IoT identity and management revenues to hit $21.5bn by 2022, says ABI Research

ABI Research projects that revenues from IoT identity and management are heading to hit the $ 21.5 billion benchmark by 2022, driven by IoT platform services together with security, cryptography, digital certificate management and data exchange services.

According to predictions put forward by the advisory firm in its report “​Thing Identity and Management Services”, IDoT (Identity of Things) services will realise robust growth over the next five years driven primarily by the industrial, manufacturing, and automotive industries.

Dimitrios Pavlakis, industry analyst at ABI Research, said: “Through ‘smarter gateways’, cloud services, and application programming interface (API)-focused solutions, thing identity and management services are steadily finding their way in a wider spectrum of IoT verticals.”

Although some industries are not so up-to-date in terms of security, vendors in the IoT market are finally making investment moves in encryption and device certificate management. Some of the leading verticals that are eating up over 60% of the total global revenues include aftermarket telematics, fleet management, OEM telematics, metering, home security, and automation.

Elsewhere, a BCC Research report projected that the value of the global IoT networking solutions market is anticipated to reach $ 1 trillion by 2022 at a CAGR of 21.6%. The report titled “Internet of Things (IoT) Networks: Technologies and Global Markets to 2022” highlighted that the Asia Pacific’s IoT networking solutions market is anticipated to grow at a CAGR of 27.6% through 2022, followed by Europe with a CAGR of 23.8% and market share of 31.3%.

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Samsung’s semiconductor revenues overshadow Intel’s, says IHS Markit

Though Samsung seems to have taken the number one position in the semiconductor manufacturing sector, analyst firm IHS Markit states that the picture could be slightly different if the data is analysed closely.

Len Jelinek, senior director for semiconductor manufacturing at IHS Markit, is of the opinion that by looking closer at the actual revenues generated by the individual companies from the sale of their own products, a slightly different and more interesting picture emerges.

Data provided by individual companies show only a portion of the ‘actual’ total picture. In ranking the semiconductor industry companies’ revenues, IHS believes the focus should be on merchant market revenue, the revenue obtained by a company through the sale of their own semiconductor components. This means that in a market share calculation the sale of components to third parties should not be included since a third party will be credited with the component sale into the market.

According to IHS, the semiconductor revenues Intel achieved in the second quarter of 2017 were $ 14.7 billion. If the third-party sales or foundry operations and other non-semiconductor revenue are deducted, then the company’s merchant market semiconductor revenues stand at $ 14.4 billion.

Samsung announced total semiconductor revenues of $ 15.5 billion in the same quarter, which includes an estimated $ 1.1 billion of foundry services revenues. If subtracted the foundry revenues, Samsung’s merchant market sales end up at $ 14.4 billion.

Thus, since neither company formally discloses its actual third-party sales or other non-semiconductor revenues, both companies end up separated by a mere $ 57 million with Intel remaining as the leader. IHS believes that the rapid growth in revenues by Samsung is more a reflection on market supply-and-demand issues rather than a successful long-term strategic plan by either company.

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How Internet of Things platforms help industries to cut costs and increase revenues

Billions of devices around the globe are being connected to each other, communicating with each other, working as a certainty, every day! How fascinating is that? The benefit of this gigantic network can be classified in many terms. However, in the end, the only thing that matters is the growth of a business. A business […]

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IDC: IoT revenues in Central and Eastern Europe to reach $24 billion in 2020

Spending on the Internet of Things (IoT) in Central and Eastern Europe hit $ 11 billion (£8.8bn) in 2016 as organisations accelerated their investments in hardware, software, services and connectivity, according to IDC.

The latest update to the firm’s Worldwide Semiannual Internet of Things Spending Guide adds that the IoT revenues in the Central and Eastern Europe (CEE) region will post a compound annual growth rate (CAGR) of 21.5% over the 2016‒2020 forecast period, reaching $ 24 billion in 2020.

“Transportation, manufacturing, utilities are the CEE industries that are leading the way in IoT investments at $ 2.3 billion, $ 2.1 billion and $ 1.2 billion, respectively, in 2016.”

Transportation, manufacturing, utilities are the CEE industries that are leading the way in IoT investments at $ 2.3 billion, $ 2.1 billion and $ 1.2 billion, respectively, in 2016. Organisations across these verticals look to digitalise their operations and improve their value proposition across different lines of business.

Also, the consumer segment will rank among the top sources of IoT spending throughout the five-year forecast. Insurance, construction, transportation, and cross-industry IoT investments are some of the industries that will record the fastest spending growth in CEE. These represent use cases common to more than one industry, such as connected vehicles and smart buildings.

“Research firm Gartner expects there will be 8.4 billion connected ‘things’ to be in use in 2017. This is up 31% from the year before.”

Hardware and software spending will both grow faster than services and connectivity, although services spending will approach $ 7 billion by 2020. Modules and sensors, that connect end points to networks, will dominate hardware purchases, while application software will represent more than one half of all IoT software investments.

Research firm Gartner expects there will be 8.4 billion connected ‘things’ to be in use in 2017. This is up 31% from the year before. Moreover, the firm has also slightly revised its figure of 20.8 billion connected things by 2020 downwards to 20.4 billion, while total spending on endpoints and services are expected to hit almost $ 2 trillion in 2017.

The IoT Tech Expo Europe will be exploring the key industry verticals, including manufacturing, utilities and transportation, in Berlin on the 1-2nd June 2017. You can find out more and register here.

Originally published on IoT News.

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