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IoT Platforms and Software – 2nd Edition

IoT Platforms and Software – 2nd Edition

Management Report
Published: August 2016
Pages: 200
Research from: Berg Insight
Sector: Information & Communications Technology

From: GBP 1000.00
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Increasingly complex IoT solutions require more advanced communication platforms and middleware that facilitate seamless integration of devices, networks and applications. This new 200-page study analyses the latest developments on the M2M connectivity management, device management and application enablement platform markets. Berg Insight estimates that total revenues for third party IoT platforms will grow at a compound annual growth rate (CAGR) of 30.8 percent from € 610 million in 2015 to € 3.05 billion in 2021. Get up to date with the latest trends and information about vendors, products and markets based on a large number of executive interviews.

What are the latest trends on the IoT platforms market?
The world of machine-to-machine (M2M) communication is gradually
moving from vertical, single purpose solutions to multi-purpose
and collaborative applications interacting across industry verticals,
organisations and people – the Internet of Things (IoT). The use of
the new term IoT suggests a transition in the evolution of connected
devices, with accelerating scale and scope, as well as higher focus
on interoperability. M2M often signifies customised solutions deployed
within single industry verticals or by one company to improve existing
business operations. IoT puts more emphasis on integration of
sensors, devices and information systems across industry verticals
and organisations to transform operations and enable new business
models. IoT focuses on gaining new insights from analytics based on
data from diverse sources to support decision making, and improve
and create entirely new products and services. There is a wide range of
software platforms available, intended to reduce cost and development
time for IoT solutions by offering standardised components that can be
shared across many industry verticals to integrate devices, networks
and applications. These third party IoT platforms are relatively new
in the market and display a great diversity in terms of functionality.
Broadly speaking, most IoT platforms fall into one of the following three
categories: connectivity management platforms, device management
platforms and application enablement platforms. Berg Insight estimates
that total revenues for third party IoT platforms will grow at a compound
annual growth rate (CAGR) of 30.8 percent from € 610 million in 2015
to € 3,050 million in 2021. This growth is driven by an increase in the
number of companies adopting third party platforms for a growing
number of projects that gradually expand from pilots and initial rollouts to
full deployments. Over time, many companies will also migrate existing
proprietary M2M/IoT solutions to third party platforms.
Connectivity management platforms facilitate the delivery of data
communication services on communication networks. Features like
private APNs, fixed IP addressing and secure VPNs offer more flexibility
and better reliability. Device and subscription management features
like automated provisioning, activation/deactivation, as well as activity
reporting provide improved visibility and control. Several mobile
operators still use proprietary connectivity platforms developed in-house,
while other operators have adopted third-party solutions from vendors
such as Cisco Jasper and Ericsson. Many companies deploying IoT
solutions choose to buy connectivity services from IoT managed service
providers like Aeris Communications, KORE Telematics and Stream
Technologies. A key differentiator for IoT managed service providers
versus mobile operators is the ability to aggregate multiple networks and
thus provide superior area coverage, multi-domestic footprints and multitechnology
Device management platforms enable remote management of IoT
devices. Purpose-built device platforms enable a rich set of functionalities
for remote management, diagnostics, OTA software updates and lifecycle
management. It is often difficult to make a clear distinction between
the most fully featured device management platforms and application
enablement platforms. Many platforms from device vendors including
Eurotech, Gemalto, Sierra Wireless and Telit, as well as platforms from
companies like BlackBerry, Bosch, Cumulocity and Nokia could be
described as device clouds or IoT integration platforms that provide both
device management and application enablement functionality.
Application enablement platforms (AEPs) are designed to accelerate
and simplify the development of IoT solutions, providing common
components that can be re-used across industries and market
segments. AEPs enable companies to focus on differentiation created
by unique capabilities and insights from data rather than duplicating
non-differentiating functionality such as connectivity integration, device
management, data collection, data storage and analytics. Application
enablement platforms also provide integration frameworks adapted
for common enterprise IT systems such as ERP, CRM and business
intelligence. In order to protect data and enable data exchange across
multiple applications and data sources, AEPs need strong security
architectures and user authorisation management systems. The market
for AEPs is still in a relatively early phase in terms of adoption. However,
the segment is seeing considerable activity in terms of M&A and new
entrants. After PTC acquired ThingWorx and Axeda, other major software
and IT companies have bought AEP developers. Examples include
Amazon that acquired 2lemetry, Autodesk that acquired SeeControl
and Microsoft that acquired Solair. Other leading IT companies that are
extending their service offerings to include IoT platforms – often focusing
on analytics and machine learning – include IBM, SAP and Oracle. As a
group, AEP vendors primarily face competition from system integrators
and companies that develop similar functionality in-house.

This report answers the following questions:
Which trends and developments are shaping this market?
What are the benefits of using third party M2M/IoT platforms?
Who are the leading providers of M2M connectivity, device
management and application enablement platforms?
What are the main drivers behind the adoption of M2M/IoT
platforms in major industries?
What are the key features of the application enablement
platforms available today?
Which mobile operators have deployed M2M connectivity
What is the potential market size for third party M2M/IoT

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