Enterprises in the U.S. are looking for Internet of Things (IoT) service providers that can become innovation partners that optimize business processes and improve existing IoT implementations, according to a new report published by Information Services Group (ISG).
The 2020 ISG Provider Lens IoT – Services and Platforms Report for the U.S. finds the IoT market evolving and expanding, offering enterprise customers advances in augmented and virtual reality, autonomous cars and smart workplaces.
Business optimization, operational efficiencies, cost reduction and remote operations are some of the main priorities for enterprises adopting IoT technologies, the report says. For their part, service providers are focusing on creating business value and enhancing the IoT experience.
The report sees a future marked by the convergence of the IoT with blockchain, artificial intelligence and edge computing. Many U.S. enterprises are investing in at least one of these technologies as part of their IoT efforts.
U.S. enterprises are looking to IoT service providers to reduce costs, drive positive returns on investment, mitigate risks and enable easy data transfer from legacy systems, the report says. Many enterprises are seeking partnerships from service providers in which collaboration enables technology integration and more business-focused outcomes. Enterprises are also exploring partnerships, mergers and acquisitions in the IoT space to give them a competitive edge, the report adds.
The report notes that cybersecurity is gaining in prominence in the IoT space, but it still lacks a comprehensive framework. The lack of a suitable security framework is a barrier to deployment.
How IoT is deployed in the U.S.
The report sees the IoT making waves in the manufacturing industry, with IoT-based transformation giving manufacturers fast and favorable returns. Asset management, smart manufacturing and performance tracking are some of the key areas where the IoT is being deployed. The IoT now covers more than 50 percent of technology investments in the manufacturing industry, the report notes.
The report also sees significant investments being made in smart monitoring for commercial and private buildings in the U.S. Commercial buildings are expected to see rapid adoption of smart building technologies over the next five years. Service providers are working on customized solutions to optimize performance and reduce waste and cost for buildings.
In addition, the report sees the connected vehicle market growing, driven by investments from service and technology providers. The U.S. connected car market has seen rapid growth in the demand and adoption of advanced driver assistance systems. Car manufacturers, automotive OEMs and service providers are increasingly engaged in developing connected solutions.