Enterprises to trim back IoT plans this year, says IMC
May 12, 2016
Enterprises that will deploy IoT products and services say that they are trimming back their plans for the next 12 months, according to the IoT M2M Council (IMC), a trade group whose membership is comprised of more than 17,000 technology buyers from around the globe in the nascent technology sector.
The IMC’s Quarterly IoT Buyers’ Index surveys its members about their buying plans up to two years out, and the relative number of enterprise users looking to make IoT investments in a six- or 12-month timeframe has shown slight decreases over the past three consecutive quarters.
“We attribute this largely to global economic uncertainties that began at the start of Q3 2015,” said IMC executive director Keith Kreisher. “It’s important to note that, while enterprise users are a plurality of the IMC membership, we also have strong representation among OEMs and apps developers. The picture is mixed for those other groups and there’s a certain natural lag between these constituencies in terms of their investment. Still, the results run contrary to the overly optimistic picture painted by some industry analysts.”
Membership of the London-based IMC is a cross-section of IoT buyers in 25 vertical markets, with fairly even distribution between core industry sectors such as energy, transportation, healthcare, building, manufacturing and public services. The group publishes content streams for all these markets, drawing roughly 30 per cent of its membership from Europe, 30 per cent from North America, and the rest from other regions, and growing at a rate of almost 300 new members weekly.
“IMC adopters are telling us that things continue to be very active for new deployments in the energy, building and smart cities sectors,” said Kreisher, “ And while we’re generating a lot of new membership in the retail market, it looks like that sector will be coming on line more slowly.”
He also reported a surge in interest in systems integration services, according to the latest survey, as well as consistently increasing awareness of low-power wide-area networks (LPWANs).
The IMC is the largest and fastest-growing trade group dedicated to the global IoT and M2M sector. Board member companies include Aeris, AT&T, Deutsche Telekom, Digi International, Ingenu, Inmarsat, Intel, Kore, Nighthawk Control, Orbcomm, Sigfox, Telecom Italia, Telit, Verizon and Wipro.