With the rapid development of Internet of Things (iot) technology in recent years, iot investments have become a hot topic for many investors. This article analyzes key factors that influenced iot investment decisions in 2020, including iot market growth potential, 5G commercialization, edge computing trends, cybersecurity challenges, and government support policies. By evaluating these aspects, investors can make informed decisions when looking for free iot investments list 2020.
Huge growth potential of global iot market
The global iot market saw continuous rapid growth in 2020 despite the COVID-19 pandemic, providing vast opportunities for iot investments. According to IDC, global iot spending reached $726 billion in 2020 with over 12% year-over-year growth, and this figure is expected to surpass $1 trillion by 2024. Various iot segments all demonstrated strong momentum, especially manufacturing, transportation, retail, healthcare, etc. The prospering iot ecosystem covers hardware, software, system integration, connectivity management platforms, security solutions and more.
Commercialization of 5G networks
2020 marked a critical year for 5G commercialization globally, which is a key enabler to accelerate iot adoption and innovation. Leading countries like China, South Korea, UK and Germany have launched 5G networks by major carriers, although the progress was temporarily slowed by COVID-19. Compared with 4G, 5G provides significantly higher bandwidth, lower latency, enhanced reliability and flexibility to support various iot use cases. The combination of 5G and edge computing also allows real-time data analysis closer to the network edge.
Emerging edge computing architecture
Edge computing is an important trend closely related to 5G and iot ecosystem. By processing data closer to the source, edge computing addresses latency and security issues associated with cloud-based analysis, better meeting real-time and mission-critical needs for iot devices and applications. To tap the edge opportunity, IT giants like Microsoft, Amazon and Google all introduced dedicated edge solutions. As 5G and edge computing mature in the coming years, they are likely to stimulate more innovations and investments into iot.
Raising awareness of iot security threats
While bringing greater efficiency and insights, the proliferation of iot devices and networks also leads to expanded cyberattack surfaces and security vulnerabilities. According to research, around 70% of iot devices contain critical security flaws, causing great concerns for enterprises and governments adopting iot solutions. To strengthen iot security governance, governments rolled out stricter regulations regarding data protection and network equipment review. These measures forced iot vendors to enhance their offerings, driving more investments into the iot security domain.
Favorable government policies
Governments around the world have recognized iot’s strategic value in boosting productivity, economic growth and technology competitiveness. Major markets like U.S., EU, China, India and Japan have all introduced national iot strategic blueprints and incentive policies encouraging iot investments for both public and private sectors. Government funding and preferential measures such as special funds, subsidies, public-private partnerships lower adoption risks, making iot an appealing area for investors.
In summary, the thriving global iot ecosystem, accelerated 5G adoption, emerging edge computing, heightened cybersecurity awareness and favorable government initiatives collectively contributed to active iot investments activities in 2020 despite the difficult macro-economy situation. For investors seeking free iot investments list 2020, evaluating the above key influencing factors can help identify the most valuable iot investment options.