Skip to main content

Global IoT Platform Revenue will Grow to €3B by 2021

The global third party Internet of Things (IoT) platform market increased by 36 percent to € 610 million in 2015, according to the latest worldwide market study by Berg Insight. Growing at a compound annual growth rate (CAGR) of 30.8 percent, revenues are now forecast to reach € 3.05 billion in 2021.

There's a wide range of software platforms available. They're intended to reduce cost and development time for IoT solutions, with standardized components that are shared across many verticals to integrate devices, networks and applications.

Most of these IoT solutions can be categorized as being a connectivity management platform, a device management platform or an application enablement platform. Although, there are many IoT-related products that offer overlapping functionality.

IoT Application Market Development

Many organizations have already been involved in various machine-to-machine (M2M) deployments that have been characterized by custom solutions deployed within single verticals -- or by one company -- to improve existing operations.

IoT deployments typically put more emphasis on the integration of sensors, devices and information systems across industry verticals and organizations to transform operations and enable new business models.

"IoT furthermore aims to facilitate a better understanding of complex systems through analytics based on data from diverse sources to assist decision making, improve products and enable entirely new services," said André Malm, senior analyst at Berg Insight.

Whereas connectivity and device management platforms have already reached comparatively high adoption, the market for application enablement platforms (AEPs) is in the early-adopter phase. AEPs typically provide functionality such as data collection, data storage and analytics.

According to the Berg Insight assessment, fully featured platforms also provide tools, frameworks and APIs for creating business applications featuring data management, event processing, automated tasks and data visualization.

More IoT Tools for Developers

Many platforms also provide tools and ready-made libraries and UI frameworks that facilitate modelling and creation of interactive applications, work spaces and dashboards with little or no need for software coding. The AEP segment is seeing considerable activity, in terms of vendor acquisitions and new market entrants.

After PTC acquired ThingWorx and Axeda, other major software and IT companies have followed. Examples include Amazon that acquired 2lemetry, Autodesk that acquired SeeControl, and Microsoft that acquired Solair.

Other leading IT companies that are extending their service offerings to include IoT platforms -- often focusing on analytics and machine learning capabilities -- include IBM, SAP and Oracle.

"As a group, AEP vendors primarily face competition from system integrators and companies that develop similar functionality in-house," concluded Mr. Malm.

Popular posts from this blog

Bold Broadband Policy: Yes We Can, America

Try to imagine this scenario, that General Motors and Ford were given exclusive franchises to build America's interstate highway system, and also all the highways that connect local communities. Now imagine that, based upon a financial crisis, these troubled companies decided to convert all "their" local arteries into toll-roads -- they then use incremental toll fees to severely limit all travel to and from small businesses. Why? This handicapping process reduced the need to invest in building better new roads, or repairing the dilapidated ones. But, wouldn't that short-sighted decision have a detrimental impact on the overall national economy? It's a moot point -- pure fantasy -- you say. The U.S. political leadership would never knowingly risk the nation's social and economic future on the financial viability of a restrictive duopoly. Or, would they? The 21st century Global Networked Economy travels across essential broadband infrastructure. The forced intro...