This blog post examines the different components of the IoT sector and how they make up this startup ecosystem. We will illustrate what the categories of innovation 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. We have classified 2194 IoT startups into 20 categories that have raised $62 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 331 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.
Let’s now look at our Innovation Quadrant to find out the funding and maturity of these categories in relation to one another.
Our Innovation Quadrant divides the internet of things categories into four different quadrants.
We see that the Established quadrant has the most IoT categories with 7. These categories have reached maturity with less-than-average financing. The Pioneers quadrant has 5 categories that are in the earlier stages of funding and maturity. The Disruptors quadrant also has 5 categories, which have acquired significant financing at a young age. The Heavyweights quadrant has 3 categories that have reached maturity with significant financing.
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 Fitness category leads the sector in total funding with $7.6B. IoT Software Platforms and IoT Drones follow in second and third places with $7.4B and $7.3B in total funding, respectively.
IoT Fitness companies create connected devices that track fitness and exercise metrics. Such devices include healthy eating trackers, exercise tracking wristbands, and smartphone-controlled shoes. Some example companies in this category include Moov, Sensoria, Striiv, and Atlas Wearables.
As the analysis above demonstrates, the IoT Home category leads the sector in total companies, and the IoT Fitness category leads in total funding. We’ll see how the IoT landscape evolves and develops in the new year!
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