IoT spending will increase at a compound annual growth rate of at least 20 percent through 2020, with manufacturing accounting for the greatest demand. But less than 10 percent of survey respondents are already using IoT. One possible reason for the low adoption rate is a lack of awareness among organizations.
Larger manufacturers typically have bigger budgets and are willing to accept more risk. However, many small and midsize manufacturers may not realize their current IT systems are IoT-ready. “Most ERP systems already have gateways to receive information from sensors installed in equipment,” says Evert Bos, an ERP consultant at Sikich.
Within the next year, expect more small and midsize manufacturers to adopt IoT technologies as they become more educated about its potential benefits, Bos says. “With the proliferation of the cloud, we’ll see this catch up with all companies, regardless of size.”
Learn more about IoT Adoption and what it means for your business through our Sikich M&D Report.