How IoT's flaws became a success story

Many remember when IoT seemed like an experimental area, and reports indicated that up to 80% of IoT projects failed just a few years ago.

Today, these figures feel outdated, and IoT has shown significant growth and maturity. Between 2021 and 2024, the number of IoT applications initiated by enterprises increased by 53% according to IoT Analytics, which underlines a clear shift in how IoT technology is used to create value. It is also noteworthy that 92% of the completed IoT projects today see a positive return on investment (ROI). More and more IoT projects are moving beyond pilot phases and becoming important building blocks in systems for digital transformation. That's a far cry from the negative frequency of 80 % we sometimes hear about.

IoT – a cornerstone of digital transformation

According to recent figures from IoT Analytics Today, organizations are relying less and less on pilot projects and proof-of-concepts (the sometimes infamous PoCs) as IoT has matured significantly. This makes it possible to skip testing and go straight to larger-scale implementation. Analytics firms like Gartner believes that reduced technical complexity has accelerated IoT adoption, as companies can now implement IoT solutions more easily. Gone are the days when companies needed to coordinate a complex mix of technology vendors to get a working IoT solution; today's IoT solutions offer both simplified technology and easier implementation.

IoT in insurance – an unexpected growth?

The insurance industry has proven to be a growth sector for IoT use. In fact, Gartner ranks the insurance industry as the top sector for IoT growth in the coming years. Insurance companies have long sought to leverage IoT technology to drive new business models and offerings – from water leak sensors that prevent property damage to vehicle monitoring that adjusts insurance premiums based on driving behavior. One example is Italy, where insurance companies have been using IoT for years to adjust premiums based on actual driving data.

IoT enables insurance companies to offer customers tailored solutions, increasing customer satisfaction and reducing the risk of claims. By integrating IoT solutions into risk models, insurance companies can both predict and prevent losses, reducing costs and increasing profitability. As the field grows, IoT will play a transformative role in adapting insurance products to customer behaviors and protection needs.

Industrial IoT (IIoT) – revolutionizing efficiency

Industrial IoT is perhaps the clearest example of IoT’s potential to create value. For those with extensive experience in the industrial sector, IoT’s ability to improve efficiency, raise product quality, and reduce costs appears as a natural extension of the ongoing drive for operational improvements in industrial automation.

Activant Capital estimates that IIoT can reduce manufacturing costs by up to 25%, which on a global scale corresponds to savings equivalent to the GDP of France. In addition, unplanned downtime, which can cost organizations between SEK 50,000 and 25 million per hour, is a key target for IIoT’s predictive maintenance capabilities. These can reduce downtime by up to 25% and increase production capacity by 10%. In addition, IoT-based energy optimization can reduce energy costs by 40%.

These are crucial advantages for industries that are constantly striving to improve their key performance indicators and production processes. According to Gartner is the manufacturing sector one of the leading sectors for IoT growth, where IoT is making possible for companies to reach new goals for cost efficiency and quality. Connected sensors and machine learning make it possible to identify bottlenecks, minimize downtime and optimize production chains in real time.

According to IoT Analytics report “Top 10 IoT Use Cases” can one expect industrial IoT to contribute to:

• 8.4 % higher operational efficiency
• 4.6 % improved quality
• 8.1 % cost reduction

By reducing complexity and improving operational outcomes, IoT has become a foundational technology that industries are increasingly relying on for sustainable growth and competitive advantage.

IoT's journey from uncertain pilot projects to becoming an indispensable part of corporate strategies demonstrates the technology's enormous potential. From enabling sustainability and revolutionize insurance to transform the industry – IoT has proven its ability to create value and change the rules of the game.

But this is just the beginning. As the technology continues to evolve and new uses are discovered, IoT will play an even greater role in driving innovation, efficiency and sustainable growth. Companies investing in IoT Today is laying the foundation for a future where the possibilities are endless and the successes continue to grow.