Unlocking the $700 Billion IoT Opportunity for Telcos by 2030

The Internet of Things (IoT) represents a transformative force in the global economy, reshaping industries from healthcare to agriculture, manufacturing, and smart cities. For telecommunications companies (telcos), the IoT opportunity is immense, projected to reach $700 billion by 2030. However, to fully capture this potential, telcos must move beyond basic connectivity services and embrace more comprehensive, value-driven solutions.

The Evolving Landscape of IoT Monetization

The foundation of IoT lies in connectivity, but telcos must evolve their business models to capture higher-value opportunities. Monetizing IoT involves more than just offering network services—it requires building robust platforms, offering vertical-specific solutions, and monetizing the vast amounts of data generated by IoT devices. The core components of successful IoT monetization strategies include:

• Connectivity Solutions: The backbone of all IoT applications, connectivity remains a critical service offering. Telcos must ensure reliable and secure network services, including 5G, Narrowband IoT (NB-IoT), and LPWAN technologies, to support the growing number of connected devices.
• Platform and Verticalization: Telcos need to offer more than just basic network access. By building platforms that allow businesses to manage, analyze, and optimize their IoT deployments, telcos can deliver end-to-end solutions. Industry verticals such as agriculture, healthcare, automotive, and logistics are key sectors where tailored IoT solutions can drive efficiency and new revenue streams.
• Data Monetization: The real value of IoT lies in the data it generates. Telcos have an opportunity to monetize this data by providing actionable insights through analytics platforms. Industries like transportation, smart cities, and retail can benefit from data-driven decision-making, making data monetization a key driver of IoT success.

IoT Applications in Key Industries

IoT is driving innovation across a variety of industries, each with its own set of unique challenges and opportunities.

• Automotive and Logistics: In the automotive industry, IoT solutions like connected cars, fleet management, and telematics are improving safety, reducing costs, and enhancing customer experiences. Vodafone’s IoT fleet management solution, for instance, helps businesses track and optimize their vehicle fleets in real-time, driving both operational efficiency and cost savings. Maxis Malaysia has developed mDrive, a mobile app with features like location tracking, route optimization, and maintenance. It helps businesses reduce costs, improve safety, and enhance operational efficiency through data-driven insights and automated management features.

• Retail: Retailers are increasingly adopting IoT for supply chain optimization, inventory management, and in-store customer experience enhancements. Smart shelves, connected coolers, and real-time analytics allow retailers to manage stock levels efficiently and offer personalized customer experiences.

Singtel has launched Singapore’s first 5G-enabled smart retail allowing enterprises to leverage its high-speed connectivity and ultra-low latency 5G network along with multi-edge computing (MEC) solutions like Paragon and Apple products. This initiative enables businesses to explore innovative applications for both physical and online stores, helping them stand out from the competition and thrive in the digital economy.

• Public Services: Public services, including security and surveillance, are leveraging AI-driven IoT solutions such as smart cameras and video analytics to analyze video feeds in real time, enabling the identification of potential threats and anomalies.

US Claro's AI video analytics technology uses real-time artificial intelligence to analyze video content, providing insights that enhance security, optimize operations, and support decision-making. Key features include object detection and behavior recognition, applicable in security for monitoring suspicious activities, traffic management, and retail analytics. This technology improves efficiency, safety, and data-driven decisions, transforming how organizations utilize video data.

• Healthcare: IoT is revolutionizing healthcare through remote patient monitoring, connected medical devices, and smart hospitals. STC Solutions has introduced the Virtual Clinic which aims to revolutionize healthcare by enabling remote consultations, real-time monitoring, Telemedicine Integration and AI-driven diagnostics, making healthcare more accessible and efficient.

• Agriculture: IoT is helping farmers achieve greater productivity through precision agriculture, smart irrigation, and drone monitoring. By using connected devices and sensors, farmers can monitor soil health, weather conditions, and crop growth in real time.

AIS iFarm is a smart farming solution using 5G and IoT technology to help farmers monitor and manage crops more efficiently. By gathering real-time data from sensors on factors like soil moisture, temperature, and humidity, it helps improve farming operations and productivity.

• Smart Infrastructure and Utilities: IoT is transforming infrastructure and utility services by enhancing efficiency and sustainability through smart grids, intelligent lighting, and IoT-enabled water management.

AT&T Smart Metering is an IoT solution that enhances energy and water management through advanced metering infrastructure (AMI). Using AT&T’s cellular network, it provides real-time data from smart meters, allowing utilities to monitor consumption accurately and quickly detect issues like leaks or outages. This technology improves billing accuracy and offers data analytics for operational optimization, while also empowering consumers with access to their usage data for better conservation and decision-making.

• Smart Manufacturing:? In manufacturing, connected factories and digital twins are enabling predictive maintenance, reducing downtime, and improving product quality. ?Telefonica Tech has emerged as a leader in transforming manufacturing through its innovative Smart Manufacturing 5.0 solutions. By integrating IoT sensors across production lines, they enable real-time asset connectivity and data analytics, which streamline operations and enhance decision-making.

Creating Value Through IoT Marketplaces

An emerging trend in IoT is the development of IoT marketplaces, where telcos can offer end-to-end solutions that bundle hardware, software, and data analytics into a single, easily accessible platform. This marketplace model not only simplifies the IoT ecosystem for customers but also allows telcos to position themselves as one-stop shops for IoT needs. By building a robust ecosystem of partners—ranging from device manufacturers to application developers—telcos can provide comprehensive solutions for businesses looking to harness the power of IoT.

Unlocking IoT’s Potential Through Data Monetization

The data generated by IoT devices presents a massive opportunity for telcos to offer value-added services. By providing insights into customer behavior, predictive analytics for industries like transportation and retail, and mobility intelligence for smart cities, telcos can create new revenue streams. Solutions like DataSpark’s mobility intelligence platform are great examples of how telcos can use data to offer real-time insights that enhance decision-making across various sectors.

IoT and Cloud Convergence: The Future of Business Solutions

The convergence of IoT and cloud technologies is reshaping how businesses operate. By integrating IoT solutions with cloud platforms, telcos can offer Infrastructure-as-a-Service (IaaS), Platform-as-a-Service (PaaS), and Software-as-a-Service (SaaS) models that give businesses the flexibility to scale their operations and access cutting-edge technologies. Cloud-enabled IoT solutions allow telcos to diversify their offerings and create new revenue streams while providing customers with greater flexibility, scalability, and security.

Recommendations for Telcos to Accelerate IoT Growth

To capture the $700 billion opportunity, telcos must prioritize the following strategies:

• Invest in comprehensive solutions that go beyond connectivity by offering end-to-end services, including platforms and data analytics.
• Partner with industry-specific innovators to create tailored IoT solutions that address the needs of verticals like agriculture, healthcare, and smart cities.
• Leverage IoT marketplaces to create an ecosystem of services that offer businesses a one-stop shop for all their IoT needs.
• Monetize IoT data by providing actionable insights through analytics, helping businesses optimize operations and make informed decisions.
• Embrace cloud convergence to offer scalable, secure solutions that integrate IoT with cloud technologies.

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About Us:

Wireless Federation is a Telecoms Research & Advisory Conglomerate HQ in London, UK focused on helping Digital Service providers, and Regulators, profit in the connected Digital economy with evolving business models. For the last 2 decades, WF has been supporting 500 + Telcos, and 75 regulatory bodies as a research, knowledge and training partner.

The Mandate of WF is to provide its Telco customers with learning and best practices of what other Telcos are doing globally so you won't have to reinvent the wheel.