Bain & Company predicts that the Internet of Things (IoT) market will more than double to US$520 billion by 2021. However, optimistic growth predictions should be tempered by expectations about the pace of adoption.
[ihc-hide-content ihc_mb_type="show" ihc_mb_who="2" ihc_mb_template="3"]
The consultancy says a key to unlocking pent-up demand lies in IoT vendors addressing barriers to adoption, providing more targeted solutions, and easing integration concerns.
“Our survey found that vendors are aligned with customers’ concerns about some barriers, such as security, returns on investment, but less so on others – notably integration, interoperability and data portability,” Ann Bosche, a partner in Bain & Company’s Global Technology Practice and an IoT expert.
“Based on our experience with previous technology cycles, the key to addressing these concerns lies in focusing on fewer industries in order to learn what customers really want and need to ease adoption,” she added.
Bain highlights three areas holding back Industrial IoT adoption: security, integration with existing technology, and uncertain returns on investment.
On a positive note, Bain also lists out three universal themes for IoT vendors: Focus on getting a few industries and use cases right; offer end-to-end solutions to ease adoption; prepare to scale by removing barriers to adoption.
Michael Schallehn, a partner in Bain's Technology practice, shares the three things executives should consider when deciding how to expand into the industrial IoT sector.