Mapping of European Industrial IoT startups

By Guillaume Meulle and Alexis du Peloux

By the end of 2017 there will be over 8.4bn IoT connected devices on the planet, superseding the 7.48bn population of world. This trend is mainly attributed to the fast adoption and growth of web-connected physical devices such as driver-less cars, smart bandages, automated farms and interactive billboards. In short, the acceptance, adoption and business applicability of IoT is on the rise.

In front of the numerous Industrial IoT projects, we find interesting to propose a mapping of the sector at a European scale. As the sector is highly fragmented with startups having few large customers, it’s easy to feel alone whereas a lot of potential competitors or partners are in the neighbourhood.

We’ve already inventoried 110 European startups and it is probably not complete. But it provides a precise overview of a how — and where — the IoT is booming.

Full stack vs. platform providers

On one hand you have the full stack players, proposing both hardware and web applications, trying to catch the entire value chain. These startups tend to see their main product becoming a by-product, due to hardware commoditization, while the business model around the data is becoming the main product.

On the other hand you have the platform providers, that are building business models solely on IoT data and are using hardware partners to get access to the necessary data sources. In that case the platform is an essential enabler, a means of collecting and making sense of the data, while the real value will come by applying the resulting insights to create great IoT services (e.g., predictive maintenance) for connected businesses.

Strong verticalization

The sector is generally organized around verticals:

Connected buildings and smart cities, enabling energy savings, ease of access control, intelligent surveillance and monitoring, improved building operations and support for sustainability efforts.

Transportation, driving better automotive analytics, improved traffic conditions, optimized fuel usage and travel routes. IoT will be a key enabler in the driver-less cars industry.

Agriculture for uses such as tracking soil temperature, acidity levels, and other metrics to help farmers increase crop yields, track productivity of bees or assist them in stables. Benefits include: real-time monitoring of livestock health, improved irrigation methods, remote soil monitoring, reduced water consumption and streamlining of farming processes.

Energy & Infrastructures that will support increased productivity, improved safety, predictive maintenance, reduced asset loss — self diagnosing devices will identify product issues early, from temperature and environmental changes to predicting machine failures.

Healthcare IoT is used for real-time patient monitoring and prevention care using wearable devices. Hospitals use IoT to track the location of medical devices, personnel and patients with the ability to extend preventive care beyond the hospital premises (especially when it comes to silver economy). IoT is pushing towards enhanced medical workflow automation, better analytics for disease management and improved out-patient health monitoring.

Manufacturing particular benefits include significant increase in capacity utilization, lower unit costs, improved safety, accurate real-time shipment tracking, monitored & optimized fleet management, and efficient warehouse inventory management

And indeed, numerous horizontal technology providers that offer the necessary hardware, communication networks and infrastructures to support the sector exponential growth.

If you don’t find yourself in this mapping, don’t hesitate to contact us here:

We will be pleased to add you!

(Source : Gartner, World Bank, GrowthEnabler)