Verizon Report Shows IoT Becoming a Business Launching Pad

The internet of things (IoT) was once called a fad by some who believed the technology was designed for consumers who wanted to control their indoor lights or adjust their thermostats from their mobile phones before returning home from work. But a new report by Verizon titled, “State of the Market: Internet of Things,” shows how important IoT has become in the corporate world. Verizon found that a vast majority of corporate executives around the world are at least researching ways to leverage IoT. Many others are starting to build new businesses based on IoT. While 2016 might have been the year when IoT became a corporate buzzword, 2017 is shaping up to be the year when it becomes an important business platform. More details on the Verizon IOT report is in this slide show.

Corporate executives apparently see significant value in the internet of things. According to Verizon, 73 percent of executives are either researching or already deploying IoT technologies in their companies.

Drones are among the most prevalent technologies in the IoT marketplace, according to Verizon’s study. So, it’s perhaps no surprise that the FAA now predicts there will be 600,000 drones flying around the U.S. by the end of this year. That’s up from 20,000 in 2016.

Drones are being used in a variety of ways. But according to Verizon, they can be especially useful for insurance companies working on claims. In fact, 70 percent of Fortune 500 insurance and casualty companies are currently using drones to evaluate damage and make recommendations for future steps.

For now, customer service appears to be a focal point for IoT implementations. Verizon estimates that one-third of all IoT deployments are aimed at improving corporate customer service.

Manufacturers appear to see significant value in IoT, according to Verizon. The company estimates that by the end of the year, worldwide manufacturing sector spending on IoT will exceed $183 billion.

Production and delivery companies also see opportunities in the internet of things. And according to Verizon, a quarter of the investments in IoT will focus on ways for companies to improve the distribution and delivery of products to companies and consumers.

For now, the real value companies see in IoT is in business-to-business transactions rather than business-to-consumer relationships. Business-to-business activities generate about 70 percent of the total value delivered by IoT, compared to around 30 percent for business-to-consumer implementations.

While companies are moving forward with IoT, concerns remain among top executives. According to Verizon, more than 50 percent of executives cited IoT’s lack of standards, security and interoperability issues as problems. They’re also concerned with the cost of implementing IoT components.

Looking ahead, the number of IoT-connected devices is expected to increase exponentially. In its report Verizon cited a Gartner study that predicts 8.4 billion connected devices will be in use this year. By 2020, that number will soar to 20.4 billion devices.

To illustrate how big the IoT market is, Verizon said total spending on the “ecosystem” this year will exceed $2 trillion. IoT investment is sure to continue to grow sharply in 2018, judging by the interest in the category today.