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IoT Will Make Up 43 Percent of IT Budgets by 2020

Machina Research survey finds IoT adoption is rapidly increasing.

Written By

Sep 15, 2016

Internet of Things adoption and integration are becoming a significant priority for U.S.-based companies , according to a new study from Machina that focused on U.S.-based companies.

“With the vast majority of US companies expecting to have IoT solutions in place by year-end 2018, the coming years will be a remarkable period of opportunity for the IoT vendor community to help companies integrate IoT into their operations and products. The global ramifications of these results are highly encouraging,” said study author Andy Castonguay in the announcement.

The study found that 38 percent of US companies are actively using IoT solutions, and 81 percent will have one or more deployed by the end of 2018. The most cited reason for adopting IoT solutions was competitive advantage.

IoT is expected to become more and more a priority for businesses and the study estimates it will take up 43 percent of IT budgets by 2020. There is a growing acceptance that the data that can be collected from IoT devices can great value for all facets of a business, from product development to customer service.

The study found that IT execs are responsible for leading IoT adoption and decision making at 54 percent of U.S. companies. Roughly 48 percent of companies said they are looking to service providers and systems integrators to assist in their deployments.

Respondents cited the complexity of integration and implementation of IoT projects as their biggest concern. While security was cited as a concern, respondents cited the complicated IoT ecosystem, highly fragmented into different technologies, platforms and vendors, as a bigger worry.

While companies said they view data analytics as a crucial tool to improve product performance and customer engagement, only 15 percent said they are currently leveraging their IoT data this way. But 69 percent of respondents said they have plans to do so.

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Microsoft-GE deal will bring industrial IoT to the masses

Sue Walsh

Sue Walsh is News Writer for RTInsights, and a freelance writer and social media manager living in New York City. Her specialties include tech, security and e-commerce. You can follow her on Twitter at @girlfridaygeek.

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