The year 2018 marked an increase in the average annual spend on Internet of Things (IoT) among enterprises in the Asia-Pacific region. According to the results of Zebra Technologies Corporation’s second annual, Intelligent Enterprise Index report, year-over-year, the average annual spend on IoT globally has increased by 4% and the average annual spend in Asia-Pacific has increased 12 percent year-over-year to reach $4.8 million in 2018.
Drivers of Innovation
An intelligent enterprise integrates the physical and digital worlds with an aim to drive innovation through data-powered environments, collaborative mobile workflows and real-time guidance. Sanjay Nare, Pre-Sales Head-India and Sub-Continent, Zebra Technologies, adds, “Based on our second annual Index, it’s clear that more companies acknowledge the value of leveraging IoT strategies, and they will continue to propel adoption and investment in the future”. The Intelligent Enterprise index survey measures the stage where companies are on the journey to becoming intelligent enterprises themselves.
About 86% of the companies surveyed globally foresee the number of increased adoption to increase in the next 1-2 years, with nearly half expecting 11-20% of an investment growth year on year.
Highlights of the Intelligent Enterprise Index
The number of companies globally defined as intelligent enterprises has doubled to reach 10% in 2018 scoring above 75 points on the overall Index. The result is based on multitudes of criteria which include IoT adoption and deployment strategies, sharing of IoT information with employees and monitoring of IoT security.
In Asia-Pacific, the report revealed a significant increase in the number of companies that were rated as truly intelligent, a figure which grew by 20 percentage points to reach 22% this year. The average Asia-Pacific score increased from 49 points in 2017 to 63 points in 2018, credit to the rapid adoption of IoT solutions in the region.
Encompassing IoT solutions and Security Standards
The Intelligent Enterprise Index pointed to an 18 percentage point increase in the number of companies that are constantly working on to monitor their IoT security with an aim to ensure higher levels of integrity and privacy. Asia-Pacific region witnessed an increase of 20 percentage points from a year ago; with 40% of the companies, those surveyed globally ascertain using strategic partnerships to manage their entire IoT solutions, a figure which went up from 21% from 2017 as the adoptability rate went higher in Asia-Pacific at 54% percentage points.
Fostering IoT partnerships and Adoption Strategies
As time changes, technology has become more adaptive fostering an increase in adoption strategies being implemented. The number of companies that earlier showed a resistance to their IoT plans going forward has dropped from 75% in 2017 to 64% this year, indicating a paradigm shift. The Intelligent Enterprise Index study also showed that 52% of global respondents saying that information from their IoT solutions are shared live with their employees on a real or near real-time interfaces, which is up 37% from last year’s Index, underscoring the increased need for collaborative mobile workflows.
IoT Expenditure, Numbers and Projections Forward
The Asia-Pacific companies are more advanced in this domain, as 58% of companies share their data with employees on a regular basis. As research firm IDC reports, organizations in Asia-Pacific will move forward to install more cameras, connected devices sensors this year, loosening their budgets and spending as much as US$291.7 billion on the Internet of Things (IoT) technologies, a figure which is up by 12.1 percent over the last year’s expenditure of US$260.1 billion. An IDC prediction does not include Japan in its Asia-Pacific market predictions. The year 2018 has witnessed, China accounting for 64.2 percent of the spending, which is followed by Korea at 9.8 percent and India coming a third at 8.8 percent.
The region comprising of China, Korea and India is the leader in IoT spending which when combined accounts for more than 40 percent of the total worldwide IoT expenditure in 2018. Ashutosh Bisht, senior research manager at IDC Asia/Pacific adds that Majority of IoT spending is likely to be generated in developing economies primarily driven by PRC (People’s Republic of China) and India.
Bringing Technology Together
IoT encompasses a wide array of devices and technologies ranging from wearable devices to cameras, and IDC expects manufacturing operations to be the main use of these connected devices this year. This trend will be followed by freight monitoring, which involves simultaneous vehicle movement and goods tracking. The next five years will see connected cars and autonomous driving technologies expected to grow at a rapid pace as well.
According to IDC estimates, over time, the top five industries which will drive IoT spending will be the consumer, process manufacturing, discrete manufacturing, utilities and transportation taking a combined share of 60 percent of the total spending.
IoT Services is expected to be the toast of the technology market with 28.9% share, accounting for $84.1 billion in 2018. Most of this spending will be accumulated from Content as a Service, on-going services and, IT Installation Services. An increase in the IoT spending shows a positive step towards technology revolution being embraced further with open arms.