Source: S&P Global Media Portal/S&P Global.
Enterprise IoT is shifting from strategic ambition to operational execution. Big-picture digital transformation is no longer the leading driver of enterprise IoT adoption; instead, organizations are prioritizing measurable outcomes. In S&P Global Market Intelligence 451 Research’s recent survey, 48% of respondents identify operational efficiency as the primary benefit of IoT — outpacing digital transformation and innovation. Yet execution remains uneven.
Scaling deployments and managing distributed infrastructure have proven unexpectedly difficult. Internal and customer sentiment is generally positive, but both hinge on the ability to demonstrate clear value. The data suggests a maturing market where success is increasingly defined by cross-functional coordination, infrastructure readiness, and the ability to deliver — not just design — connected outcomes. IoT is evolving into a foundational enterprise capability, with the gap between leaders and laggards now measured in execution, not intent.
The Take
For vendors targeting enterprise IoT, the post-pilot phase is where differentiation happens. It represents a significant mind-shift that comes after years of sector concerns about the dangers — and time-sink — of proof-of-concept “purgatory.”
Despite increasingly widespread adoption, only 26% of organizations say they found IoT project scaling easier than expected; just 25% say the same about managing distributed infrastructure, signaling persistent friction in operationalizing IoT at scale. This is not a technology gap; it is an execution hurdle.
Vendors should focus on reducing deployment complexity, supporting hybrid IT/operational technology environments, and enabling measurable efficiency gains. Solutions that streamline integration, clarify return on investment, and support cross-functional workflows will resonate most. IoT provider messaging must shift from aspirational to actionable, highlighting how an offering helps customers move from pilot to production to impactful outcomes, not just why IoT matters. In a market where operational efficiency is the top-cited benefit, vendors that enable reliable, scalable delivery will be best positioned to lead.
Summary of findings
Scaling and infrastructure management remain difficult. Only 26% of organizations say they found scaling IoT projects easier than expected, while 15% found it harder. Similarly, just 25% say they found managing distributed IoT infrastructure easier than expected, with 16% reporting it was more difficult than anticipated. These challenges are more acute among smaller firms and those with limited technical maturity, indicating that infrastructure complexity and organizational readiness are key barriers to broader deployment.
Internal sentiment toward IoT is mostly positive, but not unanimous. A combined 75% of internal stakeholders view their organization’s IoT efforts positively (38% very positive, 37% somewhat positive), but 23% are neutral or mixed, and 2% are negative. Among those with positive views, 48% cite efficiency gains, 41% cite improved ability to serve customers, and 38% cite enhanced innovation. However, the presence of neutral or negative sentiment suggests that internal alignment and communication remain areas for improvement.
Customer enthusiasm is strong, but it hinges on clarity of value. More than four in five organizations (82%) report their customers are either enthusiastic or cautiously optimistic about their IoT efforts.
Among those with positive customer sentiment, 50% say IoT enables better service and support, and 49% say it improves product quality. However, among the 18% with neutral or negative sentiment, the top reason cited (46%) is that the benefit or value is unclear. This highlights the need for clearer articulation of IoT’s impact.
Cross-functional collaboration is key to success. Among organizations that rate their IoT projects as successful, 48% cite strong collaboration between IT, OT and other teams, and 46% point to a solid technical foundation. Strategic clarity (40%) and vendor support (40%) are also important, but executional alignment — across departments and systems — is the most frequently cited success factor. This underscores the importance of breaking down silos in IoT execution.
In-house IoT development is resource-intensive. Only 27% of organizations say they found writing or developing in-house IoT applications easier than expected, while 49% say it was as expected and 16% found it harder. This reflects the technical and staffing demands of custom development, which may be more feasible for larger firms with deeper engineering resources. The complexity of integration and the need for specialized skills are likely contributing factors.
IoT success depends on execution — not just vision. While 31% of organizations view IoT as essential for digital transformation, success is more closely tied to executional factors.
As noted above, among successful projects, the most frequently cited enablers are collaboration across teams (48%), technical readiness (46%), and strategic clarity (40%). This reinforces the idea that vision alone is insufficient — operational discipline and cross-functional alignment drive outcomes.
IoT and the Rise of Smart Spaces
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