Report Identifies a Significant Usage Shift as Companies See IoT’s Value in Product Performance
ARLINGTON, VA (June 8, 2016) – Within two years more than 90 percent of companies will be using Internet of Things (IoT) technologies, according to a new survey of business leaders announced by the Telecommunications Industry Association (TIA), the leading association representing the manufacturers and suppliers of high tech communications networks. This finding is part of a White Paper published today, and produced by Machina Research, that provides a comprehensive look at the usage, strategies, spending behind enterprise IoT.
The TIA survey finds that nearly half (48 percent) of U.S. businesses are actively using IoT, and another 43 percent expect to deploy IoT solutions within the next 24 months. In the White Paper, TIA concludes that IoT is set to become a mainstream enterprise element by 2019. The survey also finds that companies expect that, on average, 44 percent of IT budgets in 2020 will be dedicated to IoT development and maintenance.
Andy Castonguay, Principal Analyst at Machina Research and author of the study, said, “The exciting take away is that U.S. companies have begun embracing the strategic and tactical value that IoT data contributes across the enterprise. The study results point to the fact that a critical mass of U.S. enterprises has started to engage IoT solutions to enhance product design and development, inform operations and customer service, and enhance profitability.”
Anyone interested in receiving a full copy of the White Paper may download it here. Reporters may also obtain a copy by contacting Ashley Simmons at ASimmons@TIAonline.org — however the paper may not be published in part or full without express permission from TIA.
Among the key themes identified in the White Paper is that companies have broadly accepted the value of data to the health of their businesses. Fully 98 percent say the ability to receive real-time data from their products would be extremely beneficial, and 72 percent report plans to use IoT to capture data on product feature usage. Companies historically have focused on IoT as a tool for improving the bottom or top line – so the high level of interest in using IoT for product performance represents a significant shift in enterprise engagement.
“While much of the IoT talk has focused on consumer applications, its use in the enterprise could significantly impact nearly every aspect of modern business,” said TIA CEO Scott Belcher. “This study makes it clear that companies have begun to recognize this potential, and whether they are an IoT leader or a follower, they are making it a priority.”
When asked which functions are most likely to benefit from increased IoT adoption, companies identified operations applications (29 percent) above all others. Business intelligence and data analytics was also highly ranked (24 percent), followed by mobile apps (17 percent), CRM (13 percent) and ERP systems (12 percent).
Further data and trends are analyzed in the TIA White Paper, which looks at such things as what types of partners companies are choosing for IoT projects, the operational benefits of IoT, the critical importance of standards in future IoT adoption, and more.
Two hundred senior executives, representing companies in all major categories of industry, were interviewed for the survey, which was conducted by Machina Research. The executives are employed in relevant business functions and their companies have at least $10 million in annual revenue. The survey was commissioned by TIA, along with Telit and InterDigital, and the White Paper was written by Machina Research Principal Analyst Andy Castonguay.
The Telecommunications Industry Association (TIA) represents manufacturers and suppliers of global high-tech communications networks through standards development, policy and advocacy, business opportunities, market intelligence, and events and networking. TIA enhances the business environment for broadband, mobile wireless, information technology, networks, cable, satellite and unified communications. Members’ products and services empower communications in every industry and market, including healthcare, education, security, public safety, transportation, government, the military, the environment, and entertainment.
TIA is accredited by the American National Standards Institute (ANSI), and is a proud sponsor of ANSI’s Standards Boost Business campaign. Visit www.standardsboostbusiness.org for details.
About Machina Research
Machina Research is the world’s leading provider of market intelligence and strategic insight on the newly emerging Internet of Things, Machine-to-Machine (M2M) and Big Data opportunities.
The Internet of Things is the single most important technology trend today. IoT technologies are already enabling new and innovative business opportunities, proving a significant disruptor of traditional business models and processes. It is front-of-mind for many corporate management teams as well as the myriad of technology vendors that support and supply them.
Staffed by industry veterans, we provide market intelligence and strategic insight to help our clients maximise opportunities from these rapidly emerging markets. If your company is a mobile network operator, device vendor, infrastructure vendor, service provider or potential end user in the IoT, M2M, or Big Data space, we can help.
InterDigital develops mobile technologies that are at the core of devices, networks, and services worldwide. We solve many of the industry’s most critical and complex technical challenges, inventing solutions for more efficient broadband networks and a richer multimedia experience years ahead of market deployment. InterDigital has licenses and strategic relationships with many of the world’s leading wireless companies. Founded in 1972, InterDigital is listed on NASDAQ and is included in the S&P MidCap 400® index.
InterDigital is a registered trademark of InterDigital, Inc.
For more information, visit: www.interdigital.com.
Ashley Simmons, 703-907-7704, email@example.com
The Telecommunications Industry Association (TIA) represents manufacturers and suppliers of global communications networks through standards development, policy and advocacy, business opportunities, market intelligence, and events and networking. TIA enhances the business environment for broadband, mobile wireless, information technology, networks, cable, satellite and unified communications. Members' products and services empower communications in every industry and market, including healthcare, education, security, public safety, transportation, government, the military, the environment, and entertainment. Visit tiaonline.org for more details. TIA is accredited by the American National Standards Institute (ANSI), and is a proud sponsor of ANSI’s Standards Boost Business campaign. Visit www.standardsboostbusiness.org for details.