Top IoT Trends to Watch in 2020
From edge computing to blockchain to 5G technologies, here are the top IoT trends in 2020.
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As devices proliferate and data processes require low latency and greater speed, edge computing architecture has become an important alternative to the cloud.
Self-driving cars, for example, require responsiveness Edge computing eliminates the delay involved in sending data to a centralized cloud architecture and back, and IoT processes that require low latency, such as self-driving cars, drone delivery and so on, are pushing data to the edge. This means that devices themselves now house greater intelligence. Accordingly, IoT semiconductor spending is projected to reach $34 billion in 2020, according to recent data by Deloitte.
“IoT and AI are really converging, and this is one example, at the chip level,” said Kaleido Insights’ Jessica Groopman.
As we note later, though, greater intelligence at the chip level can be even better realized when 5G technology is fully available.
Like other cellular networks, 5G networks will use a system of cell sites to send data via radio waves. But 5G connectivity will also rely on networks of small cells, transmitting data over short distances.
As a result of expanded network capacity, 5G could bring data transfer speeds of up to 100 times faster than 4G, the current standard. 5G promises lower latency and higher bandwidth as well as an increase in device density, three critical components of what data-hungry IoT processes need to work in real time and at scale.
But while 5G promises to unlock some of the still-untapped potential of IoT, it will take time for spectrum access to be built out, among other infrastructure developments.
“There are a lot of moving parts, such as the allocation of [radio] spectrum,” said Groopman. “Will it be in 2020?” she mused, then said she thought unlikely, especially in an election year [the Federal Communications Commission is at work to expand spectrum access, but it also involves congressional approval].
Smart Connections Consulting’s Bill Pugh agreed that 2020 is about building the infrastructure and developing the use cases.
“For 2020, we’re still in the infrastructure buildout phase: We’re just getting the towers and the bay stations all set up,” he said.
Pugh noted that 5G also offers an abundant opportunity to bridge connectivity disparities within underserved communities, as the technology divide increases. The number of those that don’t even have broadband connections is staggering.
As devices proliferate and interact with one another, and as the data generated by these devices becomes more central to processes, securing devices and data becomes paramount. So too, many cyberthreats have come from operational networks (or industrial IoT networks) that are poorly secured, then hacked, and the threats seep over into enterprise IT networks.
Machine learning can help enterprises detect anomalous activity on a network in real time and automate monitoring, helping security teams to devote time to higher-level tasks. At the same time, it’s important to note that malicious attackers also have enlisted AI for their benefit and are using it to infiltrate networks.
From Google to Apple and onward, the wearables market is becoming fierce terrain for competition. According to a report from Markets and Markets, the wearable technology market is expected to reach $51.6 billion in the next three years. These devices can perform real-time monitoring of patients’ vitals.
While gathering data on heart rate and other attributes could provide life-saving information, there is question about data ownership and stewardship as sensitive health information resides on these devices.
“Who controls the data, and how are they using it, and do we even know?” Groopman asked.
She said that new data regulatory efforts, such as the California Consumer Protection Act, will bring data privacy to the fore.
As data increasingly drives business processes, decision making and more, data privacy, governance and ethics have become paramount.
“The trust and social implications of IoT are front of mind,” Groopman said. “I can’t tell you the number of clients that are asking about just data governance but data ethics. How can we build this into product design?”
Companies now use personal information to market to consumers based on their prior preferences. Facial recognition software and fingerprint scans not only identify an individual, but these technologies can also be used to categorize individuals based on attributes. Groopman predicted that regulatory efforts that have come to fruition over the past couple of years— General Data Protection Regulation and the California Consumer Privacy Act— would bring data ethics to the fore.
“The appetite for data governance, ethics and data responsibility hasn’t been central to the IoT market discussion certainly five years ago, but 2020 is the year because CCPA makes it required.”
Several components of smart-city infrastructure are poised to develop, including those that optimize traffic and water usage and those that promote public safety.
According to Groopman and Pugh, some elements of smart city projects are proceeding faster than others. Groopman indicated that smart building infrastructure is an area of promise. Pugh cited connected traffic lights, smart city lighting and smart water metering as three areas of promise.
As we discuss in another trend later, digital twins are helping to accelerate smart city projects by simulating traffic at an intersection, for example. At the same time, grand smart city initiatives, such as self-driving cars, are not expected in 2020 or for several years beyond.
“Any widescale deployment of autonomous vehicles requires 5G. That is almost certain. And we’re still waiting for this ubiquitous connectivity to come online,” Groopman said.
Smart home devices such as Alexa have become commonplace, but numerous tools, such as facial recognition and fingerprint recognition have emerged over the past couple of years.
“AI is powering voice, face, gesture and biometric recognition — all of these new interfaces for when screens go away,” Groopman said. “This is a profound transition.”
As voice and video become so prevalent, we are moving from “tapping and typing” to having a a device read our voice, face or fingerprint initiate action.
