Emerging IoT Business Models Profiled
February 6, 2017
should conduct strategic evaluations that leverage strengths and
differentiating capabilities, while balancing realistic expectations for
revenue and margins
A new report from Navigant Research provides an assessment of Internet
of Things (IoT) business models, describing four models and offering a
discussion of the market’s value chain.
The IoT market is ripe for growth, with demand-side customers already
adopting connected devices and software solutions to help them manage
energy consumption or automate processes in businesses or homes.
Companies seeking to conduct business in this space have a variety of
ways to participate in the market, but they must be strategic when
choosing a business model or pursuing a blend of business models.
Hardware manufacturing, software platform, service provider, and hybrid
solutions are the main IoT business models most companies are
“Given that there are a handful of business model choices in the IoT
market, companies need to have a clear idea of what the opportunities
are, and are not,” says Neil Strother, principal research analyst with
Navigant Research. “At first glance, IoT hardware can seem to be an
attractive choice, particularly for makers of high-volume or high-priced
products; yet for others, the more lucrative choice might be high-value
software or services that can yield recurring revenue and provide a
method of differentiation in a crowded field.”
considering which model is the best fit for their firm, market players
should assess what offers the best opportunities given the current state
of the market and future expectations, according to the report. Key
strategic evaluations need to be made that leverage a company’s
strengths and differentiating capabilities in the IoT market, while
balancing realistic expectations for ongoing revenue and margins.
The report, Emerging IoT Business Models, provides an assessment of IoT
business models, describing four models and offering a discussion of the
market’s value chain. The study also features a case study, along with
an assessment of the pros and cons of the main IoT business models. In
addition, the report delves into the regional and regulatory
perspectives regarding IoT business models and highlights the security
risks that need to be addressed by stakeholders in this market. Lastly,
the report provides a set of recommendations for companies considering
their IoT business model options. An Executive Summary of the report is
available for free download on the Navigant Research website.