Enterprise IoT Business Potential – A lot of big numbers being thrown around, but where are the real opportunities?
It’s been well documented, and almost universally accepted (65% of enterprises using IoT for business purposes), that the Internet-of-Things (IoT) will play a big role in both individual lives (Pokemon Go, anyone?) and in the way enterprises conduct business in the future. On a macro level, there’s been a plethora of reports forecasting double, sometimes triple, digit growth dates in the number of connected devices (30 – 100 billion) and the total value that will be created by these devices.
When it comes to enterprise IoT solutions & adoption, we look at the business opportunities for technology players across the IoT value chain. A McKinsey report estimated an economic impact of up to $11 trillion per year by 2025 – with more than 70% of this being derived from business-to-business (B2B) applications. What’s more, they expect most of this value to emerge from developing countries.
Frost & Sullivan took it a step further and forecasted IoT spending in APAC to be $79 billion in 2020, identifying Southeast Asia as a key area for growth.
While macro level reports have been extremely positive about the growth of IoT globally, we decided to take a step back and conducted a survey of local enterprises both in Indonesia and Malaysia. We’ve seen an exponential increase in interest within the Enterprise IoT space over the past 3 years in both countries and this has translated to increased awareness & adoption of IoT solutions.
We found that the numbers in both countries were extremely similar:
- Roughly 50% of enterprises are either not aware of enterprise IoT solutions or only have a basic understanding of it.
- ~45% of enterprises have explored and/or implemented enterprise IoT solutions
- Only 2% and 4% of enterprises have reported reaping the benefits of implementing IoT solutions
Which vendors do enterprises turn to for enterprise IoT solutions?
When it comes to familiarity with technology vendors which provide these solutions, IBM was named most frequently in our surveys – with Microsoft, Hewlett Packard and the Indonesian telcos (Telkomsel, Indosat & XL) also creating much brand awareness in Indonesia. Microsoft and Cisco were also cited frequently amongst Malaysian enterprises.
Potential for IoT spending in Indonesia & Malaysia
The results from the survey only begin to scratch the surface of the potential of the market in both countries, and we think educating enterprises about these solutions is the key for the market to realise/reap the benefits of IoT adoption. What we know for a fact is that enterprise adoption has been increasing and it’s almost a given that the segment of enterprises benefitting from IoT will continue to increase as they get used to systems and the amount of data being collected/utilized increase and get put to greater uses. It will be interesting to see which technology solution providers will take the lead over the next few years with the corresponding increased spending.
If you’re interested in the full report of the survey, please email to this address: [email protected] and we will be sending you the summary.
Network with local enterprises from Indonesia and Malaysia at the 9th and 10th edition of Asia IoT Business Platform in Jakarta (15 & 16 August 2016) and Kuala Lumpur (18 & 19 August 2016) respectively. Register here.
Jul 19, 2016