Advanced technology watch : technology focus on the Internet of Things.
Date: 2021-07-09
Institutions: Executive Agency for Small and Medium-sized Enterprises
Subjects: Internet of Things, advanced technology industry, automation, circular economy, environmental monitoring, health care, intelligent transport system, motor vehicle, report, social impact, sustainable development, traffic control

Advanced Technology Watch - Technology Focus on the Internet of Things

The Internet of Things (IoT) refers to a network of uniquely identifiable endpoints that 
autonomously connect bidirectionally using Internet Protocol (IP) connectivity. However, in a 
broader sense, IoT refers to “an ecosystem in which applications and services are driven by data 
collected from devices that sense and interface with the physical world”.

This ecosystem establishes end-to-end solutions that leverage those connected devices and the data they generate. 
This data is then used to obtain new insights, transform and automate systems and processes, provide new products 
and services, and bring a host of benefits to users, organisations, economies and societies.

The European Commission 
committed to investing nearly 
€500 million
between 2014 and 2020
in IoT development as part of the 
Horizon 2020 programme. 

The European Commission has 
supported the advancement of IoT

Communication 
“Internet of Things: 
An Action Plan for Europe”

Alliance
Alliance for Internet of 
Things Innovation (AIoTI)

Initiative
IoT European Platform 
Initiative (IoT-EPI)

Staﬀ working
document
“Advancing The Internet
of Things in Europe”

IoT is steadily becoming a core part of the digitalisation strategy of European
organisations across industries

IoT Adoption Across European Industries

Overall Average
Life Science
Transport and Logistics
Telco and Media
Business Services
Financial Services
Resources
Overall
Manufacturing
Healthcare
Retail and Wholesale
Energy
Connectivity

The majority of European organisations have deployed 
IoT in their business, or are planning on doing so

IoT Investment Plans

IoT Deployment Status

No plans to do
so (23.3%)

Plan to
launch 
IoT project 
or extend
an existing 
one within
the next
24 months
(76.7%)

No current plans to 
deploy (11.1%)

Plan to do 
so within 
24 months
(39.4%)

Have deployed 
an IoT project
(49.4%)

(% of Respondents)

0%

20% 40% 60% 80% 100%

No plans to do/deploy

Planned within 24 months

Deployed

Already deployed

Plan to launch within 24 months

IoT will grow at a compound annual growth rate (CAGR) of 12%, from 
approximately €131 bn (2019) to approximately €230 bn (2024)
IoT will at a compound annual growth rate (CAGR) of 12%, from approximately €131b (2019) to approximately €230b (2024)

Reasons for Investing in IoT Projects

Investing in IoT 
has favourable and
tangible returns for 
the organisation

Improve business productivity / eﬃciency

Improve customer experience

Improve product quality

€

€

€

Reduce operational and maintenance costs

Competitive diﬀerentiation

(% of Respondents)

0% 5% 10% 15% 20% 25% 30% 35% 40%

For more information, read the full Advanced Technology Watch Report on the Internet of Things here:
https://ati.ec.europa.eu/reports/technology-watch/technology-focus-iot

Further development of key technologies enables IoT solutions to be deployed more 
rapidly, cost-effectively and at lower risk

Modules and 
Sensors

Connectivity

Cloud Computing

Edge Computing

IoT Platforms

Analytics

IoT accelerates initiatives on environmental sustainability and social good, and it has an 
important role in battling the effects of the COVID-19 pandemic

Environmental Sustainability

Social Good

COVID-19

• Waste and water management
• Circular economy
• Food traceability
• Electric Vehicle Charging

• Life on Land: Connected 
  Conservation
• Social Justice
• Water and sanitation
• Clean air

• Body temperature monitoring
• Securing safe distances in
  the workplace
• Adding intelligence to sensorised 
  medical equipment
• Increase automation and reduce
  costs to cope with reduced staﬃng
• IoT-based remote health monitoring

About the Advanced Technologies for Industry (ATI) project

The ATI project – funded by the European Commission – supports the implementation of Europe’s new growth strategy 
with a systematic monitoring of technological trends and reliable, up-to-date data on advanced technologies. 

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The Advanced Technology Watch Reports explore the futuristic, upcoming technologies that are on the horizon of technology 
development today and that are characterised by high speed of evolution and a significative disruptive potential.

For more information, read the full Advanced Technology Watch Report on the Internet of Things here:
https://ati.ec.europa.eu/reports/technology-watch/technology-focus-iot

PDF: ISBN 978-92-9460-654-9          doi: 10.2826/45814          EA-09-21-169-EN-N
©European Union, 2021