Cleantech Market Intelligence
Utility and Corporate Leaders Increasingly Embrace IoT Strategies
There is new evidence that utility and corporate leaders are embracing the Internet of Things (IoT) trend with greater enthusiasm, meaning a more robust grid, energy savings, and lower costs in the coming years. That’s the hope, at least. The evidence comes from two recent surveys and a corporate report on the state of IoT.
A large global survey sponsored by Schneider Electric found that three out of four (75%) of business executive respondents are optimistic about IoT opportunities in this year alone. Additional results from the survey of 3,000 business leaders in 12 countries include:
- 63% plan to use IoT to analyze customer behavior in 2016, with faster problem resolution, better customer service, and customer satisfaction among the top five potential benefits
- Nearly half (42%) say they plan to implement IoT-enabled building automation systems within the next 2 years
- Two out of three (67%) plan to employ IoT solutions via mobile applications in 2016
- 81% say intelligence gathered from IoT data is being shared effectively throughout the organization
- 41% expect cyber security threats related to the IoT to pose a critical challenge for their businesses
Similarly, a global survey of electricity, gas, and water utility executives from ABB reveals a strong belief in the benefits of an IoT strategy. Nearly 58% of respondents either have or plan to have a strategy that leverages IoT for asset management, and 55% say the importance of asset management has increased over the past 12 months. In a recent release, Massimo Danieli, ABB’s Managing Director of Grid Automation, notes: “Now more than ever, utilities see the need to bring together once disparate technologies and systems to better understand their increasingly complex asset base and share those insights with the people across the organization, in order to improve planning, productivity, and safety.”
Finally, Verizon’s latest report on the state of the IoT market says “companies across all industries now have IoT squarely on their radar.” Moreover, the report states that Verizon sees IoT applications ranging far and wide, and that the company focuses on key segments which include smart cities and energy. It also notes how past regulatory decisions have resulted in millions of installed smart meters, a leading IoT device.
These examples demonstrate a rising IoT tide among utilities and other corporations. As noted in the recently published Navigant Research report IoT Enabled Managed Services, now is the time for utilities to deploy a sensible IoT strategy. They must remain competitive and take advantage of the opportunities the latest technologies afford for smarter and more nimble grid applications and services while also recognizing the challenges these changes present.