The growing popularity of third-party Internet of Things (IoT) platforms will result in global revenues hitting €2.4 billion in 2020, findings from Berg Insight have concluded.
The M2M/ IoT research firm has forecast total IoT platform sales to grow at a compound annual growth rate of 32.2 percent from now until the end of the decade. According to Berg, the market currently sits at €450 million.
Berg’s forecast covers the three categories that it said most IoT platforms fall under: connectivity management, device management and application enablement.
The Sweden-based company said growth will be spurred by the gradual transition of M2M communications from vertical, single-purpose solutions to collaborative, multi-purpose applications.
André Malm, Senior Analyst at Berg Insight, said that companies were steadily moving to third-party solutions because they offered lower costs, shorter development cycles and higher flexibility than in-house M2M solutions.
Malm said: “In the past, companies have often developed M2M solutions where connected devices sent data via a network directly to an application that handled data storage and processing, security and business logic.
“These solutions normally required long development cycles and high cost, with little scalability and flexibility to handle a growing number of devices and evolving functional requirements”
“Adoption of third party IoT platforms is now growing rapidly. Awareness of the product category is increasing at the same time as companies are realising the value of using a third party platform rather than re-invent the functionality in-house.”