Almost one quarter of US IT Decision Makers will spend over $1M on IoT Projects over next 2 years.
Despite the adversity caused by the COVID-19 pandemic, grounds for optimism remain for IoT spending in the US, according to End User Research carried out by Strategy Analytics on the US IoT Market in Q2 and Q3 2021*
The Strategy Analytics End User Research highlights some interesting trends that have shaped the IoT landscape:
- IoT spend as a portion of IT Spend was higher on average among US companies in 2020.
- 16% of ITDMs (IT Decision Makers) in the US will spend over $1M on IoT projects over the next year, rising to just under a quarter of ITDMs in a 1–2-year timeframe.
- US Short Term Operational Spending has increased ahead of strategic spending. More Spending is happening outside central IT Budget.
- Need for Asset Visibility sees deployments scaling, showing major growth in 2H 2021 and 2022.
- 5G and Wi-Fi6 will see Major Growth in IoT, according to US Businesses.
- Challenges Remain: Security, Managing large deployments, In-house Skills and Partnerships.
According to Andrew Brown, Executive Director of Enterprise and IoT Research at Strategy Analytics and author of the report:
“The US has weathered the pandemic storm as effectively as any major market, with higher average spending on IoT than a number of other major markets. Of course, business needs swung back towards short term planning and operational spending, with delays on strategic IoT planning as a direct result of the pandemic, but we see serious investment in 5G, which will have a massive impact on IoT environments in the US in the next 12 months and will be by far the most prominent technology added.”
David Kerr, Senior VP, Global Wireless Practice at Strategy Analytics, added:
“Security remains the primary barrier to deploying IoT, while unpredictable costs and the challenge of managing IoT networks and devices (as deployments begin to scale) are concerns among US companies. Having the right skill sets that are needed to deploy IoT effectively is vital. US companies struggle with having the right in-house resources and have an acute need for partners who have the knowledge and experience to make a deployment effective and successful.”