The number of smart connected products is growing – in 2025 it is expected to hit 41 billion IoT devices capable of generating almost 80 zettabytes (ZB) of data, as per IDC company research.
Addressing any challenges of the IoT, especially those related to development and security risks in business applications, is one of the most important issues for companies planning to implement the Industrial Internet of Things. Whether your company is taking advantage of the benefits of the IoT or is already planning to do so, you need to know how to address the issues effectively! Read our guide to learn more about IoT challenges and connectivity solutions that every IoT enthusiast should know.
Challenges in the IoT
The IoT is one of the fastest-growing areas of the market. Although 2023 was the year of Generative Artificial Intelligence, the breakthrough that has taken place in this realm will have an impact on other areas – including the further development and potential of IoT.
To start with some relevant facts:
- Two-thirds of industrial organizations stated that they are currently implementing an IIoT strategy, according to the IoT Analytics report.
- 50% of businesses do not have the necessary in-house skills in security, data science, and connectivity to create, implement, and oversee IoT projects, according to Inmarsat research.
Consult your project directly with a specialist
Book a meetingChallenges in IoT development
Developing IoT solutions comes with its own set of challenges. Addressing them is crucial as the IoT industry simply snowballs and more devices are deployed with the potential for security breaches.
- Skills shortage – according to research conducted by Inmarsat, close to 50% of businesses do not have the necessary in-house skills in security, data science, and connectivity to create, implement, and oversee IoT projects. Implementing and maintaining IoT systems requires competence in many different areas. The key to success is the right blend of powers from the business and technology worlds.
- Lack of a clear, phased strategic plan – IoT projects are not speedy implementations. They are time-consuming. The median time for IIoT projects in 2023 was approximately 20–25 months. Not everyone has the right strategists at home to divide the project into the required phases and plan for its long-term development.
- No access to IoT proof points – not all companies are eager to share knowledge about their ongoing IoT projects and IoT technologies. Disclosing data, the technologies used or security features can open the way to security breaches in applications or on devices. Therefore, when you are looking for a third-party company to look after your IoT solutions, you may not get information about their previous projects.
- Data and cybersecurity concerns – data and device connectivity are at the heart of the IoT. Security breaches and tactics keep on evolving; hence, IoT issues and sensitive data protection are the number one priority. For example, a malicious device can be introduced into the network by an attacker, or malware can be installed. Based on the security reports available, IoT router attacks are currently behind almost 75% of successful IoT attacks.
- Need for large-scale, rapid investment – in an era of economic uncertainty, it seems every company is carefully watching their pennies. For IoT deployments, large-scale solutions that require changes during the project are sometimes a challenge. This creates uncertainty in terms of budget planning. ISG’s information shows that 90% of respondents admit that rapid project development forces them to change the solution, half of which is vitally important.
- Lack of culture of collaboration – in the context of agile methodologies, the role of collaboration and good communication is undisputed. An agile mindset is just as important, if not more so, when implementing Internet of Things projects. With several years of work on an undertaking, it is easy to get discouraged and move away from ongoing communication when positive results are not immediately seen.
- Resistance to outsourcing – last but not least, companies implementing IoT / IIoT solutions in-house are reluctant to consider the possibility of outsourcing this undertaking. According to the reports, only 30% of all respondents are searching for a business partner who offers comprehensive IoT services. The challenge here is especially in allocating access to data, which can become a risk in the wrong hands, instead of a competitive advantage.
Ensuring connectivity in IoT
Connectivity, meaning the capability of IoT devices or appliances to communicate with one another or with systems, is the foundation of IoT. Software AG research showed that almost 90% lack the expertise to choose and procure the device connectivity approach.
Connectivity problems can be of various natures. A sensor device located in an inaccessible, remote location, poor device access to the network, or many dispersed units can cause poor connectivity.
Some common solutions to connectivity issues include:
- using dedicated networks for IoT devices,
- implementing mesh networking to extend the range of coverage,
- using repeaters or signal boosters to improve the signal,
- ensuring the proper configuration of devices and networks.
Additionally, the regular maintenance and monitoring of IoT devices can help prevent and quickly address any issues related to connectivity.
Protocols for seamless IoT integration
The IoT revolution is made possible by, among other things, great integration between devices and platforms. At a time when more and more companies are relying on data processed in real time, such integration plays a key role. This is ensured by having the right protocols in place. Among others:
- MQTT (Message Queuing Telemetry Transport) – unreliable networks with low data capacity, significant delays, or disruptions.
- CoAP (Constrained Application Protocol) – built with M2M (Machine-to-Machine communication) applications such as smart energy and building automation.
- HTTP/HTTPS – for general requests/responses used for web services in general.
- WebSocket – efficient for real-time communication. Best for low-latency two-way communication.
Managing IoT deployments: buy or build?
One of the most important challenges is deciding whether to buy or build.
Buying a ready-made solution may save you time and resources in the short term but building a custom solution can provide you with a competitive edge and better align with your specific business goals and requirements.
When deciding whether to buy or build, consider the following factors:
- Budget: Buying a pre-built solution may be more cost-effective initially, as custom development can require significant upfront investment. However, building a custom solution may provide long-term cost savings and a higher Return on Investment thanks to improved efficiency and better functionality.
- Competitiveness: Consider how a custom solution can give you a unique advantage over your competitors. Off-the-shelf products may be limited in terms of customization and may not fully meet your business needs.
