Digital divide shapes edge, IoT, and networking in 2022

A number of market forces are shaping dramatic changes in the edge, internet of things, and networking triad.

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A number of market forces are shaping dramatic changes in the edge, internet of things (IoT), and networking triad. These forces include demand for greater sustainability, closing the digital divide, the ongoing chip shortage, and, at a broader level, the COVID-19 pandemic

Our 2022 predictions for Edge, IoT, and networking take all of these forces into account and focus on the three technologies' role in either addressing the issues or being hampered by them. 

Here is a look at three of the bold calls we're making for Edge, IoT, and networking in 2022: 

  • Edge and IoT will drive new solutions for scope 3 emission reduction: Scope 3 emissions are all indirect emissions that come from assets an organization doesn't directly own or control and form most of the carbon footprint in most industries. Emerging technology can help address these issues. In 2022, demand for sustainability-related services powered by edge and IoT will grow for energy efficiency and resource management. High-demand use cases will include environmental monitoring, resource management, and supply chain processes. 

  • Satellite internet will challenge 5G as the connectivity of choice: The advent of satellite internet will help address the digital divide in 2022. Forrester predicts that 85% of satellite users will be in rural locations, with remote worker initiatives and remote facilities benefiting significantly from satellite internet next year, as well. But will it rise to be a challenger for 5G? 5G at scale has the potential to influence all walks of life and tremendously influence every industry vertical. The practical timeline of 5G and logistical challenges, however, will temper the enthusiasm. The massive infrastructure needed to realize all touted 5G use cases has created the elephant in the room that no telecommunications manufacturer or network provider wants to address. 

  • The chip shortage will impede overall IoT market growth by 10% to 15%: The global chip shortage won't ease soon. Forrester predicts that this dilemma won't be resolved until mid-2023. Since chips form the backbone of every intelligent device, this threatens the growth of other emerging technologies, as well. IoT devices will feel the pinch particularly hard because they generally use a mature sensor, microcontroller, and communications technologies that have significantly more availability issues than advanced chips like CPUs and GPUs. We predict that the IoT chip shortage will shave 10% to 15% off of IoT growth in 2022. 

Learn more about Forrester predictions here.

This post was written by Analyst Abhijit Sunil, and it originally appeared here.