News
28 October 2024
Investment into the so-called ‘Internet of Things’ is expected to pick up in the coming five years as businesses look for new ways to make their organisations more effective.
Investment into the so-called ‘Internet of Things’ is expected to pick up in the coming five years as businesses look for new ways to make their organisations more effective.
A new report from research house Inmarsat shows investment into Internet of Things (IoT) technology is set to overtake spending on other IT capabilities like cloud computing, big data analytics and next-generation security in the next five years.
IoT devices are physical objects that can – through the use of sensors and software – collect data about the world around them and share this with users and other connected devices.
Over the past few years the IoT sector has grown to become one of the most important technology trends of the 21st century, and Inmarsat’s figures suggest most of the money earmarked by businesses for Industry 4.0 technologies will be directed into this sector.
Between 2017 and 2020, IoT spending accounted for 7% of businesses’ IT budget, but Inmarsat’s research suggests this figure is set to grow to 10% over the next three years.
On average, businesses across all industries are now expecting to spend US$2.8 million on IoT through to 2024.
This means it will take a larger portion of IT spending than other big tech trends like cloud computing (9%), next-generation security (7.5%) and big data analytics (7.3%).
Already, businesses are seeing the benefits of applying IoT technology. Inmarsat found existing IoT projects have reduced operating costs an average of 9%.
The savings are expected to grow over time, too, with business owners expecting to cut costs by 15% within a year, and reduce them by 30% in five years.
“The emergence of IoT as an investment priority for businesses, and the increasing level of cost savings they expect IoT to deliver in the years ahead, demonstrates how well established a technology IoT has become across multiple industries,” Inmarsat president Mike Carter said.
“With the world’s production and supply chains becoming increasingly interconnected and digitalised, those companies producing digital twins of their supply chains and sharing data are the ones reaping the benefits.”
Sources:
