The US may be heading for a recession this year. It isn’t slowing down growth in the global Internet of Things (IoT) services market.
That’s expected to grow from $163.7 billion in 2021 to $188.8 billion in 2022 at a compound annual growth rate (CAGR) of 15.3%, according to Reportlinker.com. The market is expected to reach $340.61 billion in 2026 at a CAGR of 15.9%.
Researchers think that’s due to companies resuming their operations and adapting post-COVID-19, which had earlier led to “restrictive containment measures involving social distancing, remote working and the closure of commercial activities that resulted in operational challenges.”
The IoT services market includes professional and managed services such as:
- Network management
- Data management platforms
- Deployment of IoT technology
After all, something has to operate these gadgets customers love that power home, automobile, television and other digital customer experiences. As CMSWire continues to cover IoT and customer experience in our theme for the month, here are some more data and insights on which to digest.
Common IoT Use Cases
According to IoT Analytics, the top 10 most used IoT use cases are:
- Remote asset monitoring
- IoT-based process automation
- Remote asset monitoring and control
- Vehicle fleet management
- Location tracking
- IoT for asset/plant performance optimization
- IoT-based quality control and management
- IoT-based goods condition monitoring in transit
- Predictive maintenance
- On-site track and trace
Note: That research did not consider industry-specific use cases such as smart heating, ventilation and air conditioning (HVAC, applicable only to buildings) or smart transportation systems (applicable to cities). It did not note consumer IoT use cases such as Smart Home devices or wearables.
When dealing with consumers directly, IoT is powering things like:
- Remote patient monitoring devices
- Property technology
- Cybersecurity hubs
- Home security
- Connected cameras
- Pet-related IoT tech
- Vehicle telematics
- Smart outlets
“I believe that with IoT, companies can significantly improve the online customer experience,” said Radhika Gupta, founder of 365Solutions. “IoT provides companies with access to real-time data and insights, which helps them serve potential customers better. Since companies get access to customer interest areas, they can forge a personalized communication mode with the customer, which helps them develop an emotional bond with the business and therefore increase business opportunities.”
IoT also helps provide customers with a safe and secure shopping experience, which is a game-changer in present times with increasing data leaks and fraud, according to Gupta.
He sees the automotive industry continuing to adapt, providing customers with an omnichannel buying experience, using digital content (videos, articles, product descriptions or virtual tours), and leveraging AR and VR. It will significantly impact overall purchase decisions and brand perception, he adds.
Related Article: Why Ignoring IoT-Enabled Customer Experiences Could Cost You
IoT Wins in CX, Automotive
Where else are CX practitioners finding success in the IoT world?
Eliana Levine, chief marketing officer and co-founder at FindPeopleEasy, said companies are boosting customer engagement with the help of AR, VR and AI, supported by big data and machine learning. IoT enables touchless practices with contactless service, contactless elevator operation, self-diagnosing speakers, smart inhalers for Asthma and personalized customer experiences.
“With virtual test drives, 360-degree interior views and exterior walkarounds, the automotive industry has revolutionized the concept of test drive without actually driving a vehicle,” she said. “On top of it, when the immersive technology of Metaverse is applied in companies, it will revolutionize all aspects of an organization, including customer experience.”
Related Article: How IoT, Automotive and SmartTV Are Changing the Digital Customer Experience
Customers Want More Immediate Personalization
Sean Nguyen, director of the Internet Advisor, said IoT is one of the top technologies that are driving change when it comes to digital CX. These technologies have the ability to collect extremely valuable data about customers at various stages of their lives, meaning brands are able to use this data to not only provide highly personalized experiences but deliver these personalized experiences right when a customer would want them most.
“Customers want brands to be on top of their needs,” Nguyen said. “They don’t want to have to wait two weeks for a brand to realize what a new trend is or what they might want because their algorithm took that long to pick it up or their team took that long to implement the changes. There is a sense of immediacy that has been brought on by the internet and the digital world.
"If customers can get answers to their questions immediately by looking the questions up, they should be able to get experiences from brands immediately based on the way they use applications, look for products, etc. IoT technology is the gateway to which brands can offer this experience and improve the future of digital CX.”