The IoT in foodservice market size will be valued at $2.3 billion in 2020, growing at a CAGR of more than 6% during the forecast period. Whereas the CAGR for IoT markets across all other industries during the same period will be more than 10%, indicating IoT represents a lesser opportunity for foodservice than for other industries.

IoT investment will not be as significant in the foodservice industry as in some other markets, but it will still deliver significant returns. At present, industry IoT adoption is relatively low, and the technology is quite mature. Therefore, companies can invest with little risk. Additionally, companies who realized their supply chains’ vulnerabilities under the pressure of COVID will be interested in IoT investment.

The Internet of Things (IoT) technology is most valuable to foodservice companies in its capacity to collect data. Companies that use data effectively will enhance operational efficiency, reduce costs, improve decision-making, and provide a better customer experience. And since the pandemic has driven so many more online orders and at-home deliveries, the already-strong opportunity to gain a competitive advantage by using data is now even stronger. There is far more potential data to be collected, and IoT is the best tool for the job.

Historically, the foodservice industry was found to be slower than other industries to adopt emerging technologies. However, over half were planning to increase investment in disruptive technologies such as the Internet of Things (IoT).