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Spending on internet of things (IoT) technology now accounts for 24% of the average enterprise IT budget, putting the technology on par with spending on cloud computing or data analytics, according to Vodafone’s fourth annual IoT Barometer Report.
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The latest edition of the report, which was produced by Circle Research between April and May 2016 and draws on input from more than 1,000 companies worldwide, suggested that the IoT was hitting the mainstream.
“Three-quarters of the companies we interviewed recognise that the IoT is a new industrial revolution that will change how people work and live forever,” said Vodafone Group IoT director Erik Brenneis.
“Almost half the companies surveyed across multiple countries and sectors told us they’re planning to bring connected network intelligence to millions of devices and processes over the next two years. 2016 is the year the IoT entered the mainstream.”
Among some of the statistics drawn from the report, Vodafone revealed 89% of IoT investors had increased their budgets since this time last year; 76% of businesses thought that using the IoT would be critical to their future success; and 63% of IoT adopters are seeing “significant” return on their investment, up from 59% in July 2015.
2015’s report uncovered a trend among early adopters of IoT technology to continue to ramp up their investment once they had seen the value that machine-to-machine (M2M) brought to their business, creating a virtuous cycle of spending.
It also suggested that enterprises working in the retail and transportation verticals were the most enthusiastic of these adopters. This year, Vodafone added consumer electronics suppliers to this list, saying that over half were using the IoT as a basis for a new generation of connected home applications.
Elsewhere, the IoT continued its journey towards the mainstream, with 48% of respondents saying they were using it to support large-scale business transformation, and 46% saying they intend to develop IoT-based products and services sometime in the next two years.