Analysts at Beecham Research see security and data management presenting the biggest revenue opportunities for IoT platform service providers over the next five years. In the first phase of a new multi-part study published today, Beecham Research focuses on the changing requirements for IoT enabling services and, in particular, looks at how intelligence can be brought to the ‘edge’ of the network beyond cellular connectivity.
“Due to the growing complexity of IoT applications and trend to consumer-driven, multi-service environments such as smart cities, cars, and homes, there is a growing need to manage edge devices such as sensors, switches, smartphones, and tablets, connected using a variety of short range wireless and fixed line technologies,” said Saverio Romeo, principal analyst at Beecham Research and author of the report. With this pace of change, companies will increasingly rely on outsourcing, and we expect that revenues from device authentication, device management, data management, billing, and security will exceed $3billion by 2020. And out of these, we see security and data management services generating some $1.8billion alone.”
Free Cyber Security Training! Join the revolution today!
While data management for IoT is currently a small market, Beecham Research believes that it has the most potential for high gross margins. But out of all the enabling services, the new report highlights IoT security as the most strategic, across the network, device and services domains. “While many market players still see security as a cost rather than a business opportunity, this is changing, and we see IoT security providers offering high-value, end-to-end security to service and application providers,” says Romeo.
The report also looks at authentication, device management and billing/charging as leading indicators of the growth potential for enabling services in an IoT environment. “Service Enablement Services, usually configured as cloud-based platform services, cover all enabling services for IoT solutions,” said Robin Duke-Woolley, CEO at Beecham Research. “We see many changes in requirements for these enabling services in the IoT market now compared with just a few years ago. Our current research is assessing the impact of this on the Connectivity Services layer, the Application Enablement layer, and on other services that span both these.”
For an executive summary and to download the report, please go to: www.beechamresearch.com.
About Beecham Research
Beecham Research is a leading market analyst and consulting firm that has specialised in the development of the rapidly-growing M2M/Internet of Things market worldwide for well over a decade, since 2001. Based in London, Cambridge UK and in Boston US, Beecham Research actively participates in initiatives aimed at achieving M2M/IoT market development and growth. The company is internationally recognised as a thought leader in this market and has deep knowledge of the market dynamics at every segment in the value chain. As a result, clients come from all of these segments including components and hardware, network operations, system integration, application development, distribution and enterprise adopters. With extensive technical and market knowledge, we are experts in M2M/IoT services, platforms and IoT solution security. We are also the leading analysts in satellite M2M, working with all the network operators and also the European Space Agency (ESA). Another primary area of activity is Wearable Technology, which we see as a key part of bringing the individual closer to the Internet of Things. Visit www.beechamresearch.com for more information.
About the Author
The opinions expressed in this post belongs to the individual contributors and do not necessarily reflect the views of Information Security Buzz.
