Monetizing the industrial Internet of Things
The expanding world of connected things
Each new surprising application of a connected device–a car communicating with a traffic light anyone?–serves as a reminder that given investment and a potential market, nearly anything could become part of the Internet of Things (IoT).
To get a better picture of how—and why—manufacturers are pursuing IoT initiatives to spur new sources of revenue or lead to customer retention efforts, PwC and the Manufacturers Alliance for Productivity and Innovation (MAPI) surveyed US-based manufacturers.
Key findings of the PwC/MAPI IoT survey
- IoT deployments are accelerating: 38% of manufacturers are now offering IoT-driven products and services; an additional 48% are currently in the process of developing them
- About half of manufacturers (47%) currently offering IoT products and services are selling customer-managed IoT platforms (i.e., selling a bundling of product and IoT service, related datagathering and analysis technology, and software
- Over the next five years, manufacturers expect that the revenue driven by IoT-based products and services will increase by an average 10% of total revenue
- The most common reasons manufacturers offer IoT-driven products and services are: 1) competitive pressures; 2) prospects for new revenue and return on investment; and 3) customer demand
- Only 14% of manufacturers surveyed say they have created go-to-market IoT strategies, and roughly half are in the creation process, suggesting that some companies are offering IoT products without a clear strategy to market those products
What our findings tell us
For those looking to advance their position the IoT race, our findings inform five overarching recommendations manufacturers should consider.
- Identify do-able, realistic entry points (or expansion plans) into the IoT products and services market— your competitors likely already have a strategy.
- Define and demonstrate how IoT products and services create value for your company and customers.
- Develop effective IoT go-to-market strategies to effectively support your IoT products and services offerings.
- Create scalable and future-proof IoT business models.
- Learn from your products and your customers to improve, accelerate, and scale up your IoT products and services, creating an entrepreneurial culture.
How PwC can help
PwC's dedicated professionals can help US industrial companies understand important developments and how they can impact their businesses. Learn more about how we can help your sector.
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