Published on the 20/07/2016 | Written by Clare Coulson

With more than two thirds of companies believing the Internet of Things is critical to future success, which industries are really benefitting?…

The latest international Internet of Things (IoT) Barometer Report released by Vodafone shows that IoT spending is now taking up 24 percent of the average IT budget, equal to that being spent on cloud computing or data analytics. IoT innovation has arrived big time and it looks like New Zealand could be ahead of the curve.

The 2016 Vodafone IoT Barometer Report survey was conducted by Circle Research in April and May 2016 and involved more than 1,096 companies across the globe. Forty-six percent of all companies interviewed said they intend to develop new IoT-based products and services (think driverless cars, smart metering for gas and power and remote monitoring for homes and industry to name a few) over the next two years. What is more interesting is that 63 percent of IoT adopters are seeing what they call “significant” returns on investment, up from 59 percent in last year’s Report.

The Barometer Report supports IDC’s prediction there will be approximately 30 billion connected things globally by 2020 – a $3 trillion global market opportunity. IDC has also predicted New Zealand will be APAC’s third most mature market in terms of IoT units per capita by 2020, highlighting the agricultural sector as a key growth driver. For example, Kiwi company Blackhawk Tracking (working with Vodafone) is taking advantage of IoT capability to ensure driver safety for farmers in remote locations. Should a driver flip on a quad bike or similar, an SOS is automatically sent over the cellular network to assist emergency services and search and rescue.

Vodafone New Zealand’s IoT Manager Scott Pollard said Kiwi companies investing in IoT innovation are facing big global market opportunities.

“Three-quarters of the companies surveyed in the 2016 IoT Barometer report now recognise IoT is a new industrial revolution that will change how people work and live forever.

Keith Oliver, executive chairman of Blackhawk Tracking agrees international opportunities are increasing for Kiwi technology companies investing in IoT innovation.

“We have fielded interest from a range of overseas businesses including major ski resorts in North America and value-add-resellers who are looking to provide the service to their customers under their own brand,” Oliver said.

Oliver says that by working with Vodafone’s internationally compatible technology platform means Blackhawk Tracking is able to progress its international market opportunities quickly.

The Report also found that IoT technologies play a key role in mainstream business activities in an increasing number of companies. Highlights included:

• 48 percent of companies interviewed are using IoT technologies to support large-scale business transformation, rising to 61 percent in the Asia-Pacific region;
• 52 percent of consumer electronics companies interviewed are using IoT technologies as the basis for a new generation of applications for connected homes; and
• 46 percent of all companies interviewed said they intend to develop new IoT-based products and services over the next two years.

Download your report here: Barometer Report