Energy sector is leading investment in Internet of Things (IoT), shows new report

Viasat, Inc., a global provider in satellite communications, today shared its ‘State of Industrial IoT in 2024’ report, which finds energy is leading investment in IoT. The oil and gas sector has remained steady in its investment ($3.2m) since 2021, while renewables moves to increase its investment figures ($3.5m).

Industrial Internet of Things (IIoT) solutions utilize a range of connected devices which can help companies operate more safely, efficiently or sustainably. Examples include energy generation monitoring, remote control solutions for utilities infrastructure, and environmental tracking tools.

The report uses insights from hundreds of business leaders from around the world across five major industries — agriculture, energy, mining, transport and utilities. Participants were asked about their IoT solutions, priorities, challenges, budget and progress so far. Overall, respondents are confident their budgets will increase in future, with 70% feeling confident they will have more to spend in the coming years.

High investment levels in energy are supporting the roll-out of a range of solutions. Combining both oil & gas and renewables, 39% of respondents use IoT for vehicular and asset tracking as well as route optimization. Vehicular asset tracking and route optimization is one of the key elements of downstream operations, which are common to both sub-sectors.

Close to half of renewables organizations surveyed now use IoT for energy generation performance monitoring, and 45% for climate and/or weather monitoring. Energy generation performance is key at an operational and business level, while climate monitoring is important for renewables located in regions where the weather can be challenging, such as seashore wind farms.

Nearly a third (30%) of respondents report the largest challenge once solutions are deployed is a lack of consistent and reliable connectivity. Following the previous report in 2021, satellite connectivity has become the most popular connectivity source for enabling IoT, at 41%, with others opting on a range of solutions like Wi-Fi (39%), cellular (36%) and Radio (34%). With businesses still reporting connectivity gaps, the findings could suggest there is room for growth in highly reliable satellite solutions.

“IoT has proven its value for businesses navigating an unpredictable environment, helping them become more agile and efficient,” said Andy Kessler, Vice President, Viasat Enterprise. “But businesses still face connectivity issues, which is why they are looking for reliable, consistent satellite solutions to drive the roll-out. Looking forward, reducing the complexity of converging satellite and terrestrial is going to be key to maximizing the full potential for IoT.”