The Internet of Things (IoT) continues to promise benefits such as lower labor costs, better tracking of assets, improved business processes, and efficient energy management. Companies that have adopted this technology are realizing high ROI and satisfaction. However, IoT is still a maturing technology.
As shown in Figure 1 of our full report, Internet of Things Adoption Trends and Customer Experience 2024, IoT boasts high ROI, TCO success, and satisfaction rates but low adoption and investment rates compared to other technologies in our Technology Trends 2024 study. However, additional data shows that IoT adoption and investment are at their highest levels in the past five years.
IoT makes use of small sensors, radio-frequency identification (RFID) tags, and ubiquitous connectivity to make devices, vehicles, and other physical objects “smart.” Sensors may be placed on a pallet of ice cream to ensure its temperature remains constant during shipping or on (or inside) cattle to track their location. Sensors may even be used in the creation of “smart” clothes that can monitor body temperature and heart rate. In short, anything that can contain a sensor and maintain a network connection can be a part of IoT.
So why are adoption and investment still relatively low? IoT adoption faces challenges due to the need for customizations, significant initial investments, and a lack of knowledge about its potential. While out-of-the-box solutions exist, many projects require specialized expertise. Security and privacy concerns, such as cyberattacks and malware, further complicate adoption. Additionally, interoperability issues and rapid technological advancements raise concerns about system management and ROI.
“As companies develop tailored solutions, mitigate vulnerabilities, and partner with experts, we anticipate a surge in IoT adoption,” said Waynelle John, research analyst for Avasant Research, based in Los Angeles. “Those who address these challenges effectively will be well-positioned to capitalize on this technology.”
As IoT matures, its ecosystem continues to expand with technologies such as AI and ML, enhancing data processing and decision-making. This growing synergy could drive more businesses to adopt IoT solutions marketed as AI innovations, such as predictive maintenance software. Other emerging trends include edge computing for faster data processing, the expansion of 5G for reliable connectivity, and blockchain for data security. Innovations in wearables, voice assistants, and brain-computer interfaces further expand IoT’s potential. A robust infrastructure is essential to support these demands and ensure data security.
In short, IoT projects can be challenging, and some sectors are more suited to them than others. While we expect growth in IoT, we do not expect it to come as quickly as many suggest. Many IT organizations need to get smarter before making their enterprise smarter. However, as companies see benefits and improved return on investment, IoT adoption and investment will accelerate with time, creating a positive feedback loop that drives further growth.
Our provides an overview of IoT adoption and investment trends, providing data on how many organizations have the technology in place, are in the process of implementation, and are expanding implementations. We also look at the ROI experience, TCO experience, and considered or planned uses for new IoT investment. We conclude with important principles to apply in planning and implementing IoT systems.
This Research Byte provides a brief overview of our full report, Internet of Things Adoption Trends and Customer Experience 2024. The report is available at no charge for subscribers, or it may be purchased directly from our website. (Click for pricing.)