“This brought smart home past the 10% mark. It’s the tip of the iceberg,” Groopman said.
At the same time, Groopman noted, new trends such as identity verification through facial recognition pose data privacy and ethics issues.
The secure distributed ledger technology has gone through fits and starts in 2019. The year 2020 may yield some of the same. That’s partly because blockchain has been tarred with the same brush as that tainting bitcoin, the digital currency. But while blockchain technology is the underlying technology for cryptocurrency, it’s different, offering an encrypted platform to engage in a variety of transactional processes.
Consider shipping, which has historically suffered from a lack of digitization and a mountain of paperwork. Instead of bills of lading and port documents, cargo can be recorded and encrypted in a blockchain, with tracking and tracing of goods along the journey. It also links the communications and logistics of various parties in the process including port operators, cargo owners and customs authorities. Groopman urged that while blockchain isn’t 100% ready for prime time, pilots indicate that it’s becoming more viable.
Groopman also noted that complementary technologies including 5G will enhance the capabilities of blockchain.
“It’s not whack-a-mole exactly — maybe a rising tide lifts all boats might be a better metaphor,” she said. “Ubiquitous, low-latency connectivity via 5G will enable things we’re still piloting and dreaming about on the blockchain side.”
A digital twin is a virtual model of a product, product or process. Pairing the virtual and the physical through simulation allows new products and processes to be created, built and tested virtually. It also enables analysis of data and monitoring of systems identify problems before they occur, prevent downtime, develop new opportunities and even plan for the future by using simulations.
The city of Palo Alto has a digital twin mapping 120 intersections for vehicle and pedestrian traffic in real time. The digital twin visualizes traffic lights, foot traffic and so forth to identify traffic chokepoints and safety issues in real time. Pugh said that he is working on a digital twin for another city in California that will combine traffic lights, pedestrian traffic and environmental characteristics, such as vehicle emissions.
“You can monitor Co2, street light data people data in a single pane of glass,” Pugh said. “Digital twins will be hugely prevalent in 2020.”
As IoT began to roll out, many in the IoT market focused on the hardware device. But as the internet of things matures and data drive its projects, the focus has shifted from the device to the data.
Groopman noted that as companies struggle with IoT ROI and cost savings, they have shifted their focus.
“Maybe It’s not all about the devices,” she said. “Hardware is nice, but what we’re really after is data.” And the focus has become how to “properly steward, monetize, understand, build a business model out of that data.”
As artificial intelligence permeates devices and software as well, data strategies will become only more paramount to derive value from the data as well as to ensure its security.
As IoT began to roll out, many in the IoT market focused on the hardware device. But as the internet of things matures and data drive its projects, the focus has shifted from the device to the data.
Groopman noted that as companies struggle with IoT ROI and cost savings, they have shifted their focus.
“Maybe It’s not all about the devices,” she said. “Hardware is nice, but what we’re really after is data.” And the focus has become how to “properly steward, monetize, understand, build a business model out of that data.”
As artificial intelligence permeates devices and software as well, data strategies will become only more paramount to derive value from the data as well as to ensure its security.
As the internet of things (IoT) permeates homes, cities and office buildings as well as industries like retail and health care, It’s clear that connected devices are changing how people interact with virtually everything around them.
Kaleido Insights’ Jessica Groopman
Technologies such as 5G – the next generation of cellular connectivity – and edge computing – an architecture bringing compute closer to the users and devices that need it – have enhanced the capabilities of IoT devices. They have made it possible for wearables devices to convey health data in milliseconds, a fingerprint scan to admit you to a building or a voice command to schedule a meeting. 5G and edge computing technologies have furthered the potential of IoT devices, boosting data transport speed and reducing data latency.
As a result, IoT market growth is predicted to continue to grow apace in 2020 and beyond. International Data Corporation (IDC) estimates that there will be 41.6 billion connected IoT devices, or “things,” generating 79.4 zettabytes of data in 2025.
Despite this growth, and the clear opportunities of IoT in various sectors, successful adoption of IoT technologies faces challenges. In 2017, Microsoft data indicated that 30% of companies’ IoT projects failed at the proof-of-concept phase, and only 26% of projects were deemed successful. That may be because roughly one-half of respondents to a Capgemini study had not identified a clear business case for IoT, and three in five said they struggle to realize value from their initiatives because they lack the analytics capabilities.
Smart Connections Consulting’s Bill Pugh
As partners consider the growth opportunity in selling IoT services, it’s important to consider how these still-nascent technologies can best succeed. According to recent McKinsey data, many companies report a 10-15% cost savings from IoT projects. While substantial, there is still a distance to go to get ROI from these projects.
We spoke with Jessica Groopman, industry analyst and founding partner at Kaleido Insights, and Bill Pugh, co-founder, managing partner, Smart Connections Consulting, about the top IoT trends for 2020.
Click through the slideshow above to learn more about the top IoT trends in 2020 that you should be watching.
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