Industrial IoT on land and at sea

Humans are consuming more. There are more of us than ever, and we have become accustomed to new technologies and the greater access to information they bring to our lives. For businesses in our major industries – agriculture, energy, maritime, mining and transport – this is having a significant impact. Producers need to optimise their cultivating and harvesting processes, manufacturers need to trace goods from initial extraction to their final destination, and suppliers need to provide more information about the goods that they deliver.

Data, generated by smart technologies like the Industrial Internet of Things (IIoT), is enabling these changes, and for businesses engaged in these industries, it has become the key differentiator to their competitors. Every business needs to collect data effectively in order to create new efficiencies to pass onto customers, before others beat them to it.

This 2018 research is focused on understanding the ways that IIoT is affecting the global supply chain and the way in which organisations from the agriculture, energy, maritime, mining and transport sectors operate.

It is clear from the findings that while some sectors, notably maritime and transport, are steadily forging a path to a more connected and digitally-enabled future, others are lagging behind.

EMERGING TRENDS

Our key barometers for IIoT success consider organisational approaches to adoption, skills, security, data usage, connectivity and IIoT technologies, and investment and ROI. Later in this report we will unpick the trends by sector, but viewing the supply chain as a whole enables us to understand its current status and where constituents need to collectively work together to improve its efficiency.

53% of businesses are deploying or trialling IIoT to monitor energy and fuel consumption

21%

of respondents have fully deployed IIoT-based solutions

ADOPTION

IIoT adoption is accelerating rapidly. With over a fifth of businesses surveyed reporting full adoption and a further quarter reporting that they were in the trial stage of IIoT deployment, it is clear that the technology is a major focus for businesses across the global supply chain. There are a number of drivers for IIoT adoption, the most significant being improving resource efficiency, monitoring environmental changes and improving health and safety.

These drivers will enable organisations to create leaner business models and operate with greater sustainability and less impact on the environment, as well as improving working conditions for their staff. However, adoption levels are inconsistent across the sectors surveyed, with energy and mining showing much lower levels of adoption than transport and maritime. Supply chains must be connected from end-to-end to operate with maximum efficiency, and if certain areas are not gathering the necessary data to identify these efficiencies, businesses will struggle to use IIoT to optimise the supply chain.

WHICH OF THE BELOW STATEMENTS DESCRIBES YOUR CURRENT STATUS WHEN IT COMES TO DEPLOYING IIOT SOLUTIONS? (%)

20.6% We have deployed IIoT solutions
24.5% We are trialling IIoT solutions
9.8% We will deploy IIoT solutions within 6 months
15.7% We will deploy IIoT solutions within 12 months
14.7% We will deploy IIoT solutions within 18 months
14.7% We will deploy IIoT solutions in more than 18 months

WHICH OF THE BELOW STATEMENTS DESCRIBES YOUR CURRENT STATUS WHEN IT COMES TO DEPLOYING IIOT SOLUTIONS? (%)

20.6% We have deployed IIoT solutions
24.5% We are trialling IIoT solutions
9.8% We will deploy IIoT solutions within 6 months
15.7% We will deploy IIoT solutions within 12 months
14.7% We will deploy IIoT solutions within 18 months
14.7% We will deploy IIoT solutions in more than 18 months

46% of businesses cited improving resource efficiency as a key driver for IIoT adoption

SKILLS

The skills gap has emerged as one of the key barriers to successful IIoT deployment. A lack of in-house skills was cited as the top barrier to IIoT deployment, higher than other issues such as cyber-security risks and high costs.

The organisations surveyed reported requiring additional staff with expertise in security, data science and analytics and technical support, as well as staff to drive the strategic development, management and deployment of IIoT. Without these skills in place, organisations will struggle to make best use of the data they gather, which will ultimately hinder the transformative role that IIoT can play in the global supply chain, limiting the flow of data across multiple businesses and industries.

To plug these skills gaps and ensure successful IIoT solutions, organisations must look to external partners with the specialist skills and expertise to provide the core competencies necessary for IIoT.