- Return on Investment (ROI): Evaluate the potential Return on Investment for both buying and building a solution. Consider factors such as increased productivity, cost savings, improved customer experience, and better scalability.
Build
By choosing to develop IoT applications yourself, you gain the freedom to build a custom solution tailored to your needs. You have all integrations and metrics under control. The disadvantage, however, is the slower time to market, and the wide scope of the project at every stage. Also, it’s troublesome to hire in-house developers with the set of competencies you need.
Buy
Using an off-the-shelf solution, you’ll see value faster, avoid the hassle of recruiting experts, and gain the provider’s built-in authentication mechanisms for data security to protect your data. Unfortunately, such a solution also has its drawbacks – you are limited to one platform, and if you don’t think this choice through well, it will bring you more trouble than it’s worth in the long run (including vendor lock-in).
Buy and Build
Both Microsoft and Cumulocity, leaders in IoT platform solutions, recommend taking advantage of the benefits of both approaches. With a solution known as Buy & Build, you get an IoT platform as a foundation and can customize it as needed. At the same, you minimize ownership and use proven secure solutions. This approach makes swift IoT adoption possible without companies having to build everything from scratch, saving time and resources.
Also read: Legacy systems modernization
Understanding IoT security challenges for devices
One of the biggest IoT challenges is addressing these challenges when it comes to managing IoT deployments. Many IoT devices often lack standardization and may have weak IoT security solutions, making them vulnerable to privacy issues. IoT adoption means connecting the world of hardware and software, using the best available practices and knowledge. IoT consultants’ services may prove indispensable in this regard.
Security issues of connected devices
Security issues are an area that companies are paying close attention to, as malfunctioning and unauthorized access to devices can have dire consequences – for production, logistics, or the safety and lives of people.
Take, for example, medical devices that dispense drugs. As the IoT revolution goes on, the healthcare sector is more and more reliant on connected devices. According to a 2022 Juniper Research study, by 2026, hospitals worldwide will deploy nearly 7.5 million connected medical devices.
The most common risks pertain to IoT exploits, malware and unauthorized access, and breaches associated with human factors.
We wrote about potential scenarios and risks in the article: Security of IoT devices.
Exploring 5 major vulnerabilities in IoT devices
Getting to know potential vulnerabilities in IoT devices is becoming increasingly important as IoT appliances continue to evolve.
- Weak authentication methods – passwords that are easy to guess pose the risk of unauthorized access to industrial devices.
- Insufficient network security – so-called Man-in-The-Middle Attacks (MITM) are aimed at compromising vulnerabilities between the communication protocol and services running on IoT devices.
- Insecure ecosystem – components such as web, backend API, cloud, or mobile interfaces should be secured with trusted and reliable encrypting methods.
- Not keeping components up to date – software dependencies or legacy systems may pose a risk to the entire IoT ecosystem.
- Privacy concerns – data stored should comply with privacy regulations (GDPR or CCPA) to avoid legal consequences.
The importance of encryption in securing IoT data
Encryption plays a crucial role in securing IoT data due to the privacy issues in IoT and the fact that IoT devices can be exploited without proper security and privacy measures in place.
To secure data, IoT developers use synchronous (singular cryptographic key) and asynchronous algorithms (multiple keys). The best-known methods are:
- Advanced Encryption Standard (AES) – an encryption algorithm used by security agencies and organizations worldwide. It is considered easy to implement and apply in many IoT security areas.
- Triple DES – successor to the DES algorithm (no longer in use). Often used for payment systems and FinTech solutions.
- RSA – commonly applied in SSL/TLS certifications, encrypting emails, and cryptocurrencies.
- DSA (Digital Signature Algorithm) – introduced in the 1990s by the National Institute of Standards and Technology (NIST). In simple terms, it allows you to generate 2 digital signatures that enable the receiver to authenticate the sender.
- Blowfish – freely available, used for safeguarding online payments and user password protection.
Authentication methods for IoT devices
Authentication methods for IoT devices are vitally important for ensuring the security of the entire IoT ecosystem. With billions of connected devices transmitting and receiving data, with weak authentication methods, network security and personal data are at stake.
The secret to securing connected devices is access control. Device authentication means ensuring that any device willing to connect to the network must fulfill a set of strict criteria. Possible authentication methods include:
- Single/one-factor authentication
- Two-factor authentication
- Three-factor/multi-factor authentication
- Cryptographic authentication
Summary: Overcoming Industrial IoT challenges
The landscape of Industrial IoT is rapidly evolving, with billions of IoT devices being deployed in various industrial sectors, from logistics, to healthcare, to manufacturing. As IoT solutions become more widespread, new challenges arise in security practices and security audits to ensure IoT devices are protected. IoT manufacturers must prioritize safety and implement adequate solutions to secure their existing and new IoT devices.
This can be achieved by using proven solutions and partners who have a track record of successful projects. The advantages are access to talent, shortening time to market and the ability to consult in the context of IoT software implementation. The proper planning of all activities and market research is a step that cannot be overlooked for long-term IoT undertakings where you need to carefully think through the entire IoT infrastructure and its vulnerabilities.
Elevate Your Application Development
Our tailored Application Development services meet your unique business needs. Consult with Marek Czachorowski, Head of Data and AI Solutions, for expert guidance.
Schedule a meeting