Nearly half of enterprises (46 percent) expect to have Internet of Things deployed by year-end 2016, as early adopters focus on the business process changes required to fully exploit shift in technology.
Findings from 451 Research claim that while communications protocols, security, competing WAN approaches and data management remain concerns, early adopters are focusing on much-needed business process changes required to fully exploit the Internet of Things.
“The Internet of Things is evolving from hyperbole to reality with ‘lighthouse’ real-world production deployments proving demonstrable return on investment,” says Christian Renaud, Research Director, 451 Research.
“These will pave the way for a larger number of fast-follower production deployments in 2016 and 2017 as well as the first winnowing of startups with products or services that failed to reach commercial viability before running out of operating capital.”
Looking ahead, Renaud identifies the key challenges facing this emerging sector, and six top trends that will drive 2016:
1. Business process changes will continue to be the largest barrier to IoT adoption
2. Communication protocols at the edge will remain fragmented
3. LTE-M timing gap and new LPWAN upstarts will force the hand of operators
4. The volume and management of data generated by 'things' will continue to present new opportunities and challenges to storage, cloud, analytics and visualisation vendors
5. Pricing for IoT components is rapidly declining, bringing IoT deployments into reach for a larger audience
6. Security of IoT continues to be a source of major concern for early IoT adopters as they connect previously unconnected industrial ‘OT’ systems
“While IoT has reached an all-time high of hype and hyperbole, there are a growing number of production deployments - ranging from industrial automation and enterprise to fleet and automotive applications to the wild world of the consumer market,” Renaud adds.
Increasing percentages of organisations plan to evaluate and deploy IoT technologies in the coming year, Renaud adds.
As such, 15 percent of the large enterprises surveyed by 451 Research have already deployed some form of IoT, while another 31 percent plan to do so in the next 6-12 months.
In addition, Renaud says the IoT market is a hotbed of M&A activity, with more than $US23 billion spent in 94 IoT-related transactions in the last 12 months.