IoT Security and Fragmentation Remain Top Challenges, GSMA Survey Reveals

LONDON — A recent Industrial Internet of Things (IIoT) security Special Report highlighted a widespread gap in awareness across the ecosystem regarding the critical need for robust security in connected devices. A follow‑up survey confirms that fragmentation and security remain the foremost challenges facing IoT today.

Commissioned by mobile R&D firm InterDigital and conducted by the GSMA, the survey underscored that while IoT holds vast potential, substantial hurdles persist. Fifty per cent of participants flagged the creation of sustainable business models as their top or second‑tier concern, with connectivity availability (42 %), security apprehensions (30 %), and technical incompatibility (30 %) also cited as major obstacles.

Interoperability stands out as a critical issue for the mobile sector, with 92 % of respondents rating fragmentation as a major or moderate problem. The survey pinpointed connectivity technologies and connectivity management as the areas most in need of industry‑wide standardisation.

Although mobile‑industry participants rightly question the sustainability of business models—operators still searching for a profitable role within the IoT ecosystem—security and interoperability challenges emerge as shared pain points across the entire landscape.

Other key findings—highlighted in the report’s section “Mobile and the Internet of Things: Unanimity around Fragmentation, Surprises in Connectivity and Geography”—emphasise 3GPP standards‑based technologies as pivotal to IoT, anticipate North America as the world’s leading adopter, and note the modest current IoT revenue relative to expectations of swift expansion.

The study concludes that IoT’s successful rollout will hinge on cellular platforms—including 5G, LTE, NB‑IoT, and GSM. Among the connectivity options deemed essential, six of the top seven are 3GPP‑derived standards, while a mere 4 % view Wi‑Fi as a critical IoT enabler. Approximately one‑third of respondents anticipate 5G becoming the dominant IoT connectivity by 2023.

Regarding revenue prospects, nearly half of participants reported that IoT contributes under 1 % of current operator earnings. Yet, by 2023, many foresee IoT driving up to 20 % of operator revenue, particularly within consumer, smart‑home, and smart‑city verticals—66 % of respondents list these as their primary revenue drivers.

Additional insights from the survey include:

• North America is projected to spearhead large‑scale IoT adoption, with 73 % of respondents designating the region as the most likely early adopter.
• Fifty‑nine per cent of respondents believe that data demand—fueling machine‑learning and AI development—will drive IoT growth.
• Forty‑two per cent of operator respondents anticipate that mobile operators will spearhead IoT adoption, versus 29 % of non‑operator respondents. Non‑operator participants additionally see system integrators and application developers as pivotal adopters.
• Sixty‑four per cent of respondents think that emerging and yet‑to‑emerge firms—39 % and 25 % respectively—will shape IoT’s trajectory over the next decade.

The survey drew 393 global mobile‑industry participants: 34 % were mobile‑operator staff (including MVNOs), 24 % were software developers, 14 % were hardware vendors, and the remainder represented system integrators, testing providers, industry bodies, and consultants.