflective of real-world conditions. For example, in a virtual reality (VR) game, set in a simulated city, IoT sensors in the players’ physical environment could detect changes in lighting or temperature and replicate these changes within the game world, enhancing the sense of realism and immersion.
Integration of blockchain with IoT ecosystem: Blockchain is a distributed ledger technology that provides transparent records of transactions or data. In the IoT ecosystem, blockchain can help provide a secure way to store, manage and share vast amounts of data generated by the connected devices. For instance, blockchain can be used to record and verify each step of a product’s journey through the supply chain, from manufacturing to distribution, thereby helping companies enhance transparency and traceability, ensuring the authenticity and quality of products and also reducing the risk of counterfeit goods entering the market. Furthermore, blockchain-enabled micropayments can facilitate new business models for IoT devices, where devices can autonomously transact with one another in a secure and transparent manner. For example, smart meters in a grid could use blockchain to automatically buy and sell energy among themselves, based on the supply and demand.
Growing popularity of digital twins: The data collected by IoT sensors is increasingly being used to create digital twins, which are virtual representations of physical objects, systems, or processes that mirror their real-world counterparts in a digital environment. By continuously updating digital twins with IoT data on parameters such as temperature, pressure, vibration and location, stakeholders can monitor real-world assets in real time and gain insights into their performance and condition. Further, the digital twins technology allows stakeholders to simulate different scenarios and optimise asset performance, thereby enabling stakeholders to experiment with various configurations, operating conditions and maintenance schedules to identify the most efficient and cost-effective strategies.
Indian operators bullish about the IoT opportunity
Faced with declining revenues from traditional business models, India’s major telecom operators have launched their own suite of IoT solutions to capitalise on the opportunities presented by connected devices for enterprises. Bharti Airtel, for instance, has established a dedicated IoT vertical within its Airtel Business segment. As of July 2023, Bharti Airtel announced that it had successfully connected over 20 million devices through its IoT solutions, spanning from common household items such as Wi-Fi routers, smartwatches and Bluetooth devices to more complex industrial tools and radio frequency identification tags. The company has identified the automotive sector as a primary focus for its IoT business and has partnered with electric vehicle (EV) start-up, Matter Motor Works, to power 300,000 bikes through cellular IoT technology. Similarly, Vodafone Idea’s enterprise arm, Vi Business, serves over 4,000 IoT clients spanning diverse sectors, including vehicle tracking, connected cars, point-of-sale systems, advanced metering infrastructure and machine-to-machine applications such as EVs, battery management, agriculture, solar and water management. In February 2024, Vi Business introduced the “Vi Business IoT Smart Central,” enabling enterprises to remotely control, monitor and manage their IoT assets in real time. The platform offers instantaneous diagnosis and remote troubleshooting for all installed IoT devices, along with proactive alerts to prevent overlooking critical issues. Reliance Jio Infocomm Limited is also witnessing an increased traction for its IoT platform, JioThings, which provides customised end-to-end IoT solutions for verticals such as automobile, agriculture, smart assets and utilities. The major users of the JioThings platform include companies such as Havells in the smart assets space, Schneider Electric and Tata Power in smart utilities and BMW and Volkswagen in smart mobility.
Key challenges hindering adoption
Despite the strides made so far, security and privacy concerns continue to pose significant barriers to the widespread implementation of IoT. A single vulnerability within the IoT ecosystem can grant malicious elements access to the entire data-set, leading to potentially serious consequences. Another significant challenge hindering IoT adoption is the increasing complexity of solutions within the IoT ecosystem and the shortage of skilled personnel to manage them. The involvement of multiple devices and stakeholders in the IoT value chain exacerbates the complexity of the user interface, thereby impeding user experience. Interoperability poses another key issue, as the majority of IoT devices are fragmented and lack interoperability due to differences in operating systems, vendors, versions, purchase times, incompatible connectivity frameworks and inconsistent communication protocol standards. Furthermore, assessing the return on investment for IoT projects and making decisions on IoT strategies presents a considerable challenge. Unlike traditional IT investments such as virtualisation, which focuses on maximising server infrastructure usage and operational efficiency, IoT fundamentally alters business processes, making the quantification of its impact challenging.
Conclusion
IoT is delivering tangible benefits across industries, driving efficiency and fostering innovation. Its integration with cutting-edge technologies such as artificial intelligence, metaverse and blockchain has given a further fillip to its adoption. However, security and privacy concerns pose formidable obstacles to widespread uptake. Addressing these challenges requires robust measures such as implementing strong encryption protocols, adopting stringent access controls and fostering transparent data governance frameworks. Additionally, collaboration among stakeholders, including policymakers, industry leaders and cybersecurity experts, is essential to develop comprehensive strategies that safeguard IoT ecosystems, while promoting innovation and growth at the same time.
