WELCOME TO The THE INTERNET OF THINGS REPORT
The Developer’s IoT Dilemma
WILLIAM WONG | March 1, 2016
Lakehurst LLC is a Private Equity and Development firm focused on identifying opportunities for industry transformation and financial impact.
Article | June 8, 2021
5 years ago, when we forecasted that the IoT platforms market would have a 5-year compound annual growth rate (CAGR) of 35%, we wondered if our growth projection was unrealistically high.
5 years later, it has become apparent that the forecast was actually too low. The IoT Platforms market between 2015 and 2020 grew to be $800 million larger than we forecasted back in early 2016, resulting in a staggering 48% CAGR.
Comparing what we “knew” back in 2016 to what we know today provides some clues as to why the market exceeded expectations so much. 5 years ago, no one really knew what an IoT platform was, let alone how big the market would be, which business models would work, how architectures would evolve, and which companies/industries would adopt them. The only thing that was “known” was that the IoT platforms market was a billion dollar “blue ocean” opportunity ready to be captured by innovative companies.
ABI Research says cloud vendors are investing in the data and analytics services space as they attempt to get on board the IoT value chain. The researcher forecasts that cloud suppliers will grow their share of IoT data and analytics management revenues from US$6 billion in 2019 to US$56 billion in 2026. Cloud vendor’s revenues come primarily from streaming, storage, and the orchestration of data. Analytics services across cloud vendors, on the other hand, are less differentiated, as reflected in pre-built templates such as AWS Sagemaker and Microsoft Azure Notebooks which leverage the open source Jupyter project. Considering that many cloud vendors are in the early stages of analytics investment, cloud vendors are relying on their partners for addressing more specific advanced analytics and vertical market needs.
GSMA Intelligence’s principal IoT analyst Sylwia Kechiche explores enterprises’ digital transformation journey. For better or worse, the IoT has captured the public attention. Yet, while news headlines focuses mostly on consumer devices being connected (speakers, cars, fridges, drones), this is just one part of the story. Purely connecting devices is not the IoT end-game. Rather, it is about the data these devices generate, the insights derived and actions taken as a result to create value and benefit consumers, enterprises and wider society. We are now at the point that IoT is real: it has moved beyond novelty factor and proof of concepts. MWC19 witnessed that, but it also left unanswered questions that are still being grappled with.
While the Industrial Internet of Things (IIoT) is maturing rapidly, there’s often a strong link to Artificial intelligence (AI) and Machine Learning (ML) tools to manage data flows. This raises a host of challenges including connectivity, security, storage and modeling requirements. Designers of IIoT devices and larger deployments must build in contingencies for shifts in these areas or risk falling short. While IIoT is gaining in maturity, the overall market still has many challenges to overcome. Some of these challenges are technical barriers to IoT device operation, such as connectivity standards and battery technology, but the picture is even wider than that. The world of IIoT not only requires IoT hardware to operate reliably and efficiently in all environments but also relies on supporting networks and services too. The result is that IIoT deployments cannot be viewed as isolated technology upgrades or productivity drives, but highly interconnected ecosystems sensitive to a wide range of variables – in particular the developing world of AI.
Keep me plugged in with the best
Join thousands of your peers and receive our weekly newsletter with the latest news, industry events, customer insights, and market intelligence.
Put your news, events, company, and promotional content in front of thousands of your peers and potential customers.
Not a member yet? Not a problem, Sign Up
Sign up to contribute and publish your news, events, brand, and content with the community for FREE