Important Things for Startups Entering the IoT in 2016
Hundreds of Internet of Things (IoT) startup companies were created last year. Forbes released 2015’s top 100 IoT startups ranked by total funding:
- 48 of the top Internet of Things (IoT) startups are based in the Bay Area, 5 in Boston, 3 in Los Angeles and Toronto, and 2 in Dallas, Paris and San Diego.
- Venture funding in Jawbone, Genband, Silver Spring Networks and View Glass combined is $1.6B or 26% of all funding in the top 100 IoT startups.
- Total funding for the top 100 IoT startups is currently $6.19B.
- 31 are in late stage funding cycles as of today.
If you are considering starting your IoT business in 2016, you need to first think about how you are going to run your business. ECM Technews put together some important things from worldwide IoT experts for prospective business owners to consider.
For number of connecting things in 2016, Gartner predicted that by the end of this year, over six billion ‘things’ will be connected to the internet – roughly equivalent to around five miles each day as many as 17.5 million new things will become connected every day.
Source: Gartner (November 2015)
For the 2016 industry Focus, Jasper predicted that in 2016, the industry will stop talking about number “things” and focus more on the services enabled by those connected devices:
- In 2016, we stop counting the “Things”
- For the first time, more new cars will be connected than not
- Low Power Wireless Area Network (LPWAN) technologies will NOT go mainstream
- The “IoT Platform” Shakeout
- The Security of Things
For general 2016 outlook of the IoT industry, Vik Bogdanov provided interesting statistics in six categories:
What IT professionals primarily associate IoT with?
- Home automation and connected cars – 28%
- Sensors – 16.7%
- Smartphone and wearable – 23.3%
The most lucrative IoT services in the short term:
- Smarthome – 34.2%
- Industrial IoT – 50.2%
- Smart energy – 36.8%
Revenue percentiles to be directly attributed to IoT in 2016:
- Less than 10% – 59%
- 10-30% – 25%
- Up to 50% – 9%
- Over 50% – 7%
Top 5 inhibitors to the IoT evolution as of 2015:
- Security challenges – 42.4%
- Platform standardization issues – 37.2%
- Technology immaturity – 29.0%
- Consumer hesitation – 26.7%
- Lack of business prioritization – 24.4%
Where cloud-based service will be most useful in IoT:
- Analytics for IoT data – 37.6%
- Consumer/enterprise user facing apps – 32.5%
- Part of transportation architecture/middleware – 14.5%
- App development platform – 13.2%
IoT monetization potential:
- IoT is focused on minimizing losses – 6%
- IoT aims to make existing assets more efficient – 53.3%
- IoT helps generate new revenue chaccels through improved services – 40.5%
For the technology trends, Scott Gerber considered the following 9 technologies would shake up the startup world in 2016:
- Google’s Project Loon
- Accelerated mobile pages project (AMP project)
- Mobile payments
- Live streaming
- Virtual Reality showrooms
- Wearables
- Home batteries
- Amazon Dash
- Twitter content in Google
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