IoT News

The Future of IoT: A Glimpse into the Transforma Insights Report for 2023-2033

Following the release of the Global IoT Forecast Report, 2023-2033[1],by Transforma Insights, we are shedding light on the transformative journey of IoT development and the way IOT is transcending over a range of different industries. This years report’s projections paint a picture of relentless growth, with active IoT devices set to nearly quadruple by 2033.

As short-range technologies maintain dominance and cellular connections witness exponential expansion, opportunities for innovation and collaboration abound. Revenue forecasts depict a flourishing market, propelled by value-added connectivity and core applications, while sectoral breakdowns illuminate the varied landscape of IoT adoption, spanning consumer, enterprise, and governmental domains. Geographically, the convergence of IoT hotspots in regions like China, North America, and Europe underscores a global appetite for technological advancement and digital transformation. As we delve deeper into these findings, it becomes evident that the IoT landscape is not only evolving but also revolutionising the way we interact with technology, paving the way for a future defined by seamless connectivity and boundless possibilities.

Explosive Growth on the Horizon:

At the close of 2023, the world witnessed 16.1 billionactive IoT devices. Fast forward to 2033, and this figure is projected toskyrocket to 39.9 billion, boasting a compound annual growth rate (CAGR) of10%. Annual device sales are set to surge from 4.1 billion in 2023 to astaggering 8.7 billion by 2033, signaling an 8% CAGR according to this yearsreport.

The Dominance of Short-Range Technologies:

Short-range technologies continue to reign supreme,constituting 73% of connections by 2033, albeit slightly down from the 79%share they currently hold.

Cellular Connections:

Cellular connections are poised for the most notorious expansion, with figures climbing from 1.9 billion in 2023 to a projected 7.5billion by 2033. In the realm of 5G, including mMTC (massive Machine Type Communications), a significant portion—5.5 billion—will be integrated by 2033,with 1.1 billion representing 'full' 5G New Radio (NR). Notably, vehicle head units emerge as the predominant 5G non-mMTC application, comprising 41% of connections in 2033.

Rise of Low Power Wide Area Technologies:

Other Low Power Wide Area (LPWA) technologies, such as LoRaWAN, are slated for substantial growth, surging from 360 million in 2023 to over 2 billion in 2033.

Revenue Projections:

In revenue terms, the IoT market, encompassing connectivity modules, value-added connectivity, and core associated applications, is estimated at USD 335 billion in 2023, with forecasts soaring to USD 934 billion by 2033. Value-added connectivity will account for 10% of expenditure in 2033,while connectivity modules will claim a further 4%.

Sectoral Breakdown:

Come 2033, the consumer sector will reign supreme, comprising 61% of all connections. In the enterprise segment, 'cross-vertical' applications will command 35%, encompassing diverse uses like track-and-trace, office equipment, and fleet vehicles. Utilities will follow closely at 24%,with smart meters leading the charge. Retail/wholesale will account for 22%,primarily driven by payment processing devices and electronic shelf labels. Government (7%), transport and logistics (4%), and agriculture (3%) will also play pivotal roles in shaping the IoT landscape.

Geographical Dynamics:

Geographically, China, North America, and Europe will emerge as powerhouses, collectively commanding 72% of the total IoT market value by2033, with China leading at 32%, followed by North America (21%) and Europe(19%).

The Transforma Insights report paints a vivid picture of the IoT landscape, brimming with unparalleled growth opportunities and transformative potential. As we march towards 2033, the journey promises to benothing short of exhilarating, as IoT continues to redefine the boundaries of innovation and connectivity across the globe.

[1]Global IoT Forecast Report, 2023-2033, FORECAST INSIGHT |ESSENTIAL READING |MAY 10, 2024 | Matt Arnott Global IoT Forecast Report, 2023-2033 - Reports & Insights(