BCC Research has released findings from its new report that reveal businesses exploring the IoT ecosystem should understand the market for third-party IoT platforms and the different technology trends shaping future platforms, the company said.
The company said the global market for IoT platforms is expected to grow from USD629 million in 2016 to over USD2.3 billion by 2021, reflecting a five-year compound annual growth rate (CAGR) of 30 percent. As a segment, the cloud market should reach USD2.1 billion in 2021, up from USD528.4 million in 2016 on a projected five-year CAGR of 31.5 percent. The on-premise market as a segment is expected to reach USD100.6 million and USD256.7 million in 2016 and 2021, respectively, on a five-year CAGR of 20.6 percent.
The global IoT platform market is expected to see a wider adoption of pure cloud-based SaaS and PaaS solutions, barring industries where on-premise or private network-based deployments are necessary and preferred over cloud-based solutions. This trend will also benefit the revenue structure of these vendors with a higher long-term return compared to a one-time sale provided by the license-based revenue model.
The BCC research said there is growing interest of many of the larger IT solutions/service providers that view IoT platforms as high margin solutions that will generate a steady revenue stream through cloud-based, subscription revenue models. This has spurred a number of high value acquisitions in the past three years, and the recent Cisco-Jasper acquisition is expected to be a game changer for the IoT platforms market in 2017 and beyond.
BCC Research is a publisher of market research reports, providing measurements and assessments of global markets covering major industrial and technology sectors, including emerging markets. Founded in 1971, BCC Research is a unit of Eli Global, LLC.