Shifting Enterprise Technology Priorities from 2019 to 2025

The enterprise technology landscape is constantly evolving, with priorities shifting in response to emerging technologies, security threats, and organizational needs. IoT Analytics has been tracking these changes through annual surveys of senior IT decision-makers, offering a comprehensive view of how technology investments are prioritized in the industrial and manufacturing sectors.

Key Findings for 2024 and 2025

1. Cybersecurity: Maintaining the Top Spot

Cybersecurity continues to be the foremost priority for enterprises in 2024, a position it has held since 2021. The importance of safeguarding connected IoT devices and operational assets is underscored by the increasing prevalence of cyberattacks and data breaches. Key findings from recent IoT Analytics research include:

• Global Priority: Cybersecurity was ranked as the top technology priority across all regions in 2023.
• OEM Concerns: Data security remains the primary concern for OEMs developing connected IoT products.
• Adoption Approaches: Companies custom-building IoT solutions prioritize IT security to a greater extent than those adopting off-the-shelf solutions.

Select Quotes:

• "The risk of cyberattacks was our greatest concern [during our IoT adoption initiative] because of the greater vulnerability." – Senior manager of product management at a Japan-based oil and gas company
• "The major challenge with [our IoT adoption] initiative has been gaining IT security approval and requesting the vendor to meet our standard for protocol and utilization of our cloud services." – Senior manager of production and manufacturing at a US-based transportation equipment company

2. Process Automation: Streamlining Operations

Process automation has firmly established itself as the second-highest technology priority since its inclusion in IoT Analytics’ 2022/2023 survey. The focus here is on automating repetitive business tasks to enhance efficiency and accuracy. Noteworthy findings include:

• Global Ranking: Process automation was ranked 2nd in North America and APAC, and 5th in Europe.
• IoT Role: IoT-based process automation is the top IoT use case, with nearly 58% of enterprises having fully implemented it.
• ROI Increase: Companies reporting a positive ROI from process automation rose from 96.7% in 2021 to 98.1% in 2024.

3. IT Software: A Foundation for Digitalization

IT software, encompassing ERP and CRM systems, remains a critical investment for enterprises, ranking third in 2024. This category has rebounded as organizations resume large-scale rollouts paused during the pandemic. Key points include:

• Digitalization Foundation: Upgrading ERP systems is often a precursor to broader digital transformation initiatives.
• Vendor Landscape: Microsoft leads in IT and industrial software adoption, followed by AWS and Google.
• Procurement Shift: The rise of B2B software marketplaces is changing how enterprises procure IT software.

4. AI/ML: Rising Star in Technology Priorities

AI and Machine Learning (ML), including generative AI, are expected to leap to the 4th spot in 2025, reflecting the growing focus on these technologies. Highlights include:

• Groundwork Required: Effective AI implementation often necessitates a robust data management strategy.
• Market Growth: The markets for foundational models and generative AI services are projected to grow significantly.
• Vendors Poised for Growth: Major industry events have showcased a surge in AI-related products and solutions.

Select Quotes:

• "Generative AI is at the forefront of customer conversations. However, enterprises are also realizing that they cannot have an AI strategy without a data strategy to base it on." – Frank Slootman, former CEO, Snowflake
• "Nearly half of all Bosch plants are already using AI in their manufacturing operations. With the help of Gen AI, we’re not only improving existing AI solutions, but we’re also laying the foundations for the optimum take-up of this future technology in our global manufacturing network." – Stefan Hartung, chairman of the board of management at Robert Bosch GmbH

5. IoT: Sustained Investment

IoT remains a top technology priority, holding the 5th spot as enterprises continue to invest in connected devices and systems. Key insights include:

• Spending Growth: Enterprise IoT spending is expected to grow at a CAGR of 15% until 2030.
• Market Dynamics: Cellular IoT modules and AI-capable IoT modules are witnessing significant growth.
• Software and Platforms: Data management and analytics markets are projected to reach $513 billion by 2030, with IoT software offerings gaining popularity on hyperscaler and edge marketplaces.

Strategic Implications for Technology Vendors

To capitalize on these insights, technology vendors should consider the following questions:

1. AI/ML Integration: How can we enhance our product offerings with AI/ML capabilities?
2. Cybersecurity Focus: Are we effectively communicating the security features of our products?
3. Process Automation: How can we assist customers in integrating our products into their workflows?
4. IoT Differentiation: What new IoT technologies should we invest in to stand out in the market?
5. Leveraging Insights: How can we use IoT Analytics reports to stay ahead of technology trends?

Strategic Implications for Technology Adopters

For companies adopting these technologies, the following considerations are crucial:

1. Aligning Technology Roadmap: How can we align our technology roadmap with evolving priorities in cybersecurity, process automation, and AI/ML?
2. AI/ML Preparation: What steps do we need to take now to prepare for AI implementation?
3. Enhancing Cybersecurity: How can we further strengthen our cybersecurity measures?
4. Automating Processes: Which processes can benefit most from automation and IoT integration?
5. Leveraging Insights: How can we use IoT Analytics reports to make informed technology adoption decisions?

Conclusion

The enterprise technology landscape is dynamic, with priorities shifting in response to new challenges and opportunities. By understanding these trends and aligning their strategies accordingly, both technology vendors and adopters can better position themselves for success in the rapidly evolving market.

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