As we look ahead
into 2020 and begin to understand the impact 5G will have across all
industries, the implementation of IoT solutions will play an increasing role
across business applications and throughout society. The rapid deployment of 5G
networks around the globe and an uptick in 5G subscriptions will drive an
increase in the number of IoT connected devices worldwide.
For instance,
Ericsson predicts in the latest Mobility Report that by the end of 2019 there
will be 1.3 billion cellular IoT connections worldwide. By 2025 this number is
expected to jump to 5 billion. Meanwhile, McKinsey estimates* that the economic
value to be generated by IoT globally will amount to $3.9–11.1 trillion per
year by 2025, and a focus in 2020 and beyond will be connectivity driving
valuable outcomes.
Looking into the
year ahead, here are five trends I see initiating this focus across industries
as enterprises begin their digital transformation journey:
The "edge" is closer than ever before
As enterprises
become “digitized” and enable more connected machines, sensors and solutions,
the current computing power done in the cloud simply won’t be fast enough to
optimize performance in real-time. In order to monitor, analyze and optimize
connected IoT applications, enterprises will need computing power done near the
edge.
The need for edge
computing creates an opportunity for communications service providers who are
building 5G networks. The high capacity, speeds and density of 5G networks and
connections, combined with cutting edge software such as artificial
intelligence (AI) and machine learning (ML), will enable enterprises and its
connected solutions to learn, adapt and change processes instantly to yield a
greater ROI.
We have seen the
start of this edge adoption, most recently when Sprint announced two new
updates to its Curiosity IoT solution, bringing IoT applications to the edge
for its enterprise customers. And this will not be the last. 2020 will see even
more telecom operators partnering with cloud providers, IoT platforms being
deployed, AI and ML solutions becoming a key component and more, all driving
edge computing and faster, more intelligent real-time data analysis.
Customization becoming a reality
In 2020, the
Fourth Industrial Revolution (Industry 4.0) will gain momentum through the
continued proliferation of 5G and IoT. This will support innovations in
robotics, AI and more, all within reach of more enterprises. This will have a
major impact in manufacturing across numerous verticals such as automotive,
electronics, textiles and more as the manufacturing floor (and with it the
traditional assembly line) becomes modular.
Powered by 5G and IoT, breakthroughs in digitalization and automation will enable fully digital manufacturing, allowing production to change mid-stream without any disruption.
This will power
hyper-customization, allowing the end-customer’s product to be tailored for
specific requirements all while meeting demands. In fact, Ericsson is helping
lead the way, announcing our own smart factory in the U.S. to drive sustainable
production of 5G and Advanced Antenna System radios for North America
customers. And we’re not the only company driving personalized production as we
expect smart manufacturing will become more prevalent in 2020 and enable
customization to become a reality.
IoT security issues continue to rise for the unprepared
As 5G, cloud
computing, IoT and other technological advancements drive digital transformation
across all enterprises, the amount of connected devices will exponentially
increase the amount of data transmitted – opening valuable new access points
for attack.
As many IoT
solutions are already deployed within enterprises, the National Institute of
Standards and Technology (NIST) has issued a report** outlining recommendations
on how to mitigate risk and overcome security challenges. However, securing
devices after deployment is much harder than doing so from the outset.
Companies of all sizes, including network operators, must be prepared to keep
critical operations up and running, and put end-to-end security solutions in
place to protect their business and mission-critical applications from the
start. For example, Swisscom, the leading telecommunications service provider
in Switzerland, is deploying Ericsson Security Manager solution to provide
security automation, visibility and control for the company’s Security
Operations Center. Integrating this solution enhances capabilities and
strengthens protection for critical infrastructures, and serves as a model for
others.
Global connectivity becomes a must
As the world
becomes more global and connected devices are manufactured in one country,
deployed in another, and traveled with across many others the need for
immediate and always-on connectivity no matter where a device is located is
paramount.
For instance,
Brighter, a Swedish health tech company, saw a need for a connected insulin
dispenser that would sample blood, measure glucose and inject medicine to
optimize and improve treatments.
However, connecting a device that must be always-on and able to travel
across borders can be difficult as the number of different cellular networks it
must connect to varies dramatically. Working with Ericsson, Brighter solved
this global connectivity problem and recently launched Actiste® in the United
Arab Emirates (UAE) and the other five participating countries of the Gulf
Cooperation Council, potentially impacting the nearly 480,000 insulin-dependent
patients in the UAE.
While insulin
dispensers are just one example, there is a need for a fully global
connectivity footprint for IoT as seen throughout our daily lives, from
unlocking the car door to finding an open parking spot and more. Global
connectivity platforms are now a must to not only ensure seamless connectivity
management, but also to measure performance, usage, and other insights that can
be valuable to enterprises looking to expand globally and drive greater
business results.
Sustainability takes center stage
The Paris
Agreement, signed in 2016 with the focus to limit the threat of climate change
by keeping global temperatures well below 2 degrees Celsius, has become more of
a focus for businesses around the world. As sustainability efforts have become
a key business priority, the use of digital technologies such as IoT solutions
can actually accelerate the reduction of global emissions by up to 15% by 2030,
while being responsible for only 1.4% of global emissions. Also, to help the
world meet these levels set by the Paris Agreement, the 2019 Exponential
Roadmap was developed by leading companies showcasing how scaling 36 solutions
could halve emissions by 2030, many of which are underpinned by technology
innovations.
However, to reduce
the threat of climate change, an ecosystem of service providers, OEMs and
end-user enterprises must work together and deploy solutions that can help
combine efforts seamlessly. Utilities are a great example of an industry that
is using connectivity to reduce carbon dioxide emissions. We have worked
collaboratively with Landis+Gyr and most recently
with Telia, which is in the process of deploying 2 million electric meters
across Sweden with cellular connectivity on behalf of utility companies E.ON,
Ellevio and Kraftringen, all to capture greater
energy efficiencies.
For more
information about how Ericsson can help prepare you for these five IoT trends
and more in 2020, learn about our IoT platform, IoT Accelerator, and Industry
4.0 to understand how we help connect and manage billions of devices easily,
seamlessly and globally.