Viasat: Why is the Energy Sector So Cautious About the IoT?
The Internet of Things, or IoT, is one of the most transformative, yet unsung technological advancements of the 21st century.
It is perhaps its rather prosaic name that belies the true scale of its impact on society.
The âthingsâ in question are physical electronic devices, while the âinternetâ aspect of the concept refers to the way these devices connect and interact with one another.
The IoT works at all scales, from domestic buildings to vast industrial operations.
In the first instance, you might have your homeâs boiler and lightbulbs connected to your phone, allowing you to control when the heating comes on or when your lamps turn off at night.
But at the largest scale, you could expect to see factories automate the running of machines, or governments manage public services remotely using centralised computing.
By 2030, the number of IoT devices around the world is expected to grow to 39 billion, according to IoT Analytics.
In a new report, Californian connectivity company Viasat looks into the way that various industries are approaching the Internet of Things.
The study reveals, somewhat surprisingly, that the energy sector is among the most cautious about adopting the technology.
Why is the energy sector unenthusiastic about IoT?
Viasat's report shows that energy firms are among the worldâs least enthusiastic when it comes to Direct-to-Device (D2D) connectivity, with only 61% planning adoption in the next 12 months.
This stands in stark contrast to industries like transport, where 81% of businesses are investing in the IoT.
The energy industry is dragging its feet on the connectivity revolution that's transforming its industrial peers and the reasons reveal deeper anxieties about safety, complexity and proven performance.
This caution extends beyond adoption timelines. When asked about barriers to D2D deployment, only 25% of energy respondents cited high device costs as a concern.
The implication, therefore, seems clear. Cost isn't the issue â trust is.
Safety first, innovation second
The energy sector's hesitancy is understandable.
When connectivity underpins operations on remote oil rigs, offshore wind farms or pipeline monitoring systems, the stakes are fundamentally different than tracking shipping containers or optimising crop harvesting.
This isnât to say that all of the sectorâs respondents were against IoT tech.
One of the execs surveyed spoke about the technologies usefulness when it comes to monitoring oil wells, while another pointed to the IoTâs applications in climate forecasts and in checking the efficiency of renewable energy sources.
That said, recognising potential and betting the farm on unproven technology are entirely different propositions.
The energy industry operates in environments where connectivity failures are simply not an option. This high-risk reality creates a culture where new technologies face intense scrutiny before deployment at scale.
The proof deficit
What energy companies want, and aren't yet seeing, is evidence. Across all sectors, 34% of respondents cited a lack of proven use cases or industry benchmarks as a barrier to D2D adoption.
But this sentiment runs deeper in energy, where regulatory compliance and safety protocols demand rigorous validation.
The sector also grapples with unique integration challenges. Energy infrastructure often relies on legacy systems that have run reliably for decades.
Retrofitting D2D connectivity into this established architecture is a technical challenge, of course, but it is also an exercise in risk management that must satisfy stakeholders, from operations teams to safety regulators.
Meanwhile, sectors like transport face no such decision paralysis. According to Viasat, the sector sees D2D as the answer to persistent coverage gaps and complexity in managing dual connectivity.
One respondent from the transport industry said that âreal time adjustment of routes based on weather and traffic data to achieve visibility in freight trackingâ makes adopting IoT a no-brainer.
A wider pattern of caution
The energy sector's reticence fits within a broader pattern of conservative technology adoption. While 78% of organisations across all sectors reported increased IoT progress over the past year, the pace and enthusiasm vary dramatically.
More than half of organisations now incorporate satellite connectivity into their IoT deployments, up from 41% in 2024.
Yet while 93% of organisations are planning to increase IoT spending by an average of 27%, deployment timelines reveal persistent gaps between aspiration and execution.
Some 81% believe D2D deployment would only be feasible after one to two years, even though 69% claim they plan to adopt within 12 months.
Energy companies appear to be more honest about this contradiction. Their lower adoption targets reflect realistic assessments of the time required for testing, validation and regulatory approval in high-stakes environments.
The knowledge problem
Internal barriers compound external caution. Nearly two-fifths of respondents across all sectors admitted their organisations simply prefer existing connectivity methods.
A quarter couldn't correctly identify D2D's definition when presented with options, and 90% say they need more information before proceeding.
For energy companies, already predisposed to caution, these knowledge gaps provide further justification for delay. Why rush into unproven technology when existing solutions, however imperfect, have track records measured in decades?
The research, based on 600 IoT decision-makers surveyed in July and August 2025, suggests the energy sector will likely remain a laggard in D2D adoption until compelling, sector-specific case studies emerge.
At the end of the day, the Great Connectivity Convergence, as Viasat terms it, is on its way. But for the energy industry, it looks set to arrive on a slower train.
