Today I was searching for some data related to the Internet of Things (IOT) industry. I searched via twitter. After few minutes I spot this interesting pdf, The Internet of thing Full Report from Silicon Valley Bank. Following a review of some interesting points from the report:
- The ‘Internet of Things’ is not an industry. It is an umbrella term encapsulating a collection of interrelated industries. Each sub-industry has its own stakeholders, value chains, and economics, and therefore each must be evaluated individually
- Successful IoT v1 – An ‘Internet of Some Things’: Numerex (M2M Communications), Cardionet (Patients Monitoring), Intermec (Fleet Management). Primarily enterprise-class, dedicated hosting, high investment, ROI-driven solutions
- Emerging IoT v2 – An ‘Internet of More Things’: Fitbit (Consumer and Quantified Self), Redwood Systems (Energy Management), Electric Imp (Mass Enablement Technologies). A new class of tools and solutions driven by decreasing hardware prices and cloud infrastructure
- Key drivers advancing the Internet of Things: Big data analytics, Moore’s Law (e.g.: Decreasing Prices of Wireless Sensors, Hardware, ), Metcalfe’s Law (e.g.: Wireless Connectivity Technologies)
- Notable VCs investing in IOT are: KPCB, DAG, Khosla, Lighthouse, and NEA. Notable Strategic Investors include: Intel, BestBuy, Cisco, and Comcast
- Internet of Things Segmentation: communication, connected healthcare, enablement, energy and environment, enterprise and IT, heavy industry, retail and commerce, secure and safety, smart building, transportation and logistics
- To get a product to market and successfully expand (Series C and beyond), it takes, on average, $30M+ in total invested capital. Given some of the quick hits in recent years (e.g. Instagram), IoT factors such as hardware development, inventory management, long sales cycles, and/or slower than expected up-take may explain the lack of investment activity
One of the conclusions from the author is that advancements in technology have created a renaissance for the Internet of Things. Specific sub-sectors show promise, but significant technological hurdles still remain to realize the holistic vision.
I then followed my research. This time using Google search and found the following interesting links:
- Cisco Internet Business Solutions Group for Internet of Everything
- 2013 IoE Value Index webpage and whitepaper
Some of the insights from the Cisco research are:
- The Internet of Everything is poised to generate at least $613 billion in global corporate profits in calendar year 2013
- IT-intensive sectors are capturing a higher percentage of IoE value
- Executives in surveyed countries anticipate job growth and wage increases as a result of IoE
- Competition will intensify as IoE evens the playing field between large and small companies around the globe.
Cisco focus on IOT has led the company to launch a new BU headed by Robert Soderbery. The group is funded with $200 million in R&D resources, hundreds of people in development and 500 people in sales and marketing. It is focused on four vertical markets: discrete and process manufacturing; transportation; energy; and public sector. To accelerate the development of the rapidly emerging Internet of Things market, Cisco will organize an inaugural Internet of Things World Forum in Barcelona in October.
During my random Internet walk around the IOT technologies in addition to the previous mentioned companies, I’ve found many links to interesting projects and startups. Just to mention 2 of them: Trash track project led by Carlo Ratti from MIT SENSEable City Lab or Netatmo the personal weather station with air quality sensor. Which is an interesting IOT startup or project that you have discovered recently?