By The 2024 State of IoT Adoption Report, released by Eseye, provides a detailed view into the growing yet increasingly complex Internet of Things (IoT) landscape. Drawing from feedback from over 1,200 senior executives across six sectors, the report underscores the pressing issues of connectivity reliability and cybersecurity as central barriers to wider IoT success.
Despite the growing enthusiasm for IoT integration, connectivity levels are not meeting expectations. Fewer than 0.4% of surveyed organizations reported achieving over 98% connectivity across their devices—down from 1.49% the previous year. This is well below the 79% of companies aiming for near-total connectivity, highlighting a significant gap between aspiration and current technical performance.
Device-related failures remain the top obstacle, with 58% of businesses blaming poor device design or deployment for failed IoT projects. This trend illustrates the vital role that reliable, well-engineered hardware plays in supporting scalable, long-term IoT operations.
A major takeaway is the demand for smarter edge devices. About 80% of respondents expressed the need for devices capable of localized data processing. The value of edge computing lies in its ability to reduce latency, enable real-time analytics, and enhance overall system responsiveness—factors increasingly essential to mission-critical applications.
Key findings also reveal consistent growth in IoT budgets and implementations. Around 80% of companies plan to expand IoT use within the next 18 months, while over half are committing to budget increases of up to 50%. Importantly, 63% have already seen positive revenue impacts from their existing deployments.
Security remains a prominent concern, particularly in the U.S., where 58% of firms reported experiencing breaches—higher than the 43% reported in the UK. This disparity further reinforces the need for stronger protection protocols and early-stage device hardening.
The study also highlights emerging industry trends. Sustainability is gaining ground, with 94% of decision-makers acknowledging its importance in IoT design. Managed services are also on the rise, with 77% of businesses opting to work with external providers to simplify and streamline deployment.
Sector-specific findings shed light on unique challenges and opportunities:
- Agritech: Noted a 68% revenue increase but struggles with access to technical support.
- Smart Vending: Emphasizes sustainability (62%), while 34% cite support issues.
- EV Charging & Smart Grid: Revenue gains (65%) are tempered by 26% noting device troubles.
- Healthcare: Saw a 54% revenue boost, though 29% face support limitations.
- Supply Chain: Reports 80% see a competitive edge, with 41% challenged by device security.
- Manufacturing: Security tops the list of concerns (27%) despite 68% experiencing revenue growth.
Looking ahead, the UK’s IoT market is expected to grow from $19.63B in 2024 to $31.37B by 2029, while the U.S. is forecasted to reach $342.50B in revenue this year alone—figures that reflect strong momentum but also high stakes for getting implementation right.
Eseye’s leadership emphasizes the need for robust partnerships and proactive planning. Enterprises are advised to pursue providers capable of delivering 99%+ uptime and helping navigate complex standards like SGP.32. Security, according to the report, should be embedded from the outset, with rigorous testing on secure private networks to ensure reliability and performance.
The report closes with a clear message: as the IoT ecosystem continues to evolve, businesses must invest in both smarter connectivity solutions and stronger security frameworks to fully realize the benefits of a connected future.