International Conference on Mechanical, Industrial and Energy Engineering 2020 19-21 December, 2020, Khulna, BANGLADESH * Corresponding author. Tel.: +88-01764282138 E-mail addresses: toukir.ahmed@ipe.ruet.ac.bd ICMIEE20-261 Assessing Critical Factors Affecting the Mass Adoption of IoT in Bangladesh Souvik Chakraborty 1 , Nabila Khayer 2 , Toukir Ahmed 3,* 1 Department of Industrial & Production Engineering, Rajshahi University of Engineering & Technology, Rajshahi-6204, BANGLADESH 2 Department of Industrial & Production Engineering, Rajshahi University of Engineering & Technology, Rajshahi-6204, BANGLADESH 3,* (Corresponding Author) Lecturer, Department of Industrial & Production Engineering, Rajshahi University of Engineering & Technology, Rajshahi-6204, BANGLADESH ABSTRACT Internet of Things (IoT) is a system in which objects can exchange data among themselves by being interconnected with the help of the internet over a wireless connection without human intervention. IoT is a buzz word in the modern era. A developing country like Bangladesh may face different problems while trying to adopt IoT due to the lack of technological knowledge, underdeveloped infrastructure and deficiency of relevant resources. But to stay apace with the fast-growing world, Bangladesh should also cast aside existing systems and accept IoT with open arms. This research aims to find out the most important factors which might be responsible for IoT adoption in Bangladesh keeping in mind about its socio-economic conditions. Some hypotheses were formed to create a questionnaire for the survey. Indicator variables found from the survey were grouped into 5 (five) factors using Exploratory Factor Analysis (EFA). A measurement model was created based on the hypotheses formed previously. Structural Equation Modelling (SEM) technique was used to find out the estimates of different factors associated with IoT adoption. From the structural model, it was found that Affordability and Ability had the highest regression weight. This suggests that in developing countries like Bangladesh people give priority to products being affordable rather than thinking about its usefulness or the positive changes it would bring to society. Besides a huge portion of people are not highly educated because of which they have expressed concerns over their ability to use IoT devices efficiently and safely. So all these factors were incorporated in this study which explains its significance and relevance. Keywords: Internet of Things, Affordability, Adoption, Exploratory Factor Analysis, Structural Equation Modelling. 1. Introduction Bangladesh is a densely populated developing country. Despite of all the obstacles Bangladesh is encountering, it has achieved nearly 8% gross domestic product (GDP) growth and is one of the fastest-growing economies in the world [1]. The basic fixing behind this development has been the savvy utilization of ICT in pretty much every sector. Its economy largely relies on the working-class people that are bereft of the basic needs of life. Bangladesh is focused to ensure 100% internet connectivity by 2021 and steps have been taken to ensure 5G network throughout the country for fastest speed [2]. It introduces the term ‘IoT’ (Internet of Things). Internet of Things (IoT) has acquired outstanding attention within the last decade. This phenomenal innovation makes a new world where a good range of services are being offered by billions of smart, interacting gadgets to close and remote entities. Humans have been introduced as smart operators by IoT to regulate and supervise activities. IoT significantly expands productivity, lowers health costs, reduces carbon footprints, enlarges access to education in remote places and among underserved communities, improves transportation safety, encourages smart homes and cities and thus improves the standard of life [3]. IoT not only makes life easier and reduces the restrictions but also provides innovative changes for the lifestyle of people [4]. So IoT is a must for Bangladesh to realize its vision ‘Digital Bangladesh’. Firstly, there is a literature review of the previous works about the adoption of IoT in different countries. Then some hypotheses were developed based on which the survey would be performed. Next, the results were analyzed to know about the impact of different factors on IoT adoption in Bangladesh. Lastly, the conclusion recapitulates the importance of the research and advises future research prospects. 2. Literature Review In recent years a lot of work has been done regarding the smooth transition of IoT from the existing market leaders for mass people in different countries. Roy, Zalzala and Kumar (2016) experimented on the acceptance of IoT among the urban poor in India and developed a model to facilitate the IoT adoption process among them. They observed the lifestyle of the urban poor to identify possible sectors in which IoT can be adopted [5]. Hernandez (2019) observed the constraints which restrain the poor people from accessing digital services in Bangladesh. He singled out availability, awareness, affordability, ability, agency and gender as the key barriers for adoption in Bangladesh [6]. AlHogail and AlShahrani (2019) developed a conceptual model based on the Technology Acceptance Model (TAM) and identified trust as the key component responsible for the