Technology
AIoT: When Artificial Intelligence Meets the Internet of Things
AIoT: When AI Meets the Internet of Things
The Internet of Things (IoT) is a technology helping us to reimagine daily life, but artificial intelligence (AI) is the real driving force behind the IoT’s full potential.
From its most basic applications of tracking our fitness levels, to its wide-reaching potential across industries and urban planning, the growing partnership between AI and the IoT means that a smarter future could occur sooner than we think.
This infographic by TSMC highlights the breakthrough technologies and trends making that shift possible, and how we’re continuing to push the boundaries.
AI + IoT = Superpowers of Innovation
IoT devices use the internet to communicate, collect, and exchange information about our online activities. Every day, they generate 1 billion GB of data.
By 2025, there’s projected to be 42 billion IoT-connected devices globally. It’s only natural that as these device numbers grow, the swaths of data will too. That’s where AI steps in—lending its learning capabilities to the connectivity of the IoT.
The IoT is empowered by three key emerging technologies:
- Artificial Intelligence (AI)
Programmable functions and systems that enable devices to learn, reason, and process information like humans. - 5G Networks
Fifth generation mobile networks with high-speed, near-zero lag for real time data processing. - Big Data
Enormous volumes of data processed from numerous internet-connected sources.
Together, these interconnected devices are transforming the way we interact with our devices at home and at work, creating the AIoT (“Artificial Intelligence of Things”) in the process.
The Major AIoT Segments
So where are AI and the IoT headed together?
There are four major segments in which the AIoT is making an impact: wearables, smart home, smart city, and smart industry:
1. Wearables
Wearable devices such as smartwatches continuously monitor and track user preferences and habits. Not only has this led to impactful applications in the healthtech sector, it also works well for sports and fitness. According to leading tech research firm Gartner, the global wearable device market is estimated to see more than $87 billion in revenue by 2023.
2. Smart Home
Houses that respond to your every request are no longer restricted to science fiction. Smart homes are able to leverage appliances, lighting, electronic devices and more, learning a homeowner’s habits and developing automated “support.”
This seamless access also brings about additional perks of improved energy efficiency. As a result, the smart home market could see a compound annual growth rate (CAGR) of 25% between 2020-2025, to reach $246 billion.
3. Smart City
As more and more people flock from rural to urban areas, cities are evolving into safer, more convenient places to live. Smart city innovations are keeping pace, with investments going towards improving public safety, transport, and energy efficiency.
The practical applications of AI in traffic control are already becoming clear. In New Delhi, home to some of the world’s most traffic-congested roads, an Intelligent Transport Management System (ITMS) is in use to make ‘real time dynamic decisions on traffic flows’.
4. Smart Industry
Last but not least, industries from manufacturing to mining rely on digital transformation to become more efficient and reduce human error.
From real-time data analytics to supply-chain sensors, smart devices help prevent costly errors in industry. In fact, Gartner also estimates that over 80% of enterprise IoT projects will incorporate AI by 2022.
The Untapped Potential of AI & IoT
AIoT innovation is only accelerating, and promises to lead us into a more connected future.
| Category | Today | Tomorrow |
|---|---|---|
| Edge computing | Smart thermostats Smart appliances | Home robots Autonomous vehicles |
| Voice AI | Smart speakers | Natural language processing (NLP) ePayment voice authentication |
| Vision AI | Massive object detection | Video analytics on the edge Super 8K resolution |
The AIoT fusion is increasingly becoming more mainstream, as it continues to push the boundaries of data processing and intelligent learning for years to come.
Just like any company that blissfully ignored the Internet at the turn of the century, the ones that dismiss the Internet of Things risk getting left behind.
—Jared Newman, Technology Analyst
Technology
Charting the Next Generation of Internet
In this graphic, Visual Capitalist has partnered with MSCI to explore the potential of satellite internet as the next generation of internet innovation.
Could Tomorrow’s Internet be Streamed from Space?
In 2023, 2.6 billion people could not access the internet. Today, companies worldwide are looking to innovative technology to ensure more people are online at the speed of today’s technology.
Could satellite internet provide the solution?
In collaboration with MSCI, we embarked on a journey to explore whether tomorrow’s internet could be streamed from space.
Satellite Internet’s Potential Customer Base
Millions of people live in rural communities or mobile homes, and many spend much of their lives at sea or have no fixed abode. So, they cannot access the internet simply because the technology is unavailable.
Satellite internet gives these communities access to the internet without requiring a fixed location. Consequently, the volume of people who could get online using satellite internet is significant:
| Area | Potential Subscribers |
|---|---|
| Households Without Internet Access | 600,000,000 |
| RVs | 11,000,000 |
| Recreational Boats | 8,500,000 |
| Ships | 100,000 |
| Commercial Aircraft | 25,000 |
Advances in Satellite Technology
Satellite internet is not a new concept. However, it has only recently been that roadblocks around cost and long turnaround times have been overcome.
NASA’s space shuttle, until it was retired in 2011, was the only reusable means of transporting crew and cargo into orbit. It cost over $1.5 billion and took an average of 252 days to launch and refurbish.
In stark contrast, SpaceX’s Falcon 9 can now launch objects into orbit and maintain them at a fraction of the time and cost, less than 1% of the space shuttle’s cost.
| Average Rocket Turnaround Time | Average Launch/Refurbishment Cost | |
|---|---|---|
| Falcon 9* | 21 days | < $1,000,000 |
| Space Shuttle | 252 days | $1,500,000,000 (approximately) |
Satellites are now deployed 300 miles in low Earth orbit (LEO) rather than 22,000 miles above Earth in Geostationary Orbit (GEO), previously the typical satellite deployment altitude.
What this means for the consumer is that satellite internet streamed from LEO has a latency of 40 ms, which is an optimal internet connection. Especially when compared to the 700 ms stream latency experienced with satellite internet streamed from GEO.
What Would it Take to Build a Satellite Internet?
SpaceX, the private company that operates Starlink, currently has 4,500 satellites. However, the company believes it will require 10 times this number to provide comprehensive satellite internet coverage.
Charting the number of active satellites reveals that, despite the increasing number of active satellites, many more must be launched to create a comprehensive satellite internet.
| Year | Number of Active Satellites |
|---|---|
| 2022 | 6,905 |
| 2021 | 4,800 |
| 2020 | 3,256 |
| 2019 | 2,272 |
| 2018 | 2,027 |
| 2017 | 1,778 |
| 2016 | 1,462 |
| 2015 | 1,364 |
| 2014 | 1,262 |
| 2013 | 1,187 |
Next-Generation Internet Innovation
Innovation is at the heart of the internet’s next generation, and the MSCI Next Generation Innovation Index exposes investors to companies that can take advantage of potentially disruptive technologies like satellite internet.
You can gain exposure to companies advancing access to the internet with four indexes:
- MSCI ACWI IMI Next Generation Internet Innovation Index
- MSCI World IMI Next Generation Internet Innovation 30 Index
- MSCI China All Shares IMI Next Generation Internet Innovation Index
- MSCI China A Onshore IMI Next Generation Internet Innovation Index
MSCI thematic indexes are objective, rules-based, and regularly updated to focus on specific emerging trends that could evolve.
Click here to explore the MSCI thematic indexes
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