The world of enterprise Internet of Things (IoT) has captured the attention of experts and engineers in the industries, with experts predictions and analyses aiming to understand its growth and potential. Looking back to 2017 BCG published a detailed analysis asking: “Where are the growth opportunities in enterprise IoT?” The authors discussed the growth opportunities along the IoT tech stack from 2015 to 2020.
The quick conclusion: The top layers of the tech stack (services, applications, and analytics) will grow the fastest between 2015 and 2020 and will see the highest spending industry analysts shared insights about the opportunities and challenges within the IoT landscape.
Now, in 2023, it's time to reassess those predictions and explore the keys to success in the ever-evolving enterprise IoT market from 2023 to 2027.
According to IOT Analytics' recent report “Winning in IoT: How the enterprise IoT market is evolving”, the spending in 2022 amounted to $201 billion, deviating from previous forecasts. However, the report emphasizes a significant shift in focus among IoT adopters toward building a robust IoT software foundation, developing cutting-edge IoT applications and seamlessly integrating artificial intelligence (AI) into their IoT solutions. It is projected that by 2027, approximately 47% of IoT applications will incorporate AI elements.
One key aspect that organizations are increasingly prioritizing within the IoT landscape is asset performance and monitoring. The ability to gather real-time data from connected devices empowers businesses to optimize their asset utilization, minimize downtime, and enhance operational efficiency. With advanced IoT solutions, such as those provided by Webee, companies can monitor their assets remotely, proactively identify maintenance needs and leverage predictive analytics to make data-driven decisions that maximize asset performance.
As we evaluate the accuracy of industry predictions made in 2017, IoT Analytics' data shows that while the direction of those predictions was generally correct, the pace of IoT adoption and the speed of technological shifts were overestimated. For instance, the market size in 2020 was projected to reach $250 billion, but the actual figure reported by IoT Analytics' spending tracker was $136.6 billion. Similarly, the distribution of spending across different tech stack elements differed from initial predictions.
Moving forward, IoT technology offers value across various industries, including manufacturing, retail, and transportation. IoT projects are now more successful, with 87% meeting or exceeding expectations in 2023. To comprehend the evolving IoT landscape, it is crucial to consider the IoT technology maturity framework. This framework encompasses five key stages:
- enabling the asset,
- establishing connectivity,
- creating the software backbone,
- building value-adding IoT applications,
- and integrating AI into IoT (AIoT).
While some organizations are still in the early stages, the convergence of AI and IoT is set to shape the future, with nearly half of all IoT applications expected to incorporate AI by 2027.
In this evolving IoT market, leading vendors are adopting strategies to position themselves for success. These strategies include building strong ecosystems of partners, focusing on solutions that address specific customer problems, embedding a bold AI vision, acquiring missing puzzle pieces through acquisitions, and embracing open standards to ensure interoperability and compatibility.
As the IoT market continues to expand, opportunities abound for companies to leverage IoT technologies and drive innovation. By understanding the evolving landscape, IoT vendors like Webee can navigate the changing market dynamics and position themselves for success in this AI-driven IoT era. With a comprehensive suite of IoT solutions focused on asset performance and monitoring, Webee empowers businesses to optimize their operations, boost productivity, and unlock new levels of efficiency in the ever-evolving enterprise IoT market.
