On our journey so far, we’ve come across lots of questions and discussion
around the Internet of Things (IoT), as well as some misinformation and
plenty of speculation. So today we thought we’d talk about IoT, what first got
us interested in this space — and why we think it’s a highly attractive
investment opportunity.
What even is IoT?
First off, a few definitions. IoT is much more than just smart devices; it’s
driving markets and changing industries worldwide.
In its simplest form, the ‘Internet of Things’ is about connecting previously
unconnected devices to the Internet. That way they can collect data,
communicate with each other and automate processes.
Smart. Connected. Automated. These devices can now revolutionise some of
the world’s biggest industries. From smart water and energy meters, solar
panels and electric car charging stations to almost every consumer electronic
and, even, fully connected cities. The possibilities are endless.
The future is here
What first got us excited about this space was its potential, but it’s always
wise to study the stats behind the buzz. A quick look at the market predictions
shows us where the future of IoT might be heading.
Even though IoT development is at an early stage, we’re seeing incredible
progress. According to Boston Consulting Group, we’re looking at IoT market
growth from from $157B in 2016 to $457B by 2020.
Digging down a bit deeper shows that the fastest growing applications include
electric vehicle charging stations, micro-grids, smart waste management and
environmental sensors. Each is already generating decent revenues.
Research by Forbes, Machnation, GSMA, Navigant and AriaSystems all
suggest that IoT revenues will exceed expectations.
With these stats, you can see why all of us at MyBit are excited by the IoT
revolutions. Because that’s what it is, the next Industrial Revolution.
With fleets of connected products entering the market — products that will
change the way we interact with our tech, homes and cities — investing in IoT
isn’t just investing in smart products. It’s investing in the new economy.
But what’s happening in the market right now?
It’s often hard to find out what’s happening in the world of IoT. All too often,
this space is dominated by large industrial corporations. It’s interesting to see,
though, that these industrial giants are the ones spearheading IoT
development (an Industrial Internet of Things, if you like).
Investments and mergers give us a good idea of the market right now.
Japanese telco giant, SoftBank, recently purchased the British chipmaker ARM for $31 billion, based on ARM’s expertise in IoT. SoftBank’s CEO, Masayoshi Son, had this to say about the acquisition:
“First there was the Internet, then the mobile Internet and next there will be the Internet of Things, which is going to be the biggest paradigm shift in human history. I’m making this investment at the very beginning of this shift.”
For investors, these are all highly favourable indicators. The rise of IoT seems
unstoppable as it starts to impact on new markets and industries. Here at
MyBit, we’re working to speed up early access to these markets — and
support the development of the machine economy today and in the future.
That’s why we’re in the space, how about you?
