Is the Internet of Things Entering the Trough of Disillusionment?

From 2013 to 2015, the Internet of Things (IoT) hovered at or near the summit of Gartner’s Hype Cycle, occupying the peak for two consecutive years. Recent industry signals—such as layoffs in PTC’s ThingWorx division, growth concerns voiced by major IIoT platform vendors like GE, and a broader pattern of stalled deployments—suggest that the sector is now beginning its descent toward the Trough of Disillusionment.

IoT is a vast, heterogeneous domain that spans consumer products, industrial automation, healthcare, transportation, energy, and smart cities. Success rates and adoption curves differ dramatically across these verticals, which is reflected in the evolving hype curves for the technology.

Figure 1 shows the Gartner Hype Cycles for 2013‑2016. While IoT itself was near the peak during that period, 2016 saw a shift toward emerging sub‑technologies—IoT Platforms, Machine Learning, Smart Robots, and others—each carving its own trajectory. In subsequent cycles, specific applications such as Smart Robots, Connected Homes, and UAV Drones have climbed toward the apex, whereas Software‑Defined Anything (SDx) has begun to slide downward. Machine Learning has secured the top spot, and the 2017 Hype Cycle for IoT Protocols & Standards places DDS at the summit.

Fig 1: Gartner Hype Cycles for 2013‑2016 (source)

A recent GlobalData webinar, “Enterprise IoT: 2017 Investment Survey & Insights,” surveyed over 900 IoT developers. The findings were sobering: 65% reported deploying 1,000 devices or fewer—indicating that many projects remain proof‑of‑concept rather than large‑scale deployments. The primary roadblocks cited were high costs and an unclear path to positive ROI, even though overall interest in IoT continues to rise. The data underscore the need for more pragmatic, ROI‑driven initiatives.

Beyond hype, tangible value is emerging. At RTI, we have engineered Industrial IoT (IIoT) solutions for more than a decade, partnering with leaders such as GE Healthcare, Siemens Wind Power, and the U.S. Army. To date, we have secured over 1,000 design wins across key IIoT verticals, with many deployments exceeding 10,000 devices and generating hundreds of thousands of data points daily. This track record illustrates that high‑impact IIoT projects are not only feasible but already in operation.

Fig 2: Value generated by IoT projects

In summary, while the IoT market may be sliding into the Trough of Disillusionment, focused, ROI‑oriented projects are delivering measurable value across multiple verticals. RTI’s DDS connectivity framework, for instance, has powered numerous successful IIoT deployments—an outcome that many other organizations can replicate.