This is an overview of the report "Internet of Things Investment Outlook: 2016 Q2", published by IoT ONE.
Industrial IoT adoption is accelerating, providing a window of opportunity to capture or lose market share. The Industrial Internet of Things has been hyped for a nearly a decade but progress was limited until recently. The advance of core technologies, improvements in interoperability, and a growing knowledge base of implementation requirements have made the business case for IoT use cases more transparent and attractive. The next three years will see emergence of multiple billion dollar Industrial IoTmarket niches and the establishment of market leaders.
Industrial automation incumbents are well positioned but must address IT-OT capabilities gaps. IoT builds upon the technologies of traditional industrial automation and M2M connectivity, which places existing industrial automation vendors in a strong position. Incumbents have the customer relationships and industry expertise to bring IoT solutions to market. However, many lack the IT proficiency and the leadership required for dramatic change. The taxi, home HVAC, and motel industries have been radically disrupted by Uber, Nest and Airbnb. We expect industrial incumbents to face similar challenges if they fail to move quickly to integrate IT into their traditional OT system.
Early adopters will gain competitive advantages from access to data generated from their internal operations, supply chain partners, and the products and services that their customers use. Companies that invest in these capabilities will be able to better optimize their cost structure and understand and address the evolving demands of their customers.
Companies that are unable to adjust rapidly to a world driven by real-time data will lose market share as their cost structures and product offerings become less competitive. As industrial IoT adoption progresses, the emergence of innovative technology startups will create opportunities for investors who appreciate the importance of data-driven industrial systems.
Primary IoT Investment Categories
IoT technologies can be segmented into five categories: sensors, connectivity, devices, software and services. Among these categories, we believe software and services present the greatest opportunity for profitable growth in the medium term.
Venture capital investment in IoT companies surged in 2014 before stabilizing in 2015. VC investment has been heavily concentrated in American software companies but early stage investment in hardware makers is rebounding due to the success of crowdfunded devices. Investment in Chinese IoT companies is being driven by concern that foreign owned companies will not have equal access to China’s rapidly growing industries and city IoT markets.
The full report includes:
• Internet of Things Investment Assessment
• 10 Characteristics of Industrial IoT Winners and Losers
• Chinese IoT Policy and Business Opportunities
• Analysis of China IoT Market Development
• Key Challenges & Strategies for Industrial IoT in China
• Chinese Investment Target Identification & Methodology
IoT ONE is an information platform dedicated to mapping the Industrial IoT ecosystem. Companies use our platform to identify the partners they need to achieve transformative business results using Internet of Things technologies. End users and systems integrators use IoT ONE to identify new use cases, technologies, and technology providers. IoT vendors use the platform to enhance market awareness and connect with customers and partners.
The platform is free for all users. To learn more, visit us at www.iotone.com or contact me to schedule a discussion.
Erik Walenza-Slabe | 王闻达
CEO | 首席执行官
P: + 86 21 6010 5058
M: + 86 156 0183 9705