Perspectives from the Global Telecom Outlook 2023–2027

From a numerical perspective, the consumer sector will see the most impressive growth, as the number of devices is forecast to approach 10 billion in 2027. The increase reflects the growth of consumers’ home ecosystems built around multiple devices, with smart speakers acting as control points for lighting, security and entertainment systems, and increasingly communicating with one another using protocols such as IFTTT (If This Then That) and Matter. But as the chart above shows, business applications will become front and centre. The commercial and industrial electronics sector will see significant growth. And the number of medical IOT devices will double during the five-year forecast period, for a five-year CAGR of 16.7%—the fastest growth of any segment. This rapid rise will be driven by trends such as the growth in home care and telemedicine, and the proliferation of medical devices whose sensors enable remote monitoring of patients’ vital signs such as heart rate, temperature and blood pressure.

IOT devices, which can range from a simple sensor that reads the vibration of a bridge to a 4K camera that tracks traffic movements or pedestrians, place different demands on networks in terms of energy use, speed and latency. Given the increasing demand for high-speed and low-latency networks across an ever-wider array of industries, networks must be as efficient and scalable as possible. Telcos are looking to increase their ability to achieve these attributes by partnering across their ecosystems with specialists. The organisations in the driver’s seat for IOT are set to change from telcos working alone to ecosystems of telco and tech players, each bringing complementary strengths to the table. In the B2B context, there will be a greater focus on private networks—networks that connect onsite IOT devices (such as sensors or cameras) to analytics and robotics. These will require a bundle of services from cloud, telecom, hardware and software providers, including edge computing services, security and integration, and private network installation and operation. Rolling out such services requires a consultative client-focused sales approach. And many different types of players will compete to provide private networks, including telcos, technology companies, neutral host providers, system integrators and OEMs.