Cambashi’s research shows that – unlike other, more mature markets such as CADCAM, PLM, MOM and BIM – this market is not dominated by a small number of providers. Instead we found that approximately 20 large, global ‘enterprise’ software providers take the majority of the revenue. These providers come from the ‘IT’ (Information Technology) stable – Microsoft, IBM,
Oracle etc. and from ‘OT’ (Operational Technology) – Honeywell, Siemens, Bosch etc. The third group we tracked consists of smaller, Industrial IoT (IIoT) technology providers or larger companies that are making initial investments in this area.
Telecom companies provide IoT infrastructure and, increasingly, their own connected applications. The remaining revenue is in the ‘others’ category, comprising a long tail of providers from industries, including semiconductors and sensor manufacturers, with smaller revenues.

Industrial IoT Market Size

IoT technology providers are growing quickly but their market size is much smaller than OT or IT. Cambashi market data shows that in 2020 the IT ($4.4billion) and OT providers ($6.2billion) overwhelm the pure Industrial IoT technology providers ($471million) in terms of overall revenues.


Industrial IoT (IIoT) Market Observatory Data

Cambashi`s 9 Market Areas for Industrial IoT (IIoT) and Connected Applications.
  • Global Industrial IoT (IIoT) / Connected Applications segmentation by region, provider, and Market Area.
  • Use Case & Case Study analysis.
  • IIoT market sizing, trends and growth projections (3-year forecast).

Custom projects

  • Sales & Marketing Strategy Review (using Cambashi market data)
  • Custom projects for IIoT and Connected Applications
  • Training – Understand the IIoT/Digital Transformation product & services ecosystem

Typical examples include:

  • Deeper dive into datasets to assess new opportunity sub-segments
  • Market opportunity and size assessments
  • Identification of emerging trends and disrupters

Use Case & Case Study Analysis

Why is case study analysis so important?

Use Cases show where providers are developing Connected Applications and in which Market Areas. This is valuable for product planning and sales focus.

Case Studies, and interviews with actual users, show the business value, budget process, and benefits by analyzing how the money flows in IIoT deals.

Benefits

  • Optimize global sales and marketing resources
  • Target the most promising geographic areas and industries
  • Assess comparative attractiveness of different Market Areas

Check Cambashi Methodology

Cambashi is pleased to announce that its latest IoT report is available

The report focuses on the industrial IoT through the Connected Applications software market – which is where most revenue is generated – by large, global, ‘enterprise’ software providers, mainly from an OT or IT background, with a long tail of smaller players.

Cambashi’s IIoT research journey

2012Embedded Software research initiated

2017/18 – IIoT Landscape report published

2018Charter Program introduced to invite industry collaboration

2019 – Use Case & Case Study analysis 

2019 June – Inaugural Connected Applications Observatory – global sizing & forecasts by 9 “connected” Market Areas across 3 regions – US, EMEA, APAC

2020 – Connected Applications/IIoT Observatory update and strategic engagements with customer Find out more.

Click on the icons below to download the reports

Cambashi’s research into the industrial IoT market sector supports the Credit Suisse theme of ‘hardware companies buying software companies’; many established ‘OT’ (Operations Technology) companies are moving into or acquiring software companies in order to stay in the game, defend against disrupters and increase growth. There is a long tail of smaller companies and the sector will coalesce, leading to mergers and acquisition.

This report describes the landscape of the industrial Internet of Things (IoT) market, covering the complex ecosystem of technology providers and how the IoT can be an enabler for digital transformation in a range of industries. It is intended for senior executives involved in company strategy and business planning as well as operational executives in resource planning, sales and marketing.

Related Articles

Why OT and IT companies are investing in IIoT/Connected Applications

CEO Insider, By Alan Griffith – January 29, 2021

The industrial IoT market is of great interest to software providers and investors as it is growing so quickly. Cambashi’s analysis shows the route to market for industrial IoT is through Connected Applications that link real-world ‘things’ to information systems, and leverage AI (Artificial Intelligence), ML (Machine Learning) and other analytic capabilities to deliver business benefits.

OT vs IT in the supply of IoT, and migration and consolidation in IIoT (Analyst Angle)

Enterprise IoT insights, November 6, 2020

Overall, the industrial IoT market for connected applications is continuing its rapid growth and beginning to mature as the applications become more powerful – including AI (artificial intelligence), ML (machine learning), and analytics capabilities – robust and easier to deploy.

Analytics For Operating In The New Manufacturing Normal

Forbes, July 27, 2020

Market research firm Cambashi expects that while most digitaI transformation projects (which may include “digita I transformation”) will be resilient, some companies may delay new transformation initiatives in the short term due to the demand shock caused by the pandemic.