FedPLC: Federated Learning with Dynamic Cluster Adaptation for Concept Drift on Non-IID Data

In practical deployments of decentralized federated learning (FL) in Internet of Things (IoT) environments, the non-independent and identically distributed (Non-IID) nature of client-local data limits model performance. Furthermore, concept drift further exacerbates complexity and introduces temporal uncertainty that significantly degrades convergence and generalization. Existing approaches, which mainly rely on model-level similarity or static clustering, struggle to disentangle inherent data heterogeneity from dynamic distributional shifts, resulting in poor adaptability under drift scenarios. This paper proposes FedPLC, a novel FL framework that introduces two mechanism-level innovations: (i) Prototype-Anchored Representation Learning (PARL), a strategy inspired by Learning Vector Quantization (LVQ) that stabilizes the representation space against label noise and distributional shifts by aligning sample embeddings with class prototypes; and (ii) Label-wise Dynamic Community Adaptation (LDCA), a fine-grained adaptation mechanism that dynamically reorganizes classifier heads at the label level, enabling rapid personalization and drift-aware community evolution. Together, PARL and LDCA enable FedPLC to explicitly disentangle static Non-IID heterogeneity from temporal concept drift, achieving robust and fine-grained adaptation for large-scale IoT/edge client populations. Our experimental results on the Fashion-MNIST, CIFAR-10, and SVHN datasets demonstrate that FedPLC outperforms the state-of-the-art federated learning methods designed for concept drift in both abrupt drift and incremental drift scenarios.