The State of Internet of Things in 6 Visuals
The Future of IoT in a Graphic
The IoT, or Internet of Things, is burgeoning. While the better known internet is made up of humans communicating with one another, the IoT all but eliminates the human element. Essentially, once it’s all set up, the machines communicate with one another. An IoT in your home, in your city, or at your workplace is actually extremely useful.
In practice, an IoT can automate a lot of tasks and processes. It can make life easier, safer, and much more convenient. There’s currently a whole lot of capital moving around the IoT tech sector, over 800 companies are working on IoT devices and platforms, and new IoT components come on the market on a regular basis.
The infographic included here gives you a good visual summary of what’s happening. We made it to show you what types of technology IoT companies are focusing on, how the money is flowing, where the innovation is taking place, and more.
The below infographic is based on data and analysis from Venture Scanner, an analyst and technology powered startup research firm. To access the full dataset, visit: https://www.venturescanner.
The State of Internet of Things in Six Visuals
…so what do you think about the State of Internet of Things? Let us know what you think in the comments below and feel free to embed the infographic in your own blog with the embed code below.
The Internet of Things: Some Discussion on this Growing Network
In practice, having a personal IoT, either at home or at work, can automate a lot of tasks and processes. The thinking is that it makes life a little easier, a little safer, and a whole lot more convenient. There’s currently a whole lot of capital moving around the IoT tech sector, over 800 companies are working on IoT devices and platforms, and new IoT components come on the market on a regular basis.
Additional Reading: Nest Automation: Google’s Plan for Your Smart Home
The infographic included here gives you a good visual summary of what’s happening, but let’s break it down a little bit further.
It’s perhaps unfair to lump all of these so-called smart devices into one giant IoT category. They serve many different purposes, and they work in a variety of different ways. In fact, we think it’s safe to say that there are 15 separate IoT categories — everything from fitness (trackers, bands, watches, etc.) to health care and entertainment to really cool toys. Of these 15 distinct groupings, the home category is the largest by a wide margin, with nearly 140 companies working on smart home products.
IoT platforms are an important part of all this; they’re the protocols through which different devices can communicate and sync. While this is category is in the middle of the pack as far as number of companies working on innovations are concerned (there are about 40), it’s really the backbone of the industry. Remove the platforms, and you can pretty much strike the word “smart” from this whole conversation.
The Money Trail
From a funding standpoint, the most money seems to be channelled toward developing good user interfaces. It almost seems counter intuitive — if these products are smart, there should be very little interaction with them.
However, the initial setup can’t be too complicated, and lots of these products need to be able to work with one another. This is especially the case in home IoT devices, the category in which venture investing is the highest. Without a good interface, the general public might not be interested in purchasing these things.
Speaking of funding, it’s important to remember the significance of crowdfunding IoT devices. SmartThings and LIFX both raised over $1 million USD on Kickstarter, and companies like PlantLink, LUMO, Ninja Sphere, Sesame smart lock and others have also brought in funding from the masses. This new source of capital has undoubtedly accelerated the rate at which IoT devices are being developed when compared to traditional industries.
All Over the Map
There are over 100 companies producing IoT devices in San Francisco alone, making it the planet’s lone hotbed for this type of activity. However, that isn’t to say that IoT innovation isn’t happening elsewhere. There are 26 companies in New York, and another 37 in Canada.
Move away from Silicon Valley and the US, and you’ll still find loads of companies working to automate our homes through their handy little devices. There are 40 IoT companies in the UK, 22 of which are located in London. You’ll also find development in this field from companies in places like China, Australia, and many countries in Europe.
Infancy Now, Maturity… Soon
The IoT market is young; the companies in each category are, on average, less than a decade old. It’s growing, just like most aspects of tech, but with upstart startups entering the field on a regular basis, we probably won’t see the median age move much for a while.
Remember: this is the frontier of IoT, and nothing is truly settled yet. This graphic will look significantly different five years from now. It will look different two years from now. It will probably look different in six months. Pay attention — this is exciting.