Skip to main content

Why IoT Vendor Pioneers are Reaping the Rewards

Be forewarned, the Internet of Things (IoT) will be a disruptive force across many industries. Moreover, total commercial IoT revenue among 21 benchmark companies grew by 14.8 percent year-to-year in 4Q15, reaching $6.7 billion, according to the latest market study by Technology Business Research (TBR).

TBR believes North America is currently the epicenter of IoT activity due to rising interest in the efficiency benefits from commercial IoT applications among energy, manufacturing, transport, retail and healthcare vertical customers in the region.

North America represented 40.3 percent of the benchmark commercial IoT revenue and grew 14.1 percent year-to-year to $2.7 billion in 4Q15. APAC and CALA, while growing faster at 16 percent and 26.3 percent year-to-year, only represented 24.8 percent and 5.5 percent of total revenue, respectively.

Commercial IoT Market Development

"Effectively, every type of IT and operational technology (OT) vendor will have a stake in the growing market, as IoT solutions will drive increased use of diverse IT and OT products and services," said Dan Callahan, analyst at TBR.

In addition to building interest in established IT products, commercial IoT will create growth in specialized business consulting, hardware, network, development, management and security components.

TBR believes savvy vendors are pursuing early adoption to drive higher-than-average gross profit for IoT solutions in the nascent stages of market development as a result of lower competition, more custom solutions, and decreased ability to outsource due to security concerns and the complexities of early IoT.

The segments tracked by TBR include business consulting, IT services, information and communications technology (ICT) infrastructure, software, security software and services, cloud services and connectivity.

Cloud services, despite growing from a smaller base, displayed the highest overall growth rate at 79 percent year-to-year to reach $604 million in 4Q15 -- due to the evolving need for compute platforms and object storage.

Demand for IoT Big Data Analytics

Fast followers, include business consulting and security software firms, are also growing due to the widespread nature and numerous components of IoT management -- such as the confidential data that's generated from a multitude of sensors and connected devices.

IT services and ICT infrastructure, which accounted for 51.4 percent of total benchmark revenue in 4Q15, also achieved strong growth due to increasing capacity requirements associated with deploying, storing and making actionable insights with the massive amounts of data generated by IoT applications.

Demand for diverse skills benefits what TBR defines as hybrid IT vendors: those that deliver a suite of IoT components, containing hardware, software and services. But while buyers may choose hybrid IT firms based on their broad capabilities, they may seek specialized partners to tap industry-specific knowledge.

Popular posts from this blog

Mobility-as-a-Service Creates Disruptive Travel Options

Building on significant advances in big data, analytics, and the Internet of Things (IoT), more innovative transit service offerings aim to increase public transport ridership and reduce emissions or congestion within metropolitan areas. By providing these services through smartphone apps, the transit services also significantly increase user convenience, providing information on different human mobility offerings -- including public transport, ridesharing, and autonomous vehicles. Mobility-as-a-Service Market Development According to the latest market study by Juniper Research, Mobility-as-a-Service (MaaS) subscribers will generate $53 billion in revenue for MaaS platform providers by 2027 -- that's rising from $5.3 billion in 2021. Let's start with a basic definition. MaaS is the provision of multi-modal end-to-end travel services through single platforms, by which users can determine an optimal route and price. The study identified a monthly subscription model as key to incr

Hybrid Work: How to Enhance Employee Productivity

When you hire qualified talent for a key role and trust them to perform, you'll likely achieve the best outcome. Skilled and experienced people will deliver results, regardless of the challenges. That's a key lesson learned from the pandemic experience as most knowledge workers were asked to work from their homes. However, some resist returning to an open-plan office. It's unacceptable. Meanwhile, forward-thinking leaders decided a "return to normal" is undesirable, and in hindsight, everyone should aspire to be more accomodating than before. Therefore, location flexibility is okay. Hybrid Workforce Market Development How will people adapt to these changes? They'll apply the modern IT tools at their disposal. They'll learn new skills and thrive. Nearly 80 percent of employees are now successfully using online collaboration tools for work in 2021 -- that's up from just over half of workers in 2019, according to the latest market study by Gartner. This g

Robocall Mitigation Solutions to Halt Criminal Threats

If you answer the phone and hear a recorded message instead of a live person, it's likely a robocall. A robocall is a phone call that uses a computerized autodialer to deliver a pre-recorded message. In 2020, the U.S. Federal Trade Commission (FTC) received 2.8 million consumer complaints about robocalls. Offering solutions to robocalling and associated fraudulent business practices, computerized mitigation platforms are an integral part of the solution. Platforms that are focused on actionable systems to disrupt unsolicited and potentially criminal phone calls help telecom service providers and industry regulators. Issues of whether one-size-fits-all developments are sufficient to be effective across the spectrum need to be addressed, and whether a single telecom network operator working unilaterally with a third-party platform could compromise desired or mandatory industry-wide standards. Robocall Mitigation Market Development According to the latest worldwide market study by Jun