- The number of connected IoT devices is expected to grow 13 percent to 18.8 billion by the end of 2024, with over 40 billion connected IoT devices by 2030
- The integration of artificial intelligence in IoT, including Generative AI and Edge AI, was a key trend this year
The global IoT market is forecasted to grow, with the number of connected IoT devices projected to increase by 13 percent in 2024, reaching 18.8 billion by year-end, according to an IoT Analytics’ report. The report forecasts that the number of connected IoT devices will grow to 40 billion by 2030, reflecting a measured but steady expansion.
The integration of artificial intelligence (AI) in IoT, including generative AI and edge AI, is a key trend in 2024, according to Satyajit Sinha, principal analyst at IoT Analytics. Edge AI is seen as pivotal in enhancing safety, accuracy, and efficiency in IoT applications. NVIDIA and AMD stand out as companies that play a crucial role in driving the adoption and implementation of edge AI technologies across various sectors.
“Edge AI is fundamentally transforming the IoT landscape by allowing edge IoT devices to process data locally, reducing latency and enabling real-time responses,” said Sinha in a press statement. “The integration of AI technologies, including generative AI and edge AI, is a significant trend in 2024, highlighted by increased discussions among corporate leaders. With companies like NVIDIA and AMD heavily investing in edge AI, the convergence of these technologies with IoT will drive the development of more intelligent and autonomous devices, leading to broader adoption of IoT solutions across various sectors.”
Use Reduction
This forecast for growth is lower than due to continued cautious enterprise spending as inflation and interest rates remain high—though are moderating—alongside continued chipset supply constraints and ongoing geopolitical conflicts in Eastern Europe and the Middle East.
Despite the above macro factors, 51 percent of enterprise IoT adopters plan to increase their IoT budget in 2024 (with 22 percent of companies expecting a 10%+ budget increase compared to 2023).
Throughout 2023 and into 2024, analysts pointed to economic concerns remaining the top topic of CEOs during earnings calls. Even if economic uncertainty fades throughout 2024, its impact on connected devices may be felt for years. End users and business confidence may take time to recover, leading to a wait-and-see approach to spending.
IoT Connections
Global IoT connectivity is dominated by three key technologies: Wi-Fi, Bluetooth, and cellular IoT. Wi-Fi makes up 31% of all IoT connections with 75 precent of Wi-Fi-enabled devices shipped worldwide were based on the latest Wi-Fi 6 and Wi-Fi 6E technologies, which promise faster and more reliable wireless connectivity than its predecessor, Wi-Fi 5.
The adoption of these technologies has made communication between IoT devices more efficient, leading to improved user experiences and overall performance, according to the report. Wi-Fi technology is leading IoT connectivity in sectors such as smart homes, buildings, and healthcare.