Consolidation shrinks IoT platform players

November 24, 2021 // By Nick Flaherty
Consolidation shrinks IoT platform players
Research by IoT Analytics found 613 IoT platform companies currently operating, down from 620 in 2019, with 188 IoT platform companies discontinuing operations.

The number of IoT platform companies has declined over the last two years.

Since 2019, many IoT platform companies have pivoted their business models: a number of companies no longer focus on IoT or have moved toward selling IoT solutions. Some have ceased to exist.

The trend of increasing IoT platform companies on the market seems to have stopped and is now reversing, at least in the Americas, Europe, and the Middle East and Africa (MEA). For the first time, more IoT platform companies discontinued their operations than new ones were created.

The overall number of IoT platforms based in Asia-Pacific (APAC), especially China, increased strongly from 2019 to 2021, while the number of platforms in all other major global regions decreased.

Two years ago, IoT Analytics identified 620 IoT platform companies globally on the open market up from 450 companies identified in 2017. As a result, the number of IoT platforms is consolidating, and there are 613 IoT platform providers based on IoT Analytics’ latest research.

An IoT platform is a specialized software tool used to build and manage IoT solutions. IoT Analytics classifies five different types of platforms: application enablement/management, device management, data management, telco connectivity/management, and IoT-based Infrastructure-as-a-Service (IaaS).

This latest research publication details the IoT platform company competitive landscape, classifies the technological capabilities of each IoT platform, identifies the main segments each platform targets, and ranks the leading platforms based on revenue and market share.

For the first time since 2015, the IoT platforms market is not growing. From 2015 to 2019, the number of publicly known IoT platforms more than doubled from 260 to 620.

The number of IoT platforms might have stopped growing, but the size of the market has still increased substantially. In 2020, $5bn were spent on IoT platforms but the market is expected to grow to $28bn in 2026. That constitutes a 33 percent compound annual growth rate (CAGR) for 2020 to 2026. The growth is fuelled by the rapid adoption of cloud-based IoT platforms and the increasing number of customers choosing to buy (not make) IoT platforms.

Most IoT platforms offer application management/enablement capabilities (58 percent of the 613 IoT platforms). Data management is offered by 43 percent of all IoT platforms, and 35 percent offer device management. Fewer IoT platforms offer IoT telco management capabilities (7 percent) or infrastructure services/IaaS (3 percent).

Next: IoT platform pivots

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