Overcoming Technological Challenges of IoT in 2023: 7 Challenges + Solutions

Overcoming Technological Challenges of IoT in 2023: 7 Challenges + Solutions
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For almost twenty years, the Internet of Things (IoT) has been changing many different sectors by offering remote monitoring, analytics, and device management. As more and more industries find use for IoT, the number of connected devices grows to the point that there are now billions of them.

But with IoT's benefits come new challenges for coders, manufacturers, and users. There have always been significant issues associated with the IoT, but people focus more and more on them because IoT is becoming more popular with time.

But, what are these challenges and issues? Let’s take a look and discuss their solutions as well.

What Challenges Are Posed by the Use of IoT?

IoT has several layers of complexity. For this reason, effective business planning is crucial for completing any project. When businesses outsource a project, they often experience complications since their original strategy didn't consider the necessary work. Understanding the potential pitfalls of your IoT project will allow you to avoid them. 

Here are seven common IoT business challenges.

#1 Security

There’s no doubt that IoT and Industrial IoT can make your business smarter, especially in manufacturing, but there’s a flipside to this advantage. Due to its susceptibility to attacks and breaches, the IoT has a significant problem about the security of linked devices and networks.

Many IoT devices are used in places like homes, workplaces, and factories where security is not a primary concern. Because of this, hackers are likely to target such systems as entry points to more valuable targets. But, in reality, security is one of the most, if not the most, important IoT security challenges.


To deal with this issue, businesses must develop rigorous security procedures to protect IoT gadgets and infrastructure. Cryptography, authentication, and access management can all be a part of this solution.

Also, in order to patch any weaknesses in their IoT devices, businesses need to constantly upgrade the firmware

There are already procedures in place to safeguard IoT devices from malicious activities, and low-power connection options are helping to supplement those measures. 

For instance, many inexpensive gadgets have always depended on 2G networks and text messages for setup and connection. Now, the LTE-M allows us to use affordable alternatives.

To restrict network access to authorized systems, IoT SIM cards often include safety mechanisms like IMEI locks and P2P protocols. In the worst-case scenario where criminal activity makes a gadget useless, you can use these IoT SIM cards to get the device running again remotely.

#2 Scalability

In most cases, every device will include a separate management framework that can interact with the device's firmware, network, and the entire support network. Due to the proprietary nature of many systems, achieving scalability in important IoT activities is a significant challenge.

If your product has to be reworked from the ground up for a new networking solution, scalability may become much more of a challenge. 

For cellular IoT deployments, this is a problem since MNOs in various areas may provide different roaming features and services (or support). 

Roaming fees and other issues could differ widely amongst operators due to the various deals between them. 

It is becoming more common for nations to outlaw permanent roaming, meaning that you need to use an OTA local profile in nations with limits inside their borders (such as Turkey and Brazil). 

Because of the roaming limitation, expanding your business into new nations or into places with such challenges can be quite difficult.


You can ensure scalability by careful planning and testing, as well as regular monitoring and maintenance. You may grow your systems, for instance, by using microservices or containers, both of which have modular and adaptable structures. You may increase reliability by using backups, which is a well-known fault-tolerance strategy.

When it comes to scalability, IoT systems should be built with the capacity to expand horizontally. To overcome scalability issues, you can use data management practices, migrate to cloud-based systems, and create data structures that are flexible, safe, and optimized for performance.

#3 Interoperability

When it comes to your company's software, not all IoT devices and solutions will work together. When integrating new hardware and software, you may need to perform a series of adjustments to maintain the necessary level of performance.

In another sense, interoperability can be one of the most vital IoT integration challenges for your business with regulatory crises. Your Internet of Things solution might use open-source software for some of its essential components. This is not an issue by default, but without a governing body to establish a clear international standard, various companies and even states may end up adopting different versions of open-source software.

This makes it tough to integrate third-party technologies or roll out your IoT system in a new region. This isn't an issue for all IoT systems, but certain sectors need to move quickly and adopt a single standard.


Companies need to use established communication protocols and file formats to overcome this obstacle. This can guarantee trouble-free interaction between devices made by various manufacturers. Middleware may also help businesses connect their different IoT systems.

