IIoT Trends and Predictions for the New Year

Kathryn Weldon - Research Director, Business Network and IT Services - Americas
Kathryn Weldon – Research Director, Business Network and IT Services – Americas

Summary Bullets:

• In IoT, connected car and other transportation verticals are seeing use cases from infotainment to automotive health and performance monitoring to fleet management. Asset tracking, retail apps, and utility management are also providing enterprise benefits.

• A number of promising new vertical solutions, technology enhancements and security services to deal with malware, data leakage, and security breach concerns are expected in 2016.

The following are some Current Analysis key observations for 2015 in Industrial IoT (IIoT) services. The points below also address our predictions of major changes to come in 2016. Subscribers can view the full report here: “2015 Wrap-up and 2016 Predictions for Enterprise Mobility and IoT Services,” January 6, 2016.

• Hype vs. Reality: For the last several years, IoT/IIoT has been gaining mind share among suppliers, but it has not generated especially large volumes of connections (wireline or wireless). The exuberant 50 billion connected device numbers once predicted for 2020 have been downsized by many vendors. There is still an aura of inevitability about IIoT, however. Industrial IoT applications really are making headway, with major vendors such as GE and Rockwell leading the way, and with ROI easier to quantify and deployments easier to justify. In 2016, operators will continue to try find IIoT applications that provide more value to businesses. However, they will compete with integrators and equipment vendors in key value-added services such as consulting and integration, application development and data analytics.

• Verticals with Current Promise: The connected car got most of the glory and most of the wireless connections in 2015, spanning consumer and business use cases, from infotainment to automotive health and performance monitoring to fleet management. Other transportation verticals with mobility requirements such as remote asset tracking and logistics also have traction. Utility applications such as remote meter reading provided many IoT connections, but more sophisticated smart grid applications are in early development. From what the operators and vendors are working on, 2016 will see more smart agriculture, heavy machinery, and B2C-focused retail and financial services applications bearing fruit. End-to-end solutions are starting to spring up in these verticals from diverse service providers.

• Verticals with Near Future Promise: Smart city, smart building, and remote healthcare applications seem to be on the rise in spite of lingering limitations in 2015. Smart city deployments in areas such as smart lighting, energy management, and smart parking have been limited by lack of municipal coordination and funding. Healthcare has been difficult due to device certification and liability issues as well as privacy regulations, which differ by country. But businesses should see more compelling solutions emerge in these key verticals for 2016 and beyond.

Enterprises will benefit from many of these offerings, as they have more options from service providers for end-to-end solutions or cost-effective bundling, and eventually they will be able to manage their traditional mobile devices and their IoT devices under the same management platform. IoT continues to bring benefits to many verticals with use cases that enhance productivity, reduce costs, smooth operations, help with new product feature development, greatly improve service operations and may even provide new recurring revenue streams.


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