Investment in the Internet of Things (IIoT) is set to overtake cloud computing, next generation security, big data analytics and other digital transformation technologies in the near future says a report by satellite operator Inmarsat.
Respondents for 450 companies in multiple industries reported plans to invest the greatest proportion of their IT budget on IoT projects over the next three years.
At 10 per cent per year, planned investments in IIoT are notably higher than those for other Industry 4.0 technologies, including cloud computing (9.0 per cent), next generation security (7.5 per cent), big data analytics (7.3 per cent), robotics (5.3 per cent), machine learning (4.8 per cent) and virtual reality (4.3 per cent).
IoT has reached a high level of maturity across most organisations, with businesses across all industry sectors now planning to spend an average of $2.8 million on their IoT investments through to 2024.
While IIoT accounted for an average of 7 per cent of an organisation’s IT budget between 2017 and 2020, businesses are planning to spend 10 per cent of their IT budgets on IIoT projects over the next three years.
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IIoT projects currently save organisations 9 per cent of the yearly costs, but this is expected to rise to an average of 15 per cent cost-savings in 12 months’ time and an ambitious 22 per cent in three years and 30 per cent in five years’ time.
There are variations in the planned levels of IoT investments between different industry sectors. Oil and gas firms intend to invest the most in IoT over the next three years (an average of $3.2m), followed by electrical utilities companies ($3.1m), transport and logistics businesses (£3m), mining operators ($2.7m) and smart agriculture at $2m.