Reimagining Vending: Insights from Eseye’s State of IoT Report

Eseye

IoT Hardware and Connectivity Specialists

The smart vending sector has always been at the forefront of technological innovation, continuously evolving to enhance customer experiences.

Drawing from the latest results from our fourth annual State of IoT Adoption report, we’ll examine the latest trends in smart vending. Read on to discover how IoT is driving sustainability and efficiency in the sector, and gain insights into future growth and investment plans that are set to reshape smart vending as we know it.

Sustainability in smart vending

Smart vending machines are transforming inventory management and setting new standards in sustainability. Notably, sustainability benefits have now surpassed revenue growth as the primary IoT benefit cited by smart vending companies. By using real-time tracking of stock levels and expiration dates, these machines continuously monitor inventory, alerting operators when items are nearing expiration. This proactive system helps prevent unsold products from going to waste, empowering operators to make data-driven inventory decisions that lower costs and reduce environmental impact.

Our report highlights that sustainability is a core priority among all sectors surveyed, with 94% of businesses overall confirming its significance in device design. But smart vending emerged as the top player in sustainable practices, with 96% ranking sustainability as an important element to factor into the IoT device design process. Through predictive maintenance, smart vending systems further enhance sustainability by reducing premature part replacements, extending equipment lifespan, and minimizing material and disposal costs. This strong commitment to sustainability underscores the industry’s dedication to reducing its ecological footprint through continuous innovation.

Vending growth and investment

The smart vending industry is expanding with 78% of companies planning to increase deployments, while 32% of smart vending businesses aim to double the number of devices they operate.

20% of smart vending respondents plan to boost their IoT spending by 51 to 100% in the next two years.

However, it’s worth noting that 7.3% of businesses in the industry also plan to reduce their vending deployments, the second-highest rate of decline among all surveyed sectors. This suggests that while many companies are optimistic about expanding their IoT capabilities and budgets, there remains a degree of caution, possibly stemming from operational challenges or fluctuations in the market.

Securing your snacks

A striking 61% of smart vending companies have reported experiencing security breaches, making this sector the most affected among those surveyed. Over the past four years, security concerns have continued to be a critical challenge for the smart vending industry.

The heightened sense of vulnerability among smart vending companies can be largely attributed to the locations of their machines, which are often found in public spaces and are managed by third parties. These environments expose vending machines to various security risks, exacerbating the anxiety felt by operators in the sector.

Moreover, the persistence of security breaches is compounded by the difficulty smart vending companies face in finding partnerships with providers who possess comprehensive end-to-end expertise in IoT solutions.[LH1] 88% revealed it would be beneficial to find a partner who offered end-to-end IoT services under one roof. Many organizations struggle to find reliable partners who can offer the full range of services necessary to enhance security and operational efficiency. This gap in expertise is particularly pronounced in the smart vending sector, where the integration of advanced technology is critical to both improving security and streamlining operations.

Out of order: the impact of poor connectivity in vending

Connectivity challenges present a significant hurdle for smart vending operators. Our report reveals that 11% of respondents are dissatisfied with their connectivity service, and the fact that many machines are deployed in remote or underground locations, makes reliable connections even more difficult to maintain.

Poor connectivity hampers real-time data collection and limits the full potential of IoT, which is critical for optimising operations. As a result, securing dependable connectivity solutions becomes essential for unlocking future growth and improving efficiency in the sector.

To mitigate connectivity issues while keeping upfront costs low, businesses may be tempted to choose cheaper connectivity providers. However, this approach often proves to be a false economy. Over 70% of smart vending respondents agree that low-cost options fail to provide sustainable long-term value.

Choosing cheaper connectivity often means sacrificing essential end-to-end services and technical support. For instance, 34% of smart vending companies report difficulties accessing technical IoT assistance, complicating the connectivity landscape. Without adequate support, businesses may struggle to quickly resolve connectivity issues, negatively impacting operations and customer service.

The future of smart vending

As we look ahead, the future of smart vending appears poised for transformation through the continuous integration of advanced technologies and sustainable practices. The industry is not only focused on enhancing the customer experience but is also committed to reducing its ecological footprint and improving operational efficiencies. By leveraging IoT solutions, smart vending is set to evolve further, addressing challenges such as security and connectivity while tapping into new growth opportunities

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Explore the latest market sentiment, opportunities, and trends inside Eseye’s State of IoT Adoption report and discover how IoT is transforming the smart vending landscape.

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Eseye

IoT Hardware and Connectivity Specialists

Eseye brings decades of end-to-end expertise to integrate and optimise IoT connectivity delivering near 100% uptime. From idea to implementation and beyond, we deliver lasting value from IoT. Nobody does IoT better.

Vending Reimagined: Insights from Eseye’s State of IoT Adoption Report

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