IOT PLATFORMS: MARKET REPORT

Transcription

1 Market Report Excerpt January 2016 IOT PLATFORMS: MARKET REPORT Selected PTC Excerpt IoT Platforms have become a topic of major strategic importance for many different companies. PTC is currently leading the fast growing IoT Platforms market and continuing to expand its IoT customer base. A big vision, organic growth, and tactical acquisitions have positioned PTC at the forefront of this exciting new field of technology. compiled for

2 DISCLAIMER Disclaimer This document contains a selected excerpt taken from IoT Analytics IoT Platforms: Market Report released in January The information presented in this excerpt is intended to represent PTCs position in the IoT platforms market as detailed in the aforementioned market report based on the research and findings of IoT Analytics at the time of compilation in Q To purchase a copy of the full IoT platforms market report, please contact padraig.scully@iot-analytics.com, telephone +49 (0) or visit our website. Excerpt Contents 1 INDUSTRY OVERVIEW (Excerpt) 3 2 DEFINITIONS (Excerpt) 4 3 IOT PLATFORM MARKET ANALYSIS (Excerpt) 5 4 IOT PLATFORM COMPANIES: STRATEGY & PROFILES (Excerpt) 7 5 METHODOLOGY (Excerpt) 9 6 ABOUT 10 IoT Analytics IoT Analytics is the leading provider of market insights and industry intelligence for the Internet of Things. IoT Analytics Telephone: +49 (0) Astra Tower, Zirkusweg 2 info (at) iot-analytics.com Hamburg, Germany 2

3 INDUSTRY OVERVIEW 1 INDUSTRY OVERVIEW (Excerpt) As the Internet of Things (IoT) begins to transform businesses, economies and society, IoT platforms are emerging as the principal element in the overall IoT infrastructure. Applications Security Software backend Communication IoT platforms Hardware Exhibit 1: Central building blocks of IoT - IoT platforms are part of the central software backend in the IoT infrastructure (Source IoT Analytics). With 360+ competing IoT platform providers emerging, it s becoming more and more challenging for IoT decision makers to evaluate the market and select the best platform for their connected business. Leveraging an accurate understanding of the complex IoT platform market will enable IoT decision makers strategically position their companies to take full advantage of the profound potential of connected solutions. The worldwide market for IoT platforms reached $298M in 2015 with an estimated compound annual growth rate CAGR of 33%, making IoT platforms one of the fastest growing segments, even within the IoT market and forecast to become a $1.6B opportunity by PTC is the IoT platform market leader with 18% market share, reporting revenue of $53M in 2015, up from $5.2M in The IoT platform market is an aggregation of innovative startups, as well as established firms entering the market such as global hardware manufacturers, enterprise software providers and mobility management companies. Our market report examines the IoT platform market in detail for the period from 2015 to Comprehensive worldwide market sizing is provided for 2015, and a five-year growth forecast for the market is presented for

4 DEFINITIONS 2 DEFINITIONS (Excerpt) IoT platforms play an integral part for the development of scalable IoT applications and services that connect the real and virtual worlds between objects, systems and people. All IoT platforms mentioned in this report generally refer to IoT Application Enablement Platforms (AEPs) that consist of most of the following components: Connectivity & normalization, device management, database, processing & action management, analytics, visualization, additional tools, and external interfaces. For details on each component see our IoT platforms white paper. There are 4 other types of platforms that are often referred to as an IoT Platform but are not considered in our report: Connectivity / M2M platforms. These platforms focus mainly on the connectivity of connected IoT devices via telecommunication networks (e.g., SIM-cards) but rarely on the processing and enrichment of different sets of sensor data. An example of a connectivity platform is Sierra Wireless AirVantage. IaaS backends. Infrastructure-as-a-Service backends provide hosting space and processing power for applications and services. These backends used to be optimized for desktop and mobile applications but IoT is now also in focus. An example is IBM Bluemix not to be confused with their AEP offering IBM Watson IoT. Hardware-specific software platforms. Some companies that sell connected devices have built their own proprietary software backend. They like to refer to the backend as an IoT platform. Since the platform is not open to anyone else on the market it is debatable whether one should call it an IoT platform. An example is Nest. Consumer/Enterprise software extensions. Existing enterprise/cloud software tools such as Salesforce.com and and operating systems such as Microsoft Windows 10 are increasingly allowing the integration of IoT devices. These extensions are often not advanced enough to classify as a full IoT platform but may get there soon. A confusing aspect of IoT platforms is that companies are starting to combine different services. IBM for example is combining its Watson IoT Application Enablement Platform with its Bluemix IaaS backend. The market presented in this report does not include existing revenues from IaaS backends (e.g., IBM Bluemix, Amazon AWS) even though they are part of the overall cloud infrastructure but rather focuses on revenues generated from the IoT AEP business (e.g., IBM Watson IoT, Amazon AWS IoT). One should note that some telecom equipment vendors and Telco companies who have M2M connectiviy solutions are not yet reagarded as full-scale IoT AEPs based on our definition as of January 2016, lacking elements such as advanced analytics (e.g., machine learning) but have the potential to expand offerings into IoT AEPs. Also its worth noting, market sizing for companies such as Telit are just for the IoT AEP part of their business and not the connectivity platform (e.g., Telit devicewise but not the Telit IoT connectivity platform). It is expected that many of these companies operating in connectivity, IaaS, hardware, and enterprise software will be amending their product portfolio in the future such that they do offer complete IoT AEP solutions. For more information, read our IoT platforms blog and watch our recent IoT platforms webinar. 4