WHAT ADDITIONAL SPECIFIC SKILLS DOES YOUR ORGANISATION NEEDS TO DELIVER IIOT SOLUTIONS?

56%

Security

48%

Data analysis

42%

Technical support

37%

Decision-making

37%

Management

37%

Planning

23%

Database management

21%

Customer service

74% of businesses report using external partners to bridge the skills gap and assist with IIoT development

SECURITY

With almost all organisations facing security challenges in the deployment of IIoT solutions, it is critical that businesses take comprehensive action to bolster their defences. External cyber-attacks are causing most concern to businesses, followed by poor network security and data mishandling or misuse by employees.

To protect against these threats, organisations are training their employees on IIoT security best practices, upgrading existing security technologies and investing in new security measures. However, some sectors are adapting its challenges better than others. Energy and transport are the most confident in their approach to dealing with the IIoT security, while more challenged agriculture is looking to third-parties for help.

65%

recognise that their cyber security should be stronger

WHAT ARE THE BIGGEST SECURITY CHALLENGES ASSOCIATED WITH THE USE OF IIOT SOLUTIONS WITHIN YOUR ORGANISATION? (%)

Risk of external cyber attack
Poor network security
Misuse of data by employees
Insecure data storage
Internal compliance requirements
Supplier compliance requirements
There are no security challenges

WHAT ARE THE BIGGEST SECURITY CHALLENGES ASSOCIATED WITH THE USE OF IIOT SOLUTIONS WITHIN YOUR ORGANISATION? (%)

Risk of external cyber attack
Poor network security
Misuse of data by employees
Insecure data storage
Internal compliance requirements
Supplier compliance requirements
There are no security challenges

45% of businesses are focusing on training employees on IIoT to address security concerns

DATA USAGE

It is clear that while there is now plenty of appetite for the various benefits of IIoT-produced data, the reality is organisations are some way off where they want to be. Better decision making, increased internal visibility of data and greater supply chain insight are some of the potential data-enabled benefits with large disparities between what has been achieved so far, versus what organisations hope to achieve in the future. All three will be critical to an organisation’s ability to thrive in the supply chain of the future.

Our research found that generally the closer a business was to the consumer, the stronger its data strategy was. Organisations need to focus on developing data strategies to foster effective sharing, analysis and security, to ensure that they achieve these goals.

HOW DO YOU/WILL YOU USE THE DATA COLLECTED THROUGH YOUR IIOT SOLUTIONS? (%)

Identifying cost savings
Monitoring productivity
Improving health and safety
Monitoring environmental changes
Managing stocks/assets
Speeding up time to market
Automating business processes

HOW DO YOU/WILL YOU USE THE DATA COLLECTED THROUGH YOUR IIOT SOLUTIONS? (%)

Identifying cost savings
Monitoring productivity
Improving health and safety
Monitoring environmental changes
Managing stocks/assets
Speeding up time to market
Automating business processes

CONNECTIVITY AND IIOT TECHNOLOGIES

Robust, reliable connectivity is critical to the success of IIoT solutions. Without the constant transmission of data gathered by connected sensors for analysis in real-time, organisations will not gain full value from their IIoT deployments. Satellite networks are forming a core part of the connectivity mix that most organisations are adopting to transfer their IIoT data, alongside radio, cellular and fibre networks, providing complex, multi-national supply chains with reliable coverage to enable the constant transfer of data.

