IoT solution deployments and investments grew significantly in 2023, particularly for larger deployments, according to the Eclipse Foundation’s 2023 IoT and Edge Commercial Adoption Survey Report. The survey of more than 1,000 professionals in the IoT and edge computing domain identifies the requirements, priorities and challenges faced by organizations deploying and using IoT and edge solutions. The report also provides actionable recommendations.
Here are several key findings. The annual survey report found that 64% of respondents are now deploying IoT solutions, up from 53% in 2022, and 23% plan to deploy within 12 to 24 months. Less than 5% have no IoT deployment plan.
Investments are also increasing. Seventeen percent of respondents spent between $1 million and $10 million in 2023, more than double in 2022, with a growth projection of 23% in 2024. Five percent expect to spend over $10 million this year. “This trend indicates a transition from proof of concept to ROI-focused deployments,” according to the Eclipse Foundation.
In addition, larger deployments are on the rise, with 10% of deployments comprised of 50,000 or more devices. Deployments of less than 1,000 managed assets will remain steady or decline, while the mix between greenfield and brownfield is almost equal.
“Consistent with our previous surveys, the continuous growth and adoption of IoT and edge computing remains evident,” Mike Milinkovich, executive director of the Eclipse Foundation, said in a statement. “The data reflects a notable increase in the number of managed devices and larger investments, indicative of a scale-up in deployments.”
The C-suite continues to drive investment decisions for IoT and edge technologies, according to 49% of organizations, up from 38% in 2022. This is followed by IT (17%) and collaborative stakeholders (14%). The significant increase indicates the growing strategic importance of IoT, according to the report.
However, the adoption rate of edge computing solutions remains at 33% (same as 2022). Thirty percent of respondents indicate plans to deploy within the next 24 months, 27% are still evaluating edge platforms and only 10% have no plans to deploy edge solutions.
Respondents expect IoT/edge solutions to have the greatest impact on product service/development (19%), followed by logistics and supply chain management (17%) and operations (16%).
(Source: Eclipse Foundation)
The survey reveals a continued reliance on open-source technologies in IoT and edge, with 75% of respondents actively incorporating open source into their deployment plans, up from 73% last year.
IoT professionals also face the same top four operational challenges as in 2022. Findings show that processing and managing IoT data (49%) was a top challenge in 2023, followed by budget management (34%), end-to-end IoT solution monitoring and management (33%) and securing networks/devices/data (33%).
Like last year, the top concerns/priorities are connectivity (48%, compared with 38% in 2022), data security (29%, the same as last year) and data collection and analytics (19%, compared with 22% in 2022). “This underscores the critical role connectivity plays in shaping design strategies, along with a concern that 5G may not yet be fully delivering on expectations,” according to the report.
(Source: Eclipse Foundation)
Sponsored by the Eclipse IoT and the Sparkplug Working Groups, the 2023 IoT and Edge Commercial Adoption Survey Report, now in its fifth year, surveyed 1,037 developers, executives, engineering/R&D management and other industry participants in a broad range of industries. The adoption survey complements the annual IoT Developer Survey.
The Eclipse Foundation also announced its inaugural Open Code Experience (OCX), dedicated to open-source software development, Oct. 22–24, 2024, in Mainz, Germany.
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