IoT Investment on course to overtake cloud, says new study

Investment in Internet of Things (IoT) technologies is expected to overtake cloud computing, next-generation security, big data analytics and other digital transformation technologies in the near future, according to a new study.

Published by Inmarsat, a leader in global mobile satellite communications, the ‘Industrial IoT in the Time of Covid-19’ report draws on interviews with 450 global respondents across the agriculture, electrical utilities, mining, oil & gas and transport & logistics sectors.

All industries are embracing the benefits of IoT with the average business forecast to spend $2.8 million on investments in IoT by 2024. Companies are set to spend 10% of their IT budgets on IoT over the next three years, up from seven per cent between 2017 and 2020.

Firms in the oil and gas sector are on track to invest the most in IoT over the next three years, at an average of $3.2 million, followed by electrical utility companies ($3.1 million), transport and logistics businesses (£3 million), mining operators ($2.7 million) and, finally, agricultural businesses ($2 million).

“Despite already seeing rapidly increasing levels of IoT adoption, Covid-19 has emphasised the importance of Industry 4.0 technologies like IoT for business continuity,” says Mike Carter, President of Inmarsat Enterprise.

“With the world’s production and supply chains becoming increasingly interconnected and digitalised, those companies producing digital twins of their supply chains and sharing data, are the ones reaping the benefits,” he adds.

One of the factors driving IoT adoption and investment is its ability to reduce costs. Respondents report that IoT projects are saving their organisations 9 percent of their yearly costs. This figure is only on course to increase going forward with respondents saying in 12 months time, IoT will contribute to a 15% cost saving, rising to 22 per cent in three years and 30 per cent in five years’ time.