What should IoT start-ups be focusing on?
The Internet of Things is an emerging wave of new technology. The IoT will be connecting around 28 billion “things” to the internet by 2020. These things will range from wearable devices such as smartwatches to bigger devices such as automobiles, appliances, and industrial equipment. The ramifications for emerging start-ups are going to be huge. A start-up can only do so much, so they should be absolutely clear about what sector they would like to get into. IoT by itself is not a sector and is a broad term that spans across various industries and sectors. So, what should, or could, be the focus of IoT start-ups?
Industry focus
Equipment across healthcare, automobiles and transportation, oil and gas, etc. are becoming more digitized and more connected. This allows for the establishment of networks between machines, humans, and the internet. This also allows for the creation of new ecosystems. While the IoT is still in its infancy and adoption is starting to pick up steam, the potential opportunity is massive. Start-ups should decide what industry appeals to them. This allows for a start-up to discover problems pertaining to the categories within the industry and solve them for industry leaders, with the final result being reduced overheads, and improved efficiency.
Connected Cities
Governments and administration are going to be leading adopters of IoT, as it will allow them to monitor energy requirements more intelligently. With developed countries taking the IoT wave more seriously, the IoT growth is sure to surge. The EU has an aim of installing smart meters and replacing at least 80% of electricity meters by the year 2020. Smart meters and other connected network architectures will lay the foundation for more intensive as well as extensive connectivity throughout cities. With a number of municipal corporations taking the initiative of transforming their cities into connected and smart cities, the sector presents a tremendous opportunity to start-ups.
End user centric
IoT is already making a foray into the end user-centric segment. The segment has seen new consumer categories emerging, such as wearable devices, fitness bands, action cameras, smart watches and smart glasses. Cars have also been a prime target of this segment. The new and upcoming cars are becoming more connected. These cars have a deeply integrated infotainment system. This infotainment system is generally comprised of navigation, safety and diagnostics. Consumers in these verticals are already experiencing IoT and are seeing it extend beyond desktops and mobile devices.
Another segment within this sector would be the connected home sector that, in many ways, is the reason IoT has gained so much traction in recent times. The sector has seen new lines of products and services like appliances, smart thermostats and HVAC systems utilizing IoT.
Different Roles
New start-ups have to decide if they will be developing IoT-ready hardware for industries or they will be on the software/framework end. You can also be a vertical player, doing both software and hardware. Or you could be focusing on the business logic and providing key algorithms to technology companies who program the login into the IoT devices. There are also start-ups who deal specifically in making sure that IoT devices are secure and compliant ready.
As an early adopter and player in the IoT field, you will have to be patient with the technology. As a start-up, your job in this early stage will be facilitating IoT adoptions by making connections possible (through the hardware) and by providing solutions to process the massive amounts of data.