A converged future
As enterprises expand their presence across geographical boundaries, they see a growing need to shift towards decentralization as well as an escalated need for remote oversight and control over resources. This in turn means different use-cases need to become more interlinked to continue to enable additional value creation.
In today´s ever-evolving business, enterprise are expanding their presence across geographical boundaries, leading to a shift towards decentralization and an escalated need for remote oversight and control over resources. One more shift we expect to see for the future of enterprises in the coming years is the convergence of different types of digitally enabled use-cases. This trend is also closely linked to the shift towards interconnected ecosystem for value creation as described in the first chapter of this report. This convergence shapes the enterprise into a more interconnected form through which value creation could be impacted by different parameters such as cost efficiency, security, user experience and more. This means different use-cases need to be more interlinked to create additional value.
The convergence of human-centric and IoT-centric use-cases will be driven by user satisfaction.
Today, we can categorize use-cases into two groups, the human-centric and IoT-centric ones. Human-centric use-cases have a utilization level that is more than 10 percentage points higher than IoT-centric ones. One reason for the higher utilization of human-centric use-cases could be that regulation and legislation is seen as a hurdle for fewer decision-makers and employees than for IoT-centric use-cases. Interestingly enough, the willingness to invest in both types of use-cases is equally high, with roughly 7 in 10 decision-makers already investing, or planning to invest in the future.
The convergence we expect to see between these two use-case groups is mostly driven by user satisfaction, which is a key value driver across the board. In 5 out of 6 use-cases customer satisfaction is the top value driver for at least 80% of decision-makers and even for remote meeting 78% agree to that, although it is the third top driver after employee satisfaction and enabling process scalability. The fact there is a common value driver indicates the potential to drive convergence to maximize synergies and value creation.
As human-centric and IoT-centric use-cases converge, new value creation opportunities are expected to open up across all the industry segments, even for the current laggard, societal organizations. One area where this could be particularly interesting is in the context of smart cities, with potential focus areas such as environmental monitoring, transportation and logistics.
This convergence also suggests a shift in focus from the individual needs into the broader ecosystem. It involves aligning human-centric applications with the capabilities of IoT technology. Smart agriculture system where IoT devices are integrated to manage and optimize farming operations across an entire farm is one such example.
Evolution across industry segments
When studying the use-case utilization across different industry segments, the infrastructure industry segment sticks out when it comes to human-centric use-cases. Already today they have, on average, 68 percent utilization level (on a scale from 0-100 percent, where 100 percent means no further utilization is possible). Decision-makers in infrastructure segment expect use-case utilization in their companies to increase further to 75 percent in the next 7-10 years. However, also the segment with the lowest utilization today, societal organizations, expect to reach similar utilization levels by then!
For the IoT-centric use-cases, the finance industry segment is leading the way with an average 55 percent current utilization level and expecting to reach 68 percent in the next 7-10 years. Also, for IoT centric use-cases, the industry segment with the lowest current utilization, societal organizations, is expected to catch up within the 7-10 year time horizon.
Many signs of the convergence
The convergence between human and IoT use-cases can be seen in this and other studies, creating a symbiotic relationship that is reshaping various aspects of our daily lives and industries. The previous IndustryLab report The rise of the smarter, swifter, safer production employee reflects on the growing adoption of versatile robots designed to safely and productively work alongside humans. The combination of AI with IoT, empowered by high-performance connectivity everywhere, is further driving this convergence, enabling more intelligent and responsive systems that can adapt to human needs and behaviors. The convergence of human-centric and IoT-centric use-cases may lead to a new paradigm in various industries, extending beyond the Industry 5.0 paradigm.
Industry 5.0 represents a shift from purely technological and economic goals towards a more holistic approach that considers human factors, sustainability, and societal impact while leveraging advanced technologies. It aims to create a more balanced and responsible industrial paradigm that serves both business and broader societal needs.
One prominent example of convergence in this study is when IoT-related technology is used to enhance human centric use-cases. There is a distinct expectation that IoT devices like motion sensors and haptic feedback gloves to enhance interaction, will become integrated into human centric use-cases, making e.g. remote collaboration more natural and engaging. In fact, 76 percent of decision-makers expect this type of IoT technology to become integrated into human centric use-cases in the coming 7-10 years.
Figure 7: Share of decision-makers indicating that IoT-centric use-cases are enhanced with human-centric capabilities today and will be in the next 7-10 years vs share of decision-makers indicating that human-centric use-cases are enhanced with IoT capabilities in the same time period [Self-reported]
Our study has also revealed the opposite evolution, i.e. human-centric technology, such as XR, is expected to enhance the studied IoT-centric use-cases. In fact, no less than 87 percent of the decision-makers believe this will happen within the next 7-10 years, as can also be seen in figure 7.
Human centric and IoT centric use-cases are thus expected to converge quite significantly in the next 7-10 years. Devices such as Fitbit and Apple Watch monitor health metrics like heart rate, sleep patterns, and physical activity. This data is then used in human-centric health applications such as Apple Health or Google fit to provide personalized health recommendations and alerts.
Future Developments
As AI and IoT technologies continue to evolve, we can expect to see more applications that further strengthen the convergence between human and machine capabilities. This could include cognitive assistance systems and smart environments that adapt to human needs. The convergence will enable more personalized and context-aware services across the studied use-cases. AI-powered systems will leverage data from IoT devices to better understand and anticipate human needs, leading to more tailored and efficient interactions.
The convergence of human-centric and IoT-centric approaches also encompasses discussions about cyborgs. The concept of cyborgs - beings with both organic and biomechatronic body parts - is becoming increasingly relevant in an Industry 5.0 context. Advanced prosthetics and implants are blurring the line between humans and machine. Brain-computer interfaces (BCIs) are being developed to restore functionality for individuals with disabilities or enhance cognitive capabilities. Neural implants and non-invasive brain stimulation technologies are being researched to enhance memory, learning, and other cognitive functions.
B-CRATOS is an innovative project aimed at developing advanced brain-computer interface (BCI) technology to improve the quality of life for individuals with mobility impairments. The project's main goal is to create a battery-free, high-speed wireless in-body communication platform for Brain-Machine-Body connectivity.
As automation increases, the role of humans is evolving. The convergence of human-centric and IoT-centric approaches, including cyborg technologies and human-in-the-loop systems, is enabling a future where the boundaries between humans and machines are increasingly blurred, leveraging the strengths of both to address complex challenges in work life.
As these technologies become more intertwined with daily life, there will be an increased focus on privacy protection and building trust in AI-powered systems. Edge computing may play a crucial role in addressing these concerns by processing sensitive data locally.
