Industries

Utilities

Utilities: IoT Heats Up Turf Wars

Of the 13 industries surveyed, the utility sector emerged as one of the few where the IoT spend will decline slightly in the future.

IoT Spend

In 2015, the utility industry spent $67.7 million on IoT technology. By 2020 the average annual spend will fall to $63.3 million. About 30% of the IoT budget is allocated for product monitoring. Utility companies allocated 23% of their 2015 budget for customer monitoring.

Exhibit-III-79

Exhibit III-79: Product and Supply Chain Monitoring Dominate

What are they Spending On

Around 50% of the utility companies use IoT to monitor customers. Sensors and devices are used by 44% of the companies to realize energy efficiency in offices and plants. About 41% of the companies use digital sensors to monitor their products.

Exhibit-III-80

Exhibit III-80: How Utilities Use the IoT

Business Improvements

The top business process improvement from IoT application for utility companies is better customer segmentation. The top improvements utility companies look forward to in 2020 are reduced sales costs and field service costs.

Exhibit-III-81

Exhibit III-81: More Defined Segmentation and Reduced Field Service Costs are the Biggest Benefits from IoT to Date

Key Success Factors

Convincing management teams to think differently about how IoT could affect customers, products, and processes is cited by companies as the most important success factor for IoT projects.

Exhibit-III-82

Exhibit III-82: Culture Change Dominates the IoT Agenda