Connected IoT Devices Market Trends

Growth Drivers

• Advancements in wireless communication: Rapid advancements in wireless communication technologies have boosted the capabilities of connected IoT devices by reducing latency. Improved performance of IoT devices benefits adoption across various sectors. Smart stadiums have integrated connected IoT devices to expand revenue streams by providing real-time data analytics and personalized fan experiences. For instance, in May 2023, JIG-SAW partnered with the San Diego Padres to build a smart stadium using connected IoT devices.
  
  Additionally, the rapid proliferation of 5G devices has led to wider coverage, boosting the proliferation of IoT devices worldwide. For instance, in June 2023, 5g Americas reported that global 5G connections had reached a whopping 1.2 billion and are set to reach 6.8 billion by the end of 2027.
• Rising AI integration and adoption of edge computing: Integration of IoT with edge computing and artificial intelligence (AI) enables faster data processing and intelligent decision-making at the device level. These technologies reduce dependence on cloud computing and open possibilities in sectors such as smart agriculture and autonomous vehicles. Additionally, processing data locally minimizes the risk of data breaches. For instance, key market players offer smart home devices integrated with AI that improve end user experience and boost sales. Citing an instance of a key player leveraging the market opportunities, in August 2024, LG launched the LG ThinQ ON AI home hub featuring affectionate intelligence and is poised to provide an elevated connected home living experience.
• Increasing digital transformation of the healthcare sector: The connected IoT devices market analysis indicates that the healthcare sector is a significant beneficiary of connected IoT devices. The advent of remote patient monitoring, wearable health trackers, and telemedicine solutions offer multiple segments for the connected IoT devices sector. Improvement in patient outcomes due to connected IoT devices in healthcare settings augurs well for the market’s expansion. Furthermore, opportunities are positioned to arise from large-scale investments to improve healthcare infrastructure in emerging economies for businesses to supply IoT devices. For instance, in July 2024, Prisma Health invested USD 41 million in smart beds across its hospital system.

Challenges

• Interoperability & standardization constraints: Lack of standardized protocols and frameworks among IoT devices can create challenges in seamless integration. Incompatible technologies from different manufacturers can result in fragmented ecosystems that can stifle scalability. Additionally, unsupported IoT devices can cause cyber troubles.
• Environmental concerns due to the rise in e-waste: The growing number of IoT devices causes the issue of e-waste. In October 2024, the World Health Organization estimated e-waste as one of the fastest-growing solid waste in the world. Additionally, the energy consumption of IoT devices contributes to environmental impact pushing businesses to adopt energy-efficient solutions.