The excitement surrounding the Internet of Things (IoT) has driven significant growth in its adoption, with connected devices rising from 8.6 billion in 2019 to 15.4 billion by 2023, and projections of nearly 30 billion by 2030. McKinsey estimates that IoT could generate between $5.5 trillion to $12.6 trillion in global value by 2030, up from $1.6 trillion in 2020. Despite this, growth has been slower than earlier predictions, influenced by the pandemic and initial overhyped expectations.
Gartner’s Hype Cycle concept illustrates this journey, showing technology progression through five phases: Innovation Trigger, Peak of Inflated Expectations, Trough of Disillusionment, Slope of Enlightenment, and Plateau of Productivity. Pre-pandemic, IoT was marked by inflated expectations, followed by disillusionment during lockdowns. Now, as normalcy returns, IoT adoption is moving towards enlightenment, with a more realistic understanding of its potential and challenges.
Several factors have slowed IoT adoption:
Underperforming Early Projects: Initial IoT projects often failed to deliver quick returns, deterring further investment. Successful adoption requires robust data architecture, governance, cybersecurity, and analytics capabilities.
Solution: Develop realistic business cases and project plans, highlighting successful use cases and industry benchmarks to ensure achievable goals.
Cybersecurity Concerns: Unprotected devices and outdated systems pose significant security risks, making organisations cautious about adding more IoT devices.
Solution: Integrate cybersecurity from the outset of IoT projects. The Biden administration’s FCC Cyber Trust Mark will help identify secure IoT devices. Organisations should also use endpoint management solutions and regular network scans.
Limited Connectivity: Inconsistent network coverage, especially in remote areas, hampers IoT deployment.
Solution: Leverage advancements in 5G, explore alternative connectivity options like radio, satellite, and mesh networking to enhance coverage.
Lack of Data Analytics Expertise: A shortage of digital and data analytics skills in the UK limits the ability to make use of IoT-generated data.
Solution: Invest in data analytics skills and utilise AI solutions, like Microsoft Copilot and intuitive dashboards from Microsoft Power Platform and Power BI, to facilitate data interrogation and presentation.
To improve IoT adoption rates, we should:
- Celebrate and promote successful use cases and ROI.
- Be realistic about the costs and complexities of IoT projects.
- Raise awareness of cybersecurity risks and invest accordingly.
- Explore various connectivity options.
- Invest in digital, cybersecurity, and data analytics skills.
By addressing these challenges proactively, we can ensure that IoT adoption continues to grow, delivering substantial value and enhancing its usefulness.
Tern plc (LON:TERN) backs exciting, high growth IoT innovators in Europe. They provide support and create a genuinely collaborative environment for talented, well-motivated teams.