#4 Coverage

When it comes to sending and receiving data, IoT devices absolutely need a network connection. On the other hand, certain kinds of coverage are better suited to different IoT connection options. Thus, coverage is an ongoing issue in IoT, since it may drastically limit where your devices can work.

WiFi, for instance, is often used for connecting IoT services. However, its range is limited, and deployment of devices is restricted to areas with established WiFi networks. You may either spend money on creating the necessary infrastructure or fit your devices with a secondary solution that offers internet connectivity.


Using a combination of connectivity options helps achieve the optimal price and quality balance, which is especially important for vital IoT setups.

For instance, you can use Wi-Fi, 5G SIM cards, and broadband satellite systems to establish multiple different channels of communication. When doing so, you need to consider the battery life, hardware development costs, and other limiting factors.

A large number of IoT devices that need minimal data footprints and extended battery life could also benefit from a solid and affordable connection. This is possible with Low Power Wide Area Networks (LPWANs).

#5 Battery Life

Smaller batteries are common among IoT devices. Mostly this is due to the devices' small size. As IoT technology evolves, more compact and effective gadgets and parts become the norm. A larger battery may limit a device's functionality or installation options. 

If you want to place a predictive maintenance sensor in a location that would provide maximum protection from damaging factors such as severe temperatures and waste, you cannot do this with a bigger battery.

A long-lasting battery is essential for equipment that will spend the vast majority of its operational lifetime out in the field far from any other source of electricity.

However, this is only possible if the device's normal activities need very little energy. Battery life is quickly depleted while sending or receiving data for long periods.


In order to overcome this obstacle, businesses are turning to IoT devices that are more energy-efficient. To further reduce power consumption, businesses might use IoT gadgets with sleep and deep sleep modes.

IIoT and IoT routers and gateways can help with this. In this way, certain parts of the network architecture may act as middlemen for IoT gadgets, apps, and networks. Encryption and authentication are two of the more complex protocols that may be supported by the gateway or router, helping you keep devices safe while also reducing their power usage.

#6 ROI

It might be challenging to see a return on investment when implementing and maintaining an IoT system. It may be costly to set up and maintain the infrastructure needed for IoT devices, which includes things like sensors, gateways, and servers. There's also the issue of how to store and handle the massive amounts of data produced by IoT gadgets.


Companies need to weigh the costs and benefits of installing IoT technologies to ensure they can overcome this challenge. This could mean doing a cost-benefit study to figure out the possible return on investment and looking into different ways to apply the plan, like pay-as-you-go or subscription plans.

In addition, businesses may save money on both setup and maintenance via open-source software and hardware.

#7 Environmental

The first issue is the actual setting in which the IoT device functions since this will determine how well it performs. Depending on their context of use, IoT devices face a variety of challenges.

Extreme temperatures, overheating, poor handling, or even pedestrian activity may all negatively impact the availability of IoT devices. On top of that, there are risks such as theft, poor connection, and delayed data transfers. All of these issues in the operating environment prevent IoT devices from functioning well.


The most effective method for overcoming IoT tech challenges is to build an IoT device that is tailored to the setting. If you want your products to last as long as they're supposed to, you need to follow certain specific design and testing criteria.


What is the main challenge of IoT today?

Security. When it comes to the Internet of Things, security is the most pressing concern. Your IoT devices and code are vulnerable to a wide variety of threats since most developers working on your project are not security specialists, particularly if you handle the project in-house.

How important is interoperability?

Multiple languages, protocols, and standards exist, yet there is little consensus on which one is ideal for different IoT levels. Given such a lack of interoperability, it may be difficult to develop and deploy a reliable, scalable IoT solution.

How can you solve the current and future challenges of IoT?

To get around these issues, think about the scope and limitations of your IoT project's infrastructure. If you want your IoT devices to communicate seamlessly, you'll need to use the right protocols and standards. Wi-Fi, Bluetooth, and cellular networks are just a few examples of wireless technologies that may be used to link gadgets together.

How can IoT change the future?

How we work, play, and exist in the world is changing with the arrival of IoT. IoT has the potential to substantially improve the quality of our lives by increasing productivity, reshaping different industries, and connecting billions of devices.