Many of the top IoT use cases are delivering strong ROI for the organizations that are deploying them. As such, 51% of respondents to a recent industry survey said that their organizations plan to increase their spending in IoT use cases this year compared to 2023.
The number of IoT use cases is on the rise across industries, and many of them are providing higher ROIs than they did just a few years ago. Those are two of the main findings in the recent “IoT Use Case Adoption Report 2024” from IoT Analytics. Specifically, the number of IoT use cases grew 53% from 2021 to 2024. And 92% of organizations report positive ROI from their IoT use cases.
That is quite a change in perception and philosophy from a few years ago. For example, a 2017 survey by Cisco found that 60% of IoT initiatives stall at the Proof of Concept (PoC) stage, and only 26% of companies have had an IoT initiative that they considered a complete success.
While things have improved over time, there were still issues as recently as three years ago. In 2021, IoT Analytics found many survey respondents noted the need for proofs of concept and testing since IoT projects and their technical setups can be complex. However, in 2024, the complexities of usage and onboarding/setup of IoT use case projects ranked 5th and 6th, respectively, in terms of challenges.
One of the main factors that is driving the wide-scale embracement of IoT use cases and their success is that obstacles to deploying and developing a use case are disappearing. Most organizations now have a choice of standards-based connectivity to collect IoT data. For example, in the past few years, there has been a growing availability of new IoT connectivity options, including private 5G and more use of higher-performance Wi-Fi 6 (with Wi-Fi 7 products entering the market this year).
In releasing the report, Dimitrios Paraskevopoulos, Senior Analyst at IoT Analytics, noted, “With 92% of IoT projects reporting a positive ROI and adoption still going strong, it’s high time the discussions shift from ‘whether IoT is failing’ to ‘how can we leverage the technology to improve our operations, supply chain, and products’.”
See also: The Evolution of Manufacturing in the IoT Era
Top IoT Use Cases
The report identified a number of top IoT use cases that are common across industries. Most of the use cases aim to support smart operations or focus on creating smart supply chains.
Some of the top use cases include:
Process automation
Such use cases integrate IoT to automate routine processes, with the goal of enhancing productivity and accuracy. Nearly 58% of organizations have adopted process automation, according to IoT Analytics. The company noted that’s a huge rise from the 33% adoption rate it found in the 2021 IoT use case report.
Why is there such great interest in process automation via IoT? It enables companies to streamline and automate processes by integrating interconnected devices and sensors with both new and legacy equipment, such as PLCs and IPCs. In many cases, process automation reduces the need for manual intervention, increases efficiency, minimizes errors, and enhances safety.
Quality control and management
Such use cases integrate IoT to enhance quality processes. They allow companies to monitor critical factors like temperature, humidity, and pressure during production. This real-time data can be used for immediate detection of quality deviations, enabling swift corrections to prevent defects.
In the 2024 report, 55% of organizations said that they have adopted IoT-based quality control and management. In 2021, the adoption rate for this use case was 30%. The report found that the reason for the jump is likely the quick payoff: 53% of companies that have implemented this use case reported amortization in less than 24 months.
Additional use cases abound
The report cited several other common IoT use cases that are gaining favor with industries today. Examples include making use of IoT sensors for energy monitoring, inventory management, supply chain tracking, operations planning, asset performance optimization, and more.
A Final Word
The adoption of IoT is on the rise, and so are their use cases. Many of the top IoT use cases are delivering strong ROI for the organizations that are deploying them. As such, 51% of respondents to the 2024 IoT Analytics survey said that their organizations plan to increase their spending in IoT use cases this year compared to 2023.
