IoT Platforms and Software is the fourth strategy report fromBerg Insight analysing the latest developments on the IoTconnectivity management, device management and applicationenablement platform markets.
This strategic research report from Berg Insight provides youwith 185 pages of unique business intelligence including 5-yearindustry forecasts and expert commentary on which to base yourbusiness decisions.
Highlights from this report:
360-degree overview of the IoT ecosystem.Insights from 30 executive interviews with market leadingcompanies.
Summary of the latest industry trends and developments.
Updated in-depth profiles of key players in the IoT platform market.
Reviews of the market strategies of leading platform vendors.
Perspectives on the evolution from vertical M2M solutions to the
broader scale and scope of the IoT.
Extensive global market forecasts lasting until 2023.
This report answers the following questions:
Which trends and developments are shaping the IoT platformmarket?
What are the benefits of using commercial IoT platforms?
Who are the leading providers of IoT connectivity, devicemanagement and application enablement platforms?
What are the main drivers behind the adoption of IoT platforms?
Which are the leading IoT platform vendors in the major marketverticals?
What are the key features of the application enablementplatforms available today?
Which mobile operators have deployed IoT connectivitymanagement platforms from third party vendors?
What is the potential market size for commercial IoT platforms?
IoT platforms provide developers with tools to connect and manage devices and integratecollected data into various applications and services. These platforms are intended to reducethe cost and development time for IoT solutions by providing standardised components thatenterprises can build upon. The product category facilitates the growing trend away fromtime-consuming in-house developed and bespoke IoT solutions. Broadly speaking, most IoTplatforms fall into one of the following three categories: connectivity management platforms,device management platforms and application enablement platforms.
About 63 percent of the global installed base of 1.2 billion IoT SIMs were managed usingcommercial connectivity management platforms (CMPs) at the end of 2018. Huawei is theleading IoT CMP vendor with close ties to the domestic operators China Mobile and ChinaTelecom and managed over 600 million IoT SIMs in mid-2019. Whale Cloud, formerly knownas ZTEsoft and partly owned by Alibaba Group since 2018, is the runner up on the Chinesemarket. Cisco is the dominant IoT CMP vendor outside of China with 130 million connections,followed by Vodafone and Ericsson. As a response to the decline in IoT connectivity ARPUs,leading IoT CMP vendors are gradually moving up the stack to help network operatorsgenerate new revenue streams from value-added services and solutions.
IoT CMPs are also a key component in the value proposition from IoT managed serviceproviders. Aeris and KORE have consolidated their positions as leading players in thissegment, with 14 million and 11 million connections respectively in mid-2019. Several IoTmanaged service providers offer their solutions to mobile operators. Nokia’s Worldwide IoTNetwork Grid (WING) service has been selected by eight operators, including AT&T andTele2. New entrants further include Arm as well as 1NCE, which announced DeutscheTelekom as the first customer to select its IoT CMP to address high-volume, low bandwidthuse cases. EMnify and Eseye are at the forefront of integrating global cellular IoT connectivitywith cloud platforms, enabling customers to seamlessly incorporate IoT connectivitymanagement controls in their IoT solutions built on public cloud infrastructure.
The market for IoT device management and application enablement platforms is in a stage oftransformation driven by investments from the major cloud service providers AWS, Microsoft,Alibaba and Google. While IoT platform providers have always had strengths andweaknesses in various parts of the stack, recent developments have led many vendors to realigntheir solutions with a renewed focus on core capabilities. Increased focus is also beingplaced on interoperability, as partnerships are formed between vendors with complementingcapabilities. Collaboration is also happening through open source initiatives, enablingcompanies across the IoT ecosystem to compete at scale by jointly developing open sourcecomponents to be part of their solutions. Berg Insight estimates that the market forcommercial device management and application enablement platforms grew 48 percent toreach about US$ 1.4 billion in 2018. Growing at a compound annual growth rate (CAGR) of37 percent, the market value is expected to reach US$ 6.9 billion in 2023.
IoT platform providers span from start-ups to major technology companies, device makersand industrial software vendors. Even though consolidation is happening at a rapid pace,Berg Insight is of the opinion that a level of fragmentation in the market will remain due tospecific requirements in industries such as manufacturing, utilities and automotive. In theindustrial sector, PTC continues to expand, leveraging its strategic alliances with RockwellAutomation and Microsoft. Both Microsoft and AWS have recently put efforts into providingmore capabilities for edge devices, while extending their reach into the industrial markets.The business software vendors SAP and Oracle increasingly focus on enabling customers tointegrate IoT data to their existing business applications by adding built-in integrations andextensibility features. Asset-heavy companies like GE and Hitachi leverage their expertise inboth the operational technology and information technology domains to help customersincrease asset performance and process efficiency. Important IoT platform providers withhigh involvement in the industrial sector further include the vendors Altair Engineering, Bosch,Davra, Device Insight, Eurotech, Exosite, Relayr and Waylay. In the utilities sector, C3.ai andNokia Software IoT have amassed large customer bases of utilities that use the companies’analytics software to enhance grid asset management. Vendors with strong devicemanagement capabilities such as Arm, Amplía, AVSystem and Gemalto also have a strongmarket presence within the utilities sector. In the automotive space, several large automotiveOEMs have chosen commercial IoT platforms from vendors such as Alibaba, Bosch, Huaweiand Microsoft to support their connected car efforts.
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.Download eBook