The Internet of Things (IoT) has tantalized industries for years with visions of a seamlessly connected world, where every device communicates to revolutionize efficiency and innovation. However, the reality often fell short of such lofty promises, leaving stakeholders grappling with unmet expectations. A turning point surfaced at The Things Conference, held in Amsterdam on September 23 and 24, where over 2,000 attendees from 70 countries convened. Hosted by The Things People—a collective behind The Things Network and The Things Industries—this event painted a refreshed picture of IoT. Far from chasing vague, overarching goals, the industry, particularly through LoRaWAN technology, is now carving a path by focusing on precise, high-value niches. This pragmatic shift signals a departure from past hype, offering a glimpse into a more grounded and sustainable future for connected solutions.
IoT’s New Reality: From Hype to Focus
Shifting Mindsets
The atmosphere at The Things Conference reflected a profound change in how the IoT community perceives its mission. Gone are the days of touting grandiose visions of “massive IoT” blanketing the globe with sensors for universal benefits. Instead, a more measured approach has taken hold, where the emphasis lies on solving tangible problems for specific sectors. This recalibration acknowledges that the complexity of enterprise needs cannot be addressed with simplistic, one-size-fits-all technologies. Speakers highlighted that the operational technology space, in particular, demands nuanced understanding and tailored strategies. The shift is not just philosophical but practical, as companies now prioritize partnerships with specialist channels to navigate the intricate demands of diverse industries, setting IoT apart from other tech fields still entangled in exaggerated promises.
This evolving mindset also underscores a critical lesson learned over years of trial and error. The industry has come to terms with the fact that enterprise challenges, especially in fragmented markets, resist cookie-cutter solutions. A striking example shared during the event pointed to the vast potential within facilities management, specifically the monitoring of commercial refrigeration units in the US—a market worth billions. Such specificity illustrates how IoT can unlock significant opportunities by drilling down into micro-segments rather than casting a wide, ineffective net. This focus on actionable outcomes over flashy rhetoric marks a maturation point, where real-world impact trumps speculative buzz, paving the way for more credible advancements in the field.
The Power of Specialization
At the heart of IoT’s newfound direction is the concept of targeting a “niche within a niche,” a strategy that transforms market fragmentation from a barrier into a blueprint for success. This approach recognizes that the IoT landscape comprises countless sub-segments, each with unique requirements that demand bespoke solutions. The conference discussions revealed how zeroing in on these narrow opportunities allows providers to deliver high-impact results that resonate with specific enterprise needs. Whether it’s optimizing supply chains or enhancing building management systems, the ability to address pinpointed challenges offers a clearer path to scalability and adoption. This granular focus not only maximizes value for clients but also helps IoT carve out a distinct identity amid a crowded tech ecosystem.
Equally important is the role of vertical expertise in driving this specialized growth. Success in IoT increasingly hinges on a deep understanding of industry-specific pain points, a theme that echoed throughout the event. Unlike broader tech trends that often push generic innovations, IoT’s strength lies in tailoring applications to fit the exact contours of a sector’s operational landscape. For instance, addressing the intricacies of industrial monitoring requires knowledge far beyond basic connectivity—it demands insight into regulatory constraints, workflow dynamics, and long-term maintenance needs. This depth of specialization enables IoT to deliver solutions that are not just functional but transformative, fostering trust among enterprises and positioning the technology as a vital tool for targeted problem-solving.
LoRaWAN as a Beacon of Progress
Tangible Growth Metrics
The LoRaWAN sector emerged as a standout at The Things Conference, showcasing concrete evidence of IoT’s maturing presence in the low-power wide-area network (LPWAN) space. With a reported 125 million connections worldwide, LoRaWAN is no longer a speculative concept but a proven framework for connectivity. Major partnerships with global brands like Chevron, Shell, and Starbucks further validate its relevance across both private and public network deployments. These collaborations highlight how LoRaWAN is being integrated into critical operations, from energy management to retail logistics, demonstrating its capacity to handle real-world demands at scale. Such milestones reflect a significant leap forward, as the technology moves from experimental pilots to widespread, impactful implementations.
Beyond sheer numbers, the sustainability of LoRaWAN’s business model adds another layer of credibility to its growth story. Key players like ZENNER, managing 10 million devices, and The Things Industries, supporting 3.8 million devices across 1,500 customers, exemplify how recurring revenue streams are becoming a cornerstone of IoT economics. Reports of 30 percent annual growth in such models indicate a shift toward long-term customer relationships rather than fleeting, one-off sales. This financial stability is crucial for weathering the low-margin challenges inherent in IoT deployments, ensuring that providers can invest in innovation while maintaining operational viability. These metrics collectively paint a picture of an industry segment finding its rhythm through measurable progress and strategic focus.
Collaborative Momentum
A defining feature of the conference was the spirit of collaboration that permeated discussions among diverse IoT factions. Representatives from Bluetooth, Wi-Fi, Z-Wave, Wi-SUN, and cellular IoT joined LoRaWAN advocates, alongside industry giants like Qualcomm, signaling a readiness to integrate rather than compete. This cross-technology dialogue marks a departure from past rivalries, as attendees recognized that no single solution can address the entirety of IoT’s challenges. The absence of certain players like UnaBiz/Sigfox was noted, yet the overall tone suggested an openness to future inclusion, especially as restructurings conclude. This collaborative ethos hints at a future where hybrid solutions—blending complementary technologies—become the norm, offering more robust and versatile options for enterprises.
This push for unity also reflects a broader maturation within the IoT landscape, as the industry moves beyond insular silos toward a shared purpose. The event showcased how integrating diverse approaches can accelerate problem-solving, particularly for complex enterprise applications that span multiple connectivity needs. For example, combining LoRaWAN’s long-range, low-power capabilities with Wi-Fi’s high-bandwidth strengths could unlock new efficiencies in smart city projects or industrial automation. Such partnerships are not just technical but cultural, fostering a dialogue that prioritizes end-user value over proprietary dominance. This collaborative momentum, evident in the diverse participation and forward-looking discussions, underscores IoT’s readiness to evolve into a more cohesive and impactful field, even as it continues to navigate persistent hurdles like market fragmentation.
Building on Hard-Won Lessons
Reflecting on the insights shared at The Things Conference, it’s evident that the IoT community has internalized the hard lessons of its past overpromises. The event, hosted by The Things People, captured a pivotal moment where the industry acknowledged that while the vision of a fully interconnected world remains distant, incremental successes in targeted niches offer a viable path forward. The LoRaWAN sector, with its impressive connection numbers and corporate tie-ups, stood as a testament to what focused efforts can achieve. Challenges like low margins and intricate integrations persist, but the collective experience gained over years of experimentation equips attendees to tackle these with greater confidence.
Looking ahead, the next steps for IoT involve doubling down on specialization and fostering even broader collaborations across technologies. Stakeholders should prioritize building deeper vertical expertise to address specific enterprise needs, ensuring solutions are both practical and scalable. Additionally, expanding the collaborative framework seen at the conference can help bridge remaining gaps, integrating diverse systems for more comprehensive offerings. By continuing to refine this balance of focus and partnership, the industry can transform lingering obstacles into stepping stones, steadily realizing the transformative potential that once seemed out of reach.
