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Spending on IoT Gains Momentum
Internet of Things (IoT) spending is on the upswing, a trend noted in recent Navigant Research reports IoT and Analytics for Utilities Market Overview and IoT for Small and Medium Buildings. A new global survey conducted by Zebra Technologies shows this as well. It compiled information from nearly 1,000 IT decision makers from a wide range of segments, including retail, healthcare, transportation, manufacturing, and logistics. The survey was conducted among respondents in the US, Mexico, Brazil, UK, Germany, France, China, India, and Japan.
Signs of Increasing IoT Popularity
According to the Navigant Research reports, spending on IoT solutions is expected to grow at a healthy clip over the next 10 years, at double-digit compound annual growth rates (CAGRs) for overall revenue.
Similarly, the IT survey respondents said their average annual spend on IoT is up 4% year-over-year (2018 over 2017). Of these respondents, 86% expect that number to increase in the next 1-2 years, with nearly half anticipating investment growth of 11%-20%. Moreover, pushback against IoT is starting to subside. Survey respondents said resistance to their IoT plans moving forward has dropped from 75% in 2017 to 64% in 2018.
IoT Security Getting More Attention
Zebra Technologies' survey results also highlighted a stronger emphasis on security among enterprises, with companies adopting a more proactive and comprehensive approach to safeguarding their IoT deployments. The results show an 18% increase in the number of companies that monitor their IoT security constantly rather than routinely to ensure privacy and integrity.
While the spending momentum and greater emphasis on security are positive signs for IoT adoption, there are other signs that security remains an issue. A separate survey by DigiCert finds an overwhelming majority of corporate respondents ranking security (82%) and privacy (78%) issues as their top concerns. These high percentages show there is work to be done on the security and privacy fronts.
As a longtime observer of IoT, it is encouraging to see the positive movement and spending. These end-of-2018 surveys indicate a significant shift in market adoption and help to validate Navigant Research forecasts. The benefits of IoT solutions now have a much stronger foothold than even 18-24 months ago. Companies are finding real value from IoT deployments, and in some cases a competitive advantage. However, there is enough concern about security and privacy to keep my enthusiasm in check.