The Internet of Things is at the core of digital transformation in 2017, with almost three-quarters of businesses executives either researching or currently installing IoT technologies.
Manufacturing helped to make up the largest percent of recent investments, with an 84% rise in IoT network connections in 2017 compared to last year.
With 8.4 billion connected “things” in use in 2017 – up 31% from 2016, and network technology, cost reductions and regulatory pressures driving adoption, business leaders are not only paying attention, they’re getting in the game.
That’s the finding of a major new report released today by Verizon, drawing on insights from a global study, third party research and other new findings.
Early adopters get a head start
The economics of IoT are increasingly compelling, the report states, and the B2B space will benefit first, generating nearly 70% of potential value enabled by related technologies and investments.
And 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, hesitancies surrounding IoT remain.
The report highlights four key concerns, cited by more than 50% of business executives exploring IoT: 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 a proof-of-concept or pilot phase.
Early adopters seem largely focused on proving out simple use cases to track data and send status alerts, just starting to realise the full value IoT has to offer in driving growth and efficiencies across business.
Barriers are eroding
The report highlights new network technology across the industry and with it, cost reductions in connectivity plans; changing consumer behaviors as they relate to the new sharing economy; and regulatory requirements spanning healthcare, food, and air space.
These are just a few of the driving factors of adoption and advancement this year, an ecosystem that is expected to see more than $2tn in spend by 2017.
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.