The roles of the various players in the Internet of Things (IoT) ecosystem have always evolved. Today, some significant changes are occurring in which players can deliver what forms of products and services, and how. Technology change is creating new opportunities, particularly through the pushing of more of the functionality of IoT into software services to be addressed by different players than those who previously addressed the more traditional value chain roles such as hardware and networking. Furthermore, it is becoming increasingly apparent that all elements of IoT need to be delivered in a more managed way, reflecting the complexity of implementations and requirements for optimisation.
Market understanding of the roles within IoT will need to evolve to help vendors to better position themselves to realise the IoT opportunity. This report examines the new dynamics of the IoT market and the new opportunities that are consequently created. In particular we focus on the provision of connectivity, although the trends are universally relevant across much of IoT.
Specifically, the key trend today sees the emergence of seven ‘Service Domains’, associated with topics such as Devices, Connectivity, Security and Compliance. These will account for the lion’s share of opportunity either for revenue generation or for differentiation.