Forrester Predictions 2022: Sustainability, Digital Divide Shape Edge, IoT and Networking

A number of market forces are shaping dramatic changes in the edge, Internet of Things (IoT) and networking triad. These forces include the demand for greater sustainability, the bridging of the digital divide, the current chip shortage and, on a broader level, the COVID-19 pandemic.

Our 2022 forecast for Edge, IoT, and Networking takes all of these forces into account and focuses on the role of the three technologies in solving or being hampered by problems.

Here’s a look at three of the bold calls we’re making for edge, IoT and networking in 2022:

  • Edge and IoT will lead to new solutions for reducing scope 3 emissions. Scope 3 emissions are all indirect emissions that arise from assets that an organization does not own or directly control and make up the bulk of the carbon footprint in most industries. Emerging technologies can help solve these problems. In 2022, the demand for sustainability-related services powered by the edge and IoT will increase 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 bridge the digital divide in 2022. Forrester predicts that 85% of satellite users will be in rural areas, with remote work initiatives and remote facilities also benefiting significantly from satellite internet next year. But will it become a 5G challenger? Large-scale 5G has the potential to influence all areas of life and to greatly influence every vertical sector. The practical 5G timeline and logistical challenges will dampen the enthusiasm, however. The massive infrastructure required to achieve all of the touted 5G use cases has created an elephant in the room that no telecom maker or network provider wants to address.
  • The chip shortage will hamper the overall growth of the IoT market by 10-15%. the global chip shortage will not subside anytime soon. Forrester predicts that this dilemma will not be resolved until mid-2023. Since chips are the backbone of every smart device, this threatens the growth of other emerging technologies as well. IoT devices will be particularly affected as they typically use sensors, microcontrollers, and mature communication technologies that have many more uptime issues than advanced chips such as processors and GPUs. We predict that the shortage of IoT chips will reduce IoT growth by 10-15% in 2022.

To understand the key dynamics that will impact Asia-Pacific organizations over the next year, download Forrester’s Free Prediction Guide. To dive even deeper, check out our Asia-Pacific Forecast Hub 2022 for more resources.

This article was written by Forrester analyst Abhijit Sunil, and it originally appeared here.

The views and opinions expressed in this article are those of the author and do not necessarily reflect those of CDOTrends. Image credit: iStockphoto / Apiwan Borrikonratchata


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