SATELLITE CONNECTIVITY PROVIDES CRUCIAL SUPPORT TO OUR IIOT COMMUNICATION NETWORKS (%)


Notice: Undefined index: item_color in /var/www/vhosts/inmarsat.com/research.inmarsat.com/wp-content/themes/IRP.2018/parts/flexiblecontent/flex-horizontalstacked.php on line 54

Notice: Undefined index: item_color in /var/www/vhosts/inmarsat.com/research.inmarsat.com/wp-content/themes/IRP.2018/parts/flexiblecontent/flex-horizontalstacked.php on line 57

Notice: Undefined index: item_color in /var/www/vhosts/inmarsat.com/research.inmarsat.com/wp-content/themes/IRP.2018/parts/flexiblecontent/flex-horizontalstacked.php on line 54

Notice: Undefined offset: 0 in /var/www/vhosts/inmarsat.com/research.inmarsat.com/wp-content/themes/IRP.2018/functions.php on line 175

Notice: Undefined index: item_color in /var/www/vhosts/inmarsat.com/research.inmarsat.com/wp-content/themes/IRP.2018/parts/flexiblecontent/flex-horizontalstacked.php on line 57

Notice: Undefined index: item_color in /var/www/vhosts/inmarsat.com/research.inmarsat.com/wp-content/themes/IRP.2018/parts/flexiblecontent/flex-horizontalstacked.php on line 54

Notice: Undefined offset: 0 in /var/www/vhosts/inmarsat.com/research.inmarsat.com/wp-content/themes/IRP.2018/functions.php on line 175

Notice: Undefined index: item_color in /var/www/vhosts/inmarsat.com/research.inmarsat.com/wp-content/themes/IRP.2018/parts/flexiblecontent/flex-horizontalstacked.php on line 57

Notice: Undefined index: item_color in /var/www/vhosts/inmarsat.com/research.inmarsat.com/wp-content/themes/IRP.2018/parts/flexiblecontent/flex-horizontalstacked.php on line 54

Notice: Undefined offset: 0 in /var/www/vhosts/inmarsat.com/research.inmarsat.com/wp-content/themes/IRP.2018/functions.php on line 175

Notice: Undefined index: item_color in /var/www/vhosts/inmarsat.com/research.inmarsat.com/wp-content/themes/IRP.2018/parts/flexiblecontent/flex-horizontalstacked.php on line 57

Notice: Undefined index: item_color in /var/www/vhosts/inmarsat.com/research.inmarsat.com/wp-content/themes/IRP.2018/parts/flexiblecontent/flex-horizontalstacked.php on line 54

Notice: Undefined offset: 0 in /var/www/vhosts/inmarsat.com/research.inmarsat.com/wp-content/themes/IRP.2018/functions.php on line 175

Notice: Undefined index: item_color in /var/www/vhosts/inmarsat.com/research.inmarsat.com/wp-content/themes/IRP.2018/parts/flexiblecontent/flex-horizontalstacked.php on line 57
Strongly agree
Agree
Disagree
Strongly disagree
I don't know

INVESTMENT AND ROI

With the acceleration in IIoT deployment, businesses are investing more and more of their resources into the development of IIoT solutions. With 8 per cent of IT budgets earmarked for IIoT over the next three years, businesses are expecting significant returns on their investment with a 10 per cent reduction in costs and a 5 per cent lift in turnovers expected at the end of this period, and more by 2023.

However, the varying levels of investment seen across the sector puts the potential for IIoT to revolutionise the global supply chain under threat. If one link in the chain does not have sufficient capacity to gather and transfer data, that can interrupt the flow of information and dramatically reduce the efficiency of the supply chain. Energy is set to lead the way in net investment with agriculture investing the least, while generally larger enterprises plan to invest a higher proportion of their IT budgets demonstrating their commitment to the technology.

8% of IT budgets will be spent on IIoT over the next 3 years

WHAT OPERATIONAL COST SAVINGS AND TURNOVER INCREASES IS YOUR ORGANISATION LIKELY TO ACHIEVE THROUGH ITS USE OF IIOT? (%)

Average cost savings
Average turnover increases

WHAT OPERATIONAL COST SAVINGS AND TURNOVER INCREASES IS YOUR ORGANISATION LIKELY TO ACHIEVE THROUGH ITS USE OF IIOT? (%)

Average cost savings
Average turnover increases

FOR MORE INFORMATION ON THE RESEARCH, DOWNLOAD THE REPORT – INDUSTRIAL IOT ON LAND AND at SEA

Press enter or esc to cancel