On Internet of Things
The increasing pressure on device manufacturers to make their products smart and connected is spurring an entire industry devoted to helping manufacturers add hardware connectivity and back-end services. Adding connectivity in-house is an expensive option for many device manufacturers, which may have little expertise in communications modules or back end cloud services. So-called internet of things platform providers are rising to the challenge and quickly driving down the cost of adding connectivity to devices of all sorts, from thermostats to door locks to heavy machinery, which will dramatically increase the number of connected devices. The marketplace is very open right now, as startups compete for share and industry leaders map out which sectors of the IoT market to target.
Key findings include:
- Venture capital is flowing toward a number of IoT platform startups. Consumer IoT and the smart home are immediate markets. Industrial IoT will also be a key market, though it will recognize revenue more slowly, due to longer equipment lifecycles.
- The value to manufacturers of making their devices connected includes consumer ROI, product development, and product differentiation.
- Companies in the IoT platform market will seek to differentiate themselves on a number of key factors that include hardware form factor, security, cost, and scalability.
- IoT platform providers are currently focused on the security and HVAC systems. They are expanding into lighting and home appliances, and will ultimately move beyond smart homes to the industrial sector, which will bring competition from large, established companies.
Thumbnail image courtesy of: iStock/Thinkstock
- The emerging connected platform
- Benefits for manufacturers
- Considerations in an IoT platform
- The future: market evolution
- Key takeaways
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