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Strong Business Results Drive IoT to Mass Adoption by 2019
A Global Study Covering Key Sectors and Top Use Cases
What we set out to achieve
We set out to evaluate the current state of IoT and the tangible impact across industries. What use cases are
driving the greatest results today and in the future? Which employee and business benefits are organizations
realizing? What threats impede mass adoption?
Survey Demographics
3,100Line of business and IT
decision makers
GeographyUS, UK, Italy, Germany,
France, Spain, Netherlands,
Sweden, Norway, Turkey, UAE,
Saudi Arabia, Brazil, Mexico, India,
China, Singapore, South Korea,
Japan, ANZ
SectorsHealthcare, retail, industrial /
manufacturing, smart building,
and smart city
Global View of IoT Today
98%have heard of IoT, but
unclear of business impact
A Household Name
56%have implemented IoT
Implementation
34%average return from current
IoT projects
ROI
84%reported IoT-
related breach
Security
Top Five Connected Things
Things
1Printers,
scanners
2HVAC,
lighting
control
3Personal
mobile
devices
5Pumps,
valves
sensors
4Energy
meters
Key Discoveries
The “Expectations Dividend”The actual benefits gained from IoT were
far greater than the original expectations.
There was an average of 11% disparity between actual
benefits gained vs original expectations globally.
Internet of Things Adopters Get More Value Than They Expect
Realized a large increase: 48%Expected a large increase : 36%
Expected a large increase: 28% Realized a large increase: 48%
Expected a large increase: 28% Realized a large increase: 43%
Expected a large increase: 34% Realized a large increase: 43%
Expected a large increase: 38% Realized a large increase: 43%
Expected a large increase: 27% Realized a large increase: 39%
Expected a large increase: 27% Realized a large increase: 33%
Expected a large increase: 27% Realized a large increase: 33%
Expected a large increase: 16% Realized a large increase: 32%
Security
Innovation
Business Efficiency
IT Effectiveness
IT Efficiency
Customer Experience
Business Visibility
Cost Savings
Profitability
The Expectations Dividend This difference in expectations versus reality is evident when looking at
two key performance indicators: business efficiency and profitability
“When examining the business benefits from IoT we discovered an ‘expectations dividend’, highlighting that the actual benefits gained from IoT were far greater than the original expectations.”
Key Discoveries
32% of companies globally plan to implement
IoT in the next 24 months - led by Spain, India,
Mexico, Italy and Brazil
The countries with the greatest adoption of IoT
are those that have invested in IoT education
IoT Understanding vs Adoption
Where levels of
understanding do not
correspond to levels of
adoption
South Korea rank sixteenth in
understanding IoT, but their
companies are ninth for adoption.
U.S. is second in understanding
of IoT, but tenth for adoption
Investment in IoT Education Results in Strong Adoption Rates
IoT understanding
correlates with levels of
adoption
Spain and India are the world’s
leading IoT adopters
UK and Japan are
among the laggards.
This highlights that countries
perceived as advanced by all other
metrics are still behind in
understanding and adoption of IoT
Key Discoveries
The use cases that deliver the most impactful
business gains tie directly to control and
monitoring functions that ultimately impact
revenue or cost savings. While the impact
rating by country varies, the ranking by use
cases are consistent.
Use Case Adoptions Varies by Region
Saudi Arabia
49%Global
65%China
74%Monitoring and
Maintenance
France
37%Global
51%China
86%Remote Operation
and Control
Netherlands
35%Global
49%South Korea
86%Location Based
Services
Turkey
15%Global
37%UAE
48%Surveillance
Japan
13%Global
32%Netherlands
47%Connected Vehicles
5 Use Cases Driving the Greatest Business Impact
Top IoT Adopters by Industry
Industries
1Enterprise
(Smart
Workplace)
2Industrial /
Manufacturing
3Healthcare
4Retail
5Municipality
(Smart City)
How Top Industries Are Using IoT:
Enterprises
Use Cases: After remote monitoring, indoor location-based services ranks second
most promising use case to improve employee productivity
72% have adopted IoT today
78% say the introduction of IoT has
improved the effectiveness of
their IT team
75% find it has
increased
profitability
How Top Industries Are Using IoT:
Industrial
Use Cases: Monitoring and maintenance proved most impactful but IP surveillance
cameras are still in their infancy with only 6% adoption.
62% have already implemented IoT
80% say the introduction of IoT has
improved visibility across their
organization
83% report IoT has increased business
efficiency
How Top Industries Are Using IoT:
Healthcare
Use Cases: 42% of executives rank monitoring and maintenance as the
number one use for IoT – higher than all other sectors.
60% have already implemented IoT
80% report an increase
in innovation
73% report cost savings
How Top Industries Are Using IoT:
Retailers
Use Cases: In-store location services for personalized offers and product
information was the top IoT implementation
49% have already implemented IoT
81% have improved the customer
experience
40% of retailers ranked surveillance in
their top three as a key use
How Top Industries Are Using IoT:Government
Use Cases: Monitoring and maintenance proved most impactful with surveillance
and remote monitoring ranked lowest at 13% adoption
42% have already implemented IoT
42% report cost savings and improved
visibility across their organization
35% of IT claim their leadership have
little to no understanding of IoT,
double the global average, proving
education is key to adoption
Key Discoveries
IoT adopters see gains in innovation,
productivity and business efficiency, yet security
remains a key concern with 84% already affected
by an IoT-related breach
Security Breaches Hinder Adoption
84% of IoT Adopters Have Experienced a Security Breach
Malware: 49%
Spyware: 38%
Human Error: 38%
Phishing: 30%
DDOS Attack: 26%
Physical Theft: 25%
Skimming: 18%
Ransomware: 14%
Spear Phishing: 12%
Additional Barriers to Mass IoT AdoptionThe study also uncovers a number of barriers that IT leaders feel are
preventing IoT from creating a larger impact on business
50%reported as a barrier
Cost of
Implementation
44%reported as a barrier
Maintenance
43%reported as a barrier
Integration with
Legacy Tech
Takeaways
Adoption of IoT will hit mainstream by 2019 with 56% of companies implementing IoT
technology today and 32% plan to within the next 2 years
The average Return on Investment globally is 34% indicating the returns are there
but we have more opportunity to capitalize on IoT
Barriers to IoT are real and security ranks highest globally
Thank You
The Expectations Dividend This difference in expectations versus reality is evident when looking at two key
performance indicators: business efficiency and profitability
“When examining the business benefits from IoT, Ashton discovered an ‘expectations dividend’, highlighting that the actual benefits gained from IoT were far greater than the original expectations.”
*NEED graphic or chart to depict this.
- Business Efficiency
- Those planning to adopt IoT – 29%
project ‘large efficiency gains’
- Those that have implemented IoT –
46% realized ‘large efficiency gains’
- Profitability
- Those planning to adopt IoT – 16%
project ’large profit gains’
- Those that have implemented IoT –
32% realized ‘large profit gains’
Key Discoveries
IoT adopters see gains in innovation,
productivity and business efficiency, yet security
remains a key concern with a 84% already affected
by an IoT-related breach
WHAT WE DISCOVERED
Security Flaws Hinder Adoption
84% of organizations have
experienced an IoT-
related security breach
>50%of respondents declared
that external attacks are
a key barrier for
embracing and adopting
an IoT strategy
This validates that a
holistic IoT security
strategy will not only
protect enterprises but
also simplify the security
approach for IT.
