Standards, security, interoperability and cost make up over 50 per cent of executive concerns around IoT
The Internet of Things (IoT) platform market is forecast to grow by 35 per cent annually to $1.16bn by 2020 a new study finds.
According to State of the Market: Internet of Things 2017 report, released by Verizon, the economics of the IoT are increasingly compelling, with business-to-business (B2B) expected to generate nearly 70 per cent of value enabled by IoT.
Nearly three-quarters (73 per cent) of executives are either researching or currently deploying IoT.
With 8.4 billion connected “things” in use in 2017, up one third (31 per cent) from last year, and with network technology, cost reductions and regulatory pressures driving adoption, business leaders are not only paying attention, they’re “getting in the game” the report stated.
Manufacturing, transportation and utilities make up the largest share of investments, while insurance and consumers represent the fastest areas of spending growth.
While enterprises across industries continue to develop and pilot use cases to ensure real-time visibility into data around assets, equipment, power management and public safety – everything from construction industries employing drones for site inspections to government municipalities creating smart communities – the report warns that “hesitancies” related to IoT remain.
The four key concerns, which stand out for more than half of business executives when exploring IoT, are: standards; security; interoperability; and cost.
These uncertainties, along with apprehension around scalability and simplicity, are holding businesses back from full IoT deployment, with many still in proof-of-concept or pilot phase.
Early adopters seem largely focused on proving out simple use cases to track data and send status alerts, and are only starting to realise the full value IoT has to offer in driving growth and efficiencies across business, the report finds.
“Over the past year, industry innovators in energy, healthcare, construction, government, agtech and beyond have not only piloted, but in many cases, deployed IoT technology to improve business efficiencies, track and manage assets to drive value to the bottom line,” said Mark Bartolomeo, VP of IoT connected solutions at Verizon, and the report’s author.
“In 2017, advancements in technology and standards, coupled with changing consumer behaviours and cost reductions, have made IoT enterprise-grade, and it’s just the tip of the iceberg in driving economic value across the board.”
The report also sheds light on how businesses should be thinking about IoT moving forward and addresses many of the concerns expressed by executives surveyed. Specifically:
Simplicity and integration: IoT platforms will become even more seamless and streamline the deployment of applications, giving developers simplified access to new tools and resources for IoT use cases. In addition, there will be ongoing consolidation of the IoT market space;
Cost: new CAT-M1 technology and chipsets will reduce costs of connectivity and enable more widespread adoption by businesses large and small;
Security: securely collecting, analysing and integrating data will continue to be at the forefront, with solutions which help protect at the platform, network and device level.
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