IoT app development: Use cases, Strategy & Cost
December 18, 2024

Have you come across the term IoT app development? Of course, you have! Given the widespread popularity of IoT devices and applications, it’s no surprise. However, while many of us understand the basics of IoT, its potential extends far beyond what meets the eye. There’s so much more to explore when it comes to IoT application development and its devices.

Before diving deeper into the vast possibilities of IoT, let’s take a moment to explore some compelling statistics that highlight the future scope of IoT applications.

how do consumers spend if Iot devices

These numbers clearly show how IoT is changing lives everywhere. Whether it’s making homes smarter or helping businesses run more efficiently, IoT is becoming a part of our daily routines, making things easier and more connected. Its growth and impact are undeniable, and it’s exciting to see how it’s transforming the way we live and work. But what all uses of IoT applications are we talking about? Let’s take a look

Use Cases of IoT Ecosystem

The Internet of Things app development landscape has evolved significantly, with 2024 bringing dramatic shifts in use case adoption. While the distribution of IoT use cases within categories remains consistent- 6 smart operations use cases, 3 smart supply chain use cases, and 1 connected product use case- the individual use cases have matured in adoption rates and business impact. 

Below is an expanded exploration of the top 10 IoT use cases in 2024 and beyond, their definitions, affected organizational KPIs, and real-world implementation examples.

1. Process Automation

Process automation involves integrating IoT technologies like sensors, actuators, and edge computing into workflows to streamline repetitive tasks, reduce manual interventions, and improve productivity.

Adoption and Impact

Process automation leads the IoT use case rankings in 2024, with 57.5% of organizations adopting it which is a sharp rise from the 33% adoption rate in 2021. By embedding IoT into legacy systems like PLCs (Programmable Logic Controllers) and IPCs (Industrial PCs), companies can achieve seamless integration, enhance accuracy, and increase safety. Technologies such as IoT sensors and real-time data processing also enable predictive maintenance and optimized workflows.

KPI Affected

Labor efficiency improves by an average of 8.2%, making it the top KPI influenced by process automation.

Example

Burnley Brewing, an Australian craft brewery, implemented IoT automation to address growing demand. Burnley used IoT-enabled sensors and FactoryTalk Craft Brew software to automate brewing processes. This reduced labor demands across brewing stages, from milling grains to conditioning tanks, enhancing efficiency without compromising quality.

2. Quality Control and Management

IoT-powered quality control uses devices like machine vision systems and sensors to monitor and enhance production quality in real time.

Adoption and Impact

With 55% of organizations adopting IoT-based quality management, this use case has risen significantly from 7th place in 2021. Its ability to deliver quick returns is a key driver wherein 53% of companies report amortization within 24 months. IoT sensors monitor variables like temperature, humidity, and pressure during production, while machine learning algorithms predict and mitigate potential issues.

KPI Affected

Product quality improves by 4.6% on average, making it the most critical KPI for this use case.

3. Energy Monitoring

Energy monitoring leverages IoT devices to track energy usage of individual assets, helping companies optimize consumption and reduce costs.

Adoption and Impact

Adoption has surged to 55% from just 20% in 2021, making it the fastest-growing IoT use case. Rising electricity prices and sustainability goals have driven companies to invest in real-time energy monitoring solutions. IoT sensors and analytics help identify inefficiencies and suggest corrective actions to achieve significant cost savings.

KPI Affected

Energy monitoring reduces related costs by 8.1% on average.

4. Real-Time Inventory Management

This use case uses IoT to track inventory levels in real-time, optimizing stock levels and reducing shortages or excesses.

Adoption and Impact

Adopted by 54% of organizations, real-time inventory management has gained traction due to post-pandemic supply chain disruptions. With a 45% adoption increase since 2023, this use case now leads to smart supply chain use cases. Predictive analytics and IoT-powered tracking prevent overstocking or stockouts, ensuring smooth operations.

KPI Affected

Improves ROE/ROCE by 8.1%, enhancing financial returns.

Example

Tyson Foods implemented an IoT-based real-time inventory management system to automate inventory counts using AWS services. This saved 15,000 labor hours annually per facility, significantly improving operational efficiency.

use cases of IoT ecosystem

5. Supply Chain Track and Trace

IoT sensors and devices like GPS and LPWAN monitor the location and condition of goods across the supply chain.

Adoption and Impact

Adopted by 54% of organizations, this use case provides real-time visibility into product location and condition. Companies have reported amortization within 24 months, thanks to reduced losses and improved delivery accuracy.

