Skip to main content

Internet of Things Market Development Update for 2016

A growing number of technology vendors and digital transformation consultants are very active in the Internet of Things (IoT) marketplace. New market research indicates that IoT is starting to move toward mainstream adoption within several key industries, according to the latest global market study by Gartner.

That being said, although only 29 percent of Gartner survey respondents say they're currently using IoT technologies, an additional 14 percent are planning to implement IoT in the coming 12 months, with a further 21 percent planning to deploy after 2016.

Organizations adopting IoT will grow 50 percent during 2016, reaching 43 percent of respondents overall. In aggregate, 64 percent plan to eventually implement IoT. Nonetheless, another 38 percent have no plans to implement IoT, including 9 percent that see no relevance whatsoever in these technologies.

Lack of Business and Tech Talent with IoT Skills

"While there is near universal acceptance of the importance of the IoT, less than a third of organizations surveyed were actively exploiting it," said Chet Geschickter, research director at Gartner. According to the Gartner assessment, this is largely because of two important reasons.

Many organizations have yet to understand the benefits of IoT technologies, or they've not developed any ideas for how to apply IoT technologies within their organization. The second set of hurdles are talent related. Many of the survey participants reported insufficient expertise -- they lack IoT-savvy leadership.

Industry adoption also varies widely with heavy industries such as utilities, oil and gas, and manufacturing leading adoption, and service-oriented industries lagging. Gartner estimates that 56 percent of businesses in asset-intensive heavy industries will implement IoT by the end of 2016, and 36 percent of light industries.

For those that have already implemented IoT, Gartner believes the focus is on operational improvements. The primary business case for IoT is internally focused -- improved efficiency, cost savings and enhanced asset utilization; versus the external benefits of enhancing customer experience or increasing revenue.

However, the survey shows advancement on customer experience projects, doubling in nominal terms from 18 percent to 34 percent. This could indicate a higher IoT focus on end customers during the next 12 months. In effect, IoT programs and processes will likely be more about competitive strategies in 2016.

Security Concerns Impact Market Development

The survey found that the biggest IoT technology challenges for those that have already implemented IoT are cybersecurity, integration and managing business requirements. Moreover, orchestration of workflows and business processes could also become a major concern for those planning to implement IoT technologies.

"2016 will be a very big year for IoT adoption. We are starting to see a wide range of IoT use cases across virtually all industries. But, the big challenge now is demonstrating return on investment. Executives need to validate the contribution that IoT can make in order to justify large-scale rollouts," said Geschickter.

The online survey was conducted in November 2015 among Gartner Research Circle Members and included responses from 465 IT and business professionals spanning 18 business sectors in North America, EMEA, Asia-Pacific and Latin America.

Popular posts from this blog

Hybrid Work: How to Enhance Employee Productivity

When you hire qualified talent for a key role and trust them to perform, you'll likely achieve the best outcome. Skilled and experienced people will deliver results, regardless of the challenges. That's a key lesson learned from the pandemic experience as most knowledge workers were asked to work from their homes. However, some resist returning to an open-plan office. It's unacceptable. Meanwhile, forward-thinking leaders decided a "return to normal" is undesirable, and in hindsight, everyone should aspire to be more accomodating than before. Therefore, location flexibility is okay. Hybrid Workforce Market Development How will people adapt to these changes? They'll apply the modern IT tools at their disposal. They'll learn new skills and thrive. Nearly 80 percent of employees are now successfully using online collaboration tools for work in 2021 -- that's up from just over half of workers in 2019, according to the latest market study by Gartner. This g

Mobility-as-a-Service Creates Disruptive Travel Options

Building on significant advances in big data, analytics, and the Internet of Things (IoT), more innovative transit service offerings aim to increase public transport ridership and reduce emissions or congestion within metropolitan areas. By providing these services through smartphone apps, the transit services also significantly increase user convenience, providing information on different human mobility offerings -- including public transport, ridesharing, and autonomous vehicles. Mobility-as-a-Service Market Development According to the latest market study by Juniper Research, Mobility-as-a-Service (MaaS) subscribers will generate $53 billion in revenue for MaaS platform providers by 2027 -- that's rising from $5.3 billion in 2021. Let's start with a basic definition. MaaS is the provision of multi-modal end-to-end travel services through single platforms, by which users can determine an optimal route and price. The study identified a monthly subscription model as key to incr

Upside for New 5G Network Transport Infrastructure

The global mobile communication sector is in the midst of a significant network infrastructure upgrade to support the introduction of new high-bandwidth and low-latency broadband service offerings.  Telecom service provider data centers have an important role in fifth-generation (5G) network deployments. Providers undergoing their transition to Stand-Alone (SA) 5G must understand the technical demands of telco data centers and the key enablers of those offerings. According to the latest worldwide market study by ABI Research, the major prerequisites of 5G and the emerging transport solutions would help operators position themselves to successfully capitalize on the new revenue opportunities from delivering differentiated 5G connectivity services. 5G Transport Network Market Development "The rise of the telco data center has a high degree of confluence with the requirements of SA 5G architectures. SA 5G and its increasing reliance on telco data centers can be attributed to the incr