MARKET RESEARCH NOTE

The Ambient IoT: The
Emergence of a New
Class of Bluetooth®
IoT Devices

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Table of Contents
Introduction .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 3What Is the Ambient IoT?

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Defining the Ambient IoT

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Why Do We Need the Ambient IoT?

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Targeted Use Cases for the Ambient IoT

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The Role of Bluetooth® in the Ambient IoT.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 9Benefits for Developers

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Benefits of the Bluetooth® Ecosystem

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Next Steps for the Ambient IoT.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 12
Conclusion .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 14

Tancred Taylor
Senior Analyst

As part of ABI Research’s
Enabling Platforms researchteam, Senior Analyst
Tancred Taylor focuses on
asset tracking and visibility,
which includes data, trend,
and forecast analysis of
the devices, platforms,
networks, and services
empowering the emerging
technology market, as
well as the business
transformation that Internetof Things (IoT) tracking will
enable. Tancred's coveragespans many industries, fromconstruction and heavyequipment to the supply
chain and packages
and parcels.

2Introduction
Connected device technologies have evolved a long way over the past two decades.
Starting by connecting expensive networking equipment, communication technologies havetrickled down into increasingly simple devices — spawning machine-to-machine (M2M)
communications, the Internet of Things (IoT), sensor networks, and subsequent iterations
like Massive IoT. At each stage of the evolution of the IoT, lower-complexity devices, smaller
form factors, and lower-power radio protocols have opened the door to low-cost and lowmaintenance devices built for a particular function. As this trend toward easy-to-deploy,easy-to-maintain, and low-cost devices continues, IoT use cases have proliferated andconnected devices have become increasingly pervasive.
One of the most significant constraints for the evolution and pervasive deployment of the IoT  
is how these low-complexity, small form factor devices are powered. Connected devices andequipment typically rely on mains power or batteries as their primary source of energy, buteach of these can bring challenges to the IoT at scale. These challenges relate mainly to theautonomy and maintenance of devices deployed in the field and limitations on how devices
can evolve from a form factor and cost perspective.
The Ambient IoT is the next stage of evolution for IoT devices. The Ambient IoT refers to
a new class of connected devices primarily powered by harvesting energy from any viableambient source. Ambient energy sources can include radio waves, light, motion, and heat,among others. The Ambient IoT contributes to innovative form factor designs and lowmaintenance or maintenance-free devices.
Over the past two years, the Ambient IoT has been a growing topic of discussion. Standards
bodies have begun to explore how best they can support this new class of device and havebeen active in driving the conversation around this topic. Still, one of the difficulties with
understanding the opportunities in this market is the lack of a standard definition of the
Ambient IoT, such that it can engage companies from across the ecosystem.
This research note establishes guidelines for comprehending the Ambient IoT, intending toalign IoT ecosystem strategies to create Ambient IoT devices. It also evaluates the role ofBluetooth® technology, notably Bluetooth® Low Energy (LE), in addressing Ambient IoT use
cases. Bluetooth® LE, as a low-power protocol, already has a central position in enabling thisdevice class. It is the de facto choice for many IoT solution providers building applications
based on ambient energy harvesting devices. This research note examines the further workneeded to ensure long-term support for an IoT ecosystem looking to take advantage of the
Ambient IoT opportunity.

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What Is the Ambient IoT?
Defining the Ambient IoT
The Ambient Internet of Things (IoT) refers to a new class of IoT devices primarily
powered by harvesting ambient energy from radio waves, light, motion, heat, or any otherviable ambient energy source.
The Ambient IoT is an extension of the existing IoT. Ambient IoT devices carry out manyof the same functions as IoT devices and target many of the same use cases but require
additional design choices to meet solution demands. By relying on energy harvested fromambient sources, the Ambient IoT makes it possible to develop lower-cost, smaller, andmaintenance-free devices, allowing the IoT to become more scalable in existing use cases
and in use cases still to be developed. For instance, original equipment manufacturers(OEMs), depending on the use case and environment, may choose to make self-sustaining
devices, assisted by batteries or capacitors, by powering them with ambient energy.
Alternatively, they may decide to go a step further and create battery-free devices with more
flexible form factors and a lower bill-of-materials (BOM) cost.
Harvesting energy from ambient sources generates only minimal amounts of power. This
creates the inherent requirement for Ambient IoT devices to be less complex and more power
efficient. This can be addressed by optimizing the radio protocol and adding features, such asembedded intelligence, to make devices wake up and collect or transmit data less frequently.