KPI Affected

On-time delivery improves by 8.5%, ensuring better customer satisfaction.

6. Operations Planning and Scheduling

IoT-enabled tools provide real-time data for scheduling and planning operations, reducing downtime and optimizing resource use.

Adoption and Impact

Adoption has reached 53%, with energy companies planning 5.5% average investment increases in 2024 and beyond. By combining IoT with predictive analytics, companies can dynamically adjust schedules and address bottlenecks proactively.

KPI Affected

Labor efficiency improves by 7%.

7. On-Site Facility Track and Trace

IoT devices track the location of assets within a facility, ensuring timely access to critical tools or inventory.

Adoption and Impact

Adopted by 50% of organizations, this use case is especially popular in wholesale, retail, and healthcare, where real-time asset location is crucial for compliance and efficiency.

KPI Affected

Improves on-time delivery by 7.8%.

8. Asset Performance Optimization

IoT solutions analyze asset data to maximize operational efficiency and minimize downtime.

Adoption and Impact

Adoption stands at 48%, with Asia-Pacific companies leading investment growth at 5% on average. By integrating IoT gateways and platforms, businesses optimize asset speed, material input settings, and maintenance schedules.

KPI Affected

Boosts Overall Equipment Effectiveness (OEE) by 9.5%.

Example

Longroad Energy improved wind turbine efficiency by 2.5% annually, increasing revenue by $430,000 through IoT-powered optimization tools.

9. Remote Asset Monitoring

Remote asset monitoring leverages IoT technologies, including sensors, cameras, and communication networks, to oversee the status, performance, and health of equipment or infrastructure from any location. This use case is particularly vital for businesses managing dispersed or hard-to-access assets, such as those in energy, agriculture, logistics, and construction industries.

Adoption and Impact

Adopted by 46% of organizations in 2024, remote asset monitoring is becoming increasingly critical as businesses aim to minimize downtime and reduce maintenance costs. By gathering real-time data, IoT systems help predict equipment failures, automate alerts, and enable proactive maintenance strategies, reducing the need for manual inspections and onsite troubleshooting.

KPI Affected

Remote asset monitoring improves asset utilization by 6.7%, translating to better productivity and reduced operational costs. Additionally, companies have reported 15-25% reductions in maintenance expenses due to early issue detection.

Example

Enel Green Power, a renewable energy leader, uses IoT-enabled remote monitoring systems to manage over 1,200 renewable energy plants worldwide. This approach reduces maintenance costs and maximizes energy production uptime.

10. Connected Product Management

Connected product management focuses on embedding IoT capabilities into products, enabling them to collect, analyze, and transmit data in real-time. This use case allows businesses to monitor product performance remotely, deliver over-the-air updates, and provide predictive maintenance, creating a smarter and more user-friendly product ecosystem. Industries like consumer electronics, automotive, and industrial equipment are leading adopters of this use case.

Adoption and Impact

Adoption has reached 44% in 2024, with more companies recognizing the value of IoT in delivering enhanced customer experiences and post-sale services. Connected products allow manufacturers to gain insights into how their products are used, enabling them to improve designs, launch tailored services, and even introduce pay-per-use or subscription-based models. These insights also create opportunities for new revenue streams while enhancing customer satisfaction.

KPI Affected

Customer satisfaction improves by an average of 9.2%, while after-sales service efficiency rises by 10-15%.

Example

John Deere, a global leader in agricultural equipment, has integrated IoT into its products through its Precision Ag Technology. Connected tractors and harvesters collect data on soil quality, crop health, and equipment usage, transmitting it to farmers via mobile apps. This data helps farmers optimize their planting and harvesting strategies, reduce operational costs, and increase yields, making farming smarter and more efficient.

Therefore, the adoption of IoT continues to transform industries, making processes more efficient, cost-effective, and customer-centric. These use cases demonstrate how businesses can leverage IoT for enhanced productivity and long-term competitive advantage. But how to develop such IoT software strategically. Let’s read ahead to find out.

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How to strategically develop IoT applications?

Creating an Internet of Things app is a meticulous yet rewarding process that requires a clear strategy, focused execution, and continuous improvement. Here's a detailed breakdown of the five key steps for smooth IoT app development.

How to strategically develop IoT applications

1. Define Your Strategic Plan

Before diving into the development process, having a well-thought-out strategic plan is essential. Start by identifying your vision for the IoT solution. Consider whether a custom IoT platform aligns better with your business needs or if a ready-made solution can suffice. Define clear goals for your application, such as enhancing operational efficiency, improving customer engagement, or enabling real-time data tracking.

