Enterprises Are Turning to 5G for Their IoT Needs
Enterprises are not only increasing their IoT spending and their deployment of devices but are doing so because IoT projects are meeting or exceeding return on investment (ROI) expectations according to Omdia. The survey of approximately 500 enterprises across countries that are deploying or are in the process of rolling out IoT solutions shows that over 90% of enterprises said their IoT projects have met or exceeded expectations.
“Both IoT and 5G have been derided as overpromising and underdelivering,” said John Canali, IoT Principal Analyst, Omdia, “yet the IoT market is still developing and 5G technology is still evolving. While sometimes outrageous proofs of concept are touted for headlines, our survey results are clear: enterprises are embracing IoT and 5G is emerging as the preferred type of connectivity.”
Omdia’s survey results are positive for players across the IoT value chain. Communications service providers will likely see growth in high-bandwidth, high-value connections as 66% of enterprises are using or plan to use 5G connections while 53% of enterprises are using or plan on deploying new connections using LTE. The responses were similarly encouraging for growth in low-bandwidth connectivity such as NB-IoT and LoRaWAN.
“For enterprises, IoT solutions do not come without hurdles. Security, privacy, and complexity continue to be the three greatest pain points for enterprises. These issues all present opportunities for systems integrators (SIs), cloud providers, hardware vendors, component suppliers, and various other IoT vendors,” added Canali.
Despite the current economic climate and uncertainty around inflation, Omdia believes that enterprises will increasingly look to IoT solutions to address emerging enterprise needs including managing their supply chain or meeting environmental, social, and corporate governance goals (ESGs).