Top Trends 2023 - Internet of Things (IoT)

As of December 2022, there were 8 billion humans on Earth. At the same time, there were roughly 7 billion connected IoT devices currently in operation. However, it is expected that by 2025, over 10 billion IoT devices would be deployed worldwide! It just goes to show the incredible rate of adoption that IoT technology has found. Businesses and individuals alike are leveraging IoT to enhance the automation and convenience of operations. Last year, we highlighted IoT trends such as IoT in healthcare, 5G integrations and Industrial IoT (IIoT).

The latest IoT trends will be crucial success factors for businesses looking to drive innovation and digital transformation. From smart homes and buildings to digital twins, IoT will offer the market several unique applications in 2023 and beyond. So, join us as we explore the 5 most significant trends in the world of the Internet of Things (IoT) in 2023.
 

Trend 1: IoT Will Enable Smart Cities And Buildings

 
One of the most significant IoT trends this year will be the development of smart cities and buildings. The Internet of Things will optimize various functions within city and environment planning to create intelligent ecosystems in 2023.

A smart city (or building) uses IoT sensors to collect specific data, which is used to gain insights to improve the management of assets, resources, services and operations across the city. In addition to improving aspects such as public transportation systems, power usage, resource utilization, capacity planning, etc., this will result in more engaging and environmentally friendly public amenities. Smart cities will not only enhance human comfort but also the social, environmental and financial facets of urban living. Smart cities will play a significant role in enhancing sustainability and the standard of living.

Spending on smart city initiatives worldwide is forecasted to more than double from 2018 to 2023, increasing from 81 billion U.S. dollars in 2018 to 189.5 billion in 2023. Smart cities will rely on IoT sensors being the key driver in connecting people with their environment in real time.

TechDogs’ Opinion: The concept of smart cities, also known as digital cities or intelligent cities, has been around for a long time. However, with the rising adoption of IoT, pioneering cities will aim to develop actual smart buildings. We expect to see this change occur in urban areas, where data will be collected from citizens through IoT devices to manage the available resources more efficiently. Government buildings and offices will become smarter by using IoT sensors on smaller scales. Real-time insights and data sharing will reduce costs and wastage, improve resource usage and promote better living and working environments, creating a better bond between the government and its citizens. #LetsGetSmart
 

Trend 2: Digital Twins Will Become Smarter With IoT

If you haven't come across the term yet, digital twins are virtual replicas of physical products, processes, or systems that bridge the physical and digital worlds. If that sounds intriguing, check out our quick introduction to Digital Twins! In 2023, digital twins will receive a boost by joining forces with the Internet of Things!

As you may have guessed, digital twin technology needs smart sensors to collect real-time data from the physical item, which is then used to create a virtual duplicate (or twin) of the item. Using IoT sensors will make the operation of this technology seamless and simplified. The role of IoT in digital twinning will be invaluable for businesses, especially those focused on developing infrastructures with complex data-producing networks or devices. The more data streams they can create, the more insights they will be able to generate. This creates a cost challenge in digital twinning for large physical devices and systems.

HHowever, IoT sensors will provide a low-cost alternative for this issue. They will enable businesses the convergence of multiple data streams from the physical twin to the virtual twin. This will allow businesses to digitally represent any physical asset: machines, devices, processes, operation states, etc. with ease.

TechDogs’ Opinion: Although digital twinning has been around since the 60s, there has never been industry-wide adoption. However, the implementation of IoT sensors in digital twinning will provide businesses with enhanced capabilities. We expect the manufacturing industry to invest in this technology which will enable them to continually view the operating states of machines, equipment and devices in real time. Other sectors will integrate IoT with digital twinning to develop innovative Industrial IoT applications as well. Overall, the use of IoT sensors will greatly enhance product design and virtual testing strategies in 2023. #FindTheSmarterTwin
 

Trend 3: IoT Data Governance Will Be In Focus

Data governance has always been a major talking point in cybersecurity circles. In 2023, it will extend to IoT data, as businesses will feel the need to enhance IoT data security through better data governance.

A data governance framework will ensure responsible behavior in the creation, usage, storage and deletion of data necessary for the operations of Internet of Things devices. This trend will be necessary as IoT networks will continue to expand this year, especially to customer devices. IoT data governance will cover everything from straightforward tasks such as software upgrades and device security audits to more complicated initiatives such as encrypting user data in smart city applications.