Finally, evaluate whether partnering with an experienced IoT application development team would help you achieve your objectives more effectively. This foundational step sets the tone for the rest of the development journey.

2. Design an Intuitive and User-Centric App

The design phase plays a pivotal role in shaping the user experience and usability of your IoT app. A well-designed interface ensures that users can easily navigate the application while seamlessly interacting with IoT-connected devices.

Work closely with UI/UX designers to create a design that is not only aesthetically pleasing but also functional and responsive. Incorporate feedback loops and mockups to visualize the final product. An intuitive design lays the groundwork for user satisfaction and retention, which are key to the app’s success.

3. Develop a Minimum Viable Product (MVP)

The MVP is a crucial step in IoT app development as it allows you to validate your app's concept with real-world users while minimizing initial costs and risks. Unlike a basic prototype, an MVP is a fully operational product with essential features.

This version lets you gather valuable insights into how users interact with the app and its connected devices. By launching an MVP, businesses can identify potential issues, gauge market demand, and prioritize future updates based on user feedback.

how IoT app function

4. Gather Feedback and Iterate

Once the MVP is live, collecting user feedback becomes a top priority. Utilize in-app surveys, reviews, or direct communication to understand what users like and what needs improvement. Pay attention to usability issues, technical glitches, and feature requests.

This iterative process is essential for refining the app and addressing any shortcomings before the final launch. Incorporating user feedback ensures the app aligns with customer expectations, leading to a more polished and effective IoT solution.

5. Execute a Full Launch and Ensure Ongoing Support

After fine-tuning your IoT app based on feedback, it's time for the official launch. However, your work doesn’t stop here. Post-launch activities, such as regular updates, bug fixes, and customer support, are vital to maintaining app performance and user satisfaction.

Your development team should also monitor app analytics to identify areas for further improvement and to introduce new features that enhance the user experience. A successful IoT application is one that evolves with user needs and technological advancements.

By following these steps, businesses can develop an IoT application that is not only functional but also scalable and user-focused. Whether you're building a smart home app, industrial IoT platform, or healthcare IoT solution, this structured approach ensures your project is efficient, impactful, and ready to thrive in the competitive IoT ecosystem.

But, while building an IoT application, security should be paramount for businesses. So, how do we handle that part of the system? Let’s read ahead.

How can data security concerns be addressed while building IoT applications?

As IoT technology expands across the globe, so do the risks associated with it. For businesses and vendors deploying M2M devices, security is not just a feature, it’s a necessity. Here’s how you can protect your IoT systems and applications effectively.

Don’t Let Physical Security Be an Afterthought

Many IoT devices are located in remote areas, making them vulnerable to tampering. To combat this, invest in robust hardware that makes unauthorized access harder.

Take cellular IoT devices as an example: their SIM cards often store critical information. Removable SIMs are easy to access and tamper with, whereas eSIMs (embedded SIMs) are soldered directly onto the device's circuit board. This not only makes them physically harder to reach but also ensures better resistance to temperature fluctuations and shock, which are often exploited in sabotage attempts.

Control Remote Access Like a Pro

Remote access is essential for IoT devices, but it’s also a gateway for security risks. Implement safeguards such as:

  • Locking SIM functionality to specific devices
  • Remotely disabling device connectivity if a breach is suspected

These steps ensure that even if someone gains physical access, they can’t misuse the device or its data.

Say Goodbye to Public Networks

Public WiFi and other shared networks may be convenient, but they also invite trouble. Sensitive IoT communications sent over these networks are easier to intercept, even with encryption in place.

A better alternative? Build private networks for your devices. Virtual Private Networks (VPNs) allow you to securely connect your devices without exposing data to the public Internet.

Stay Alert to Unusual Activity

Whether it’s an attempted hack or an operational error, unusual behavior on your devices needs to be addressed immediately. AI-based platforms can send real-time connectivity updates to your dashboard, giving you the insights you need to act quickly and effectively.

iot data security

Make SIM Cards Device-Specific

Every mobile device has a unique International Mobile Station Equipment Identity (IMEI). By locking your SIM card to a specific IMEI, you ensure that even if the SIM is removed, it can’t be misused in another device.

Encrypt Everything, End to End

Securing the data your devices send and receive is non-negotiable. Encryption protocols like TLS are commonly used, but they may not always cover the entire path.

