The "IoT Use Case Adoption Report 2024" is part of IoT Analytics' ongoing coverage of the IoT in general . The information presented in this report is based on an extensive survey of IoT end-users in manufacturing, healthcare, retail, and other industries. The purpose is to inform other market participants about the current state of adoption of IoT use cases across companies.
SAMPLE VIEW
How IoT use cases have evolved since 2021
IoT initiatives are even more successful, but payback takes time. Currently a majority of IoT projects have a positive ROI, a 13-percentage point increase compared to 2021. However, the share of projects that amortize in 2 years have declined.
SAMPLE VIEW
APAC is steadily ahead; North America is catching up. In 2024, APAC companies are still at ~11 use cases rolled out on average (+0.9 increase since 2021). North America and Europe have each rolled out ~10 use cases (+3.5 and +1.7 since 2021, respectively).
SAMPLE VIEW
This report includes 27 IoT use cases across smart operations, smart supply chain, and connected products
Process automation. Integrating IoT to automate routine processes, enhancing productivity and accuracy.
Quality control & management. Integrating IoT (e.g., machine vision) to enhance quality processes.
Energy monitoring. Integrating IoT to monitor energy consumption for individual assets.
Operations planning and scheduling. Leveraging IoT for real-time scheduling and planning to improve operational efficiency.
Asset performance optimization. Utilizing IoT to enhance operational efficiency and effectiveness of assets.
Remote asset monitoring. Utilizing IoT to monitor assets remotely in a read-only format for performance tracking.
Condition-based maintenance/monitoring. Utilizing IoT to perform maintenance based on the condition of equipment.
Plant/worker safety. Leveraging IoT (e.g., smart cameras) to enhance safety measures within a plant and for workers.
Emissions/waste tracking. Integrating IoT to monitor emissions or waste of operations.
Remote asset control. Employing IoT for remote control of assets (e.g., remote trouble shooting).
Work condition monitoring. Employing IoT for monitoring environmental conditions of workers (e.g., temperature, humidity, air quality) to ensure worker health.
Predictive maintenance. Employing IoT to predict when maintenance is required to prevent downtime.
Augmented services/maintenance. Using augmented reality (AR) to improve field service and maintenance.
Augmented operations. Using augmented reality (AR) to improve operations.
Real-time inventory management. Utilizing IoT for tracking inventory levels in real-time to optimize stock and reduce shortages or excesses.
Supply chain track & trace. Employing IoT for monitoring the location, condition and/or status of products and materials along the supply chain.
On-site facility track & trace. Employing IoT for real-time tracking and tracing of assets on a site (e.g., in a factory or warehouse).
Location tracking (e.g., GPS). Employing IoT for real-time location tracking of products/assets/devices.
Sustainability and energy efficiency. Employing IoT to monitor and control energy usage of products, promoting sustainability and cost savings for users.
Condition/health monitoring. Utilizing IoT for monitoring the condition, status or health of products/assets/devices.
IoT-data based product usage optimization. Leveraging IoT data for optimizing product usage and offering suggestions to customers.
Predictive maintenance. Employing IoT to predict and perform maintenance on products/assets/devices.
Remote asset control. Employing IoT for remote control of products (e.g., remote troubleshooting).
Product engineering. Using actual IoT product usage data from customers to enhance future products.
Selling assets/products "as-a-service". Utilizing IoT to offer products or assets as a service.
Over-the-air firmware updates (FOTA). Leveraging IoT for remote firmware updates.
Over-the-air software updates (SOTA). Employing IoT for remote software updates.
