The internet of things (IoT) sector has experienced rapid developments in recent years. Its applications can be observed in all industries from manufacturing to retail to healthcare. In addition, we’ve analyzed that its funding and exit activity are on generally upward trends.
We will now take a closer look at the different components of the IoT sector and how they make up this startup ecosystem. This blog post will illustrate what the major sector categories are and which categories have the most companies. We will also compare the categories in terms of their funding and maturity.
Let’s start off by looking at the Sector Map for the IoT sector. We have classified 2164 IoT startups into 20 categories that have raised $57 billion. The Sector Map highlights the number of companies in each category. It also shows a random sampling of companies in each category.
We see that IoT Home is the largest category with 329 companies. These companies create connected devices focused on residential segment usage. These devices include home security, home automation, and energy management systems. Some example companies are Eero, Leeo, Tado°, and Netatmo.
We have seen what the different categories making up this sector are and the number of companies in each. What about their funding and maturity in relation to one another? Let’s look at our Innovation Quadrant to find out.
Our Innovation Quadrant divides the IoT categories into four different quadrants.
We see that the Pioneers quadrant has the most IoT categories with 9. The Pioneer categories are in the earlier stages of funding and maturity. The Disruptors quadrant has 5 categories that have acquired significant financings at a young age. The Established quadrant has 3 categories that have reached maturity with less financing. The Heavyweights quadrant also contains 3 categories. These categories have reached maturity with significant financings.
We’ve analyzed the IoT categories and their relative stages of innovation. Let’s now look at how they stack up against one another in terms of their total funding versus company counts.
The graph below shows the total amount of venture funding and company count in each category.
As the above graphic implies, the IoT Software Platforms category leads in total funding with $7.1 billion. The IoT Drones and Robotics category follows in a close second place with $7 billion.
Software Platform companies build backend software systems that provide infrastructure for IoT companies. These systems include wireless communication networks and data analytics platforms. Some example companies in this category are Electric Imp, Relayr, Sigfox, and C3 IoT.
The analysis above demonstrates that the IoT Home category leads the sector in total companies. The IoT Software Platforms category leads in total funding. We’ll see how things evolve during the rest of 2018.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.