To close these gaps, consider using X.509 certificates or setting up a single VPN/IPSec connection between your network and the application server. Alternatively, the intra-cloud connect feature lets you establish a secure VPN for your entire deployment, eliminating reliance on public IPs.

Let the Network Handle Firewalls

IoT devices often lack the processing power to manage firewalls on their own. A network-based firewall shifts this responsibility away from the device, filtering out malicious traffic before it can even reach your system.

These firewalls can block unauthorized traffic and detect potential breaches, keeping your devices safe without adding strain to their hardware.

Limit Connectivity to What’s Necessary

Your IoT devices were built for specific tasks. Extra functionality like voice or SMS capabilities might seem harmless, but they can create unnecessary vulnerabilities. Restrict connectivity to only what’s required for your application, reducing potential entry points for attackers.

By taking a proactive approach to IoT security, you can ensure that your devices are well-protected. A secure IoT system doesn’t just prevent breaches, it builds trust with your customers and ensures the longevity of your deployments. So, how does all of this cost?

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Cost of IoT application development

IoT application development is a significant investment that varies based on the complexity of the app, the features required, and the technology stack involved. The cost can range from a few thousand dollars for basic apps to hundreds of thousands for complex solutions. Here’s a breakdown of the factors that influence the cost and a comparison of basic, advanced, and complex IoT apps.

Factors Influencing IoT Application Development Costs

1. Features and Functionality

The more features an app has, the higher the cost. For example, a simple IoT app that monitors temperature will cost less than an app that integrates AI for predictive analysis and automation.

2. Hardware Integration

IoT apps often need to integrate with sensors, devices, and other hardware. Custom hardware development or compatibility testing with multiple devices can add to the cost.

3. Security Requirements

Advanced security protocols, such as encryption and secure data transfer, are essential for IoT apps. The cost increases with higher security demands, especially in sectors like healthcare and finance.

4. Scalability

Apps designed for small-scale use are less expensive than those built to handle thousands or millions of connected devices.

5. Third-Party Integrations

Integration with other platforms, APIs, or cloud services can add to the development cost, depending on the complexity of the integration.

6. Development Team Expertise

The cost varies depending on whether you hire a freelance developer, an in-house team, or a professional IoT development company. Companies typically charge higher rates due to their experience and resources.

Cost Breakdown by App Complexity

Features Basic App Advanced App Complex App
Development Cost $10,000 - $25,000 $30,000 - $75,000 $80,000 - $200,000+
Functionality Basic monitoring or data collection Advanced analytics, automation, and remote control AI-driven insights, predictive maintenance, and multi-device support
Hardware Integration Limited to one or two sensors Integrates multiple sensors and devices Complex hardware with custom integration
Security Standard encryption Advanced security protocols (e.g., TLS, VPN) High-level security (e.g., end-to-end encryption, blockchain)
User Interface Simple dashboard Interactive and customizable dashboard Advanced UI/UX with multiple user roles and access levels
Third-Party Integrations Minimal or none Cloud integration (e.g., AWS IoT, Azure IoT) Multiple APIs and enterprise system integrations
Scalability Limited to a small number of devices Supports medium-scale deployments Built for large-scale deployments across industries
Development Time 1-3 months 3-6 months 6-12+ months

The cost of IoT application development depends on your business goals and the app’s complexity. For startups, a basic app is a great way to test the waters. For larger enterprises, advanced or complex apps with scalability and security features may be worth the investment.

If you’re planning an IoT project, partnering with an experienced development team can help you get a tailored solution that aligns with your budget and requirements.

How can Antino help you with IoT app development?

Securing your IoT devices is essential to protecting sensitive data and ensuring customer trust. Vulnerabilities in your connectivity solutions can expose devices, data, and customers to cyber threats.

While enterprises must implement secure systems for the transmission of business and consumer data, device manufacturers play a critical role in embedding robust security measures during the production phase.

At Antino, we focus on delivering secure connectivity and effective service management for IoT devices. Our solutions include advanced security protocols such as VPN/IPsec and intra-cloud connectivity to safeguard network communication. Additionally, we offer embedded SIMs, designed to enhance security by preventing physical tampering with devices.

Reach out to an IoT security expert at Antino today and ensure your devices are built with security at their core.

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AUTHOR
Aditya Pranav
(VP- Engineering, Antino)
Aditya actively collaborates with cross-functional teams to construct customer-centric products. He guides team members in developing clearly defined software functionality aligned with identified business objectives. His skill set encompasses Business Processes, Architecture, Databases, AWS, Process Improvement, PostgreSQL, JavaScript, and Node.js.