Eseye’s latest “State of IoT Adoption Report” for 2024 highlights ongoing challenges in connectivity and security. This report, the largest edition to date, emphasizes the growing complexity and importance of the IoT sector.
Despite strong IoT adoption, businesses are still facing significant hurdles in connectivity and security, which need to be addressed for continued growth. One key finding from the report is that fewer than 0.4% of organizations are achieving over 98% connectivity across their devices, a drop from 1.49% in 2023. This is well below the desired level, as 79% of companies aim for near-100% connectivity for their IoT projects.
Device-related problems continue to be a major issue, with 58% of businesses citing these issues as the cause of project failures. This underscores the importance of careful device design for successful and scalable IoT deployments.
The report also reveals that 80% of respondents believe more intelligent devices capable of processing data at the edge are necessary. As the demand for real-time analytics grows, edge computing has become essential. It helps reduce latency, speeds up decision-making, and improves overall system performance.
The report, which includes insights from 1,200 senior decision-makers across industries like Agritech, EV Charging, Healthcare, Manufacturing, Supply Chain, and Smart Vending, offers valuable perspectives on the current state of IoT.
IoT Adoption Trends and Challenges in 2024
- Growth and Expansion: 80% of organizations plan to expand their IoT operations in the next 18 months, signaling steady growth. Over half (54%) intend to increase their IoT budgets by 25-50%, and 63% reported revenue growth due to IoT implementations.
- Security Concerns: IoT security breaches remain a major issue, with 58% of US firms reporting breaches, compared to 43% in the UK.
Key Trends and Priorities
- Sustainability: 94% of respondents consider sustainability important, with 58% calling it very important. Many organizations are focusing on eco-friendly practices, such as assessing material use and reducing CO₂ footprints.
- Edge Computing: 80% of businesses believe on-device intelligence is essential, fueling the demand for advanced edge capabilities.
- Managed Services: 77% prefer partnering with managed service providers to efficiently handle complex IoT operations.
Industry-Specific Insights
- Agritech: Revenue has increased by 68%, but 21% of businesses struggle with accessing technical support.
- Smart Vending: Sustainability remains a priority for 62% of businesses, but 34% face technical support challenges.
- EV Charging and Smart Grid: Both sectors have seen a 65% revenue boost, but 26% struggle with device-related issues.
- Healthcare: IoT adoption has increased revenue by 54%, but access to technical support is an issue for 29%.
- Supply Chain: 80% of businesses see a competitive advantage from IoT, though device security is a top concern for 41%.
- Manufacturing: Security remains the top challenge for 27% of businesses, despite 68% experiencing revenue growth.
Revenue projections for the UK IoT market suggest it will reach $19.63 billion in 2024, with an expected rise to $31.37 billion by 2029. In the US, IoT revenue is forecast to hit $342.50 billion in 2024, indicating strong growth potential.
Nick Earle emphasized the importance of partnering with providers who can offer 99% or greater uptime and intelligent device connectivity. He highlighted the value of managed services, which help navigate complex standards like SGP.32 and ensure a smooth transition.
Security remains a critical focus, with Earle advising businesses to build advanced security features into their devices from the start and proactively address cyber threats. He also recommends testing devices on private LTE networks to ensure reliable performance.
As the IoT ecosystem continues to expand, Earle concluded that ongoing improvements in connectivity and security are essential to support its growth.
