ISG Provider Lens™ IoT – Services and Platforms - Global Summary Report 2020
GLOBAL MARKET TRENDS
ISG sees several common trends across regions and industries:
COVID-19 Pandemic Driving Short- and Long-Term Changes
Remote monitoring and management of everything from factory equipment to sick people is growing because of the pandemic. There is also a shortage of some devices because of slowed manufacturing. The shift in enterprise IoT priorities is shifting to near term returns on investments. While some of the shifts are temporary, many could be permanent as enterprises plan for safety first in their physical environments.
Fragmented Tools Market
Most enterprises have a mix of IoT devices, tools and platforms, as the market has hundreds of solutions. There is no one tools vendor that does everything, and new technologies enter the market daily. This fragmentation is indicative of a relatively immature market, with significant challenges for end-to-end integration of enterprise IoT solutions.
5G Extends the IoT Locally
Fifth-generation mobile networks or wireless systems (commonly known as 5G) are the next telecommunications standard. 5G is designed to provide higher capacity than the current 4G, allowing a greater connection density at higher transfer speeds. It is also aimed at lower latency and reduced battery consumption than 4G equipment. Viable use cases found in this study center on local campus deployments where enterprises have control over their networks. ISG also sees the U.S. and German telecommunications carriers deploying 5G in dozens of cities with continuing rollouts planned throughout 2020.
Obstacles Stunt Market Growth
Inadequate standards, security lapses in devices, skills shortages and changing network infrastructures continue to be obstacles to IoT expansion. In connected vehicles, there are safety concerns related to autonomous driving errors and hacking into vehicle systems. Service providers tackle these realities with insertion of security expertise, aggressive recruiting and training, tools and processes, as well as extensive testing.
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