Less than 0.5% of US and UK businesses achieve connectivity resilience

This comprehensive report offers in-depth insights into the latest trends, developments, and challenges shaping the IoT landscape across both the UK and the US. Marking a significant milestone, this year's edition is the largest ever, reflecting the growing importance and complexity of the IoT sector.

The main headline is that less than 0.4% of organisations are achieving more than 98% IoT connectivity levels across their device estates, marking a further drop from 1.49% in 2023. This is vastly at odds with the level of performance that businesses need, after 79% of respondents asserted they needed as close to 100% connectivity as possible for their IoT business case.

The IoT device still remains a stubborn challenge for most businesses, with 58% admitting project failures can be traced back to an issue at the device level. This underscores the critical importance of getting the device design right from the outset, as even minor flaws can snowball into larger connectivity and operational failures. For businesses striving to achieve success in their IoT deployments, ensuring robust device performance is no longer optional—it's the key to unlocking long-term scalability and profitability in the IoT space.

Devices are also at the core of what businesses want to improve, with 80% agreeing that devices must become more intelligent and process data at the edge. With the rapid proliferation of IoT devices and the increasing demand for real-time data analytics, advanced edge computing capabilities are more essential than ever. By processing data closer to the source, edge computing reduces latency, enhances decision-making speed, and improves overall system efficiency. Eseye is at the forefront of this shift, empowering enterprises to harness the full potential of IoT with seamless, secure, and scalable connectivity solutions that meet the evolving demands of today’s digital landscape.

The report features responses from 1,200 senior decision-makers and implementers of IoT technology, providing a robust and diverse dataset that spans six key industry verticals: Agritech, EV Charging and Smart Grid, Healthcare, Manufacturing, Supply Chain and Logistics, and Smart Vending. By capturing the perspectives of leaders at the forefront of IoT adoption, the 2024 report delivers critical analysis and forward-looking insights that are essential for businesses looking to navigate the rapidly evolving IoT ecosystem.

Key findings:

IoT adoption and expansion

• Adoption Pace: 80% of organisations plan to expand their IoT estates within the next 18 months, reflecting steady growth and ongoing confidence in IoT investments.
• Budget Increases: Over half (54%) of respondents expect to increase their IoT budgets by 25-50%, indicating robust financial commitment to IoT projects.
• Revenue Growth: 63% of respondents reported increased revenue due to IoT implementations, underscoring the tangible business benefits of IoT.
• IoT Security Breaches: 58% of US businesses have been subject to an IoT security breach in the past 12 months vs 43% in the UK.

Trends and priorities

• Sustainable IoT Device Design: 94% of respondents consider sustainability important in IoT device design, with 58% rating it as very important. Companies are being more eco-conscious about components used, weighing up plastic SIM vs iSIM, evaluating use of materials and reducing CO2 footprint. This reflects a growing emphasis on environmentally friendly and sustainable practices in IoT development.
• Edge Computing: 80% of businesses believe in the need for on-device intelligence and data processing at the edge, driving demand for advanced edge computing capabilities.
• Managed Services: 77% prefer working with managed IoT connectivity service providers to handle complexity and ensure smooth operations, indicating a trend towards outsourcing critical IoT functions for better efficiency and reliability.

Benefits and challenges of IoT across industries

• Agritech: IoT has helped this sector to increase revenue (68%) and accessing technical IoT support (21%) is the top challenge.
• Smart Vending: IoT has enabled this vertical to focus on its sustainability goals (62%) and technical support challenges (34%).
• EV Charging and Smart Grid: Focus on using IoT to increase revenue (65%) and struggle with technical device challenges (26%).
• Healthcare: Leverage IoT to increase revenue (54%) and face issues when accessing technical IoT support (29%).
• Supply Chain and Logistics: The leading benefit IoT offers is competitive advantage (80%), with device security as a major challenge (41%).
• Manufacturing: Security is the top challenge (27%), with increased revenue being a key benefit (68%).

Market dynamics

• Revenue Projections: The UK IoT market is expected to reach $19.63bn in 2024 and $31.37bn by 2029. The US is projected to generate $342.50bn in IoT revenue in 2024, highlighting significant growth opportunities.(Statista)
• Expansion Plans: 30% of organisations plan to double their device deployments, with 12% aiming to triple them, demonstrating strong growth ambitions.
• Spending Trends: 74% of enterprises plan to increase their IoT investment in the next two years, reflecting continued confidence in the value of IoT.

Nick Earle, CEO of Eseye stated: “The pace of IoT adoption remains strong, with businesses realising significant benefits. However, connectivity performance and security challenges must be addressed to sustain this growth. To maximise IoT success and performance, it's essential to seek partners who can deliver 99% or greater uptime with intelligent device connectivity capabilities for reliable and consistent connectivity. Embracing managed services is equally important; partnering with experienced providers helps navigate the complexities of the SGP.32 standard and ensures a seamless transition. Prioritising security is crucial — embedding advanced security features in devices from the outset and staying updated on IoT security regulations is vital to protect against cyber threats.

“Thorough testing using private LTE networks for real-world scenarios is essential to ensure devices perform reliably. The State of IoT Adoption 2024 report has offered valuable insights to help businesses navigate these challenges and fully leverage the potential of IoT. With security now being the top challenge, it is ever more crucial for businesses to invest in robust security measures to protect their IoT deployments at all costs. The need for ongoing improvements in both connectivity and security is clearly critical to supporting the expanding IoT ecosystem.”