IoT, on the other hand, hasn’t fared as well during the COVID-19 pandemic. Customers of business and personal IoT typically take advantage of endless options to upgrade and expand services, but amidst the pandemic, consumers appeared to be reassessing their spending. As a result, the Smart Home industry in particular took a hit. In 2020, the sector saw record low subscription sign-ups and high account churn. And Omida forecast the global smart home market would fall nearly $20 billion.
However, there’s hope for IoT companies. Average revenue per user growth has risen from Q1 (4.6% in Q1 2020 vs. 11.4% in Q2 2020). This increase may be in part due to the fact that business IoT services help customers cut costs which was an important service amidst COVID-19..
According to McKinsey, remote assistance and maintenance tools can yield a 10%-40% reduction in field-service costs, and improved performance management can help companies boost labor productivity by 20%-40%. IoT service subscriptions can help companies see gaps in their global supply chains in the current crisis; robotics. IoT, and other forms of automation help these companies gain resilience in the event of a disaster in the future as well, as Michael Mansard, Principal Director of Subscription Strategy at Zuora, told Design News in July.