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State of the Connected World 2020 Edition Contents In collaboration with the Global Internet of Things Council and PwC State of the Connected World 2020 Edition INSIGHT REPORT DECEMBER 2020 Contents 3 Foreword 5 Executive summary 7 Introduction: COVID-19, the Great Reset and the connected world 19 Chapter 1: Recalibrating our relationship with the internet of things 24 Chapter 2: Security and the need for standardization 32 Chapter 3: Pandemics, privacy and the public interest 40 Chapter 4: A connected world for everyone 44 Chapter 5: Creating a shared language for connected things 49 Chapter 6: Enabling economic viability 55 Chapter 7: Governing complex systems 68 Conclusion: Charting a path to a brighter connected future 70 Appendices 71 Appendix A: Research methodology 72 Appendix B: 2020 Global State of IoT survey demographics 73 Acknowledgements 76 Contributors 77 Endnotes 2 State of the Connected World 2020 Foreword Cristiano Amon Stella Ndabeni-Abrahams Co-Chair of Global Internet Co-Chair of Global Internet of Things Council; President, of Things Council; Minister of Qualcomm Incorporated Communications and Digital Technologies, Republic of South Africa Adrian Lovett Mohamed Kande Co-Chair of Global Internet of Vice-Chair, Global Advisory Things Council; President and Leader, PwC Chief Executive Officer, World Wide Web Foundation In January 2019, a small group of global To help build a connected world that leaders from the public and private sectors benefits all, we established the Global IoT convened at the World Economic Forum’s Council. The Council members span the Annual Meeting in Davos to reflect on public and private sectors, representing how internet-enabled devices, commonly 13 countries on five continents, seven referred to as the internet of things (IoT), industries, an equal mix of men and were transforming and disrupting the way women, and a combination of executive we live and work. leaders and subject-matter experts. Never before has such a diverse group of leaders While our backgrounds and points of view from business, government, civil society were broad and varied, we were united by and academia come together to discuss a shared sense of purpose to help realize the current state of IoT, let alone to chart the full potential and promise of these its future direction. critical technologies. We acknowledged that the road ahead would not be without At the Council’s inaugural meeting in obstacles. Indeed, it had been 30 years April 2019, it was clear that there was a since Tim Berners-Lee helped bring the diversity of views about the opportunity internet within reach of everyone with the and potential risks of connected invention of the world wide web, yet a technology. Yet we all agreed that themes significant segment of the world remains related to privacy, security and equitable unable to access these benefits. access required greater attention. The 3 State of the Connected World 2020 events of 2020 – COVID-19, climate- to build transparency and trust into the related natural disasters and economic heart of IoT technologies, a commitment instability – have raised this need for to ensure that public privacy and security collective action from urgent to absolutely is protected, a responsibility to enable necessary. equal access for all, a desire to incentivize the use of IoT to help solve humankind’s This report is the product of a year-long biggest challenges, and a determination effort by the World Economic Forum and to bring people together to create a global Global IoT Council, in collaboration with consensus on these critical issues. PwC, to better understand how IoT is viewed around the world and to establish With the release of this report, we embark clear priorities for action. The findings on the next phase of this shared mission of this research underscore many of the to address and track the most pressing differences in perception and viewpoints governance gaps facing the development that first surfaced within the Council. of IoT. We look forward to sharing regular We see this diversity as a strength that updates along the way and we invite you highlights the importance of greater to join us as we chart a course towards a public-private collaboration. We also see more connected world that benefits all. clear areas of alignment: a shared resolve 4 State of the Connected World 2020 Executive summary Spurred by continued technological fighting the pandemic has also shed light advancement, the world today is more on concerns about its security, privacy, connected than ever. This presents a interoperability and equity. tremendous opportunity to build a more 175 sustainable and prosperous future for This inaugural report on the state of the all, but it also introduces new risks and connected world was initiated by the governance challenges in areas such as World Economic Forum and the Global security, privacy and the fair distribution IoT Council, which consists of key of benefits. stakeholders from the global IoT industry in the public and private sectors and civil The global COVID-19 pandemic has made society. It aims to take a