The State of IoT Adoption in 2024: Challenges and Opportunities
Eseye’s latest State of IoT Adoption Report for 2024 sheds light on the persistent connectivity and security challenges faced by businesses in the IoT sector. As the largest edition to date, this fourth annual report by Eseye emphasizes the increasing complexity and significance of the IoT landscape.
Nick Earle, CEO of Eseye, stated, “The pace of IoT adoption remains strong, with businesses realizing significant benefits. However, connectivity performance and security challenges must be addressed to sustain this growth.”
A startling revelation from the report is that less than 0.4% of organizations are achieving over 98% IoT connectivity across their devices – a decrease from 1.49% in 2023. This falls well below the desired levels, with 79% of businesses aiming for close to 100% connectivity for their IoT projects.
Device-related issues continue to be a primary cause of IoT challenges, with 58% of businesses attributing project failures to problems at the device level. This highlights the need for meticulous device design, which is essential for operational success and long-term scalability in IoT deployments.
An overwhelming 80% of respondents stressed the importance of more intelligent devices that can process data at the edge. The increasing demand for real-time analytics makes advanced edge computing capabilities indispensable. By reducing latency and enhancing decision-making speed, edge computing improves overall system efficiency.
The report, drawing insights from 1,200 senior decision-makers across six industries – Agritech, EV Charging and Smart Grid, Healthcare, Manufacturing, Supply Chain, and Smart Vending – provides valuable perspectives on the current state of the IoT ecosystem.
IoT Adoption Trends and Challenges in 2024
Adoption and Growth:
- Expansion Plans: 80% of organizations plan to expand their IoT operations within 18 months, indicating steady growth.
- Budget Commitments: Over half (54%) plan to increase IoT budgets by 25-50%.
- Revenue Impact: 63% reported revenue growth due to IoT implementations.
- Security Concerns: 58% of US firms experienced IoT security breaches compared to 43% in the UK.
Trends and Priorities:
- Sustainability in Design: 94% of respondents view sustainability as crucial, with 58% considering it very important. This reflects a growing focus on eco-friendly practices, including evaluating material usage and CO₂ footprints.
- Edge Computing: 80% of businesses attest that on-device intelligence is critical, driving the demand for advanced edge capabilities.
- Managed Services: 77% prefer working with managed service providers, signaling a shift towards outsourcing to efficiently handle complex IoT operations.
Industry-Specific Insights:
- Agritech has witnessed a revenue boost (68%) but struggles with accessing technical support (21%).
- Smart Vending emphasizes sustainability goals (62%) with technical support posing a significant challenge (34%).
- EV Charging and Smart Grid sectors report revenue enhancements (65%) but face device-related challenges (26%).
- Healthcare leverages IoT for increased revenue (54%) but encounters difficulty in accessing technical support (29%).
- Supply Chain businesses cite competitive advantage as a key benefit (80%), while device security remains a major challenge (41%).
- Manufacturing lists security as the primary challenge (27%) alongside revenue growth (68%).
Revenue projections for the UK IoT market forecast a growth to £19.63 billion in 2024, expanding to £31.37 billion by 2029. In the US, revenue is expected to reach $342.50 billion in 2024, highlighting significant growth potential.
Nick Earle emphasized the need for partners who can provide “99% or greater uptime with intelligent device connectivity”. Stressing the importance of managed services, Earle mentioned that “partnering with experienced providers helps navigate the complexities of the SGP.32 standard and ensures a seamless transition.”
Security remains paramount, with Earle advising businesses to embed “advanced security features in devices from the outset” and stay proactive against cyber threats. Testing devices using private LTE networks is crucial “to ensure devices perform reliably.”
“The need for ongoing improvements in both connectivity and security is clearly critical to supporting the expanding IoT ecosystem,” Earle concludes.
Eseye’s full 2024 State of IoT adoption report can be found here (registration required)
(Photo by Shubham Dhage)
See also: Wireless devices and AI are transforming industrial automation
Want to learn about the IoT from industry leaders? Check out IoT Tech Expo taking place in Amsterdam, California, and London. The comprehensive event is co-located with other leading events including Cyber Security & Cloud Expo, AI & Big Data Expo, Intelligent Automation Conference, Edge Computing Expo, and Digital Transformation Week.
Explore other upcoming enterprise technology events and webinars powered by TechForge here.