5 IOT PLATFORM MARKET ANALYSIS 3 IOT PLATFORM MARKET ANALYSIS (Excerpt) Market Size & Growth: A $1.6B market by 2021 Exhibit 2: IoT Platform Market Size Forecast (Source IoT Analytics). The growth of the IoT Platform market through 2021 is presented in Exhibit 6. The worldwide compound annual growth rate (CAGR) for the market through the six-year period is expected to be 33%, representing steady growth from $298M in 2015 to become a $1.6B opportunity by At this growth rate, IoT platforms are one of the fastest growing technology markets in the world. The market is currently growing at rates >33% as it is starting from a very low base and currently expanding rapidly. The overall year-on-year growth rate is expected to decline steadily over the forecast period as the market becomes more mature. This is in line with the growth of many other previous high-growth technology markets such as Big Data or E-commerce platforms. 5

6 IOT PLATFORM MARKET ANALYSIS IoT SEGMENTS Manufacturing is expected to be the biggest IoT Platform segment reaching $438M by 2021 as more and more companies are realising the benefits of connecting industrial equipment to streamline operations and reduce costs. Smart cities to experience the largest growth over the 6-year period (54% CAGR) driven by government initiatives and large incentives to enhance service quality, optimise resources and make cities more efficient. Smart Home and Wearables are the early leading markets in IoT, however slower adoption rates are expected to reduce growth to 18% and 11% respectively over the 6-year period in contrast to the other fast-growing IoT segments. IoT REGIONS North America region to experience the highest CAGR of 36% by 2021, given that the USA are one of the early adopters of IoT and IoT platforms: The majority of leading IoT platform providers are based in the US and most of the large Startup funding rounds are currently closed there as well. However, Asia with 35% growth will emerge as the biggest continental market (2021: $616M) by IoT platform implementation, followed by North America and Europe. By 2021 China will emerge as the leading Asian country in the IoT platform market driven by it s strong consumer electronics and industrial manufacturing footprint. United States is currently the leading country in the IoT platform market in North America, as well as the biggest single-country worldwide with a $73M market size for 2015, and is expected to remain in top position for 2021 with $469M, followed by China ($180M), Germany ($136M), Japan ($127M) and Korea ($118M). 6

7 IOT PLATFORM COMPANIES: STRATEGY & PROFILES 4 IOT PLATFORM COMPANIES: STRATEGY & PROFILES (Excerpt) A growing number of companies are entering the complex market for IoT platforms. Market entry strategies into the IoT platforms market can be categorized into three main categories: Technology stack bottom-up: Platform connectivity centric Bottom up strategies by hardware manufacturers, such as Samsung, and innovative Startups such as Ayla Networks. Technology stack top-down: Application enablement platform development Top down strategies by Enterprise software companies such as IBM and Amazon. Tactical mergers: Tactical mergers, acquisitions and strategic partnerships by platform providers and technology companies such as Alcatel Lucent and Nokia. IoT Analytics research suggests PTC ThingWorx is the market leader with their high scale of IoT operations already in place and is the current IoT platform market leader with 18% market share, reporting revenue of $53M in 2015, up from $5.2M in Innovative early startups (e.g., Ayla Networks) are surfacing vying for more market share across segments, but have tough competition both from established players (e.g., Telit M2M) and recent entrants (e.g., Amazon AWS IoT), initially focused on marketing efforts to grow global awareness, but are now gaining ground. Exhibit 3: IoT Platform Market Share by platform provider/companies in 2015 (Source IoT Analytics). 7

