# Connectivity concerns must be addressed to unlock IoT’s potential for energy sector
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2017-09-13
Category: TECHNOLOGY
Category URL: https://financedigest.com/category/technology
Meta Title: Energy Companies Struggle with IoT Connectivity Challenges
Meta Description: Discover how 54% of energy firms face IoT deployment challenges due to connectivity issues. Learn more about the importance of high-speed connectivity for
URL: https://financedigest.com/connectivity-concerns-must-be-addressed-to-unlock-iots-potential-for-energy-sectorhtml

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- _Research reveals 54 per cent of energy companies are challenged by IoT connectivity_
- _24 per cent of respondents agreed connectivity issues threaten to derail their IoT deployments_

Energy companies will struggle to derive the maximum value from the Internet of Things (IoT) without access to radically improved, reliable, high-speed connectivity. This is according to independent research commissioned by [Inmarsat](https://www.inmarsat.com/) (LSE:ISAT.L), which found that while the overwhelming majority of [energy companies](https://www.financedigest.com/luc-remont-proposed-as-new-boss-of-french-energy-company-edf.html "Luc Remont proposed as new boss of French energy company EDF") are in the process of deploying or developing IoT solutions, low rates of connectivity are preventing them from realising the full benefits that IoT can deliver.

Respondents from 100 large energy companies from across the globe were interviewed for Inmarsat’s ‘ [The Future of IoT in Enterprise – 2017](http://research.inmarsat.com/)’ report and found that a lack of connectivity emerged as the top obstacle that energy companies face when deploying IoT. Over half (54 per cent) of respondents cited connectivity as a major challenge, significantly higher than the percentage citing skills and [cyber security](https://www.financedigest.com/a-culture-of-cyber-security-throughout-financial-services-organisations.html "A Culture of Cyber Security Throughout Financial Services Organisations") as challenges (35 per cent and 27 per cent, respectively). A lack of high-speed connectivity may restrict these companies from accessing the [full value](https://www.financedigest.com/are-you-getting-full-value-from-your-outsourcing-partnerships.html "Are you getting full value from your outsourcing partnerships?") offered by IoT, potentially rendering them unable to gather and analyse data.

Worryingly, 24 per cent of respondents agreed that connectivity issues were threatening to derail their IoT projects before they even began, further emphasising the connectivity [challenges facing](https://www.financedigest.com/s-koreas-yoon-faces-early-challenge-amid-hints-of-n-korea-nuclear-test.html "S.Korea’s Yoon faces early challenge amid hints of N.Korea nuclear test") the sector.

Chuck Moseley, Senior Director for Energy, Inmarsat Enterprise, commented on the significance of the findings: “IoT will play a [crucial role in the digital transformation](https://www.financedigest.com/why-digital-transformation-in-finance-is-crucial-for-post-lockdown-success.html "Why digital transformation in finance is crucial for post lockdown success") of the energy sector. High-speed connectivity is [critical to a successful](https://www.financedigest.com/five-critical-tips-to-create-a-successful-start-up.html "Five Critical Tips To Create A Successful Start-up") and profitable IoT solution, to ensure the collection and transmission of high volumes of valuable data from sensors for analysis. Without this connectivity and the real-time transfer of data, energy companies will be unable to analyse their data and extract valuable insights.

“Connected sensors can gather vital data in a wide range of applications, offering energy companies an unprecedented opportunity to improve safety, improve operating efficiencies and reduce production costs. For example, oil producers and [pipeline operators can use sensors to monitor hundreds of wells in real time to understand the amount and quality of the oil and gas](https://www.financedigest.com/what-is-known-so-far-about-the-nord-stream-gas-pipeline-leaks.html "What is known so far about the Nord Stream gas pipeline leaks") being extracted or moved. They can also monitor for downtime, unusual behaviour or even accidental leaks, putting them in a stronger position to take pre-emptive action. [Energy companies who want to use IoT in this way need](https://www.financedigest.com/new-uk-pm-will-need-to-take-urgent-action-on-energy-bills-ofgem-ceo.html "New UK PM will need to take urgent action on energy bills – Ofgem CEO") to have a constant, uninterrupted stream of data to make informed decisions about their operations, but to achieve that you need access to a robust, reliable communications network,” he continued.

Identifying the role that satellite communication networks play in the development of IoT, Moseley concluded: “The remote location of many production sites and pipelines means that traditional cellular and terrestrial networks do not always provide reliable and stable connectivity. Satellite communication networks can prove invaluable in the deployment of IoT solutions, offering constant, reliable and resilient connectivity. Inmarsat’s satellite communication network can deliver truly global, high speed connectivity to any location and collect large volumes of data with 99.9% uptime, enabling energy companies to focus on the continued innovation and development of IoT and embark on the transition to the Fourth Industrial Revolution.”

You can view the research microsite and download the full report here: [http://research.inmarsat.com/](http://research.inmarsat.com/)


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