Most Businesses to Increase IoT Spending in 2017

A full 90 percent of enterprises will increase Internet of Things (IoT) spending over the next 12 months, and four in 10 (40 percent) will raise IoT-related investment by 25-50 percent compared to 2016, according to 451 Research.

A survey reveals that 71 percent of enterprises are gathering data for IoT initiatives today, three percentage points higher than the previous quarter’s survey. Enterprises expect to increase their IoT investment by 33 percent over the next year.

IoT-specific projects can include data collection and analysis of financial, health care or industrial functions; the uptime/reliability of mission-critical line of business servers and applications; and monitoring the efficiency and costs related to a specific business operation or department such as a hospital emergency room.

About 68 percent of corporations currently take advantage of IoT data to optimize operations, such as performing preventative maintenance, reducing downtime in factory equipment and fleet management. In addition, 42 percent of enterprises use IoT data to develop new products or enhance existing products and services.

For one-half of respondents, security is the top impediment to IoT deployments, followed closely by 41 percent who cite IoT’s lack of perceived return on investment (ROI) and benefits. About half (46 percent) said they are having difficulty filling IoT-related positions and are facing a lack of trained IoT staff. IoT security and data analytics as the areas with the greatest lack of expertise.

RELATED: IoT Market Set for Double-Digit Growth