The Ambient IoT Overview
Defining
Attributes

Harvesting energy from any viable ambient power source

New Device
Feature Enablement

IoT Hardware
Evolution• Smaller device size andnew form factors• Longer maintenance-freefield life, including throughbattery-free devices• Lower cost of hardware

Applications

Function

Topologies

Trade Offs

• Tracking• Point-to-point• Monitoring• Mesh• Lower device functionality
and configurability• Identity• Broadcast• Control• Requires ambient energy
source, which producesvery small amountsof power

Existing and new IoT use cases. Early examples include asset tracking, commercial building automation, condition
based monitoring, cold chain monitoring, and home control.

Figure 1: Defining Attributes, IoT Hardware Evolution, and Applications of Ambient IoT (Source: ABI Research)

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The market opportunity for this new class of IoT devices is extensive. Ambient energy
harvesting devices today are primarily centered on short-range wireless connectivity,
particularly Bluetooth® technology. Looking ahead, there is widespread interest incomprehending and aiding the development of this emerging category of devices. The
3rd Generation Partnership Project (3GPP), overseeing cellular standards, the Institute ofElectrical and Electronics Engineers (IEEE), responsible for Wi-Fi and network standards, andthe Bluetooth Special Interest Group (SIG), responsible for Bluetooth® technology standards,
are engaged in consultations with IoT developers. They aim to explore ways to facilitate thegrowth of the Ambient IoT. This collaborative effort underscores the cross-industry support
and commitment to defining and supporting the Ambient IoT.

Why Do We Need the Ambient IoT?
The Ambient IoT addresses the needs of technology adopters by expanding the IoT in
directions that are impossible to achieve with traditional devices. Key ways in which the
Ambient IoT will contribute to the expansion of the IoT include:• Maintenance-Free Devices: Maintaining IoT installations in the field can be a timeconsuming and costly exercise, adding a layer of complexity to operations that the IoT
is designed to make more efficient. Ambient IoT devices can be deployed in autonomous
settings without maintaining a continuous power supply or replacing batteries. Lowmaintenance or maintenance-free devices can change paradigms for return-oninvestment (ROI) calculations by guaranteeing the longevity of deployments.
• Low Complexity and Cost: The Ambient IoT continues the trend toward lower costand simpler devices. By relying primarily on ambient energy sources, the Ambient IoT willencourage the design of devices that communicate less frequently and are designed
to fulfill specific functions, driving an evolution away from highly configurable devices
streaming real-time data.
• Sustainable Devices: Replacing batteries, or throwing away battery-powered devices, is achallenge to the sustainable growth of the IoT. According to the European Union (EU)funded project, EnABLES, a forecasted 78 million batteries will be discarded daily by
2025, assuming an average two-year battery life for IoT devices. Harvesting energy fromambient sources can create longer-lasting and self-sustaining Ambient IoT devices,
whether by extending the life of battery- or capacitor-powered devices indefinitely or byremoving batteries from devices entirely.

5Targeted Use Cases for the Ambient IoT
Use cases for the Ambient IoT can be applied to any existing or new IoT application orvertical market. However, the Ambient IoT is expected to see the highest volumes inapplications with the following characteristics:• Low Functionality: Applications requiring devices designed for one specific function withlow configurability.
• Low Cost: Applications in which scalability is essential and the cost of traditional IoT
devices is prohibitive. Some Ambient IoT use cases rely on disposable tags, requiring avery low cost point.
• Fully Autonomous: Applications requiring full maintenance-free device autonomy for thedevice’s lifecycle, be it two months or 20 years.
• Supported by Assisting Devices: While any network topology can be used for the
Ambient IoT, in practice, early Ambient IoT applications will require assisting devices suchas gateways, control units, or smartphones to support the limited range of energyharvesting devices.
• Controlled Energy Environment: Applications where an ambient energy source ispredictable, including the potential use of energizing devices.
While use case opportunities are vast, ABI Research expects to see most volumes in the nearterm going into supply chain tracking and monitoring from point of manufacture to pointof sale and beyond. Many of these use cases are strictly outside the supply chain but relate
to the tracking, monitoring, and identification of products and goods that move throughthe supply chain until they are sold to their end users. Growth in this area is driven by thefollowing factors:• Market demand for product and asset-level visibility at different stages of the life of
products in the supply chain• The variety of use cases that can be built in this market to benefit different stakeholders• Technology innovation around Ambient IoT smart labels

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Supply Chain Tracking and Monitoring Use Cases
Use cases Providing Productand Asset-Level Visibility