SAMPLE VIEW
Analyses in the report includes:
IoT use case adoption (by region, by industry, by use case group)
Detailed breakdown of IoT use case spending (upfront, recurring, hardware, software, services)
Return on investment (by region, by industry, amortization by use case)
Use case investment priorities (by region, by industry, change by use case)
Impact of IoT implementation on company KPIs (e.g., Overall equipment efficiency, revenue, quality)
Challenges faced when implementing IoT use cases
Methods of ensuring a skilled workforce
Impact of IoT strategy on company's sustainability goals
Key vendors for IoT use cases and vendor satisfaction with deep dives on strengths and weaknesses of most used vendors and most used vendors by tech stack
Detailed case studies for every use case
Deep dives for each of the 27 use cases (adoption, spending, ROI, planned investment, impact on company KPIs)
SAMPLE VIEW
Questions answered:
What are the most adopted IoT use cases (out of a list of 27)?
Which IoT use cases have the highest return on investment (ROI)?
Which KPIs are most important for a company's IoT strategy, and how are the KPIs affected by implementing IoT use cases?
How much do companies spend on hardware, software, and services for individual IoT use cases?
Which IoT use cases do companies plan to invest in the most in 2024?
Who are the leading vendors for IoT use cases, how satisfied are end users, and what are the strengths and weaknesses of the top vendors?
What challenges do IoT end users face when implementing use cases?
How do companies ensure their workforce has the necessary IoT skills?
How much are companies' IoT strategies impacting their sustainability goals?
Companies mentioned:
A selection of companies mentioned in the report.
ABB
AT&T
AWS
Accenture
BCG
Bosch
Cisco
Dell
Google
Honeywell
IBM
Microsoft
Oracle
Palo Alto Networks
Rockwell Automation
SAP
Salesforce
Schneider Electric
Siemens
Table of Contents
1. Executive summary and survey highlights
General overview (1/2): How things evolved since our 2021 use case report
General overview (2/2): Overall IoT adoption, ROI, and plans to invest
Regional overview: IoT use case adoption 2024 vs. 2021 and spending plan
Industry overview: IoT use case adoption, investment, KPIs, and challenges
Use case overview (1/2): Use cases ranked by adoption, ROI, and investment plans
Use case overview (2/2): Impact of individual IoT use cases
Executive summary
2. Introduction
Reminder: How IoT Analytics defines IoT
Reminder: Two types of IoT and the technical IoT setup
Starting point: IoT is now a top 5 corporate technology priority
Our view: Many companies are on or moving to stage 4 of their IoT journey
Some major tech trends are currently affecting IoT growth
Our view: The market for independent IoT applications reached $45 billion in 2023
IoT applications can have many benefits and interest is at high levels
There are several ways to classify IoT use cases
Search interest is also growing for popular IoT use cases ...
... and with good reason, as companies are realizing their value
This report looks at 27 IoT use cases from 3 different groups
Examples of IoT initiatives in each use case group
Overview: 14 smart operation IoT use cases (1/2)
Overview: 14 smart operation IoT use cases (2/2)
Overview: 3 smart supply IoT chain use cases
Overview: 10 connected products IoT use cases/features
This report analyzes 9 topics regarding the implementation of IoT use cases
3. Global results
Chapter 3.1: Adoption - Overview and key takeaways
IoT use case adoption (1/3): By region
IoT use case adoption (2/3): By industry
IoT use case adoption (3/3): By detailed industry
Comparison 2024 vs. 2021: Adoption growth by region and industry
Global adoption of use cases
Global adoption of use cases by group
Comparison 2024 vs. 2021: Adoption by use case
Chapter 3.2: Spending - Overview and key takeaways
Tech spend (1/4): Definitions
Tech spend (2/4): Overview
Tech spend (3/4): By segment
Tech spend (4/4): Breakdown and detailed IoT spending
Deep dive: Non-use case-specific IoT budget
