2024: deepening the value of IoT

Every year, I share my insights on Internet of Things (IoT) industry trends specific to smart supply chain and asset management for non-powered equipment.

Since 2023, IoT is increasingly integrated into daily business operations, paving the way for its broader, more sustainable adoption across various industries. And 2024 will not be much different, IoT technology is maturing fast, gets easier to be applied, and more industry-specific use cases are getting replicated (in the benefit of all). According to me, 4 main trends will define the IoT landscape of 2024.

Trend 1: solution versatility is gold

In general, economic market conditions for our industrial customers are changing fast and this requires swift adoption. IoT projects are no exception to this trend, and thus require a higher flexibility both on the technical as commercial level. In the end, it all boils down to improved ROI and tailoring the solution even more to the fast changing business.

Those with an adaptable modular IoT solution, i.e. a full access to all the components of IoT (hardware, production, firmware configuration, sensor settings, life cycle management, communication contracts, integration) will emerge as the trusted partners, as they have this flexibility to act on 3 main items:

1. Flexible feature tailoring -frequently, the most significant business value emerges when a highly specific element of the solution is customized to precisely match real-world requirements. This adaptability can manifest at the device itself (the edge) or within the cloud application. For instance, in certain projects, we adapt dynamically the priority of location technology (GPS/WiFi/BLE) and the associated device wake-up and sleep intervals to extend battery lifespan with many years. As such, we have been able to push battery life above 10 years which is considered as asset lifetime. Battery replacements are not longer required, which suddenly makes ROI very attractive.
2. Protocol fusion - numerous wireless IoT technologies like LPWAN, BLE, WiFi, and UWB are mature and widespread available, each one with advantages and drawbacks (financial and technological). The true ROI acceleration of IoT comes when you cherry pick the right technology, exactly where you need it, and make them work seamlessly together. As example, today, we have customers operating on LPWAN for outbound logistics (75% of the time), while using their own WiFi infrastructure to locate equipment in their own premises (15% of the time), and combining this with sub 1 meter indoor precision tracking based on BLE at their production lines (10% of the time). By fusion of all protocols and managing perfectly the settings, the customer covers all its business needs, with a single solution, at minimal investment cost.
3. Flexible commercial models - i.e. the capacity to design custom-tailored commercial models that align seamlessly with the business model. Once you have full access to the full IoT solution (as described in previous 2 points), it allows to tailor the commercial terms toward the business models. An illustrative case is the requirement of some industrial customers in packaging industry to deliver a location data service in returnable pallets, which need to last more than 10 years, so they can rent out or pool the pallets (based on monthly fees instead of CAPEX investment). This extended commercial commitment (OPEX only / +10 years) is only achievable under full control, maturity and adaptability of the IoT stack powering the solution.

Trend 2: the true value lies in its integration

The IoT technology for localizing millions of non-powered equipment is mature and works efficiently. The task – and its greatest benefit – now lies in integrating it seamlessly into companies' IT infrastructure and daily processes.

Since years, we embedded this vision in our solution by empowering our users to develop their unique business logic (and data) and craft tailored dashboards by themselves in our platform. This allows them to couple their domain-specific personal expertise; which is often intricately tied to the unique needs of their business; to the data the IoT solution brings. When IoT data and domain expertise are combined, the real value is created.

With the current strong trend of process digitization and IT system integration, we are only at the beginning of the true potential of IoT. For instance, a waste management company requires more than just geographic coordinates and container fill levels from IoT sensors; they need ERP integration to ensure that IoT data (location / motion / fill level) seamlessly informs the entire process, from pick-up scheduling and driver routing to container allocation, delivery confirmations, and compliance with specific contract SLAs (Service Level Agreements). A similar imperative exists in transport and logistics, where the integration of IoT data into Transport Management Systems (TMS) is indispensable. This trend is prevalent across all industries today, where true value materializes when IoT data becomes an integral part of industry-specific applications, facilitating transformative changes in daily processes dedicated to that particular sector, much like how accounting data, fuel card management, and HR planning contribute to any company.

Trend 3: ? AIoT - the fusion of AI and IoT

In 2023, the term "AI" has taken center stage in all tech discussions, promising a profound and long-lasting transformation. AI's influence has also entered the world of IoT, giving rise to what is now known as AIoT. While the impact of AI on everyday life is very graspable when considering IoT such as smart glasses, its significance in non-powered asset tracking is increasingly clear. Here are two key examples which will shape our industry:

1. AI on the edge : AI is integrated directly into the local processing capabilities of the IoT sensors themselves. As sensors get more computing power, AI can be embedded, and the sensor autonomously recognize patterns while in the field and subsequently optimize their sampling rates, broadcasting intervals, and the type of data they collect. Essentially, local AI determines when to awaken, what data to capture, and when to transmit it to the cloud. This edge-driven AI optimization enhances data quality, extends the operational life of the devices and its turn improves ROI.
2. Swarm Intelligence: drawing inspiration from the collective behavior of natural swarms like bees or ants, has emerged as a significant topic in smart supply chain. As supply chain becomes more and more decentralized with diverse infrastructure, connecting every asset, such as pallets, is not always practical, nor financial acceptable (again ROI). Rather than connecting all 100,000 pallets in a supply chain directly to the cloud, the swarm approach involves selectively connecting only a subset of pallets (parents) directly to the cloud, which scan locally for a subset of the other pallets (childs) through much more cost-effective local connections. By leveraging parent-child measurements in the flows, patterns are revealed and it is possible to control the supply chain without the need to equip every pallet with IoT capabilities. This innovative approach results in substantial cost reductions.

Trend 4: ? The IoT connectivity space race

My final 2024 trend is the inspiring “space race” of IoT connectivity. It fits the golden grail in IoT to have low-power connectivity in every conceivable location. In 2023, we have witnessed an extreme acceleration of low-power connectivity coverage - mainly pushed through NBIoT and LTE-m network upgrades (3G/4G/5G) - but there are situations where only satellite connectivity can truly crack the code. These scenarios encompass remote operations such as mining, and agriculture, as well as remote earth monitoring, including early forest fire detection or tracking animal migrations.

Advancements in commercial space technology have paved the way for numerous companies to launch satellites of varying sizes into orbit. Thus, a spirited space race has unfolded in the realm of IoT, each player with its unique characteristics. Some leverage years of experience and existing satellite fleets, like Kineis on Argos, while others harness recent satellite constellations, such as Swarm IoT on Starlink (check the website). Some are even launching entirely new constellations featuring nano-satellites. The connectivity solutions range from utilizing NBIoT standards in space (sateliot), to proprietary protocols, and even modified BLE specifications, exemplified by the Hubble Network. One thing is abundantly clear: the race is on to establish dominance as the IoT connectivity provider from space.

Wrap up

Every year, the IoT landscape evolves, where the technology limits get pushed to support industries to go to the next level. 2024 is not different, ROI is the driver for business, and the IoT technology improves every day to ensure it fits the business requirements. In 2024, we certainly keep AI and space race on our radar, but our value is made - every day - by creating the best possible IoT solution for smart supply chain and non-powered asset management.

In addition to my technical admiration for IoT trends, I hold a genuine hope that in 2024, increased investments and innovation will gravitate towards IoT products that can facilitate our journey towards making the world a better place. These include better management of our natural resources, comprehending and mitigating climate change, and supporting those most in need.