Recent findings indicate that the Industrial Internet of Things (IIoT) market is poised for significant growth, driven by the increasing digitisation of industries under the Industry 4.0 movement. According to the latest State of IoT 2024 survey, the number of connected IoT devices is expected to expand at a remarkable pace this year. The survey projects a 13 percent growth in the number of devices, with an estimated 18.8 billion devices expected to be connected by the end of 2024.
Despite the continued rise, the growth rate for connected IoT devices has been slightly revised down from earlier predictions made in 2023. This adjustment reflects several influencing factors such as persistent challenges in chipset supply chains, economic caution due to high interest rates, and ongoing geopolitical instability. Global unrest, particularly in Eastern Europe and the Middle East, continues to impact market confidence. Nonetheless, these factors have not diminished the overall momentum. The number of devices is projected to hit 40 billion by 2030, showing continued strong demand.
Consumer adoption of IoT-enabled gadgets, such as smartwatches and home devices, has been noteworthy. However, it is the industrial sector that remains the driving force behind this surge. The IIoT has provided measurable returns in various applications, such as process monitoring, preventative maintenance, and quality control. This adoption is further bolstered by improvements in connectivity technologies. According to the survey, nearly 80 percent of all IoT connections rely on three core technologies: WiFi, Bluetooth, and Cellular IoT. Together, these technologies support the development of IoT by extending its applicability to a broader range of industrial processes. Advances in 5G, LTE-M, and mesh WiFi networks are also contributing to this rapid expansion by enabling new and more efficient use cases.
Looking to the future, several key technological advancements are expected to sustain the upward trend in IoT device growth. A major factor is the increasing integration of artificial intelligence (AI) into IoT ecosystems, particularly with the adoption of generative AI. Edge computing is also playing an essential role in this development. By enabling data processing closer to the source, edge computing reduces latency, lowers bandwidth costs, and enhances real-time analytics capabilities—all of which are crucial in industrial settings.
Cybersecurity, too, remains a critical consideration as the number of connected devices grows. A previous report highlighted the significant risks associated with IoT systems, noting a 400 percent rise in cyberattacks targeting IoT devices last year, with the manufacturing sector being particularly vulnerable. To mitigate these risks, investment in AI-powered cybersecurity measures is increasing. The combination of enhanced cybersecurity, edge computing capabilities, and AI integration is expected to propel the IoT market to new heights over the next decade.
The explosive growth of the IoT market shows no signs of slowing down. With nearly 19 billion connected devices by the end of this year and future projections reaching 40 billion by 2030, IoT continues to revolutionise industries worldwide. Key drivers, such as the increasing adoption of IIoT, advancements in connectivity, and emerging technologies like AI and edge computing, are set to ensure sustained growth in this sector. The evolving technological landscape, coupled with ongoing efforts to strengthen cybersecurity, will be critical to shaping the future of IoT development.
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