A new report from ABI Research presented in Q4 2014, stated that revenues from integrating, storing, analyzing, and presenting Internet of Things (IoT) data will reach $5.7 Billion in 2015.
It is projected that by 2020 the IoT market will make up a third of all big data and analytics revenue.
“About 60% of this year’s revenues come from three key areas: energy management, security management, as well as monitoring and status applications” Aapo Markkanen, principal analyst at ABI Research said. “Within these segments, we can generally find analytic applications that reduce the cost base of asset-intensive operations (condition-based maintenance), automate routine workflows (surveillance), or even enable new business models (usage-based insurance). These early growth drivers also have in common the fact that the economics of IoT connectivity align easily enough with the requirements of analytic modeling.”
A major challenge identified in the research, is the deep domain expertise in analysis that is necessary to extract relevant data and insights from the machine and sensor data. That challenge is especially hard to overcome for the current leading technologies that were designed for more traditional analytic technologies. That is the reason why the majority of innovations aimed to fill those gaps are being developed by startup companies. According to practice director Dan Shey, “What is remarkable about this market is how much of the innovation actually comes from startups”.
Predikto, an Atlanta based startup, whose solution helps companies reduce cost base of asset-intensive operations, was included in the research as one of the niche players in the Core Analytics field.
The full research can be found in here