IoT Technology & Services Spend by Enterprises is Pegged at USD 177 Billion in 2019

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• IoT Technology & Services Spend by Enterprises is Pegged at USD 177 Billion in 2019; Will Grow at a CAGR of 21% to Reach a Massive USD 460 Billion by 2024, Says Zinnov

• Out of 160+ new IoT deals since 2018, 33 were signed by the Industrial vertical ; The addressed market by IoT Service Providers has grown at ~ 30% YoY

• Industry 4.0 is the most adopted use case by enterprises as they find strong alignment with business outcomes

Bangalore, India, Nov. 6, 2019 :  Zinnov, a leading global management and strategy consulting firm, released its annual ratings titled, ‘Zinnov Zones for Internet of Things Technology Services – 2019’. This pre-eminent rating is aimed at enabling business leaders across industries to make informed decisions in their partner selection across geographies for their Internet of Things (IoT)-led product and service initiatives. The 2019 ratings are unique because for the first time, Zinnov has rated Service Providers across specific verticals and use cases, in addition to assessing them for their overall IoT prowess.

The study titled ‘Zinnov Zones for Internet of Things Technology Services – 2019,’ analyzed the Global IoT market and trends from both the Spenders’ and Service Providers’ perspectives. Enterprises continue to increase their investment on IoT initiatives and are crossing the chasm when it comes to enterprise-wide deployments. Growth in IoT is facilitated by increasing adoption of enabling foundational infrastructure.

There is an increase in IoT adoption as enabling technologies have evolved to reduce compute, storage, and network costs, while enabling enterprises to access real-time insights for decision-making. Manufacturers are focusing on Industry 4.0 initiatives to drive velocity in the product development process as well as to have enhanced visibility. Advancements in enabling technologies such as machine learning, deep learning, and robotics is further propelling these initiatives. Further, Industry 4.0 use cases are demonstrating a strong alignment with key outcomes such as automation, visibility, productivity, predictability, and overall digital transformation through IoT. 

Enterprises are dependent on the IoT Service Provider community to augment their transformation journeys. The study revealed that IoT Service Providers cumulatively addressed a market of USD 7.1 Billion, representing a ~ 30% YoY growth. Large transformative deals signed by enterprises entail advisory services at the top and managed services at the bottom. Further, Service Providers continue to invest in IP and enhance their delivery infrastructure to garner greater wallet shares.

Speaking about the report, Pari Natarajan, CEO, Zinnov, said, “Manufacturers are investing in Industry 4.0 to build an autonomous and cognitive environment to accelerate the product development process. Associated implementation challenges have impeded adoption in the past. Scattered leadership in manufacturing organizations increases the complexity of cross-unit coordination and decision-making. Further, enterprises have data ownership and security-related concerns as well.”

“Over the last couple of years, several large firms have benefited from accelerated product development timelines and enhanced asset uptimes while reducing costs. Adoption is only expected to increase further, as Industry 4.0 use cases continue to demonstrate strong alignment with business outcomes,” he added.

 

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