IoT device management will harvest $20.5 billion in revenue in 2023

The so-called device management services, including device configuration, software and firmware updates, and device monitoring, will have $20.5 billion in revenue by 2023. According to ABI Research, predicting Internet of Things (IoT) device management services will be an integral part of any important IoT solution, with 70% of revenue coming from industrial, automotive and vertical telematics services.

ABI believes that as IoT solutions continue to shift to performing more processing and operations at the edge, devices need to be constantly updated to maintain solution security and increase the value of the overall analytics solution. If the device cannot be updated, its long-term value will stop. Therefore, the operations team needs tools for remote and efficient maintenance such as equipment management solutions. Because the solution can contain hundreds or thousands of devices, it is not easy to fix and update after deploying the device.

Among them, the proportion of equipment management revenue to total equipment and application platform revenue will remain relatively stable. The value of these services will be an integral part of any end-to-end IoT solution. However, competition among existing service providers, growth of market standards, and new device management solutions from existing cloud providers such as Google, Amazon AWS, and Microsoft will continue to drive the commoditization of device management services.

Although the commoditization of equipment management is a matter of degree, it can still be integrated by suppliers with other components of the IoT value chain to create a solution that brings value differentiation to end users and suppliers. In fact, the real value of device management solutions is that they are used to enhance the performance of IoT solutions and other areas, such as devices (such as Telit, Sierra Wireless, Cradlepoint or Eurotech), or as part of a larger platform product ( Such as Bosch, Mentor Graphic or Wind River). Companies that want to succeed in this area are not simply device management providers, but companies that integrate their DM products with other IoT solution components to differentiate the entire IoT market. value.