During 2017, the Internet of Things (IOT) has advanced significantly, solidifying its presence in both the market and public perception. Just a few years ago, imagining a car that could autonomously guide us to a destination seemed far-fetched. Now, we can even envision a virtual assistant. Times have changed, and so has our understanding of the world around us.

Understanding the Future of IoT

While we are not visionaries, making predictions can be daunting. However, we aim to shed light on the near future of the Internet of Things with five key insights for 2018.

1. Growth of IoT Devices and Market Consolidation

One of the most robust trends in recent years is the surge in IoT devices, or connected “things.” According to market analysis by Gartner, there will be 8.4 billion smart devices by the end of 2017, with an expected rise to 20.4 billion by 2020. MarketsandMarkets forecasts the IoT market size to reach approximately $170.57 billion by the end of this year.

This upward trend is partly due to the growing interest from companies and industries in IoT. Businesses are increasingly investing in IoT projects, recognizing the potential for greater efficiency, productivity, and innovation, which can transform them into strong competitors in their market niche.

2. Industrial Internet of Things (IIOT) or Industry 4.0

IoT is transforming various industries. Currently, the Energy and Utilities and Healthcare sectors are leading in market share. However, 2018 will see a rapid acceleration in smart manufacturing, known as the Industrial Internet of Things (IIOT) or Industry 4.0.

We are on the brink of the factory of the future, featuring computerized and automated processes, interconnected machines with sensors, and wireless communication capabilities to optimize resources. Industry 4.0 is not yet fully realized but represents a milestone in industrial development, potentially leading to the 4th Industrial Revolution.

3. NB-IOT: Revolutionizing Connectivity

In 2018, Narrowband IoT (NB-IOT) technology will begin to emerge. It focuses on connecting everyday objects that require small amounts of data over long periods, ideal for applications like electric metering or luggage tracking (see project Track&Go).

This technology, utilizing existing mobile networks, offers numerous possibilities and is currently being tested. 2018 will be crucial for its global deployment, with the USA expected to lead the launch. By mid-year, it should be deployed nationwide, with testing already underway in Las Vegas. MarketsandMarkets predicts North America will maintain the largest IoT market share through 2022.

NB-IOT will be complemented by 5G technology, pushing the Internet of Things to its limits. This network, a successor to 4G, will enable faster mobile connections and aims to integrate seamlessly with IoT. Standardization is expected by 2020, but 2018 will see increased discussion about it.

4. Security: The Biggest Challenge

Security remains a significant challenge for IoT. The anticipated increase in connected objects makes it a crucial element at every stage of device development, from design to manufacturing. Enhancing security post-market release is extremely complex.

Security should be a top priority for device manufacturers to mitigate risks to consumers, companies, and society (Read our article on this topic).

5. The Rise of Artificial Intelligence (AI)

The rise of Artificial Intelligence (AI) will be pivotal in 2018, becoming mainstream. Voice assistants, now ubiquitous in mobile devices, computers, cars, and websites, exemplify this trend.

We are entering an era where machines can respond to our queries, with applications like Google Assistant, Siri, Alexa, and Cortana becoming essential tools for fulfilling our needs.