Monetizing the Industrial Internet of Things
Each new surprising application of a connected device–a car communicating with a traffic light anyone?–serves as a reminder that given investment and a potential market, nearly anything could become part of the Internet of Things (IoT). To get a better picture of how—and why—manufacturers are pursuing IoT initiatives to spur new sources of revenue or lead to customer retention efforts, MAPI and PwC surveyed US-based manufacturers.
Highlights from the study include:
- IoT deployments are accelerating. 38% of manufactures are now offering IoT-driven products and services; an additional 48% are currently in the process of developing them.
- The most common reason manufacturers develop IoT-driven products and services are 1) competitive pressures, 2) prospects for new revenue streams, and 3) customer demand.
- Only 14% of manufacturers surveyed say they have created go-to-market IoT strategies, and roughly half are in the creation process, suggesting that some companies are offering IoT products without a clear strategy to market those products.
- Over the next five years, manufacturers expect revenue from IoT-based products and services will increase to an average of 10% of total revenue.