Eseye’s latest State of IoT Adoption Report for 2024 highlights persistent connectivity and security challenges. As the largest edition to date, this fourth annual report by Eseye underlines the increasing complexity and significance of the IoT sector.
Nick Earle, CEO of Eseye, said: “The pace of IoT adoption remains strong, with businesses realising significant benefits. However, connectivity performance and security challenges must be addressed to sustain this growth.”
A stark revelation from the report is that less than 0.4% of organisations are reaching over 98% IoT connectivity across their devices—down from 1.49% in 2023. This is notably below the required levels, with 79% of businesses seeking close to 100% connectivity for their IoT projects.
Device-related issues remain a primary cause of IoT challenges, with 58% of businesses attributing project failures to device-level problems. These findings emphasise the need for meticulous device design, which is crucial for operational success and long-term scalability in IoT deployments.
A significant 80% of respondents highlighted the need for more intelligent devices that can process data at the edge. The growing demand for real-time analytics makes advanced edge computing capabilities essential. By reducing latency and improving decision-making speed, edge computing enhances overall system efficiency.
The report, featuring insights from 1,200 senior decision-makers across six industries – Agritech, EV Charging and Smart Grid, Healthcare, Manufacturing, Supply Chain, and Smart Vending – offers valuable perspectives on the current IoT ecosystem.
IoT adoption trends and challenges in 2024
Adoption and growth:
- Expansion plans: 80% of organisations intend to expand their IoT operations within 18 months, showcasing steady growth.
- Budget commitments: Over half (54%) plan to increase IoT budgets by 25-50%.
- Revenue impact: 63% reported revenue growth due to IoT implementations.
- Security concerns: 58% of US firms experienced IoT security breaches compared to 43% in the UK.
Trends and priorities:
- Sustainability in design: 94% of respondents see sustainability as key, with 58% considering it very important. This reflects an increasing focus on eco-friendly practices, including evaluating the use of materials and CO₂ footprints.
- Edge computing: 80% of businesses believe on-device intelligence is crucial, driving the demand for advanced edge capabilities.
- Managed services: 77% prefer working with managed service providers, indicating a move towards outsourcing to handle complex IoT operations efficiently.
Industry-specific insights:
- Agritech has seen a revenue boost (68%) but faces challenges in accessing technical support (21%).
- Smart vending focuses on sustainability goals (62%) with technical support being a significant issue (34%).
- EV charging and smart grid sectors also report revenue improvements (65%) but encounter device-related challenges (26%).
- Healthcare leverages IoT for increased revenue (54%) but struggles with technical support access (29%).
- Supply chain businesses cite competitive advantage as a key benefit (80%), while device security remains a top challenge (41%).
- Manufacturing reports security as the prime challenge (27%) alongside revenue growth (68%).
Revenue projections for the UK IoT market anticipate reaching 19.63bn in 2024, expanding to 31.37bn by 2029. In the US, the revenue is predicted to hit $342.50bn in 2024, illustrating significant growth potential.
Nick Earle highlighted the need for partners who can offer “99% or greater uptime with intelligent device connectivity”. Emphasising managed services, Earle noted, “Partnering with experienced providers helps navigate the complexities of the SGP.32 standard and ensures a seamless transition.”
Security remains paramount, with Earle advising businesses to embed “advanced security features in devices from the outset” and remain proactive against cyber threats. Testing devices using private LTE networks is essential “to ensure devices perform reliably.”
“The need for ongoing improvements in both connectivity and security is clearly critical to supporting the expanding IoT ecosystem,” Earle concludes.
Eseye’s full 2024 State of IoT adoption report can be found here (registration required)
(Photo by Shubham Dhage)
See also: Wireless devices and AI are transforming industrial automation
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