Industries

Energy

Energy: Focus on Monitoring products and the Supply Chain

From using sensor data to spot maintenance issues and boost efficiency to improving output forecasting, IoT technologies can help eliminate uncertainties – even in the face of changing weather.

IoT Spend

In 2015, companies in the energy sector will be spending on an average $74.9 million. By 2018, they are expected to invest $67.2 million. A large amount of the IoT budget is spent on product monitoring (30%). This is followed by supply chain (28%), customer (22%) and premises (20%) monitoring work.

Exhibit-III-25

Exhibit III-25: Carving Up the Energy IoT Budget

What Are They Spending On

A crucial concern for energy companies is supply chain monitoring. 45.2% of energy companies use IoT technologies to monitor production and distribution and track product flow. 40% of the companies analyze customer data via mobile apps and 29% have sensors in products.

Exhibit-III-26

Exhibit III-26: What Energy Companies Monitor Through the IoT

Business Improvements

Energy companies have identified service improvements and cost reduction as their main areas of business process improvement. The number one improvement recognized is better service via informed reps followed by the ability to provide proactive service and uncover problems before the customer finds them.

Exhibit-III-27

Exhibit III-27: Better Service is the Top Benefit of IoT for Energy Companies

Key Success Factors

Among the key success factors for IoT projects, what data to capture, winning executive support for IoT investment, dealing with huge amounts of IoT data and accelerating business decision making tied for first place. This is a clear mix of strategic, cultural and technological factors.

Exhibit-III-28

Exhibit III-28: The IoT Factors That Energy Rate Highest