With 8.4 billion connected "things" in use in 2017 -- up 31 per cent from 2016 -- the Internet of Things (IoT) is at the core of digital transformation globally in 2017, with 73 per cent of executives either researching or currently deploying IoT, a new report said on Tuesday.

Manufacturing, transportation and utilities make up the largest percent of investments, while insurance and consumers represent the fastest areas of spending growth, said the "State of the Market: Internet of Things 2017" report by the US wireless communications service provider Verizon.

The economics of IoT are increasingly compelling and the B2B space will benefit first, generating nearly 70 per cent of potential value enabled by IoT.

"With network technology, cost reductions and regulatory pressures driving adoption, business leaders are not only paying attention, they're getting in the game," the report said.

While enterprises across industries continue to develop and pilot use cases, hesitancies related to IoT still remain.

There are four key concerns for over 50 percent of business executives when exploring IoT:

Standards, Security, Interoperability and Cost.

These uncertainties, along with apprehension around scalability and simplicity, are holding businesses back from full IoT deployment, with many still in proof-of-concept or pilot phase.

Early adopters seem largely focused on proving out simple use cases to track data and send status alerts, just starting to realise the full value IoT has to offer in driving growth and efficiencies across business, the Verizon report noted.

"Over the past year, industry innovators in energy, healthcare, construction, government, agtech and beyond have not only piloted, but in many cases, deployed IoT technology to improve business efficiencies, track and manage assets to drive value to the bottom line," said said Mark Bartolomeo, Vice President of IoT Connected Solutions at Verizon, in a statement.