It all started with the ATM in the early 1970s, perhaps the first popular connected device. Today the opportunity to connecting objects over the internet or Internet of Things (IoT) is worth over $650 billion with a projection of hitting $1.7 trillion by 2020, as per IDC.
The devices and objects that send and receive data over internet are going to transform the way we mange our lives and as per technology researcher Gartner’s forecast there will be 21 billion connected devices by 2020.
With an explosion in the number of connected devices and growth in Installed Base Segments along with a burst in spending and ever-increasing number of smartphones, there is massive potential for IoT at global level. The incremental revenue generated by IoT suppliers is estimated to reach $309 billion per year by 2020 says Peter Sondergaard, Gartner’s research chief. This growth opens up new business opportunities, as half will be attributed to new startups and 80% will be in services, not products. Manufacturing, healthcare and insurance are expected to lead the race.
According to Vinay Nathan, co-founder Altizon, IoT requires seven or eight disciplines, including embedded computing, middleware, big data, cloud, domain knowledge and business consulting to line up. As expected IoT has generated entrepreneurial interest in India too. Entrepreneurship & Venture Capital (EVC), an early stage investor has launched a $50 million unit to focus on IT. Qualcomm Ventures, the VC arm of the global chipmaker, recently unveiled $150 million India Fund and made its first investment in healthcare IoT venture – Attune Technologies.
Word of caution: Startups looking to create a buzz in the IoT sector can expect to deal with an assortment of industrial and technology heavyweights including Google and IBM as everyone from GE to Honeywell and Samsung has invested billions of dollars to build and buy their way into a larger IoT presence.
However, industry experts and entrepreneurs think startups have a better chance of succeeding. Sagar Apte, cofounder of CarIQ, which is building a connected car ecosystem; says IoT is a new arena where the nimbleness of a startup allows it to listen to market needs and address them quickly.
Startup Focus: The Cubical Labs – founded by Swati Vyas, Dhruv Ratra, Rahul Bhatnagar; is focusing on Home automation solutions; has raised ₹1.5 crore ($225,000) through angel funding. Plans to work with large realtors and have products pre-installed in projects.
Event Focus: The Agri Asia 2016 exhibition on agriculture technology will be held at Mahatma Mandir in Gandhinagar, Gujarat, India from 2nd to 4th September, 2016. It will showcase international agriculture technologies.
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