Many remember when the Internet of Things (IoT) seemed experimental and reports suggested that up to 80% of IoT projects failed just a few years ago.
Today those figures feel outdated. IoT has matured and grown significantly. Between 2021 and 2024, the number of IoT applications initiated by companies rose by 53%, according to IoT Analytics, highlighting a clear shift in how organizations apply IoT to create value. Remarkably, 92% of implemented IoT projects now report a positive return on investment (ROI). More projects are moving beyond pilot stages to become essential components of digital transformation strategies, a far cry from the frequently cited 80% failure rate.
IoT — a cornerstone of digital transformation
Recent data from IoT Analytics shows that organizations increasingly rely less on pilot projects and proof-of-concept tests, because IoT has matured substantially. This maturity allows many organizations to bypass extended testing and move directly to larger-scale implementation. Analysts at Gartner note that reduced technical complexity has accelerated IoT adoption, enabling businesses to deploy solutions more easily. The era when companies had to coordinate a complex mix of technology providers to achieve a working IoT system is passing; modern IoT offerings deliver simplified technology and more straightforward deployment.
IoT in insurance — an unexpected growth area
The insurance sector has emerged as a significant growth area for IoT use. Gartner ranks insurance among the top industries for IoT expansion in the coming years. Insurers have long sought to leverage IoT to enable new business models and offerings — from water leak sensors that prevent property damage to vehicle telematics that adjust premiums based on driving behavior. In some markets, such as Italy, insurers have for years used IoT data to tailor premiums according to actual driving patterns.
With IoT, insurers can deliver personalized solutions that improve customer satisfaction and reduce claims exposure. Integrating IoT data into risk models allows companies to predict and prevent losses, lowering costs and increasing profitability. As adoption grows, IoT will play an increasingly transformative role in aligning insurance products with customer behaviors and protection needs.
Industrial IoT (IIoT) — transforming efficiency
Industrial IoT is perhaps the clearest demonstration of IoT’s potential to generate value. For those familiar with the industrial sector, IoT’s ability to boost efficiency, improve product quality, and cut costs feels like a natural extension of ongoing efforts to optimize operations and automation.
Activant Capital estimates that IIoT can reduce manufacturing costs by up to 25%, which on a global scale corresponds to savings comparable to the GDP of a large country. Unplanned downtime, which can cost organizations anywhere from 50,000 to 25 million SEK per hour, is a key target for IIoT’s predictive maintenance capabilities. These technologies can reduce downtime by up to 25% and increase production capacity by around 10%. Additionally, IoT-driven energy optimization can cut energy costs by as much as 40%.
Such improvements matter deeply for industries focused on enhancing key performance indicators and production processes. Gartner identifies manufacturing as a leading sector for IoT growth, where connected technologies enable companies to reach new levels of cost efficiency and quality. Connected sensors and machine learning help identify bottlenecks, minimize downtime, and optimize supply chains in real time.
IoT Analytics’ “Top 10 IoT Use Cases” report highlights expected IIoT gains such as:
- 8.4% higher operational efficiency
- 4.6% improved quality
- 8.1% cost reduction
By reducing complexity and improving operational outcomes, IoT has become a foundational technology that industries increasingly depend on for sustainable growth and competitive advantage.
IoT’s evolution from uncertain pilot projects to an indispensable part of corporate strategy demonstrates the technology’s enormous potential. From enabling sustainability and reshaping insurance to transforming manufacturing, IoT has proven its ability to create value and change the rules of the game.
And this is just the beginning. As technologies advance and new use cases emerge, IoT will play a larger role in driving innovation, efficiency, and sustainable growth. Companies investing in IoT today are building the foundations for a future where opportunities expand and successes continue to grow.