Published on 05/08/2017 | Strategy
According to a recent study conducted by Strategy Analytics, the IoT market isn't as large, nor growing as fast as once thought or hoped among the pushers of the idea. With this said, the Internet of Things certainly is a real thing - and a big thing, but we (the tech market) has gotten ahead of ourselves a bit. In what way? Let's examine the findings first...
In the 2017 study, Strategy Analytics interviewed IT decision makers across nine vertical markets in the U.S., UK, France, and Germany and they found that investment and growth in IoT solutions is less than once thought and hoped. For example; over 70% of current IoT deployments in the United States involve less than 500 devices and around 66% of businesses in the survey spent less than $100k on IoT projects.
From a global perspective, 35% of firms with IoT deployments reported less than 100 devices connected. The three largest represented verticals are Primary Processing, Security and Utilities - representing about half of all IoT market spend and connected devices today. By 2025, Automotive, Security and Primary Processing will each generate $50 billion annually in IoT revenue - not too shabby!
Going forward, services will continue to be the largest revenue opportunity within the overall IoT market; equating to about $220 billion by 2025. The opportunities for companies like HP, CISCO, SAP, Accenture, etc. are large, but also motivate a heavy trend of service-only companies within a field that requires hard technology to be relevant. Where is this innovation? The market will show us, I suppose...
Cybersecurity, legacy system integration, proliferation of standards, compliance concerns and skill-sets are the clear roadblocks to the connected vision of IoT marketing campaigns. Advancements in these key areas of both technology and workforce talent are required first before IoT/IIoT can truly take hold on a level of mass-adoption. The division between IT and OT is eroding, which is a good thing.
Source: Strategy Analytics
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Article By: Thomas Nuth / Twitter: @iconnecthings
