IoTs have invaded our lives in a good way. In fact, some of our homes nowadays are perfect examples of IoTs. Smart homes allow people to set temperature, lock doors, and take a look at what’s happening in their houses. IoTs have also provided us with fancy wearables like smart watches that make monitoring our health a lot easier. With internet-connected vehicles, the term IoV (internet of vehicles) is now even a thing. Findstack noted that in 2021, the IoT global market value reached $212 billion, thanks to all the convenience that IoT brings.

The Global IoT Ecosystem: Some Predictions

To understand how the Indonesian IoT ecosystem is doing, we need to take a look at global IoT predictions first. Quoted by Findstack, Ericsson predicted that 5G subscriptions will reach 1.9 billion in 2024, which means that IoT will grow exponentially in a few years. By next year, Dataprot predicts that 3.5 billion cellular devices will be connected with IoT, with Asia being the leading continent. All these statistics point to massive IoT development. But what is going to happen with all these developments?

Ryan Daws from IoT Tech News has provided several predictions on how the growth of IoT will affect businesses. First of all, with WFH trends and the coming of the metaverse working space, the need for connecting the physical and the virtual might come along. The metaverse can be a fun platform that allows users to spend a lot of time there. While users are going meta, basic things such as temperature setting and security in the physical space while meetings take place in the metaverse will rely on IoT’s assistance. 

Second of all, there will be opportunities for global telecommunication companies to capitalize the growth of IoT. By the time IoT is accessible by most of the population, ISPs will be the gatekeeper that maintains not only security, but also ease of access. Customers will rely on ISPs to maintain good connectivity so that they can stay connected to seamless IoT experience. Aside from this, ISPs and telecommunication companies can also offer service bundles and market IoTs as a part of their product.r

Speaking of Telecommunication companies and ISPs, the reliance on internet connection for IoT access also means that there will be more work on IoT customer services. With the  increasing numbers of IoT devices, increased malfunctions and security risks are expected. Businesses which operate in this industry will have to improve their customer relations and better mitigate security-related risks to stay relevant in the competition. As global demands for IoTs rise, customers will also have more options of service providers, so the competition will be tighter.

The Current State and The Future of the Indonesian IoT Ecosystem

What about the Indonesian IoT ecosystem? For starters, the predictions on the global IoT ecosystem can also happen here, more or less. Increasing demands, emerging opportunities, and more pressure for telecommunication companies are expected to occur in Indonesia, too. All these factors correlate with the nationwide growth of IoT, which is predicted to reach IDR 372 trillion this year (2022), according to Asosiasi IoT Indonesia. The greatest growth (45%) is forecasted to occur in the app sector, where approximately IDR 167 trillion will be generated.

If the global number of IoTs rises, a similar condition can be found in Indonesia. By 2025, it is expected that Indonesia will have 678 million IoT devices, with the healthcare industry being the frontrunner of this phenomenon. However, these positive growths are also accompanied by several challenges. The issue of infrastructure readiness, for instance, can still obstruct IoT growth in several areas. There is also an issue in human resources availability, as experts with IoT certifications are still rare. Despite these challenges, Indonesia should prepare for the accelerating growth of IoTs from 2022 and onward.