The IoT Software Go-to-Market & Commercialization Report 2023 is part of IoT Analytics’ ongoing coverage of IoT software and platforms. The information presented in this report is based on an extensive survey of IoT software vendors. The purpose is to inform other market participants about the go-to-market market strategy of vendors regarding IoT and related software (e.g., other IT and OT/industrial software). Survey participants were selected randomly, and their knowledge was verified independently. To ensure complete objectivity, IoT Analytics did not alter or supplement any survey results and did not accept participants who were suggested by third parties. The IoT Analytics team added a number of examples to make some of the survey results more “real” for the reader (e.g., Pricing examples and Examples of successful marketing campaigns).
What are the biggest pain points for IoT software development teams?
These problems can be fixed by simply taking the process seriously. Find a software platform partner with experience in the IoT space. Just bringing on software developers at the cheapest rates is a terrible idea for IoT. IoT software has to be engineered, not developed, and should be approached with care and entrusted to individuals with the experience to get IoT solutions built right, built fast, and built to last.
How often are new IoT software features released?
IoT devices, like other computing devices, often use more than one software component to be able to do what they do. Device manufacturers (vendors) resort to this strategy to avoid reinventing the wheel and save resources and time. These software components get updated frequently, say from every few weeks to years, because they often have bugs, and new features are added to them. But one of the other important reasons is that software components also patch vulnerabilities with updates. Users can easily avoid possible security incidents because of those vulnerabilities by just updating the software component. If they don’t update these vulnerabilities might get exploited by attackers and lead to security incidents.
Researchers have found that not updating and using outdated software components have been correlated with compromise. Also, a positive correlation has been found between a lack of regular update practice and infection (security incident). So the bottom line is wherever a software component is used, it needs to be updated over time as vulnerabilities are found in them by security researchers.
How do IoT vendors expect their revenue to change in the coming years?
With the benefits of IoT for business now felt across industries as wide and varied as automotive to building management, retail to mining and shipping to utilities, investment in these technologies looks likely to soar.
Daniel Bailey, investment manager at ECI Partners, a private equity firm, says: “The market for IoT is exciting. It’s large and growing rapidly, driven by reducing data costs, improving underlying technologies, such as 5G, and the ever-increasing viable use-cases for connecting ‘things’. The benefits of this to businesses are far reaching, anything from ensuring construction regulations are complied with to tracking cows across a farm.”
A new global study from Juniper Research also signals a bright future with the number of industrial IoT connections predicted to increase from 17.7 billion in 2020 to 36.8 billion in 2025, fuelled by smart manufacturing.
However looking ahead to 2021, Paul Haimes, vice president of European technical sales at industrial IoT platform PTC, says: “If I hope for one thing it is that these adoptions of technologies have a better uptake in the small and medium-sized business space. That’s really important for the recovery and health of our manufacturing industry.”
What is the preferred go-to-market strategy of IoT vendors (a. pricing, b. billing, and c. distribution channels)?
A traditional Go-To-Market strategy can vary depending on the company’s industry, product type and goals. But the overall goal is always to maximize product value, market share and revenue through an efficient and targeted approach to the market.
Traditional GTM strategy vs IoT GTM strategy
In many ways, an IoT GTM strategy is similar to a traditional GTM strategy. However, there are some focus areas to pay special attention to when moving from unconnected products/services to IoT products/services.
One area to pay particular attention to is the nature of the product. In a traditional GTM strategy, the product is often a physical product, whereas in an IoT GTM strategy, the product often involves a combination of physical devices, sensors, software, data analytics and cloud infrastructure. It’s not just about delivering a physical device, but also about supporting the entire ecosystem that utilizes IoT technology. This means, at the same time, that you also need to be particularly keen on data management and interoperability. IoT solutions generate huge amounts of data and often involve multiple devices, platforms and systems that need to work together.
A technology-heavy product therefore makes the GTM strategy more complex both in the product development phase, but also in the ongoing delivery of the product/service. An important aspect of an IoT GTM strategy is also to take into account the ongoing development and innovation in the IoT field. Technology evolves rapidly, new standards and protocols emerge, and new application areas are continuously being discovered. Therefore, it is crucial for companies to be agile and flexible in their GTM approach in order to adapt and take advantage of the latest IoT trends and opportunities.
