In new data from ABI Research’s IoT Market Tracker, professional services are driving over 40% of global IoT revenues today.
Professional services consist of a myriad of service activities including mobile, web and server-side application development, IT and OT systems integration, and consulting. However, by 2019, software platforms and analytics services will each drive more revenues globally than professional services in IoT markets.
“There are many companies today who believe they can build their own IoT solution with the help of system integrators and VARs,” says Day Shey, Vice President and IoT Practice Director at ABI Research. “Some companies require a customized solution due to their own requirements and very complex systems. However, not all of these efforts yield the results hoped for, and they miss out on the efficiencies provided by a vast supplier base offering IoT software platforms.”
Indeed, IoT software platform suppliers provide tools and services to greatly simplify extracting data from machines and things, managing them and building IoT applications. This group consists of a well-established set of suppliers who have focused their platforms on vertical markets led by vendors serving the OEM and fleet telematics segments. But it also consists of a long tail of platform vendors offering everything from very specialized services to a whole software stack including applications development. ABI Research believes that “verticalized” platforms will continue to hold the largest share of the IoT software platform market with new growth provided by the smart home and healthcare segments.
“Ultimately the goal of IoT connections is the data, and the IoT data and analytics market is set to grow the fastest of any of the major IoT revenue categories.”
“Similar to the platform market, this segment also has a well-established base of suppliers but it is the startups in this market that are providing the innovation and expanding analytics to a broader base of businesses.”