IoT Devices Sales Slump Due to Covid-19

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IoT Devices Sales Slump Due to Covid-19

A combination of manufacturing shut-downs, supply chain interruptions, and changes in connected product availability and demand is expected to cause an 18% drop in the net addition of IoT devices and a 25% Year on Year (YoY) decrease in annual smart meter shipments in 2020, according to a study, entitled Assessing the Impact of COVID-19 on the IoT Market, which was released by ABI Research, a tech market advisory.

COVID-19’s impact on the IoT is three-fold,

said Jamie Moss, Research Director for M2M, IoT and IOE at ABI. Some applications, he explained, will experience a decline in shipments during 2020, ergo a reduction in the expected growth rate to their installed base. Yet, with no intrinsic change to their desirability and utility, they will return to expected growth in subsequent years. Some will experience a temporary stall in 2020 that will be compensated by increased activity immediately after, to bring things installed base expectations back into line.

Others will experience fundamental shifts in demand, both positive and negative, for years to come as consumer and enterprise priorities shift in the light of COVID-19,

he concluded. As energy and water utilities prioritize their business operations, many utilities have temporarily deferred smart meter installations, ABI claims. Adarsh Krishnan, Principal Analyst at ABI Research, believes that many will re-allocate resources to field service operations to ensure continuity of services to its end customers.

Meter installation delays have also been driven by service providers and utilities complying with government guidelines on social distancing. That said, utilities that have already initiated smart meter installation programs are expected to immediately resume those installations as soon as government restrictions are eased,

he stated. However, since consumers are spending more time at home, improving the function and comfort of that environment is expected to boost smart home revenues. For enterprise, while utility metering initiatives face delays as home visits are temporarily prohibited, they are expected to bounce back fast.

Author: Tim Cole
Image Credit: ABI Research

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