Upfront/recurring and tech stack IoT spending
Distribution of IoT spending on upfront/recurring by use case
Distribution of IoT spending on hardware/software/services by use case
Chapter 3.3: ROI - Overview and key takeaways
Positive ROI (1/2): By region
Positive ROI (2/2): By industry
Quick ROI (1/3): By region
Quick ROI (2/3): By industry
Comparison 2024 vs. 2021: Positive ROI growth by region and industry
Quick ROI (3/3): Detailed view
Amortization by use case (1/2): Quick ROI
Amortization by use case (2/2): Positive ROI
Comparison 2024 vs. 2021: Quick ROI by use case
Comparison 2024 vs. 2021: Positive ROI by use case
Chapter 3.4: Investment priorities - Overview and key takeaways
Average investment change (1/2): By region
Average investment change (2/2): By industry
Strong investment (1/2): By region
Strong investment (2/2): By industry
Comparison 2024 vs. 2021: Investment plans growth by region and industry
Strong investment: Detailed view
Investment change by use case
Comparison 2024 vs. 2021: Investment plans by use case
4. Impact of IoT implementation
Chapter 4.1: Impact of IoT implementation Affected KPIs - Overview and key takeaways
List of KPIs analyzed in this chapter
Importance of KPIs for IoT strategy (1/4): Group overview
Importance of KPIs for IoT strategy (2/4): Detailed overview
Smart operations: Mercedes-Benz's iteration of a KPI dashboard
Connected products: Konig & Bauer's iteration of a KPI dashboard
Importance of KPIs for IoT strategy (3/4): By industry
Three most important KPIs for each industry
Deep dive: Why cybersecurity KPIs are more important in the energy sector
Importance of KPIs for IoT strategy (4/4): By region and size
Impact of IoT implementation on KPIs (1/7): Overview
Impact of IoT implementation on KPIs (2/7): By use case
Impact of IoT implementation on KPIs (3/7): Top 3 by use case (1/3): Smart operations
Impact of IoT implementation on KPIs (4/7): Top 3 by use case (2/3): Smart supply chain
Impact of IoT implementation on KPIs (5/7): Top 3 by use case (3/3): Connected products
Impact of IoT implementation on KPIs (6/7): By use case detailed (1/2): Smart operations
Impact of IoT implementation on KPIs (7/7): By use case detailed (2/2): Smart supply chain/con. prods.
Chapter 4.2: Impact of IoT implementation Challenges faced - Overview and key takeaways
Challenges faced when implementing IoT use cases (1/4): Overview
Deep dive: Legacy systems (1/4) - Organizational challenges arise
Deep dive: Legacy systems (2/4) - Changing legacy infrastructure
Deep dive: Legacy systems (3/4) - Difficult to replace them in operations
Deep dive: Legacy systems (4/4) - Insights from the Hannover Messe
Deep dive: IT & data security - IoT is a growing target for cyberattacks
Deep dive: Missing talent/skill gaps - Corporate earnings calls
Challenges faced when implementing IoT use cases (2/4): By industry
Challenges faced when implementing IoT use cases (3/4): By region and size
Challenges faced when implementing IoT use cases (4/4): By department
Chapter 4.3: Impact of IoT implementation Workforce & sustainability - Overview and key takeaways
Ensuring a skilled workforce (1/5): Overview
Ensuring a skilled workforce (2/5): Training deep dive
Ensuring a skilled workforce (3/5): Hiring, third-parties, internal communication, and collaborations
Ensuring a skilled workforce (4/5): Obstacles faced by respondents
Ensuring a skilled workforce (5/5): Additional tips from respondents
Deep dive: Examples of company training programs
Tech expertise in demand in Q1 2024: IoT (1/2)
Tech expertise in demand in Q1 2024: IoT (2/2)
IoT strategy and sustainability (1/4): Overview
IoT strategy and sustainability (2/4): Sustainability goals being impacted
IoT strategy and sustainability (3/4): Deep dive on how IoT helps with sustainability goals
IoT strategy and sustainability (4/4):Future planned impact on sustainability/no impact planned
How an IoT implementation improves sustainability
How CEOs think about their sustainability goals
5. Key vendors & vendor satisfaction
