How the DataBroker marketplace for IoT sensor data adds value to the IoT industry
DataBroker is a peer to peer marketplace created to provide “Internet of Things” sensor owners with a clear path to data monetization and data consumers with a decentralized market to buy IoT sensor data. Building DataBroker has been extremely exciting for us as we see a huge opportunity in this space and we would love to share with you why we truly believe in this project’s potential.
The IoT data industry and it’s size
Enterprises are starting to rapidly scale the number of IoT sensors they deploy and overall spending on IoT technology rapidly grows.
The market size of the primary market for IoT sensors grew from a 600 billion USD in 2015, to a staggering 900 billion in 2017. The market is projected to reach 1.3 trillion in 2020 and up to 1.6 trillion in 2024.
The installed base of IoT endpoints will grow from 9.7 billion in 2014 to more than 25.6 billion in 2019, hitting 30 billion in 2020. (State of the Market: Internet of Things 2016, Verizon)
As the main purpose of these sensors is to generate useful data, you can only start to imagine the rapid growth of data generated by IoT devices.
An important distinction about DataBroker DAO’s potential market size is that we are not looking for the size of the sensor market itself, but the market for the data they emit.
Sensor owners purchase sensors for primary usage because they believe that what they can do with the data is more valuable than the cost of acquiring, deploying and maintaining the sensors
According to Verizon, the IoT services will be the real value drivers in this industry in the coming years:
We’ll continue to see IoT deployed as a mainstream path to generating higher revenue, thanks largely to the rise of four key trends which have come to an inflection point in the past year; data monetization, core IoT networks and low power devices, platforms as a service, and investment in IoT startups.
(State of the Things, 2016, Verizon)
The market for sensors does provide a clear indication of the amount of data that is available for sale today and in the years to come.
Estimating the market size for the data is then a function of estimating the demand for the available data. We are cautious with our estimates of the potential market size for this data. In our economic models, we use the assumption that the value of the IoT data market is only 30% of the primary market value. This assumption translates into a market potential in 2017 of 270 billion USD, growing to 500 billion USD in 2024.
How a data marketplace creates value
Despite the enormous amount of sensors being deployed, the even bigger amount of data generated by these sensors remain heavily under-utilised.
One way to put that IoT data to work and monetize the acquired data, is by offering the information on a marketplace to third parties.
Marketplaces are platforms that connect both the providers and the consumers of a data sets & streams. It’s the marketplaces’ role to ensure high-quality, consistency, and security.
Thereby the value in the marketplace is the concentrating of both suppliers & consumers in the place, so that it becomes easy to find buyers for your offered data.
How DataBroker DAO is filling this role
DataBroker is a peer to peer marketplace created to provide “Internet of Things” sensor owners with a clear path to data monetization and data consumers with a decentralized market to buy IoT sensor data.
Doing so with a distributed foundational layer for the buying and selling of IoT sensor data, we expect that unimagined uses of the data will emerge to create incredible value adding services that enrich the quality of life in our cities and our societies as a whole.
DataBroker DAO is the first marketplace for IoT Sensor data that will connect sensor owners with purchasers of the data directly, utilising existing infrastructure from telecommunication providers operating sensor connectivity networks based on GSM, LoRa, SigFox or via a proprietary gateway of the sensor owner.
In a sense, the DataBroker DAO can be likened to a “secondary market” for IoT sensor data and has been referred to as an “eBay” or “Amazon” for IoT sensor data.
Join the DataBroker community & early token sale
We hope this gave you a little bit more insight into the market of IoT data & DataBroker’s role in the industry. We would love to invite you to come chat with the DataBroker team on our slack or telegram.
On the 18th of September, the Early Token Sale of DataBroker DAO starts.
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