I wanted to gain a better understanding of the Internet of Things market and how all of the different players fit together. I created a map for myself, hopefully you will find it useful too.
Some caveats before we dive into the analysis.
This ecosystem map is not designed to be 100% comprehensive. It’s more to understand all the different spaces within IoT.
I am biased towards startups in the space.
If I am missing something tweet me @mccannatron.
This space is developing quickly so take this into consideration.
Observations
- There are currently more devices connected to the internet than humans, and this is predicted to continue along an upward trend. It is estimated by 2020, 26 billion “things” will be connected to the internet.
- If the true vision of “Internet of things” plays out, it has the potential to transform the operations of many industries (both consumer and enterprise).
- The Internet of Things is still in its very early stages. On the consumer side, it’s still mainly for hobbyists, and on the enterprise side it’s still for early adopters. IoT is not even close to reaching its full potential.
- If the Internet of Things is widely adopted within enterprise applications (energy, transportation, healthcare, etc) than IoT security is going to be a big deal and right now it’s a big unsolved problem.
- The full IoT ecosystem is huge and complex. You could literally create an ecosystem map for every submarket listed above (ex. connected cars)
Company observations
Consumer
- Nest vs. SmartThings — In the long run is it better to have one dominant product and build a platform around that (Nest), or build the platform first and the devices around that platform (SmartThings/Samsung)?
- Hue/Smart Lights — Smart light bulbs receive a much higher margin vs. traditional LED Bulbs. The Hue bulbs sell for $60 each.
- Mistfit and Withings — Are both interesting platforms and could potentially be worth more than Fitbit given their product lines.
- Athos — Looks interesting and they just hired a great VP of product.
- *For Fun — Pet Devices* — I can’t believe how many pet devices are here already. Catfi will help you remotely feed your cat, Fishbit will monitor your fish, and CleverPet will help you play with your dog while you are at work.
Enterprise
- Weft — Cost of sensors and ability to transmit low power data could really change the shipping and logistics industry.
- Granular — Was surprising to me how many startups are in the “Smart Agriculture” space.
- Bastille — If IoT is adopted within enterprise applications, IoT security will be a huge market.
- Proteus — they produce a FDA approved chip embedded inside pills and is powered by the body itself (no battery / no sensor) to let doctors monitor if and when patients take their pills.
Connectivity/Platform
- Jasper — A $1 billion company I had never heard of. They provide cloud software to help companies connect devices, manage data, and monetize IoT services.
- Helium — Building a platform that connects devices without relying on WiFi, Bluetooth, or cell networks. Could be important especially for areas of limited bandwidth, low network reliability, etc.
- Platfora— Whole new companies will have to deal with ingesting all of the sensor data, storage of that data, and analytics on top of all of this streaming data.
Author Bio:
Partner @RaceCapital, former community lead at Greylock Partners, founder of StartupDigest