In a nutshell, an IoT GTM strategy is about adapting and extending traditional GTM principles to meet the unique challenges and opportunities associated with IoT solutions. By identifying and harnessing the potential of IoT technology, differentiating themselves in the market, creating value for customers and being aware of the evolving IoT landscape, companies can achieve a strong position and success in this ever-growing and dynamic market.
What are the most important factors for driving IoT customer adoption?
The Internet of Things (IoT) has rapidly evolved from a buzzword to a transformative technology that is reshaping industries, businesses, and everyday life. IoT refers to the interconnection of everyday objects and devices to the internet, allowing them to collect and exchange data. This technology has seen explosive growth in recent years, and several key factors are driving its continued expansion. In this article, we will explore these factors and delve into why IoT is poised for even greater growth in the near future.
1. Increasing Connectivity
One of the primary factors fuelling the growth of IoT is the ever-increasing connectivity options available. With the proliferation of high-speed internet, including 5G networks, devices can now communicate faster and more efficiently than ever before. This enhanced connectivity opens up new possibilities for IoT applications in areas such as smart cities, autonomous vehicles, and industrial automation.
2. Cost-Effective Hardware
The cost of IoT hardware components has significantly decreased over the years, making it more accessible to businesses and consumers alike. Sensors, microcontrollers, and other essential components have become more affordable, enabling the development of a wider range of IoT devices. This cost-effectiveness has led to increased adoption across various industries, from agriculture to healthcare.
3. Data Analytics and AI
IoT generates massive amounts of data, and advancements in data analytics and artificial intelligence (AI) have made it possible to derive valuable insights from this data. Businesses can now make informed decisions, optimize operations, and improve customer experiences by leveraging IoT-generated data. This synergy between IoT and data analytics is a major driver of IoT growth.
4. Industry-Specific Applications
IoT’s growth is also being propelled by its ability to address industry-specific needs. Various sectors, including agriculture, healthcare, manufacturing, and logistics, have developed tailored IoT solutions to solve unique challenges. For instance, precision agriculture uses IoT sensors to monitor soil conditions and optimize crop yields, while the healthcare industry employs IoT devices to track patient vitals and streamline healthcare delivery.
5. Enhanced Security Measures
Security concerns have been a significant barrier to IoT adoption in the past. However, IoT security has improved significantly with the development of more robust encryption protocols and security measures. As a result, businesses and consumers are more confident in deploying IoT solutions, further driving growth.
6. Consumer Demand for Smart Devices
Consumer demand for smart and connected devices is a significant driver of IoT growth. Smart homes, wearable technology, and connected appliances are just a few examples of IoT applications that have gained popularity among consumers. As IoT technology becomes more integrated into daily life, its growth is propelled by consumer adoption.
7. Environmental Sustainability
IoT can play a crucial role in promoting environmental sustainability. By optimizing resource usage and reducing waste, IoT solutions contribute to a greener future. Industries like energy management, waste management, and transportation are utilizing IoT to minimize their environmental footprint, aligning with global sustainability goals.
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Which customer segments (regions/industries/company sizes) are the quickest adopters of IoT software?
- Environmental monitoring. …
- Connected buildings and building security. …
- Smart cities. …
- Supply chain management. …
- Digital payments. …
- Healthcare and consumer health and wellness. …
- Predictive maintenance. …
- Agricultural, commercial, industrial and retail management and operations.
What are the biggest concerns that the customers have when adopting new IoT software?
Lack of iot integration skills
Handling all that data
Lack of open standards
Which marketing channels have had the most success for IoT vendors in the last two years?
The number 1 tool that IoT software executives said worked for their companies is running their own webinars (Note: We queried for 19 different marketing tools). 81% of surveyed vendors indicated that this tool brought success in terms of ROI, with 50% of the respondents marking “very successful.”
Which current IoT software and applications trends do companies foresee?
More widespread connectivity for IoT devices
One of the trends in 2023 that will enable this growth is the increased replacement of 2G/3G wireless networks with 4G/5G networks. This will particularly increase connectivity in urban communities, but many rural areas will still depend on lower-performing networks.