The opportunities to capitalize on the burgeoning Internet of Things in coming years appears to be greatly overstated, according to a report released this week.
Boston-area consulting firm Strategy Analytics conceded that the value of internet-connected devices and equipment will grow substantially by 2025 as the number of connected items skyrockets.
But analysts warned that companies remain hesitant about the technology and that current deployments are largely either in trial phases or deployed on a limited basis.
Some forecasts anticipate that the global IoT market will be worth trillions by 2025, but the Strategy Analytics report estimated that it would climb from about $120 billion in 2015 to $300 billion over the subsequent decade.
"Estimates that put the IoT market value at $3 trillion or more have a credibility problem," said Strategy Analytics president Harvey Cohen. "Can IoT really be bigger than the entire IT industry?"
The firm based its report on interviews with IT officials in the U.S., U.K., France and Germany earlier this year. The survey showed that two-thirds of businesses spent less than $100,000 on IoT projects and that 70 percent of U.S. projects connected less than 500 devices.
Although analysts noted that IoT offers significant benefits to companies — from cost savings to improved efficiency to, yes, new business opportunities — widespread deployment remains hindered by concerns regarding security, compliance and staff expertise.
"IoT must compete for a share of the total IT budget," added Strategy Analytics vice president David Kerr. "Businesses and public entities move slowly and are not easily convinced by vague claims of future economic benefit."