8 IOT PLATFORM COMPANIES: STRATEGY & PROFILES I. COMPANY PROFILE: PTC Having invested over $600M in the past 24 months in R&D and strategic acquisitions, PTC is now viewed as the leading IoT platform on the market. Exhibit 4: PTC Profile - A leading IoT platform company (Source IoT Analytics) PTC s offering combines cloud connectivity and industrial automation from Kepware, application development from ThingWorx, machine learning and predictive analytics from ColdLight and augmented reality from Vuforia. Amalgamated under the ThingWorx brand, the extensive IoT platform connects, creates, analyses and enables experiences of connected products in unique ways. PTC s existing enterprise software business in CAD, PLM, ALM and SLM is also evolving into a closed-loop approach integrating sensor data for improving product design and service. PTC are also well placed to take advantage of IoT opportunities and clearly understand the demand of Industrial IoT having signed strategic alliances with Bosch and GE IoT Analytics. All rights reserved. 8

9 METHODOLOGY 5 METHODOLOGY (Excerpt) I. IoT Platform Market Sizing Criteria IoT Analytics market forecast methodology utilizes sophisticated econometric models augmented by the input of industry experts and a thorough review of economic and revenue data to form multi-year projections of expected revenue changes by segment and by region based on historical market values where possible and calculated assumptions for forecasted revenue figures. The market model for 2015 is based on a bottom-up approach, summing up some of the publicly available company revenues with IoT Analytics internal intelligence. Revenues of companies that are not known were approximated using a number of indicators such as number of employees and number of announced deals. Regional and segment split are based both on the results of the interview questionnaire as well as through the use of web indicators for regional and segmentspecific IoT activity (e.g., number of employees working on IoT solutions in a specific country). The forecast to 2021 is based on a model that takes into account historic growth in the period from and factors in a slowing growth over time as seen in other high-growth tech markets in the past. The results were triangulated with the growth rates of other fast-growing high-tech growth markets. The revenue estimates given in this report include revenues from device and data connections via the platform as well as related integration and platform extension projects. Services that are sold on top of the platforms or hardware device revenues are not included in the revenue estimates. II. Company Profile Selection Process The selected IoT platform companies profiled in this report represent in IoT Analytics opinion the biggest and most strategically important players in the market based on our thorough research/analysis of over 300 IoT platform providers. III. Methodology This report is the result of desktop research, deep interactions with a number of key IoT Platform providers, leading discussions and interviews with executive level IoT solution experts as well as data analysis of various sources. The research is based on a rigorous process with academic and industry recognized methodologies (such as web-based analytics, trends analysis, and publicly available data on the market e.g., public M&A and funding info from crunchbase. com and angellist.com). The insights gained through these methodologies were enhanced by IoT expertise from internal research analysts. 9

10 ABOUT 6 ABOUT IoT Analytics is the leading provider of market insights and industry intelligence for the Internet of Things (IoT). More than 30,000 IoT decision makers rely on IoT Analytics data-driven market research every month. IoT Analytics tracks important data around the IoT ecosystem such as M&A activity, startup funding, job developments, and company activity. The product portfolio includes: 1. Free insights on IoT markets and companies, 2. Focused market reports on specific IoT segments, 3. Go-to-market services for emerging IoT companies. IoT Analytics is headquartered in Hamburg, Germany. Find out more at You may get directly in touch with the authors: Padraig Scully (padraig.scully@iot-analytics.com) Knud Lasse Lueth (knud.lueth@iot-analytics.com) compiled for PTC s Value Description: PTC has the most robust Internet of Things technology in the world. In 1986, the company revolutionized digital 3D design. Now its leading IoT and AR platform and field-proven solutions bring together the physical and digital worlds to reinvent the way you create, operate, and service products. With PTC, global manufacturers and an ecosystem of partners and developers can capitalize on the promise of the IoT today and drive the future of innovation. For more PTC information on IoT visit: Note: An update of the IoT platforms market report is currently being undertaken and will be available for download in 2017, please contact our sales team if you are interested in learning more: sales@iot-analytics.com. 10

11 Copyright 2016 IoT Analytics GmbH. All rights reserved. IoT Analytics is the leading provider of market and industry insights for the Internet of Things (IoT) and for Industry 4.0. This document is intended for general informational purposes only, does not take into account the reader s specific circumstances, and may not reflect the most current developments. IoT Analytics disclaims, to the fullest extent permitted by applicable law, any and all liability for the accuracy and completeness of the information in this document and for any acts or omissions made based on such information. IoT Analytics does not provide legal, regulatory, audit, or tax advice. Readers are responsible for obtaining such advice from their own legal counsel or other licensed professionals. For more information visit