IoT firms face skills strain as global deployments rise

Pelion has published research on international IoT connectivity trends among business users, pointing to rising cross-border device deployments and growing operational strain.

The survey, produced with ABI Research, covered 676 IoT decision-makers at major businesses worldwide, including 255 in the UK. It found that organisations expect the share of internationally connected devices in their fleets to rise from 29 per cent today to 49 per cent by 2030.

That shift marks a move away from domestic deployments in sectors including energy, logistics and manufacturing. Businesses in those industries use connected devices to track assets, monitor equipment, manage supply chains and automate processes across multiple markets.

The findings suggest that the main pressure point in IoT roll-outs has moved beyond basic network access. Companies are now grappling with the practical demands of running connected fleets across different mobile networks, jurisdictions and compliance regimes.

A shortage of skills emerged as the biggest single obstacle to successful deployments. Some 60 per cent of respondents said a lack of internal or external expertise delayed or blocked projects, ahead of budget constraints and connectivity issues.

Operational complexity also ranked above simple coverage gaps as a day-to-day problem. Nearly two-thirds, or 65 per cent, said managing deployments outside their core cellular coverage area was their biggest scaling challenge, while 41 per cent cited coverage limitations.

Security concerns

The survey also highlighted growing concern over security as connected estates become larger and more dispersed. Almost one in four organisations, or 24.6 per cent, said they had suffered an IoT-related security incident in the past year.

Among those incidents, 30 per cent resulted in losses of more than USD $100,000 and 8 per cent led to losses above USD $1 million. The figures suggest that security failures in connected operations can have material financial consequences for affected companies.

The report also tracked a shift towards newer eSIM standards for connected devices. It forecast that SGP.32-compliant profile downloads, described as the first eSIM standard designed specifically for IoT deployments, would account for 45 per cent of deployments by 2030, up from 7.6 per cent today.

That points to a market in which businesses want more flexible ways to provision and manage connectivity across borders. It also aligns with findings showing buyer interest in service models that span several networks under a single management structure.

Buying patterns

More than three-quarters, or 77 per cent, of respondents not currently using a mobile virtual network operator said they would consider one for their next deployment. They cited flexibility, simpler management and access to multiple networks.

In the UK, the findings come as the IoT sector remains closely tied to wider digital industrial policy. The digital technology workforce is estimated at 1.3 million people and generates more than £158 billion in Gross Value Added for the British economy, equivalent to about 6 per cent of current output.

Pelion, which began in Scotland as Stream Technologies in 2000, says it now serves more than 1,000 enterprise clients across a range of industries. The company focuses on IoT mobile connectivity and management services.

Chief Executive Officer Dave Weidner set out the company's view of the market in comments released with the findings.

"Connectivity itself is no longer the difficult part of enterprise IoT. The challenge comes when enterprise customers take their fleets internationally, grow in scale, and operate across multiple networks, jurisdictions and regulatory environments. Organisations are increasingly looking for partners that can simplify that operational complexity rather than add to it," Weidner said.

"The potential for an IoT revolution is significant, but only if we can overcome some of the critical infrastructure, security and expertise barriers holding deployment back. If we can overcome some of the short-term challenges, the future of enterprise IoT connectivity will be increasingly borderless, managed and eSIM-enabled, with buyers placing greater emphasis on security architecture, advisory services and unified management platforms when selecting connectivity providers," he said.