According to a global survey by Thales Group, 27% of respondents stated that identifying or discovering sensitive data generated by IoT devices is their top security issue in IoT applications. Hence, the ownership of data and ensuring its security will be a major undertaking in 2023. Moreover, the insights from IoT customer data will come under ethical purview, leading to stricter data privacy and governance laws being passed for IoT data applications. Governments are expected to take on a supervisory role and protect the welfare of the public as IoT data penetration and proliferation rise.

TechDogs’ Opinion: Soon, IoT will come under various data privacy regulations and businesses will need improved governance strategies for IoT data. We expect businesses to focus on better data integrity and security across the enterprise network. Moreover, firms with IoT investments will maintain a central, trusted source of information to prevent unlawful intrusion or data pollution through IoT network attacks. Data governance strategies will also need to be a mix of agile and traditional governance models for enterprises to adapt to the IoT ecosystem's rapidly changing and real-time nature. We believe data governance will be key to enhancing the ROI of this technology! #RulesAreGood
 

Trend 4: The Internet of Behaviors (IoB) Will Improve Customer Service

We bet every business out there is looking for ways to enhance its customer experiences. What if we said IoT can help with that in 2023? Internet of Behaviors, or IoB, will be a significant trend for customer-facing businesses to leverage this year.

While the term Internet of Behaviors is still relatively unknown, many experts predict that 2023 may be the turning point for it. IoB refers to the gathering, processing and analysis of data obtained from IoT devices to enhance customer experiences through personalized marketing. Smart IoT sensors, for instance, can assist businesses in capturing how customers spend their time inside the store. Store owners can then make the necessary adjustments to their inventory, product catalogs, or even the way items are displayed on shelves using data gathered from IoT sensors.

This trend will be a game-changer for marketers in 2023, as they will have more granular data and insights into people’s daily behavior and physiological indicators. Since it is still an emerging trend, businesses can innovate to create new IoB techniques and approaches that align with their existing marketing tactics. Moreover, as IoT devices can provide real-time insights, marketers will be able to modify tactics instantly to improve customer service and in-store experiences.

TechDogs’ Opinion: The Internet of Behaviors (IoB) is one of the most effective applications of IoT in recent times. It will allow marketers to analyze customers’ reactions in real-time and offer personalized services based on their behavior. We predict that retail businesses will deploy an interconnected system of IoT devices that will be used to alter the content, offers or advertisements in real time based on behavioral data gained from IoT devices. However, businesses and marketers need to practice caution while deploying IoB approaches as many user-rights activists argue it may lead to a breach of confidentiality and privacy.
 

Trend 5: IoT Networks Will Continue To Pose A Cybersecurity Risk

Although IoT is growing at an immense rate, there are concerns regarding the security and encryption of IoT data. Developers and cybersecurity experts are expected to work on addressing the security issues in 2023, which will lead to higher industrial adoption of the technology.

The primary security issue of IoT networks stems from the data transmission between various IoT devices and servers, which may be located remotely. According to research published by Kaspersky in the first quarter of 2022, the IoT infrastructure of 43% of businesses is unprotected. Therefore, there will always be a chance that IoT data will be intercepted or that hackers will brick the device, especially in factories and industrial settings. The widespread adoption of IoT systems has been significantly hampered to date by this cybersecurity concern.

As IoT will remain a key technology in remote healthcare, robotics, warehousing and manufacturing sectors, especially to process real-time and sensitive business data, improved security will be critical. Moreover, according to a Gartner report, one in five organizations has reported cyber-attacks on their IoT network over the past three years. Hence, organizations and cybersecurity experts will work towards enhancing IoT networks with a cybersecurity mesh and zero trust approaches, as well as improving data governance (Remember Trend 3?).

TechDogs’ Opinion: We think that as businesses look towards IoT with optimism, they also realize the growing need to create more secure channels between IoT devices and servers. One of the solutions is using a cybersecurity mesh architecture (CSMA), which will provide a comprehensive approach to tackling security flaws and gaps in connected devices. Furthermore, businesses will deploy new IoT networks that can utilize a distributed structure, rather than traditional perimeter-based networks. This will provide fewer access points to hackers, leading to better security outcomes.
 

To Sum Up

The Internet of Things is bound to redefine how businesses and individuals interact with smart devices. Heck, by 2030, 75% of all devices are expected to be connected to IoT networks! Hence, IoT will remain critical for digital transformation. It will drive innovations such as smart cities and digital twins while enabling marketers with better behavioral data through IoB. Yet, businesses using IoT will have to ensure aspects such as data governance and security are covered.