While the IoT landscape is changing rapidly in terms of the development of LPWANs, 5G rollouts, and accelerated digital transformation by enterprises, those that embrace these changes will gain a significant competitive advantage through increased efficiency, automation, and innovation. During his presentation at last year’s MWC in Las Vegas, Matt Hatton, founding partner at Transforma Insights, identified that this was essentially driven by fast-paced technological advances, changing market dynamics, and regulatory expectations that are reshaping the connectivity landscape to better support evolving enterprise needs.
Technological Disruption and Evolution
Tagged ‘Transition Topics for 2024,’ Hatton outlined twelve trends that are significantly changing and evolving. These topics were fairly stable five years ago but are now shifting into a potentially new stable state over the next five years. IoT data management and security will continue to evolve with regulatory changes and a data landscape in flux. Market segmentation is becoming essential to scalable growth with more focused partner strategies, while contextualisation allows for solutions that are more tailored and specific to the use case.
On the technological front, SGP.32, RedCap, and NTNs are changing connectivity models; of these, SGP.32 is the most pertinent and is gaining traction at an unprecedented rate in tandem with the phase-out of 2G/3G networks and a subsequent thrust towards next-gen connectivity. NTNs, along with hybrid models, offer more coverage options; MPNs enable enterprise-grade deployments. IoT AEPs, along with AI-driven video analytics, streamline service creation along with real-time decision-making.
With 5G unlocking new levels of performance and cellular LPWA technologies enabling low-power deployments, these transition topics together signal a more mature and future-ready IoT ecosystem.
Data Forecast
According to the 2024 IoT Forecast Database by Transforma Insights, public access to network connections in Latin America and North America is expected to change significantly between 2023 and 2033 due to the trajectories of technologies and demands within use cases.
In terms of volume, both Latin America and North America are heading toward huge installed bases. Latin America will have 334 million installed IoT connections by 2033, while North America’s installed base will exceed about 800 million during the same period.
Satellite connectivity is projected to grow strongly, with compound annual growth rates of 27% in Latin America and 26% in North America. This growth is driven by applications in container tracking, drones, military systems, and assisted living people-tracking.
LPWA (non-mMTC) networks are also experiencing a robust growth trend with a CAGR of 28% in Latin America and 26% in North America. These networks support myriad low-power, wide-area applications such as smart meters, lighting in public spaces, crop management, and the monitoring of white goods.
5G mMTC, which powers products like smart meters, security alarms, and stock level monitoring, is expected to grow by 29% in North America and 36% in Latin America. 5G non-mMTC, which is utilised in CCTV, smartwatches, e-bikes, and car systems, is predicted to develop even faster, with CAGRs of 55% and 39%, respectively.
While ‘Other’ technologies indicate stagnation or contraction, with 0% and -3% growth, respectively, legacy networks like 2G/3G are in significant decline, dropping by 19% in Latin America and -22% in North America.
With an 11% CAGR, 4G connections will continue to expand gradually, particularly in Latin America, to enable wearable technology, smart meters, and fleet management.
Telecoms Must Embrace IT/OT Convergence
Following MWC Las Vegas, Hatton addressed in a blog post the importance of integrating OT (operational technology) into the IT environment, making it accessible for developers to connect with systems like ERP and CRM, and addressed various themes, including AI, eSIM, 5G, NB-IoT/LTE switch-offs, and APIs, advocating for an enterprise-driven approach to this convergence.
Hatton also underlined the necessity for telecoms to undergo IT/OT convergence. While telecom networks are not typically viewed as OT, many of the same concepts and limitations are relevant. The telecom sector has its complex language that can be challenging for the IT and developer community to understand, making it difficult to integrate into the IT domain.
Moreover, the trend of IT/telco convergence has been gradually increasing, particularly highlighted by a new API initiative and the role of 5G through Network Exposure Functions. Additionally, over-the-top efforts, such as Soracom‘s Polaris and Dipper features and 1NCE’s developer certification, further illustrate this convergence in the telecom industry.
SGP.32 Sets Stage for New eSIM Connectivity Ecosystem
Remote SIM provisioning for SGP.32 is regarded as a plus. Hatton noted that the development was positive as it simplified the management of remote SIM provisioning (RSP). Although the nomenclature is still developing, SGP.32 is starting to change the market structure in addition to its technological advantages by allowing businesses to become eSIM connection platforms. These systems offer bring-your-own-connectivity (BYOC) models and manage connectivity localisation for businesses, although enterprises have not yet fully embraced this option.
Companies like Simplex Wireless and Teal Communications are leading this shift, acting as intermediaries between enterprises and the broader connectivity ecosystem. Importantly, despite MNO (Mobile Network Operator) concerns, the model remains a managed service, not an uncontrolled marketplace.
Conclusion
Clearly, SGP.32, 5G, NTNs, and AI platforms are accelerating a shift toward smarter enterprise-centric IoT solutions largely driven by technological advances and regulatory upheaval. Markets are facing increased scalability and connectivity of next-generation infrastructure replacing traditional networks, particularly in expanding regions like North America and Latin America. Businesses adopting these tweaks will be better placed to unlock IoT’s full potential by promoting creativity, effectiveness, and adaptability across interconnected environments.
Anna Ribeiro 