Internet of Things (IoT) remains one of the top digital transformation initiatives happening across organizations today. While much of the focus has been on digitally enabling the physical, we are seeing IoT move into its next chapter as the harmonization between human and machine begins to happen. IoT underpins the exchange of information from “things,” people, and processes. Data becomes the common denominator and it enhances our senses and business processes by providing critical visual, audio, tactile, and environmental queues that allow us to adjust, adapt, and react to changing conditions in the world around us.
IDC’s worldwide IoT team has collaboratively built our view on some of the key topics we expect to affect businesses over the next few years. This year’s IoT predictions are:
- Prediction 1: Over 50% of G2000 companies will have modernized and IoT enabled their industrial control systems by 2021 without addressing cybersecurity or public safety concerns, prompting regulators to legislate.
- Prediction 2: By 2024, 50% of manufacturers will network related product and asset digital twins into digital twin ecosystems for a systems-level view of their business and 5% reduction in cost of quality.
- Prediction 3: Despite supply chain complexity hindering innovation, 50% of manufacturers will have implemented predictive field services across connected assets to improve delivery speed and customer value by 2024.
- Prediction 4: By 2020, the success rate of AI implementations in IoT will have reached 90%, with the major factor behind this success being collaboration between data scientist and engineering teams.
- Prediction 5: By 2020, over 30% of IoT initiatives worldwide will fail to demonstrate a clear ROI, with organizations lacking the necessary KPIs to monitor progress from the early stages of such projects.
- Prediction 6: With 40% of initial IoT data analysis occurring at the edge by 2022, organizations will invest more in gateways to aggregate and analyze edge data, especially in the context of IT, OT, and CT systems.
- Prediction 7: In 2019, blockchain’s limitations in processing vast numbers of IoT transactions in real time will limit IoT integration into blockchain and thus IoT-related spend to 5% of overall blockchain spend.
- Prediction 8: By 2020, 70% of organizations will leverage commercial IoT platforms to develop and deploy IoT applications, and more than 50% will have multivendor IoT platform environments.
- Prediction 9: By 2021, 45% of video surveillance content will be used to provide context to data from IoT endpoints in public safety scenarios and in transportation hub and campus monitoring, among others.
- Prediction 10: By 2022, problems aggregating and rationalizing sensor data into actionable insight will have forced 20% of large manufacturers to insist on OEM data being reconciled in IoT data exchanges.
This IDC study provides details behind IDC’s top 10 predictions for IoT for 2019 and beyond.
The next chapter of IoT is just beginning as we see a shift from digitally enabling the physical to automating and augmenting the human experience with a connected world. Our IoT team continues to keep a pulse on the latest market developments to help inform enterprise decision makers as they look to use the audible, visual, tactile, environmental, and contextual inputs that IoT provides to digitally transform their business.
For context around these predictions, including the IT impact and guidance on how to integrate each prediction in the digital strategy of the enterprise, click here to view IDC FutureScape: Worldwide IoT 2019 Predictions web conference on demand.