According to Verizon Business, IoT adoption and ambition is rocketing while driving tangible returns for businesses.
For the vast majority of businesses, the return on investment is no longer a question; 77% of enterprises surveyed reported clear gains, with over half citing efficiency and productivity as the primary driver for their investment.
Verizon surveyed 500 US-based firms and found that two-thirds (66%) already have a cellular IoT deployment up and running. Ambition is also growing alongside adoption. According to the data, large-scale deployments of over 10,000 devices are on track to more than triple by next year alone.
This explosive adoption growth is underpinned by confident expectations, with almost every organisation surveyed (98%) anticipating meaningful returns from their IoT projects within just two years.
Daniel Lawson, SVP of Global Solutions and IoT at Verizon Business, said: “The Internet of Things is a data powerhouse. A business’ connected machines, IT systems, and overall operations produce an enormous amount of data: location, condition, anomaly, threat, operational progress and continuity, and so on.
“IoT is how that data gets collected and parsed to provide businesses with insights about how things are going and how they can be improved.”
Powering this expansion are the twin engines of 5G and AI. 81% of organisations currently deploying IoT see clear value in 5G’s capabilities. This is translating directly into strategy, with almost three-quarters (74%) having already featured 5G Reduced Capability (RedCap) technology in their deployment roadmaps.
AI, meanwhile, is acting as a powerful accelerant. It has directly sped up IoT investments for 70% of companies. Businesses no longer see AI as a mere accessory, with 84% identifying it as a fundamental enabling technology driving their IoT adoption. The combination is potent, with 82% of companies using AI with camera and video data to generate powerful insights for real-time decisions and driving tangible returns from their IoT investments.
“This survey tells us that IoT is highly valuable and scalable when implemented correctly, benefits from a full connected ecosystem, and is about to get a lot more interesting and dynamic with AI and other emerging technologies,” added Lawson.
However, this technological advance isn’t without its challenges. Cybersecurity remains the single biggest issue for 43% of companies implementing IoT. The complexity of integrating novel technologies with legacy systems and securing the entire ecosystem highlights a growing need for expert partnership. This is reflected in the finding that 87% of businesses believe support from a mobile network operator is important or critical for a successful deployment.
Looking ahead, the ecosystem is set to become even more sophisticated. Over half (52%) of organisations plan to use private wireless networks for IoT within the next two years, a 24% jump from current usage. 78% of businesses also see network slicing as essential for performance, and an equal number are integrating satellite connectivity into their IoT adoption roadmaps to extend their reach.
The impact of this transformation is being felt across every major industry. For manufacturers, 59% cite cost savings as their key driver. In retail, the focus is squarely on the customer, with personalised experiences being the top application for 83% of respondents. Logistics and supply chain operators are currently deploying real-time shipment tracking (58%), with many planning to add warehouse automation (44%) and predictive maintenance (44%) in the near future.
IoT technology is also making a huge difference in critical sectors. In healthcare, 56% of providers are using IoT for remote patient monitoring. The energy and utilities sector is looking beyond today’s smart grids towards renewable energy management (40%) and energy storage optimisation (38%) as key future applications.
From automotive, where 94% of manufacturers agree 5G delivers the speed they need, to transportation, where 72% already use IoT for fleet management, the message is clear: the IoT revolution is already here, seeing mass adoption, and driving tangible returns.
See also: Wayve seeks major new funding to fuel AI self-driving tech
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