Proving the Business Case for the Internet of Things

Application enablement platform revenues to surpass $1.4 billion by 2020: ABI

Iain Morris
November 27, 2014
 
Revenues from the Internet of Things (IoT) application enablement platform (AEP) market are set to exceed $1.4 billion by the end of 2020, according to a new study from ABI Research, after growing by 28% in 2014.

Internet in applications for remote monitoring and control will drive revenue growth over the forecast period, says the market-research company.

“Amid all the market noise surrounding IoT platforms, it is wise to remember that the AEP layer of this business isn’t anywhere close to the billion-dollar level yet,” said Aapo Markkanen, a principal analyst with ABI. ”A growing number of companies are developing and deploying IoT applications, but much of the technology stack comes from internal teams and system integrators.”

“Third-party platforms have a high upside, but today the reality is that the vast majority of enterprises have yet to either fully commit to an IoT strategy or determine the best way to execute one,” added Markkanen.

This year has been marked by the emergence of PTC (Needham, MA, USA) as a “somewhat unexpected IoT champion”, according to ABI, following takeovers of ThingWorx and Axeda.

ILS Technology, one of the original AEP pioneers, was also integrated with the business of new owner Telit (London, UK).

However, the biggest issue in the industry right now relates to GE’s (Fairfield, CT, USA) announcement that it will open up its Predix platform to the products of other manufacturers.

“It’s still unclear how well GE can enable OEM-agnostic applications, but if it sees reasonable success then Predix could catch many major players off guard in 2015,” said Dan Shey, a practice director at ABI. “At the same time, there are also a number of smaller platforms that have previously been focusing on getting their technology right, but seem now ready to enter the growth stage.”

“The likes of M2Mi [Moffett Field, CA, USA], PLAT.ONE [Bogliasco, Italy], SeeControl [San Francisco, CA, USA] and 2lemetry [Denver, CO, USA] could make some waves over the next year,” he added.
 
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