The hidden cost of IoT: Why battery life must be a top priority

The Internet of Things (IoT) is transforming industries by connecting devices and enabling real-time data collection, analysis, and automation. However, the total cost of ownership (TCO) of IoT systems is often underestimated, especially when it comes to the crucial aspect of battery life. While upfront costs, such as hardware, software, and deployment, are well understood, the ongoing maintenance and replacement costs—largely driven by battery life—can quickly escalate if not properly addressed.

The Importance of Battery Life in IoT Systems

Battery life is a critical factor in the design and deployment of IoT devices, particularly those intended for remote or hard-to-access locations. A device with a short battery life requires frequent maintenance, which can significantly increase the TCO due to the cost of battery replacements, labor, and potential downtime.

1. Operational Disruptions

Frequent Maintenance: IoT devices with poor battery life necessitate frequent visits for battery replacements, especially in large-scale deployments where devices are scattered across vast areas. This leads to higher labor costs and potential service disruptions.

Downtime Costs: In critical applications, such as healthcare or industrial monitoring, downtime caused by battery failure can result in significant operational and financial losses. The cost of downtime must be factored into the TCO, as it can affect productivity, safety, and customer satisfaction.

Imagine you have 10,000 IoT devices deployed for tracking, with an expected battery life of five years. This estimate is often based on dividing the battery’s capacity by the average current use, relying on typical scenarios from the datasheet. However, in reality, batteries will deplete at different rates, leading to replacements. Over five years, you might need to replace each battery twice, potentially costing you $6 million (10,000 devices x 2 replacements x $300 per replacement). For mission-critical IoT solutions, the stakes are even higher. According to Gartner, IT downtime can cost up to $5,600 per minute, making battery reliability crucial. The question is: who bears these costs—you or your customer?

2. Environmental Impact

Increased Waste: Batteries contribute to environmental waste, and frequent replacements exacerbate this problem. Not only is there a direct financial cost associated with purchasing new batteries, but there is also a growing concern about the environmental impact of battery disposal. Regulatory pressures may also add to these costs.

Sustainability Concerns: Companies are increasingly being held accountable for their environmental footprint. Poor battery management in IoT systems can tarnish a company’s reputation, leading to potential financial penalties or loss of business due to unsustainable practices. Starting July 18th, 2024, the European Commission enforces new regulations to boost energy efficiency in products across the EU. Part of the EU’s Green Deal, these rules aim to reduce energy consumption and carbon emissions, encouraging manufacturers to create more sustainable and cost-effective products.

The Role of Hardware and Software in Battery Life Optimization

Prioritizing battery life requires a holistic approach that encompasses both hardware design and software development. Neglecting this aspect during the development phase can lead to significant long-term costs.

1. Hardware Design

Energy-Efficient Components: Selecting low-power components is crucial for extending battery life. This includes processors, sensors, and communication modules that consume minimal energy, especially when the device is in standby mode.

Battery Technology: The choice of battery technology can have a major impact on longevity and reliability. Lithium-ion batteries, for example, offer higher energy density and longer life cycles compared to older technologies like nickel-cadmium, but they may come at a higher upfront cost. However, even with the most high energy density battery it’s impossible to utilize 100% of a battery’s capacity. You can get close if you match it well with the power behaviour of the application. A poor match between the device and battery can be costly. Our extensive testing reveals that, on average, 30-50% of a battery’s capacity often goes unused due to inefficiencies.

2. Software Optimization

Power Management: Efficient software design can significantly reduce power consumption. For instance, using low-power modes, optimizing communication protocols, and minimizing data transmission can extend battery life. Energy-optimized firmware updates can also enhance power efficiency over time.

Data Handling: Reducing the frequency of data transmission and processing data locally (edge computing) rather than sending it to the cloud can conserve energy. Optimized software for energy efficiency can prolong the intervals between maintenance visits, thus reducing TCO.

The Consequences of Neglecting Battery Life

Ignoring battery life during the development of IoT systems can lead to several negative outcomes:

1. Increased Maintenance Costs

Frequent Replacements: As mentioned, the need for constant battery replacement drives up costs. This is particularly burdensome for large-scale deployments, where the cumulative cost of replacements can quickly surpass initial hardware investments.

Logistical Challenges: Managing the replacement of batteries across numerous devices in different locations can be logistically complex and costly, leading to inefficiencies and higher operational costs.

2. Reduced Device Lifespan

Premature Failure: Devices designed with no focus on battery validation for specific application may experience premature failure caused by bad battery batches or behaviours in temperatures. As a result, this shortens their lifespan, leading to earlier replacements and increasing the overall TCO.

3. Customer Dissatisfaction

Service Interruptions and Product Recalls: Short battery life can lead to frequent service interruptions, particularly in consumer-facing applications. This can result in customer dissatisfaction, negative reviews, and potential loss of business.

Conclusion: A Strategic Approach to Long Battery life and Low Cost of IoT

Battery life heavily influenceses the TCO of IoT systems, making it a critical consideration in the product development phases. By prioritizing energy-efficient hardware and software, companies can reduce operational disruptions, extend device lifespans, and minimize environmental impact. Failing to do so not only inflates the TCO but also risks damaging a company’s reputation and bottom line.

In the rapidly evolving IoT landscape, where devices are becoming more ubiquitous to operations, ensuring long battery life is not just a technical concern — it’s a strategic imperative. By addressing this issue proactively, organizations can maximize the return on their IoT investments while maintaining operational efficiency and sustainability.

If you are interested to understand how Otii Product Suite can serve your team in practicing cost and time efficient product development and maintenance of long-lived products and services, contact us or book a demo.