Understanding the impact for enterprises
41 Billion+ IoT connections by 2027, this figure clearly illustrates the exponentially growing scope and impact of IoT technology for the Future of Work. IoT or Internet of Things is an increasingly sought after facet of digital transformation which facilitates data exchange through a network of connected smart devices. According to MarketsandMarkets research, the IoT market is likely to reach upwards of $650 Billion by 2026, indicating the enormous opportunities it brings for enterprises across the globe. Invariably, this is an opportune time for CXOs to explore the potential of IoT for their industry and business function and get on the bandwagon to leverage the impact.
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Current trends in IoT adoption globally
Here’s a quick glimpse of the potential and current state of IoT adoption:
- $1.1 trillion: Expected IoT spending by 2023
- $173 billion: Consumer IoT spending by 2025
- 60%: Organizations currently use IoT
- 93%: Executives believe the benefits of IoT outweigh the risks
- 11.1%: VC deals in the IoT space
What’s driving IoT adoption?
The enterprise impact of IoT is fueling large scale investments and interventions in the space in organizations across the globe. While the massive potential and market size is attractive, let’s look at some of the top reasons that enterprises are going big with IoT adoption:
83% organizations believe IoT has increased their efficiency
IoT technology is being accredited for increase in operational efficiency and cost saving with less manpower. Data collected through sensors enables businesses to make more efficient use of their resources, both capital and human, and minimize unnecessary wastages.
70-75% reductions in breakdown; 35-45% decrease in downtime
By leveraging IoT for digital twins and other innovations, enterprises, especially in the manufacturing and industrial setups, facilitate predictive maintenance. Armed with key data in advance, enterprises are able to reduce the incidents of breakdown, and considerably decrease the time taken to get the machines back up.
43% businesses experience increased business agility
With IoT, enterprises are able to get large volumes of data streams and insights on how the business is working, augment the agility and improve customer experience. Sensors on customer devices help businesses understand how the customer is engaging with the product. These insights are then being used to improve customer experience proactively.
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IoT use cases for enterprises: Key industries
Operational efficiency, customer insights, business agility, etc. are a few of the top benefits of IoT that most enterprises seek to leverage by augmenting its adoption. Now, let’s look at industry specific use cases and landscape for IoT adoption:
The healthcare IoT market is expected to be worth $534.3 billion by 2025. At the same time, an estimated 646 million IoT devices were used in hospitals, clinics, and medical offices in 2020. At a macro level, IoT devices in healthcare are used for 64% patient monitors, 56% energy meters and 33% imaging devices. Some of the specific use cases include:
- Wearables that can be worn by patients to capture data on vitals like BP, heart rate, etc. in real time and use the same for personalized consultation
- IoT tagged medical shipments for real time tracking of critical equipment and drugs to ensure timely treatment
- IoT enabled hygiene monitoring to prevent infections and asset management like pharmacy inventory control, humidity control, etc.
The manufacturing industry poured $237.59 billion into IoT in 2021. The global IoT in manufacturing market is expected to reach $ 53.8 billion in 2025, where 90% of manufacturers believe that digitizing the production process will bring more long-term benefits than risks. The top areas of IoT interventions in manufacturing include:
- Predictive and preventive maintenance to reduce breakdowns and downtime for equipment by constantly monitoring, temperature, voltage, vibrations, etc.
- Remote diagnostics and early detection of warning to facilitate better customer experience
- Connected supply chain to facilitate asset management to gain real time inventory visibility and ensure adequate supply
Transportation and logistics
The global IoT in transportation market size was valued at $83.25 billion in 2020, and is projected to reach $495.57 billion by 2030, with applications across traffic congestion, ticketing, telematics, etc. The top use cases include:
- Increased safety of passengers and others with real time, accurate tracking and prediction of train speeds, road temperatures, number of vehicles, etc.
- Easy access to traffic data from CCTV and other sources for traffic management, with applications across smart parking, smart accident assistance, etc.
- Connected cars with sensors and actuators to monitor, brakes, engines, exhaust gas composition, facilitating passenger safety
Global energy IoT is anticipated to reach $75.3 billion by 2026, with IoT technology having multiple implications for energy consumption and energy efficiency. Here are some of the top applications:
- Intelligent smart grids to control the flow of power and curb consumption at different levels
- Optimization of energy consumption with sensors to automatically detect and control energy usage
- Smart meter interventions for consumers to understand and optimize their energy consumption trends
The global agriculture sensor market size was valued at $1.34 billion in 2020 and is expected to expand at a CAGR of 13.6% from 2021 to 2028. Farmers are using IoT technology and GPS for soil mapping, variable-rate technologies, yield mapping etc. Some of the most sought after use cases include:
- Using sensors to monitor crop fields for temperature, humidity, etc, and to automate irrigation based on changing weather conditions
- Leverage IoT with aerial drones to crop health assessment, crop monitoring, spraying, soil and crop analysis, etc.
- Smart farming to use IoT to understand crop production rate and plan storage, marketing and sales proactively
The Future of IoT
While the impact and potential of IoT is huge across industries, there are certain concerns and apprehensions that CXOs are seeking to mitigate to unlock new opportunities. Some of the concerns include security threats, privacy, regulatory compliances, etc. However, to combat the same, specific segments and solutions are already underway. For instance, the global IoT security market will be worth $61.6 billion by end-2028, illustrating how mitigation strategies are accompanying the growth to preempt challenges. In conclusion, it is evident that with the deepening penetration of complementary technologies like cloud, 5G, etc. IoT will continue to unravel its potential to create smart cities, factories, homes, hospitals and much more.
To know about the latest technology trends and the impact for enterprises and CXOs, stay tuned.