Important Things to Know about Global IoT Adoption

Combining IoT capabilities with emerging technologies such as edge computing creates new opportunities and helps to address some of the identified challenges. Businesses are alleviating privacy and latency concerns and enabling offline solutions by relocating analytics, AI, and business logic to edge devices.

Fremont, CA: Given the variety of industries affected by COVID-19, it may come as a surprise that global IoT adoption has increased. Indeed, according to the 2021 IoT Signals report, 44 percent of organizations have increased IoT funding, particularly in the United States, where GDP growth has been less affected than in other markets.

The Microsoft IoT Signals report, now in its third year, investigates the global state of IoT in industries such as manufacturing, smart places, energy, and mobility (automotive, transportation, and logistics). The report provides valuable insights into IoT adoption rates, benefits, challenges, and emerging technologies that are assisting businesses in the US and around the world to compete more effectively. Here are some IoT adoption trends that are influencing the competitive landscape—and how the United States compares.

When It Comes to Global IoT Adoption, the US Ranks #3

IoT is the rule rather than the exception, with global adoption rates averaging 90 percent. This is up from 85 percent when the first edition of this report was released in 2019. However, three countries stand out when it comes to IoT adoption: Australia (96 percent), Italy (95 percent), and the US (94 percent).

Furthermore, in the US, 87 percent of survey participants say they have at least one IoT project in use, with projects taking an average of 11 months to reach the use stage. This is about a month faster than the global average. Some of the most common US challenges influencing IoT project adoption and use are technical complexity, security risks, and consumer privacy concerns.

Combining IoT and Edge Computing Allows for Better Security

Combining IoT capabilities with emerging technologies such as edge computing creates new opportunities and helps to address some of the identified challenges. Businesses are alleviating privacy and latency concerns and enabling offline solutions by relocating analytics, AI, and business logic to edge devices.

In the US, 77 percent of organizations polled are combining IoT and edge computing. Security stands out as a key reason why organizations integrate edge computing and IoT, with 40 percent of those polled citing cloud security as the most important reason for combining these technologies, followed by device and asset security (36 percent).