The Connected Future | IoT advancement and 5G Deployment challenges
Dr. Evangelo Damigos; PhD | Head of Digital Futures Research Desk
- Sustainable Growth and Tech Trends
Publication | Update: Oct 2020
The 5G benefits, like greater speeds and increased operational efficiencies, lead to more innovations. But 5G also creates new opportunities for hackers.
According to Liyuan Liu ‘Privacy and Security Issues in the 5G-Enabled Internet of Things’, Internet of Things (IoT) are changing the way we live and work. Their success and real value come from the establishment of services on top of the connected IoT devices. According to the Ericsson Mobility Report, there will be over 30 billion connected devices worldwide by 2023, of which around 20 billion will be IoT related devices. Between 2017 and 2023, IoT devices are expected to increase at a CAGR (Compound Annual Growth Rate) of 19 percent, driven by promising IoT use cases, like smart wearables, smart display, smart metering, robotic control/production automation, robotic surgery, autonomous driving car, and drone surveillance. These applications are usually integrated with wireless mobile communications.
Currently, a number of smart IoT devices exploit cellular networks like 3G and 4G LTE to maintain their connectivity and their connection with the cloud data centers. As the skyrocketing of data produced by increasingly large number of IoT devices, there are several burning issues to be solved in the application environments. For example, the transmission latency and reliability of current cellular networks cannot be guaranteed, which in turn limits the effectiveness and feasibility of many emerging IoT applications, such as the autonomous driving car and robotic surgery which ask for ultra-low latency and ultra-high reliability. 5G has been introduced with the capability of high throughput, low latency, high reliability, and increased scalability to enable massive number of devices with best QoS and QoE provision of ubiquitous connectivity solution to fulfill diversified IoT application requirements. This brings potentials to deploy more connected devices without worrying about an overcrowded network exacerbating existing issues.
The high speed and reliable connectivity underpinned by 5G will create new possibilities for IoT services far beyond those available today.
In addition, the enabling technologies of 5G, including functions virtualization and software defined networking, massive MIMO (Multiple Input and Multiple Output), mobile/edge computing, and ultra-dense networks, have great potentials to usher in a new era of IoT, aiming to smoothly and flexibly support heterogeneous IoT services with distinct business characteristics under massive smart devices. Furthermore, IoT will bring a rich source of big data.
The powerful role of big data analytics in 5G can undoubtedly benefit IoT advancement.
According to Ericsson research, from a user perspective, 5G is inherently different to any of the previous mobile generations. Machine-type communication, enabled by 5G, is widely anticipated to become the strategic difference and unique selling point of 5G in the long run. 5G networks will serve as critical infrastructures to facilitate the digitization, automation and connectivity to machines, robots and transport solutions etc. Thus, there is significant value at stake and, so too, a significantly different tolerance for risk
Using IoT devices without a private 5G network or adequate technical knowledge could put organizations' and their employees' privacy at risk.
"You absolutely have to have [5G security] on your radar right now," said Monique Becenti, channel and product specialist at cybersecurity provider SiteLock. It's also critical to have security measures in place for personal data.
"If you're using a mobile device for banking transactions you're leaving that susceptible to an attacker intercepting that data,'' she said. "With 5G, our main concern is with IoT innovations."
Often, developers face pressure to get software quickly to market so critical testing could be missed, Becenti said. "With 5G this isn't any different--especially in a market where security may not be top of mind."
She pointed out that the IoT devices market isn't regulated and therefore not required to meet certain security requirements, despite cyberattacks like the Mirai botnet.
"Devices are open right now and susceptible … so there are more potential entry points for attackers" that are scanning for open ports in the devices' software so they can deploy malicious bots and scripts.
Ericsson contests that it is imperative that IoT devices are secure from the start to protect personal data, business-sensitive information, and critical infrastructure.
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This study has assimilated knowledge and insight from business and subject-matter experts, and from a broad spectrum of market initiatives. Building on this research, the objectives of this market research report is to provide actionable intelligence on opportunities alongside the market size of various segments, as well as fact-based information on key factors influencing the market- growth drivers, industry-specific challenges and other critical issues in terms of detailed analysis and impact.
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Market phase is determined using factors in the Industry Life Cycle model. The adapted market phase definitions are as follows:
The Global Economic Model
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The model is a hybrid statistical model that uses macroeconomic variables and inter-industry linkages to forecast sectoral output. The model is used to forecast not just output, but prices, wages, employment and investment. The principal variables driving the industry model are the components of final demand, which directly or indirectly determine the demand facing each industry. However, other macroeconomic assumptions — in particular exchange rates, as well as world commodity prices — also enter into the equation, as well as other industry specific factors that have been or are expected to impact.
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The individual characteristics of a good or service will have an impact, but there are also a number of general factors that will typically affect the sensitivity of demand, such as the availability of substitutes, whereby the elasticity is typically higher the greater the number of available substitutes, as consumers can easily switch between different products.
The degree of necessity. Luxury products and habit forming ones, typically have a higher elasticity.
Proportion of the budget consumed by the item. Products that consume a large portion of the consumer’s budget tend to have greater elasticity.
Elasticities tend to be greater over the long run because consumers have more time to adjust their behaviour.
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