IOT Analytics release their “2023 year in review”
Colin Bowdery
Chief Architect @ Ericsson | Wireless Networking Expert, Strategic Management
2023 has been a turbulent year and IOT Analytics has managed to do a great job summarizing everything important in the Internet of Things world. Here are my macro-environmental take-aways from this article:
Political:
India opened a national smart-meter roll out accounting for 1.5% (250M) of the global 16.6B IoT devices back in 2021. However, performance was lack-luster largely due to limited domestic smart-meter production. In 2023, India changed the plan to a total expenditure (TOTEX) basis allowing them to issue $40Bn in grants on completion of a project. They also opened up to international support garnering investments from the US International Development Finance Corporation ($49.5M). To date only 8M smart-meters have been installed although contracts for 99M have been awarded.
Economic:
Global economic conditions are largely recovering despite the looming threat of a global recession. Global GDP up 3%, Nasdaq Composite up 43%, Stock prices up 英伟达 (+246%), 亚马逊 (+77%), 微软 (+58%), and 谷歌 (+57%).
IoT market followed the global economy with number of IoT devices growing 16.7M and $235Bn in IoT enterprise spending.
Investments in the IoT space are occurring with Pragmatic Semiconductor closing $389.2M in a series D round. Other investments include: Infinium ($185M), R-Zero ($170M), Verkada ($100M), Span.IO ($96.5M), Noda ($89.6M), Xage ($60.2M), InfluxData ($51M). Notably, all but Pragmatic (UK) and Infogrid (UK) are US based companies.
Social:
微软 , 亚马逊 , and 谷歌 conducted significant layoffs in 2023 impacting IoT, AI, and supply-chain personnel.
The biggest impact was the shutdown of Google’s IoT Core Services. Google now directs customers to partners Litmus Automation, KORE , and SoftServe. AWS and Microsoft appears to have capitalized on this move by expanding their IoT cloud services:
·????? AWS announced “Azure IoT Operations” enabling a cloud edge data plane with local data processing and analytics
·????? AWS announced “AWS IoT FleetWise” and “AWS IoT SiteWise Edge on Siemens Industrial Edge B2B marketplace” allowing users to visualize data from AWS IoT SiteWise
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Technological:
5G has moved into space with companies like Sateliot and Telefónica supporting 5G based IoT service using 3GPP ’s Release 17. Whilst the technology is set to target sectors that experience intermittent connectivity (transport, logistics, and rural), Sateliot has partnered with GeoSpace Labs providing 5G NTN NB-IOT connectivity to their Meratch water management solution in the US.
Not to miss out on the GenAI trend, we see a few use-cases emerging:
·????? Guided repair or operations based on operational data (IoT): Google, Microsoft
·????? Using generated images to train vision systems (IoT): Bosch
·????? Using natural language to teach and control robots with vision systems (IoT): Microsoft, Sereact
Environmental:
Sustainability and energy management has gained an increasing focus with the Corporate Sustainability Reporting Directive (CSRD) coming into force in the EU. All 27 EU member states are now required to provide regular reports on the social and environmental risks they face. Large companies must also report IoT-type data such as pollution levels, GHG emissions and resource use (i.e. water and energy).
Other notable sustainability regulations introduced in 2023 include: Renewable Energy Directive (EU), Sustainability Disclosure Standards (UK), and Green Credit Rules (India).
Legal:
The EU’s second Network and Information Security Directive (NIS2) moved into active status early 2023, an update to the NIS directive introduced in 2016. This mandates requirements for cyber risk management and incident reporting forcing companies across 15 sectors to seriously consider their security posture. Firms have until October 2024 to comply and face fines of ten million euros, or 2% of their annual global revenues if they fail.
NIST2 impacts Digital Infrastructure and therefore impacts IoT.
Other regulatory changes are also noted, including: Data Protection and Digital Information Bill (UK), Cyber Trust Mark (US), Cybersecurity Risk Management, Strategy, Governance, and Incident Disclosure (US), EU Data Act (EU), and EU AI Act (EU).