The State of Industrial IoT in 2024

5-minute read

Summary

The Internet of Things (IoT) has evolved into a keystone technology that supports the digital transformation of business and the economy. It has become the ‘internet of everything’, embedded in the lives of consumers and the operations of enterprises and governments worldwide.
To understand the state of industrial IoT, we spoke to 600 IoT decision-makers and implementers across North America, LATAM, Europe, the Middle East, Africa, and APAC - all from organizations of over 250 employees and spread across a variety of industries.
In this report, we explore the transformation of IoT. We recognize the achievements and challenges businesses face, review the role of satellite in IoT, and deep dive into five key verticals: Agriculture, Energy, Mining, Transport & Utilities

What's happened to IoT since 2021?

Since we last talked to industrial experts about implementing IoT back in 2021, the market has boomed. Successful trials have given industrial businesses the confidence to formalize IoT implementation.

Almost half of the companies surveyed now have an IoT strategy in place, and only 13% have no formal strategy - but most plan to develop one within the next 12 months. Industrial IoT has shifted to its next phase, and whilst some businesses are still trialing IoT projects, most are moving towards implementation.

Explore sector-specific analysis and dig deeper into the findings.

The front cover of the State of Industrial IoT report

IoT has proven its value for businesses navigating an unpredictable environment, helping them become more agile and efficient.”

Andy Kessler, Vice President, Viasat Enterprise

Progress and achievements

68% of respondent businesses have reported an increase in their IoT progress over the last 12 months and respondents mentioned an increasing variety of use-cases and benefits.

Moreover, that progress is recognized by business leadership: 74% of respondents report that the board is positive about IoT and embracing IoT as key part of business strategy, thereby taking down potential budgeting barriers.

It’s clear that the effective implementation of IoT brings a whole array of advantages: while better decision-making gets the top slot with 93%, there’s only a 4% difference between the 12 benefits respondents had to pronounce on. This underpins how business-critical IoT has become.

How will your organisation's planned spend in 2025 compare

Pie chart comparing budgets from 2024 to 2025 on IoT

What are the biggest barriers to implementing IoT?

What barriers, if any, does your organization face in the deployment of IoT projects?

Integration is reported as one of the biggest barriers to implementation but, once successfully accomplished, our respondents feel it will be less of a challenge in future.

However, the adoption of ‘humanware’ – AKA skills – garners a less confident response. Finding the right talent appears to be an ongoing challenge. The same applies to connectivity, which continues to be seen as unreliable. 85% of those surveyed have struggled to develop IoT because of connectivity issues in the areas they want to deploy.

Intriguingly, 20% of respondent organizations with 250-499 employees haven’t encountered any barriers, as opposed to only 1% of those with over 500 employees. Why? Arguably, smaller scale implementations tend to be easier – especially for younger, more nimble companies.