The Internet of Things, or IoT, has been a hot topic ever since it made its way onto the scene. The ability to communicate with and control objects and devices has already been working to transform medical, retail and manufacturing sectors across the globe.
As more and more capabilities are being added, the market is seeing start-ups gain funds and a market that still is ripe for potential.
According to a recent research from Ovum, there has been over $31 billion invested in IoT-related start-ups from 2011-2015. This number accounts for both Telco and tech firms and includes acquisitions and funding.
Beginning in 2011, when there were only four deals in the space; in 2015 the industry saw 19 acquisitions according to Ovum. Companies – especially larger players with a finger on the pulse and the money needed to buy up these companies - are realizing the benefits and making purchases in the space to ensure they will have a foothold in the race.
“Using data from Ovum’s IoT Investments Tracker, Ovum tracked 76 deals across eight sectors, including IT services, wearables and connected car,” said Francesco Radicati, senior analyst, Digital Service.
Radicati noted that Intel was the chief buyer with the $16.7 billion acquisition of chipset maker Altera. Other major players like Verizon, Google and Qualcomm also put down at least $1 billion on an acquisition during the reporting period.
The research also uncovered that the largest deal in 2015 made $115 million in Series D round funding for Sigfox.
One interesting note in the research is the fact that Telcos are starting to make purchases in the space now too. They are doing things like setting up venture funds and startup accelerators to get aligned with the space.
In fact, the IoT and real time communications have a lot to do with one another. Together the two technologies have the potential to create even smarter two-way communications between devices and applications. As developers dig deeper into the space and build APIs that address market needs, it will be interesting to see how much our world will change – and just how quickly.