IoT revolution set to sweep organizations; reports predict massive adoption
Number of organizations adopting IoT to grow by 50% globally in 2016: Gartner
The number of organizations adopting Internet of Things (IoT) will grow 50 percent in 2016, reaching 43 percent of organizations overall, according to a survey by technology research firm Gartner. In aggregate, the majority of organizations (64 percent) eventually plan to implement IoT. This is one more step in the direction of mainstream adoption of IoT in 2016 across industries. The online survey was conducted in November 2015 among Gartner Research Circle Members and included responses from 465 IT and business professionals spanning 18 business sectors in North America, EMEA, Asia/Pacific and Latin America.
The survey further said that although less than a third (29 percent) of responding organizations are currently using IoT, an additional 14 percent are planning to implement IoT in the coming months, with an additional 21 percent planning to implement after 2016. Around 28 percent organizations have no plans to implement IoT, while 9 percent see no relevance in the technologies.
“While there is near universal acceptance of the importance of the IoT, less than a third of organizations surveyed were actively exploiting it,” said Chet Geschickter, research director at Gartner. “This is largely because of two reasons. The first set of hurdles are business-related. Many organizations have yet to establish a clear picture of what benefits the IoT can deliver, or have not yet invested the time to develop ideas for how to apply IoT to their business. The second set of hurdles are the organizations themselves. Many of the survey participants have insufficient expertise and staffing for IoT and lack clear leadership,” he added.
Industry adoption also varies widely with heavy industries such as utilities, oil and gas, and manufacturing leading adoption, and service-oriented industries lagging behind. According to Gartner estimates, more than half (56 percent) of businesses in “heavy” industries will have implemented IoT by the end of 2016, and approximately one-third (36 percent) of “light” will do so.
Other international estimates also point in a similar direction
According to a McKinsey report on IoT: “If policy makers and businesses get it right, linking the physical and digital worlds could generate up to $11.1 trillion a year in economic value by 2025. At the top end, that level of value—including the consumer surplus—would be equivalent to about 11 percent of the world economy.”
There are other inputs also which corroborate the McKinsey study. Deskera’s own survey among IT and business professionals indicates that 65 percent of them think that IoT would be beneficial for enterprises.
“The IoT is already changing the way we interact with the world as the number of smart devices keeps increasing. It blurs the line between our physical world and the Internet. Businesses are just beginning to wake up to the value of IoT globally. The potential is enormous,” said Shashank Dixit, CEO, Deskera, a Cloud-based business software company working in Big Data and Analytics.
Other global developments in IoT adoption
On June 30, 2016, the Netherlands became the first country in the world to have a nationwide network for IoT applications. A few days later South Korea also rolled out its IoT network. The race to hop on to the IoT bandwagon is getting hotter by the day. According to a Gartner prediction, by 2020, there will be 25 billion savvy gadgets transmitting information. With the way the IoT, Big Data and Analytics have started gaining ground we might as well brace ourselves for the next Industrial Revolution.