Type of Stakeholders

Inventory
Management

Asset
Management

Product Manufacturers

Condition
Monitoring

Traceability &Authentication

Logistics Providers

Customer
Engagement

Business Model
Enablement

Retailers/Point of Sale

Supply Chain
Automation

End Consumer

Figure 2: Factors Driving Supply Chain Tracking and Monitoring Use Cases (Source: ABI Research)

As technologies supporting the Ambient IoT devices mature, and support ambient energy
harvesting, use cases outside of goods tracking and monitoring will multiply. Use cases
span many vertical markets. In industrial markets, potential use cases involve sensor-based
monitoring of machine conditions, equipment status, environmental conditions, or electroniclabeling. In commercial markets, use cases include building automation and control, air
quality monitoring, and electronic shelf labels (ESLs) in retail markets. In consumer markets,
use cases include personal tracking or various home automation systems. As these use cases
demonstrate, the Ambient IoT will initially serve existing IoT applications with a new deviceclass. As the market expands, it will help create entirely new application areas. Figure 3
highlights some key statistics for markets that the Ambient IoT can target.

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5.6 Trillion

food items manufactured
in 2023

US $10.1 Billion

spent on commercial building
automation hardware in 2023

818 Million

industrial machines and piecesof electrical equipment
installed in 2023

15.4 Billion

19.9 Billion

unit load formation assets
in circulation in 2023

pharmaceutical items
manufactured in 2023

3,644,000

1,787,000

service sector
establishments in the US

287,500

manufacturing
facilities in the US

retail and hospitality
establishments in the U.S.

ConsumerIndustrial and Energy

Commercial Buildings

Supply Chain

Key Statistics for Ambient IoT Markets

US $31.5 Billion

spent on smart home
hardware in 2023

Figure 3: Ambient IoT Opportunities and Key Market Statistics (Source: ABI Research)

Solution providers have already built Ambient IoT devices to address several use cases.
EnOcean’s smart switches are an example of an early use case, relying on kinetic energy tosend a signal to a controller unit. Kontakt.io and Paragon ID are examples of vendors offering
battery-free tags for real-time location system (RTLS) applications. Wiliot has innovatedaround the form factor and cost of smart labels to address a variety of use cases, initiallyin the supply chain for product monitoring and inventory management but with possible
applications in many other fields. Everactive is an example of a vendor performing conditionbased monitoring for rotating equipment and steam traps by harvesting energy frommultiple ambient sources. Some vendors are also planning use cases in smart homes, such as
Ambient IoT voice control or remote controls.

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The Role of Bluetooth® in the Ambient IoT
Bluetooth® technology, and specifically Bluetooth® LE, holds a central role in the evolutionof the Ambient IoT. Reasons for this central role include the technology feature set ofBluetooth® LE, which makes it a go-to technology for the Ambient IoT, and the Bluetooth
SIG’s position within the ecosystem supporting the ongoing development of Bluetooth®
technology and creating a developer base for low-power IoT solutions.

Benefits for Developers• Leading Very Low-Power Technology: Bluetooth® LE is one of the lowest-power IoT
protocols available today. It is often the first port of call for solution providers building use
cases based on ambient energy harvesting, and many of the first Ambient IoT use cases
rely on Bluetooth® LE technology. As a result, Bluetooth® LE’s lead in low-power
technology plays a central role in enabling the new class of Ambient IoT devices, which
rely on gathering tiny amounts of energy from ambient sources.
• Low Integrated Circuit (IC) Costs: Bluetooth® chips are some of the most commoditizedradios available for wireless markets, allowing developers to build low-cost devices.
Unlike many other wireless protocols, system-on-chip (SoC) and system-in-package(SiP) development is very common with Bluetooth® technology, allowing highly
integrated, low-power, and low-cost solutions. The low cost of Bluetooth® chips, in
relation to other connectivity technologies, gives Bluetooth® technology an essential rolein helping solution providers design and build Ambient IoT devices.
• Supports Flexible Topologies: Bluetooth® LE supports multiple implementation
topologies as shown in Figure 1, including point-to-point, mesh, and broadcast. In
addition, use cases with Bluetooth® technology can be internet based, via a gateway,or peer-to-peer. Ambient IoT use cases may be implemented in many ways based on thetargeted user and the environment in which a solution is deployed. Bluetooth® LE, throughits flexible topologies, plays an important role in enabling solution providers to develop
Ambient IoT solutions in any way that best suits the use case and environment.
Figure 4 shows different implementation architectures for the Ambient IoT. Bluetooth® LE
can be used in all network topologies. It can also be used for both data transmission andenergy harvesting.

9Implementation Architectures for the Ambient IoT

Data

Topology

Ambient
IoT
EnergyCloud

Assisting/Supporting Node

Ambient RF
Energizer

2.4 GHz
Access Point

Energizing

User
Equipment (UE)Ambient IoT
NodeAmbient IoT
NodeBackhaul IoT
DeviceDedicated
Gateway

Energizing

Ambient
Energy Source

Mesh Network

Bluetooth Low Energy

End Node

EnergyData can be sent from an Ambient IoT device and be used on a
UE without the need to be sent to a cloud.

Non-Internet Connected Device
Internet Connected Device

Figure 4: Ambient IoT Implementation Architectures (Source: ABI Research)

Benefits of the Bluetooth® Ecosystem
In addition to its technology strengths, Bluetooth® is a standard backed by the Bluetooth SIG
with a large developer base. Advantages to developing within this ecosystem include:• Long-Term Technology Support: Ambient IoT devices require long-life support in the field
without maintenance or equipment replacement. With the sunsetting of 2G and
3G technologies, IoT adopters are increasingly forward thinking when selecting atechnology that will permit longevity without replacing equipment. As an open andstandard-backed technology, Bluetooth® LE plays an important role in giving theconfidence of long-term support to developers building Ambient IoT devices andcustomers adopting Ambient IoT use cases and devices.

10• Feature Development: Ambient IoT devices perform many of the same functions asexisting IoT devices — sensing, location, ID, and control. Bluetooth® LE already includes
features to address several of these requirements, such as multiple approaches to device
positioning. The Bluetooth SIG is playing a role in further developing features that can
support Ambient IoT use cases based on ongoing interaction with stakeholders across theBluetooth® value chain; these features could involve harvesting energy from Bluetooth®
radio waves, radio frequency (RF)-based sensing, or data formats for different
ID applications.
• Large Infrastructure Installed Base: For the Ambient IoT to be able to reach its fullpotential, it must be able to communicate with multiple types of infrastructure andequipment — such as dedicated or multi-use access points (APs) and gateways, user
equipment (UE) like smartphones, or other forms of IoT devices. Bluetooth® technology
is widely accepted across multiple industries and has a large existing base of Bluetooth®
devices that creates a Bluetooth® capable infrastructure. The ecosystem’s strength is
an important reason why Bluetooth® technology plays a central role in the Ambient
IoT; it enables industrial, enterprise, and consumer markets to build use cases withminimal additional infrastructure, helping to lower the entry barriers of the Ambient IoT
at scale.
• Interoperability and Scalability: Ambient IoT devices need to be easily deployed andmaintained by users, whether for consumers or for enterprises. Interoperability may takedifferent forms; some examples include cross-vendor implementations, implementations
requiring multiple Ambient IoT device suppliers, or interoperability and easy provisioning
with different UE or APs. The large ecosystem of solution providers using Bluetooth®
technology and its acceptance across industries allows customers to choose solutions
based on their unique requirements while knowing that devices will simply work together.
Supporting the development of the Ambient IoT, the Bluetooth SIG plays a role infacilitating the interoperability of Ambient IoT devices by adopting standards thateliminate the need for solution vendors to focus on proprietary solutions and eliminate theneed for adopters to rely on a single solution provider.
The features and ecosystem of Bluetooth® technology are well evolved. As a result,
solution providers and adopters can focus on innovation, such as form-factor designs, data
management, and use cases targeting specific pain points rather than developing an entire
technology stack from scratch. By further supporting the development of the Ambient IoT,
Bluetooth® technology can bring these existing features and ecosystem advantages to a newclass of IoT devices, thereby providing long-term support and reliability to solution providers
and technology adopters.

