Proving the Business Case for the Internet of Things

Manufacturing and automotive lead German IoT adoption

Steve Rogerson
October 2, 2019
Enterprises in Germany are quickly adopting IoT technologies, with the manufacturing and automotive industries taking the lead, according to a report from Information Services Group (ISG), a technology research and advisory firm.
The report finds German businesses are looking to IoT service providers to help them roll out IoT-driven analytics and other industrial IoT tools.
"The German market is adopting IoT technologies quickly and in multiple application scenarios," said Andrea Spiegelhoff, partner at ISG. "In addition to the manufacturing and automotive industries, we see growing activity in retail and building automation in Germany."
The report sees the German IoT market driven by midmarket providers that offer products and services for specific use cases.
Meanwhile, the established German automotive industry is embracing IoT to build and enhance services related to vehicle maintenance, passenger infotainment, automated driving assistance and vehicle-to-vehicle communications, the report says. These automotive IoT systems will become increasingly connected, with automobile makers seeing navigation and automated trip planning, based on the preferences of drivers and passengers, as a way to create additional value for customers.
The report also sees interest in the use of IoT for smart city projects, but most cities lack the resources to proceed. The German public sector suffers from personnel and budget shortages, while it often lacks ownership of the networks and grids needed to set up a smart city service, the report suggests.
Security concerns about the IoT are impeding some deployments, the report says. Ensuring secure data transfer and payment transactions remain major challenges for the IoT and, while blockchain technology may improve security, cyber-security efforts need more dedicated development and support knowledge.
The report evaluates the capabilities of 25 providers across three quadrants: consulting and services; managed services; and smart building and infrastructure. The report names Atos, Cap Gemini and IBM as leaders in all three quadrants, and Bosch SI, Cognizant, Deutsche Telekom/TSI and Siemens as leaders in two. Accenture and HCL are named as leaders in one quadrant.