The three sectors leading the way in IoT implementation are industrial control and automation (25%), home automation (18%), and artificial intelligence (12%). Although industrial control and automation is considered the primary market for IoT, it is recognized that Industry 4.0 adoption remains slow, mainly due to security concerns (32%) and a lack of business strategy (30%) that hinder the adoption and integration of smart manufacturing solutions. Security continues to be the most important aspect for developers (29%) when planning their designs and is also their primary concern (36%), followed by connectivity and interoperability.
The perceived value of data gathered by connected IoT devices is a key driver of IoT adoption. The increasingly connected world of smart cities, factories, homes, and vehicles now features devices and systems that autonomously exchange and store data. This data empowers businesses to make improvements, increase profits, and reduce costs across numerous business functions, while also offering advantages in quality, efficiency, regulatory compliance, and predictive maintenance. Forty-eight percent of respondents cited productivity and manufacturing improvements as the primary reasons for integrating connectivity into their IoT designs.
As expected, respondents continue to embrace artificial intelligence as part of their solutions. 39% said they already use AI in their designs, and another 47% stated they would be willing to implement it in future projects. Environmental sensors appear to be the most commonly used in IoT devices for measuring temperature, humidity, pressure, and gas, among other things. This trend has remained consistent throughout the three years Farnell has conducted the survey, which also revealed that a large number of respondents use single-board computers as an essential element in their IoT designs (48%).
Innovative home automation, industrial, commercial, and government solutions are paving the way for the future of IoT. The study showed that IoT remains important for future designs. However, when asked if their company is positioning itself as a leader in the future of IoT, half of the respondents (49%) said they have a 0 to 25% confidence level that their company will be at the forefront of IoT. Only 11% of respondents expect to be at the forefront of IoT and have a clear vision of its future.
During 2020, the impact of the COVID-19 pandemic on the IoT sector led to a rapid increase in the development of new medical devices and systems, with the potential to drive demand for enhanced connected medical equipment in the future. IoT is changing how patients are diagnosed, tracked, and monitored, and is enabling vaccine tracking and inventory management, among other applications. A quarter of those surveyed expect healthcare to be the next major sector to leverage IoT connectivity innovations. The use of single-board computers as core elements in IoT designs is also in line with feedback Farnell received from customers during the COVID-19 pandemic, and design engineers have embraced development kits and single-board computers in designs they create from home.
Cliff Ortmeyer, Global Head of Technical Marketing at Farnell, comments: “Industrial automation and the ongoing implementation of Industry 4.0 will represent the largest and fastest-growing IoT market, at least in the medium term. This is a key area for Farnell in which we are investing significantly. Farnell is committed to supporting customers on their IoT journey and can offer an expanding portfolio of products and solutions, as well as access to market insights that will enable innovation and enhance customer understanding. The IoT survey, now in its third consecutive year, is becoming an industry benchmark for what engineers value in IoT solutions, how they build their IoT designs, and what challenges they face daily. It allows us to improve our offering to customers directly based on their wants and needs, and we hope it will provide useful and educational insights into the IoT market as a whole.”.
Farnell's 2020 IoT survey also provides information on the selection of wired or wireless connectivity in IoT designs, preferred vendors, most used programming languages, and communication preferences.
Farnell offers a wide range of products and support materials to help designers create IoT solutions and integrate artificial intelligence. It carries products from leading manufacturers such as Raspberry Pi and Arduino, as well as Schneider Electric, Molex, and Omega, among others, for industrial control and automation applications. Farnell's IoT hub also provides access to the latest development products, information, and documentation to support the design process. Customers can read the full results of Farnell's third global IoT survey at Farnell in Europe, Newark in North America, and element14 in Asia Pacific.
In addition to viewing the 2020 survey results, readers can sign up to receive the exclusive IoT market analysis – a document that combines data from the three global IoT surveys with independent third-party research on IoT trends.
