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Internet of Things

Market Analysis

by Mike Smart

published on Apr 05, 2016

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Report Overview:

NelsonHall’s market analysis of the Internet of Things market consists of 57 pages. The report focuses on the build of IoT services, from consulting and workshops, to managed services around device services and application services.

Who is this Report for:

NelsonHall’s “Internet of Things” report is a comprehensive market assessment report designed for:

  • Sourcing managers investigating sourcing developments within the IoT services outsourcing market 
  • Vendor marketing, sales and business managers developing strategies to target ITO service opportunities within Internet of Things
  • Financial analysts and investors specializing in the IT services sector, including IoT services.

Scope of this Report:

The report analyzes the worldwide market for Internet of Things and addresses the following questions:

  • What is the market size and projected growth for the global Internet of Things market by geography?
  • What is the profile of activity in the global Internet of Things market by industry sector?
  • What are the top drivers for adoption of Internet of Things?
  • What are the benefits currently achieved by users of Internet of Things?
  • What factors are inhibiting user adoption of Internet of Things?
  • What pricing mechanisms are typically used within Internet of Things and how is this changing?
  • Who are the leading Internet of Things vendors globally and by geography?
  • What combination of services is typically provided within Internet of Things contracts and what new services are being added?
  • What is the current pattern of delivery location used for Internet of Things and how is this changing?
  • What services are delivered from onshore and which from offshore?
  • What are the challenges and success factors within Internet of Things?

Key Findings & Highlights:

IoT is a wide term that builds on Machine-to-Machine (M2M) and SCADA systems, and includes embedding networked sensors into physical objects to collect information about the environment and communicate this information to applications.

IoT services are required to span the sensor/device layer to measure the environment, networking to communicate this data, management of this data in the backend including analytics, and applications to provide a user interface and provide business intelligence.

Embedding sensors into devices allows businesses to build new business models and to ‘as-a-Service’ existing products. The use of IoT to build aaS products will expand dramatically as the use of cryptocurrency increases, to allow IoT embedded products to purchase goods and services. Not all clients are using IoT to redefine their business model; some businesses are using IoT as a driver for cost saving initiatives. Across industries the level of cost saving achieved varies, with the largest savings achieved in the manufacturing and smart building operations.

IoT can be used to bring innovation across a number of different industries including:

  • The connected vehicle: with the primary aims of increasing safety, increasing revenue for OEMs, creating a better driver experience, and efficiencies for third parties
  • Smart manufacturing: often branded ‘Industrial IoT’ (IIoT) or ‘Industry 4.0’, i.e. the fourth revolution of industrial processes
  • Smart buildings/cities: both in the home and in commercial buildings. In the home environment, the focus has been on building experiences; in commercial buildings the focus has been on increasing efficiencies
  • e-healthcare: to increase the level of patient care and efficiency of treatment facilities
  • Smart agriculture: to improve yields and efficiencies, and increase the safety of production and of the end product
  • Smart logistics: for building efficiencies and visibility around the logistics and supply chain market, through collection, storage and distribution
  • Smart energy and utilities: with smart grids allowing energy distribution to be managed in real time, based on real time data.

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