Internet of Behaviors Market Trends

Growth Drivers

• Proliferation of connected devices impacting shifts in behavioral infrastructure: Over 16.0 billion IoT devices were globally active in 2023, and the number is likely to expand exponentially to exceed 30 billion by the end of 2025, as per the International Telecommunication Union (ITU). The proliferation of these devices, from wearables to industrial sensors, has laid the groundwork for the deployment of IoB tools. The devices capture the behavioral patterns and ensure that the IoB market finds its momentum in interpretation and not in surveillance. A supportive trend has been governments across the world leaning into smart city programs that embed behavior-sensitive tech in urban design. Moreover, trends indicate that the physical and digital will become inseparable as digitalization trends permeate all aspects of life, which is poised to ensure the sustained rise of the IoB market.

• Greater embedding of behavioral intelligence and increasing scalability: With a greater percentage of organizations shifting from descriptive analytics to systems that can predict and adapt to behavior, the IoB market is leveraging a lucrative ecosystem ripe for greater deployments. As noted in recent federal AI investment updates, more than USD 3.0 billion has been funneled toward AI applications in behavioral modeling since 2022. The heightened R&D has ensured improvements in the detection of anomalous financial activity to tailoring targeted treatment based on patient sentiments. The tailored end uses have contributed to expanding the scope of deployment across multiple sectors. Moreover, the quiet integration of IoB into line-of-business functions has ensured that the algorithms learn from structured as well as unstructured data.

Technological Innovations Impact on the Market

The IoB has emerged as a lived infrastructure threading across notable industries. Ranging from the finance industry to telecom, the technological advancements bolstering analytics have recalibrated how behavior is interpreted and acted upon. For instance, the advent of ML-supported fraud detection has been successful in negating fraud for major corporations, as well as in the public sector of major economies such as the U.S. The successful use cases have indicated a market converging on behavior as an actionable asset. The table below highlights the major technological trends impacting the global IoB market:

AI & ML Integration Impact on the IoB Market

5G Deployment Impact on the IoB Market

Challenges

• Ethical conundrums and algorithmic consent: The IoB market is reliant on the analysis of behavioral data, and the intrusion into personal data has created ethical concerns. The crux of the challenge is the issue of algorithmic consent, such as users knowingly and often unknowingly contribute to the vast behavioral datasets. The challenge is much more potent in comparison to the data collection via conventional practices, as IoB frameworks aggregate micro-interactions across devices and sensors. The constraint is particularly evident in sectors such as finance and healthcare that deal with sensitive data, where enterprises relying on opt-in architectures can lead to consent fatigue.