IoT is quickly emerging as a very significant agent of transformation as it blends the physical and digital on-line worlds. As everyone has been told repeatedly by the consumer electronics industry, the home is a key target for applying the benefits of IoT-enabled devices. Consumers are now expecting devices and related services that will make their lives easier and more convenient. They expect their IoT-enabled home devices to evolve to new uses by working collaboratively as they become an integral part of managing their everyday home life.By 2017, it has been estimated that 90 million people will live in smart homes. By 2020, there will be 50 billion connected devices. The latest Gartner forecast predicts that by 2020 there will be $309 billion in incremental revenue opportunity in the IoT market.
I published my first book, The End of Software, in 2004. At the time, I was president of Oracle On Demand, which served as a starting point for Oracle’s billion-dollar cloud business. In the book I discussed the fundamental economic reasons software should be delivered as a service.As an example of new startups in the field, I discussed four companies, VMware, Salesforce, NetSuite and OpenHarbor. None of them were public companies when the book was published. Salesforce was still under $86 million in revenue. While I didn’t get all four correct, three of the four have gone on to be major companies driving the second generation of enterprise software.
Building new wind farms in the United States has added $13 billion a year, on average, to the American economy over the past five years — more than the annual revenue generated by Major League Baseball each year, according to new information from the American Wind Energy Association (AWEA). Beyond Major League Baseball, wind’s average annual project investment in the U.S. over the last five years is also the same as the annual revenue generated by the National Football League, AWEA notes.
There aren’t many sectors doing especially well right now in the stock market, so the pullback in semiconductor stocks isn’t exactly surprising, let alone unique. As about a quarter of the industry’s revenue comes from industrial markets, and meaningful amounts come from computing, consumer devices, and phones, it is not so surprising that investors are worried about the outlook for 2016 even though multiple semiconductor CEOs have opined that the slowdown will be briefer and shallower than past downturns.This brings me to Silicon Labs (NASDAQ:SLAB). The shares of this microcontroller, sensor, and RF chip company have fallen around 15% since my last update, more or less matching the decline in Microchip Technology (NASDAQ:MCHP) and outperforming NXP Semiconductors (NASDAQ:NXPI) over that period. While the company has definitely had some challenges with more commoditized competition in segments like TV tuners, the company’s Internet of Things (IoT) business continues to grow nicely.
To some the Internet of Things is a very new idea: connecting up everyday objects to collect new streams of data — and maybe even new streams of revenue too — may seem a relatively recent trend.But to others it’s a continuation of work that’s been going on under a different name for some time. IBM, for example, has been offering products and services based around tech conceptrs like ubiquitous and pervasive computing for years. Building on its previous work, earlier this year Big Blue decided to invest $3bn to set up a dedicated IoT unit.
Smart home market is expected to double in revenue every 3 years and grow at a rate of 30% year on year with high awareness among respondents in metros and upper-end segments, reveals a survey. Security, convenience and energy efficiency were the largest drivers for smart homes, while high cost, lack of clarity about the real value and in few cases lack of awareness were the only barriers, according to a survey conducted on behalf of Schneider Electric India by AZ Research Partners, Bengaluru.
A whitepaper just published by Machina Research finds that a large and growing proportion of the revenue associated with IoT is related to more sophisticated monetization opportunities. Specifically, between 2014 and 2024, a total of $1.3 trillion in IoT revenue will be available to companies that have sophisticated monetization capabilities, a significant part of the total anticipated revenue opportunity of $4.3 trillion.
When it comes to smart home adoption and revenue, the U.S. is leading the pack worldwide, according to Statista’s Digital Market Outlook, followed by Japan, Germany, China and the United Kingdom.
Alphabet (nee Google) (NASDAQ:GOOG) (NASDAQ:GOOGL) may be compared to Apple in many respects, and vice versa, but there’s one area where Cupertino soundly bests Mountain View: devices. On one hand, Apple’s iPhone alone is responsible for $147 billion in revenue over the trailing 12-months versus Alphabet’s total haul of $70 billion.Alphabet, on the other hand, has struggled with devices. After buying Motorola Mobility for $12.5 billion in 2011, the company sold the division to Lenovo for $2.9 billion after years of red ink, although it should be noted the company kept certain high-value patents and sold off a portion of the business to Arris for $2.5 billion as well as keeping Motorola’s $3.2 billion cash pile at the time of acquisition.
This report highlights three verticals in the IoT market, where there is significant traction today. These verticals include the smart home (home automation), industrial smart devices or industrial Internet of things (iIoT) and wearables (smart devices). These verticals are discussed and analyzed in detail, while the segments for the devices and chipsets used for IoT within them are sized and forecast (through 2020) in terms of revenue opportunity.