Hyperconnectivity Market Trends

Growth Drivers

• Rise of hyperconnected urban freight networks: Road freight transport remains one of the top GHG pollutant sectors, after aviation and maritime shipping. Reducing the carbon emissions associated with these industry verticals continues to be a major challenge. The EU has had some relative success in decoupling freight and transportation carbon byproducts from economic growth, but it is still responsible for more than a quarter of overall emissions. Hyperconnectivity in urban logistics offers a higher involvement of local actors that can provide more sustainable and denser networks, enabling powerful improvements in the supply chain.
  
  Hyperconnected supply chains directly influence the flow of goods - both from the source company and its customers. For its shareholders including suppliers, OEM, dealers, and customers, it offers massive opportunities for topline growth by faster customer acquisition and retention, while minimizing operational cost and facilitating seamless supply chain operations (transport, warehousing, sourcing, and planning). The TCS Hyperconnected Supply Chain employs telemetry, which facilitates quicker substitute detection and reduced lead time. This procurement solution delivers on the promise of a resilient hyperconnected workbench for detecting legitimate stocks, price fluctuation checks, gathering counterfeit avoidance certificates, and intercepting volatile inventory for pre-empting stocking.
  
  Furthermore, the EU-funded CLUSTERS 2.0 project is a benchmark of government initiatives for developing low-capital goods handling and transhipment solutions, which has laid the groundwork for the EU’s sustainable transportation strategy to shift to 50% railway by 2050. It is a hyperconnected open network of freight clusters and links hubs’ functions via the internet. It falls under the umbrella of The EU’s Trans-European Transport Network (TEN-T) policy that addresses the robust development of a Europe-wide network of railway lines, inland waterways, roads, maritime shipping routes, airports, ports, and railroad terminals for logistics-related activities.
• Expanding smart cities and infrastructure development projects: Smart cities and infrastructure development projects are anticipated to offer lucrative opportunities for hyperconnectivity solution producers. Such projects employ advanced technologies to enhance urban living conditions, improve public services, and optimize resource management. Smart roads, bridges, and public transport systems are equipped with advanced sensors and connectivity. Hyperconnectivity enables the seamless integration of data from various sources such as traffic cameras and public databases, aiding in real-time decision-making and management. For instance, Egypt is witnessing the fourth-generation infrastructure development for projects such as international sports, district offices, bus rapid transit (BRT), and art & culture.
• Hyperconnectivity making home smarter: Smart home trends are set to boost the demand for hyperconnectivity solutions in the coming years due to their convenience and energy efficiency. Smart home systems and devices such as home theatres, voice assistants, televisions, room heaters, AC, and more through advanced connectivity technologies. Hyperconnectivity allows the seamless automation of tasks based on user’s preference for example automation of lighting that turns on sensor detection. Hyperconnected solutions also offer real-time access to data and analytics that aid in making informed decisions about building operations.

Challenges

• Security and privacy risks: The growing number of connected devices and systems is leading to privacy and security concerns. The interconnected nature of devices increases vulnerability risks and one affected device potentially compromises others. Connected devices and networks have a high chance to serve as entry points for several attackers.
• High costs associated with hyperconnectivity infrastructure development: Deploying and maintaining infrastructure for hyperconnectivity including 5G networks and edge computing facilities is complex and expensive. 5G networks require dense deployment of base stations and cell towers to support high-speed and low-latency communication, which increases the overall investment costs. Also, 5G networks are more power-intensive than previous generations which again leads to high operational costs.