You are viewing 1 of 2 articles without an email address.


All our articles are free to read, but complete your details for free access to full site!

Already a Member?
Login Join us now

IoT spend set to double

IoT vendors urged to address barriers to adoption and provide more targeted solutions

LinkedInTwitterFacebook
More customers are considering exploring new use cases of the IoT
More customers are considering exploring new use cases of the IoT

The combined markets for the Internet of Things (IoT) are set to grow to $520bn by 2021, more than double the $235bn spent in 2017, a new study predicts.

 

Yet despite these explosive growth predictions, according to Bain & Company’s latest report, Unlocking Opportunities in the Internet of Things, industrial and enterprise customers are tempering their expectations about the pace of IoT adoption.

 

This is because they are realising that complete solutions may take longer to implement and yield the expected return. In response, while they would like to go faster, they are planning less extensive IoT implementations by 2020 than they had planned just two years ago, the report revealed.

 

Tapping into pent-up demand

 

Bain & Co called on IoT vendors seeking to tap into this “pent-up demand” to better address barriers to adoption, provide more consumable solutions, and ease concerns about integration with existing information technology and operational systems.

 

“Our survey found that vendors are aligned with customers’ concerns about some barriers, such as security, returns on investment, but less so on others – notably integration, interoperability and data portability,” Ann Bosche, a partner in Bain & Company’s global technology practice and an IoT expert.

 

“Based on our experience with previous technology cycles, the key to addressing these concerns lies in focusing on fewer industries in order to learn what customers really want and need to ease adoption.”

 

Nonetheless, despite these concerns, the report found that enterprise customers are still running more proofs of concept than they were two years ago. Additionally, more customers are considering exploring new use cases: 60 per cent in 2018 compared with fewer than 40 per cent in 2016.

 

“The next few years will be critical to the development of IoT markets as leaders continue to make gains and expand their industry-specific offers”

 

Along with analytics and infrastructure software vendors, cloud service providers (CSPs), particularly Amazon Web Services (AWS) and Microsoft Azure, have emerged as more prominent and influential vendors in the space, said Bain.

 

Scaling up more quickly

 

CSPs are lowering barriers to IoT adoption, allowing for simpler implementations and making it easier to adopt selected use cases and scale up quickly. They also leverage their deep expertise in analytics to expand across “IoT battlegrounds”, as well as to fortify their position in the analytics and cloud battleground for enterprise and industrial customers.

 

However, Bain cautioned that these broad horizontal services provide little optimisation for industry-specific applications, leaving what it describes as a “significant opportunity” for industry solutions from systems integrators, application developers, industry IoT platform specialists, device makers and telcos.

 

“The next few years will be critical to the development of IoT markets as leaders continue to make gains and expand their industry-specific offers,” added Michael Schallehn, a partner in Bain & Company’s global technology practice and an IoT expert.

 

“Incumbents that fail to move quickly enough to address customers’ needs are likely to get leapfrogged by more nimble competitors. We think device makers, in particular, run the risk of seeing software and analytics competitors capture the value of solutions, leaving them to deliver lower-profitability hardware components.”

 

If you like this, you might be interested in reading the following:

 

Zigbee leads in smart connectivity

Zigbee standards include Smart Energy for interoperable products that monitor, control, inform and automate the delivery of electricity, gas and water

Read more

 

Success in smart cities depends upon success in the smart home

The smart home is the key to the success of the smart city, says Simon Forrest, Imagination Technologies

Read more

 

IoT lighting alliance is ready with its first standard

The IoT-Ready Alliance has introduced a specification which aims to help enable future-proof buildings

Read more

 

LinkedInTwitterFacebook
Add New Comment
You must be a member if you wish to add a comment - why not join for free - it takes just 60 seconds!