While consumer devices have captured most of the attention in the Internet of Things ...

B2B applications will be worth more than twice the consumer market by 2020

Attractiveness to customers Use-case adoption, internal rate of return and complexity
High
Low

Sources: Bain IOT customer survey, 2016 (n=533); Bain IOT vendor survey, 2016 (n=158)
Sources: Bain IOT customer survey, 2016 (n=47); Bain IOT vendor survey, 2016 (n=24)
Sources: Bain IOT customer survey, 2016 (n=84); Bain IOT vendor survey, 2016 (n=36)
Sources: Bain IOT customer survey, 2016 (n=18); Bain IOT vendor survey, 2016 (n=27)
Sources: Bain IOT customer survey, 2016 (n=17); Bain IOT vendor survey, 2016 (n=29)
Sources: Bain IOT customer survey, 2016 (n=42); Bain IOT vendor survey, 2016 (n=33)
Sources: Bain IOT customer survey, 2016 (n=27); Bain IOT vendor survey, 2016 (n=30)
Sources: Bain IOT customer survey, 2016 (n=18); Bain IOT vendor survey, 2016 (n=30)
Sources: Bain IOT customer survey, 2016 (n=13); Bain IOT vendor survey, 2016 (n=28)

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Outlook: Auto vendors and customers mostly agree on the usefulness of IoT technologies. Remote access, advanced driver-assistance systems and in-vehicle infotainment have higher adoption rates due to higher internal rates of return and lower technical risk. Autonomous, vehicle-to-vehicle and vehicle-to-individual communications have lower adoption due to low internal rates of return and higher technical risk.
Opportunities: Vendors can focus on remote access to in-car functionality and telemetry.

Outlook: Vendors have high expectations for healthcare, but customer traction is mixed. Payer and pharma use cases such as fraud analytics and drug discovery are expected to have higher adoption rates, high ROI and lower technical risks. Provider use cases such as monitoring and personalized medicine are expected to have lower adoption due to security and privacy concerns, as well as lower ROI and higher technical risks.
Opportunities: Vendors can ease concerns and prove ROI by piecing together horizontal components to increase adoption.

Outlook: Retail vendors and customers are mostly in sync. There is moderate to high traction across use cases.
Opportunities: Vendors can increase focus on the use cases with a high internal rate of return such as inventory and digital signage. They can also prove ROI and ease concerns in emerging use cases such as product quality, SKU optimization, customer flow management and dynamic pricing.

Outlook: Traction is low for financial services use cases. There are low to moderate levels of customer interest, spurred by security and regulatory risks and low internal rates of return.
Opportunities: Vendors can focus on fraud detection and smart insurance products. The IoT opportunities in financial services are strongly tied to analytics capabilities.

Outlook: There is a high level of customer traction in transportation use cases, with two exceptions: Automated drones have high security concerns, and transportation infrastructure has a low internal rate of return due to interoperability issues.
Opportunities: Vendors can increase focus on fleet management and address broader security and IT/OT integration concerns.

Outlook: Vendors are prioritizing industrial use cases, but customer attractiveness is mixed due to low or unclear ROI and low adoption. Production flow optimization and smart agriculture are held back by technical risks.
Opportunities: Vendors can address concerns, improve IT/OT integration and prove ROI.

Outlook: Vendors are prioritizing use cases in building, but customer attractiveness is moderate. Adoption is low due to implementation concerns and low internal rates of return.
Opportunities: Vendors can improve IT/OT integration, prove ROI and promote open standards to reduce vendor lock-in.

Outlook: There is lower use-case traction in infrastructure overall, but significant focus from larger vendors. There are lower levels of adoption and interest due to expected low ROI and moderate risk.
Opportunities: Adoption could accelerate with initiatives, spending and standards development by governments, vendors and industry consortiums.

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