Less than 40% of large organizations around the world are currently deploying Internet of Things (IoT) at full scale, despite the enormous financial and operational benefits the technology offers.
The rising rate of cyber attacks, concerns over data security, and a lack of analytical capabilities to leverage IoT-derived data are the factors preventing the technology adoption, according to a study by French IT consulting provider Capgemini.
While 62% of industrial manufacturing companies implement the technology at full scale, the number drops to 46% for the second-place industry: Retail. This number varies significantly by industry.
Around 38% of telecom companies are adopting the technology, followed closely by consumer products at 36% and energy and utility companies at 35%, while only 17% of automotive companies, surprisingly, are involved, despite the heavy focus on Industry 4.0 and machine-to-machine technologies in automotive manufacturing.
Around 57% of companies said their current data was incompatible with IoT solutions, with an almost similar number of respondents citing uncertain regulations and standards as reasons for their slow adoption.
Fifty-three percent of those surveyed were concerned about their general technological readiness, while a further 49% didn’t see a clear business case for the adoption.
Analysts have often argued that failing to adopt IoT will result in an inability to compete, as data is increasingly becoming vital to the success of businesses. Since IoT produces a high volume of data, businesses can reap large dividends by analyzing the data effectively.