comprehensive this abundantly clear. COVID-19 has look at the most pressing opportunities highlighted the essential role the internet and challenges facing the IoT ecosystem of things (IoT) has come to play in our based on extensive multistakeholder lives. IoT applications such as connected input and discussions. Our research thermal cameras, contact tracing devices makes clear that we are at a pivotal and health-monitoring wearables are moment, when the development, use providing critical data needed to help fight and governance of these technologies is the disease. while temperature sensors rapidly changing and evolving. The main and parcel tracking will help ensure findings include, but are not limited to, that sensitive COVID-19 vaccines are the following. distributed safely. Yet the use of IoT in 1. The COVID-19 pandemic is changing the face of IoT, introducing new use cases and applications, bolstering demand in select areas such as health technology and the smart home while temporarily slowing adoption in areas such as traditional enterprise IoT. 2. The ways in which IoT is being used to help manage and respond to COVID-19 hold the potential to spur and accelerate new opportunities to boost organizational and individual resilience and flexibility, and to respond more effectively to future challenges, instability and emergencies. However, it also brings with it risks for privacy and other human rights that need to be thoroughly assessed and addressed through proper governance structures. 3. The IoT market and ecosystem is expected to grow even faster in a new post-COVID-19 business environment, thanks to the release of pent-up demand and the determination to minimize the impacts from future disruptions, especially in the enterprise and public spaces domains. 4. The maturity of IoT governance – the laws, industry standards and self- governance approaches required to mitigate potential harm – continues to lag behind the pace of technological change. The largest perceived gap in governance relates to ensuring 5 State of the Connected World 2020 IoT technologies become a force for In response to the findings of this shared societal benefit, as opposed report, the World Economic Forum, in to exacerbating the digital divide and partnership with the Global IoT Council, existing inequalities. has developed a Global Action Plan 5. Over the next few years, the that aims to encourage collective action implementation of a variety of new on the most pressing challenges the technologies will likely increase the connected world faces now. The goal of range, capabilities and analytical the plan is to increase public education sophistication of IoT. These innovations on connected devices, encourage have the potential to improve the adoption of cybersecurity methodologies, governance of IoT technologies by accelerate adoption of connected systems incorporating key factors into the in underserved areas and strengthen design of devices and systems – data sharing across the IoT ecosystem. including privacy and security, but Progress on these initiatives will be also human-centric considerations reported in 2021. such as economic, civil, political and other human rights issues that could IoT is already an indispensable part of our otherwise be overlooked. daily lives and fundamental infrastructure. As it grows in extent and capability, we 6. Despite double-digit annual growth must act to ensure a connected world that rates in the consumer IoT market, is trustworthy, safe, collaborative, efficient, the value chain for IoT data remains human-centred and generates new opaque, undermining public trust. opportunities and benefits for all of society. Privacy concerns are growing rapidly and it is becoming increasingly These actions address systemic challenges difficult to safeguard privacy as and therefore require the collective devices become more pervasive and commitment of all stakeholders in the embedded in people’s lives, capturing international community. As such, we invite personal data with greater frequency you to consider how your organization and granularity. might contribute to the progress of one or 7. Cybersecurity threats remain a vital more of these actions. Together, we can area of concern in the IoT ecosystem. chart a path to a future connected world Governments at the regional, country that is more sustainable, resilient and and state levels are beginning to prosperous for all. address the need for better IoT security governance, but efforts so far have been globally fragmented, making compliance often confusing and costly for companies. 8. The COVID-19 pandemic has accelerated the move towards automation, a trend that some believe could affect hundreds of millions of people in the coming decade. It is important to better understand the impact that increased automation and IoT usage will likely have on regional communities and society at large now and in the future. 9. The pandemic has also shed light on how bias, implicit or explicit, and unequal access to connected devices and inequitable sharing of the benefits of IoT can have a massive societal and economic impact.
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