The COVID-19 pandemic is causing a dramatic slowdown in the implementation of IoT. TBR believes the consequent recession will be deep and long and will inhibit the growth of IT generally and IoT specifically. The current slowdown and ensuing slow recovery come on top of slower-than-expected growth of IoT in 2019, resulting in a dramatically lower estimate of IoT-related revenue.
The current crisis is slowing or stopping IoT implementation because of both tightly constrained budgets and restricted access to physical plants. Access will improve over the next four quarters, but budget constraints will continue for at least two years, as global economic growth will be limited by long-term negative effects on verticals such as travel, hospitality, retail and the public sector. IoT deployment in verticals such as healthcare and logistics will benefit from the crisis as organizations adapt to changed circumstances. Organizations will embrace digital transformation more quickly and thoroughly to become more resilient but will operate with reduced resources.
The slower growth prior to the crisis was caused by the increasing preponderance of smaller-scale IoT projects, often implemented within operational technology organizations, as fewer organizations adopted IoT for strategic change than expected. At the same time, lower prices for hardware and increasing use of automation have facilitated IoT project growth but hindered revenue growth.
TBR’s Commercial IoT Market Forecast includes current-year market sizing and a five-year market forecast for multiple commercial IoT market segments and geographies. This research projects growth by technology and vertical, enabling vendors to identify revenue opportunities that most closely align with their go-to-market strategies. The report also provides a view of growth drivers and the ways in which commercial IoT trends will influence the market.