The 20 most used IoT vendors and their satisfaction ratings
20 most used vendors for IoT use case projects
Comparison 2024 vs. 2021: Unique vendors used
Comparison 2024 vs. 2021: Most used vendors and their satisfaction
Most used vendors by region and industry (1/2)
Most used vendors by region and industry (2/2)
Extensive list with all vendors that respondents have worked with
Key IoT vendor deep dives (1/7): Microsoft (1/2)
Key IoT vendor deep dives (1/7): Microsoft (2/2)
Key IoT vendor deep dives (2/7): Cisco (1/2)
Key IoT vendor deep dives (2/7): Cisco (2/2)
Key IoT vendor deep dives (3/7): AWS (1/2)
Key IoT vendor deep dives (3/7): AWS (2/2)
Key IoT vendor deep dives (4/7): Honeywell (1/2)
Key IoT vendor deep dives (4/7): Honeywell (2/2)
Key IoT vendor deep dives (5/7): Google
Key IoT vendor deep dives (6/7): Siemens
Key IoT vendor deep dives (7/7): IBM
Most used vendors by tech stack (1/7): Hardware - Computers, controllers, and gateways
Most used vendors by tech stack (2/7): Hardware - Sensors/semiconductors
Most used vendors by tech stack (3/7): Software - Infrastructure as a service (IaaS)
Most used vendors by tech stack (4/7): Software - IoT platforms/PaaS
Most used vendors by tech stack (5/7): Services - Wireless connectivity
Most used vendors by tech stack (6/7): Services - Professional services
Most used vendors by tech stack (7/7): Security
Deep dive: Hyperscaler IoT (1/4) - Overview
Deep dive: Hyperscaler IoT (2/4) - Relevance of IoT
Deep dive: Hyperscaler IoT (3/4) - Relevance of IoT by industry
Deep dive: Hyperscaler IoT (4/4) - Products vs. operations*
6. Case studies
List of included smart operations case studies
Smart operations case study 1/14: Eldorado Brasil
Smart operations case study 2/14: Schneider Electric
Smart operations case study 3/14: Greggs
Smart operations case study 4/14: Somfy
Smart operations case study 5/14: Longroad Energy
Smart operations case study 6/14: ONGC
Smart operations case study 7/14: ArcelorMittal
Smart operations case study 8/14: Swire Coca-Cola
Smart operations case study 9/14: Roeslein Alternative Energy
Smart operations case study 10/14: framas
Smart operations case study 11/14: Silotank
Smart operations case study 12/14: Aquafin
Smart operations case study 13/14: MAN
Smart operations case study 14/14: Volvo Group
List of included smart supply chain case studies
Smart supply chain case study 1/3: Tyson Foods
Smart supply chain case study 2/3: Konvoy
Smart supply chain case study 3/3: Salco
List of included connected products case studies
Connected products case study 1/10: John Deere
Connected products case study 2/10: Alfa Laval
Connected products case study 3/10: Trumpf
Connected products case study 4/10: Vossloh Rail Services
Connected products case study 5/10: Middle Atlantic
Connected products case study 6/10: Unox
Connected products case study 7/10: Dyson
Connected products case study 8/10: Carrier
Connected products case study 9-10/10: Volkswagen
7. Use case deep dives
Chapter 7.1: Smart operations use cases
Smart operations use cases (1/5): Adoption
Smart operations use cases (2/5): Spending hardware, software, services
Smart operations use cases (3/5): Spending CAPEX vs. OPEX
Smart operations use cases (4/5): Planned investment
Smart operations use cases (5/5): ROI
Deep dives for all 14 smart operations use cases
Chapter 7.2: Smart supply chain use cases
Smart supply chain use cases (1/5): Adoption
Smart supply chain use cases (2/5): Spending hardware, software, services
Smart supply chain use cases (3/5): Spending CAPEX vs. OPEX
Smart supply chain use cases (4/5): Planned investment
Smart supply chain use cases (5/5): ROI
Deep dives for all 3 smart supply chain use cases
Chapter 7.3: Smart products use cases
Connected products use cases (1/5): Adoption
Connected products use cases (2/5): Spending hardware, software, services
Connected products use cases (3/5): Spending CAPEX vs. OPEX
Connected products use cases (4/5): Planned investment
Connected products use cases (5/5): ROI
Deep dives for all 10 connected products use cases