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Next Steps For The Ambient IoT
The Ambient IoT is still in its early development phase. While standards organizations are
figuring out how to back and empower this new class of IoT devices, solution providers are
creating solutions for various uses and markets. This means that progress in this field will
mainly be driven by the broader IoT community. However, the IoT market currently lacks aclear understanding of the unique features and possibilities of the Ambient IoT. As a result,efforts are often scattered in various directions. To capitalize on the opportunity for the
Ambient IoT, the following areas need to develop in tandem:• Market Education on the Ambient IoT Opportunity: The Ambient IoT market ispresently dominated by a select group of vendors. Among those developing solutions
based on ambient energy harvesting, only a few identify themselves as part of the
Ambient IoT landscape. This can largely be attributed to the absence of well-definedparameters delineating the realm of the Ambient IoT. There is a pressing need to propel
the Ambient IoT out of its current stage characterized by discussions on attributes andterminology and to drive it toward cultivating an ecosystem that is not only actively
engaged but also fully cognizant of the vast opportunities presented by this emerging
category of IoT devices.
• Energy-Harvesting Standards: Companies offering energy-harvesting ICs areproliferating and investment in this market is growing, but much work remains to be done
to enable scaling of Ambient IoT use cases. Currently, many IoT solutions leveraging
ambient energy harvesting that have reached scale are based on proprietary energyharvesting technologies from the solution provider rather than on standard off-the-shelfcomponents from third parties. This is partly because the low amount of energy that canbe harvested from ambient energy sources requires application-specific development.
For the Ambient IoT to reach its full potential, however, more work is needed to makethese technologies available to an extensive range of vendors. In addition to more matureenergy harvesting technologies, lower-power wireless ICs will help meet therequirements of the Ambient IoT by supporting the small amounts of energy that can be
harvested from ambient sources. A two-pronged approach from energy-harvestingvendors and IC designers will precipitate the development of Ambient IoT use cases.

12• Simpler Sensor Deployment and Management: The Ambient IoT needs innovation not
only in technology design but also in deployment management. IoT deployments can becumbersome to scale from an installation and provisioning perspective, and managing
large fleets of devices once deployed also brings a series of challenges in device
management. Suitable physical and cloud infrastructure is necessary to make Ambient
IoT deployments practical at the anticipated massive volumes. This could relate tophysical labeling machines that automatically apply and activate smart labels in a supply
chain or retail context, cloud infrastructure for device provisioning and deprovisioning, ordata management.
• Assess the Need for Standards: The Ambient IoT is market driven, and standards are
not likely to appear for several years. Standards bodies must listen to the IoT ecosystem
to understand what needs to be standardized to best support the growth of the Ambient
IoT ecosystem. Topics for standardization could take multiple forms based on market
demand. They could focus on support for Ambient IoT devices as a holistic device classor on a particular use case for the Ambient IoT in the same manner as the Bluetooth SIG
standard for ESLs. Within this, topics could focus on support for energy harvesting using
RF signals, data formats for interoperability, security, support for use cases with multiple
radio transport requirements, interference-free scalability in select frequency bands, orother topics.

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Conclusion
The Ambient Internet of Things (IoT) refers to a new class of IoT devices primarily powered byharvesting ambient energy from radio waves, light, motion, heat, or any other viable ambient
energy source. This research note has contextualized this definition and shown what role theAmbient IoT will play in expanding the IoT.
The emergence of Ambient IoT devices represents a significant leap in the evolution of IoT
devices, offering a promising future for the IoT ecosystem. By relying on ambient energy
sources, the Ambient IoT enables the development of lower-cost, smaller form factor, andmaintenance-free devices, thus opening new possibilities for IoT applications acrossvarious industries.
The market potential is extensive with early adoption focused on short-range wirelessconnectivity, particularly Bluetooth® LE technology. Bluetooth® LE will play a central rolein the evolution of the Ambient IoT. From a technology perspective, it is a leading, very
low-power protocol that supports a wide range of network topologies and is available on
many low-cost ICs. From an ecosystem perspective, Bluetooth® LE is an open, standardbacked technology that promises long-term support and feature evolution. Consequently,
it has built a large developer base and a ubiquitous installed base of dedicated or multi-use
infrastructure, facilitating further solutions built with the technology.
Looking ahead, the Ambient IoT is still in its early stages, and market education, energy
harvesting advancements, low-power IC advancements, potential standards development,
and approaches to facilitate sensor deployment and maintenance in the field are crucial tonurturing its growth. Collaboration among standards bodies, industry leaders, and solution
providers underscores the cross-industry support for the Ambient IoT’s development. Setting
clear definitions and fostering collaboration among stakeholders will be essential to unlock
the full potential of this new class of IoT devices.
The Ambient IoT addresses the pressing need for maintenance-free operation, lowcomplexity and easily deployed devices, and sustainable growth of the IoT. Use cases for the
Ambient IoT are diverse and expected to grow. While the initial focus revolves around supply
chain tracking and monitoring, driven by the demand for product and asset-level visibility, theAmbient IoT promises to enhance existing applications and pave the way for entirely new use
cases, reshaping how enterprises and consumers interact with their environment.

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