The Industrial IoT Landscape 2015 - Sample Report

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Transcript of The Industrial IoT Landscape 2015 - Sample Report

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Industrial IoT Landscape 2015 | © VisionMobile 2015 | All rights reserved | Report sample Get in touch or purchase the full report at: http://vmob.me/ΙΙοΤ15

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About VisionMobile ™ VisionMobileTM is the leading research company in the apps economy and mobile business models. Our research helps clients track developer trends through the largest, most global developer surveys.

Developer Economics is our semi-annual industry research series, tracking app developer trends, attitudes, experiences and monetization by region.

Our mantra: distilling market noise into market sense.

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Copyright © VisionMobile 2015 - v.1.0

Contents Content

About this report

Key insights

Chapter 1. The rise of the IoT developer

Chapter 2. Developers in the Industrial Internet of Things

Chapter 3. The Industrial IoT platform landscape

Chapter 4. The profile and attitudes of Industrial IoT developers

Chapter 5. Conclusion

Methodology

Extra - Platform scorecards

Also by VisionMobile Find out more visionmobile.com/reports

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Key questions that this report answers: • Why will software and data developers be so important to

industrial companies in the next decade?

• Who is playing in the Industrial IoT platform space?

• Who’s winning? Which are the most promising and most popular Industrial IoT developer platforms?

• What are the background and motivations of Industrial IoT developers?

• Which key challenges do Industrial IoT developers face? What do they value when selecting platforms?

The data points:

8TH EDITION DEVELOPER ECONOMICS

4,000+ IOT DEVELOPERS SURVEYED IN Q4 2014

1M+ INDUSTRIAL IOT DEVELOPERS IN THE WORLD TODAY

120+ COUNTRIES COVERED

30+ INDUSTRIAL IOT PLATFORMS ANALYZED

ABOUT THE REPORT

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About this report ............................................................. 4  Key takeaways ................................................................. 5  

Market  dynamics  ....................................................................................  5  Industrial  IoT  platforms  ......................................................................  5  Industrial  IoT  developers  ...................................................................  6  

The rise of the IoT developer ............................................. 8  Developers  innovate  in  consumer-­‐first  verticals  .....................  9  The  window  of  opportunity  for  IoT  platforms  is  open  ........  10  Developers  are  migrating  to  IoT  fast  ...........................................  11  

Developers in the Industrial Internet of Things .................. 13  Two  visions  for  the  Industrial  IoT  ................................................  13  Technology  and  business  models  incubated  in  consumer  markets  are  invading  industry  .......................................................  14  Addressing  the  skill  shortage  ..........................................................  16  Addressing  the  long  tail  of  Industrial  IoT  ..................................  17  

The Industrial IoT platform landscape .............................. 20  What  future  winners  will  look  like  ...............................................  20  Who’s  playing?  .......................................................................................  22  Who’s  winning?  .....................................................................................  24  

The profile and attitudes of Industrial IoT developers ......... 28  Demographics  ........................................................................................  28  Programming  background  ...............................................................  31  Motivations  and  focus  ........................................................................  32  Industrial  IoT  developers  crave  mature  platforms  ...............  35  How  developers  choose  platforms  ...............................................  36  

Conclusion .................................................................... 40  Methodology .................................................................. 42  IoT platform scorecards .................................................. 43  

TABLE OF CONTENT

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1. IoT developer interest in 7 IoT markets (targeted verticals, planning to target)

2. Top 3 most popular IoT platforms among developers (general purpose, Smart Home, Wearables, Health & Wellness, Connected car)

3. IoT Developer segment mix across 8 motivation-based segments

4. 5 examples of how consumer technology invades every industry

5. The long tail opportunity for co-creator networks in Industrial IoT

6. The Industrial IoT platform landscape 2015 (taxonomy and market map)

7. Popularity of 6 general purpose IoT platforms used by Industrial IoT developers

8. The demographics of Industrial IoT developers (company size, other verticals targeted, regional distribution, experience in IoT, web technology, mobile, and software)

9. Popularity of device-side and server-side programming languages among Industrial IoT developers

10. Industrial IoT developer segment mix across 8 motivation-based segments, compared with other IoT developers

11. Challenges for Industrial IoT developers

12. Platform selection criteria for Industrial IoT developers

13. Platform scorecards for Xively, ThingWorx, Amazon Kinesis and JD Smart Cloud (Team and Enterprise licenses only)

LIST OF GRAPHS

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ABOUT THE AUTHORS

Stijn Schuermans Senior Business Analyst

Michael Vakulenko Strategy Director

Christina Voskoglou Director of Research and Operations

Stijn focuses on understanding how technology becomes value-creating innovation, how business models affect market dynamics, and the consequences of this for corporate strategy. He is the lead Internet of Things researcher in the VisionMobile team since 2012. Stijn holds an engineering master degree and an MBA. He has over 10 years experience as an engineer, product manager, strategist and business analyst. You can reach Stijn at: [email protected] @stijnschuermans

Michael has over 18 years experience in mobile and telecom starting from working on first experimental 3G systems in Qualcomm. Later on Michael was part of several startups developing products in the areas of wireless, enterprise networking and mobile apps. At VisionMobile Michael works at the cross section of business models, economics and technology where he leads strategy practice for software-centric business models in mobile, Internet of Things and Connected Car. You can reach Michael at: [email protected] @mvakulenko

Christina leads the analyst team and oversees all VisionMobile data projects from methodology to analysis and insights generation. She is also behind VisionMobile’s developer segmentation research, as well as the Developer Economics reports and DataBoard subscription services. Christina has more than 16 years of experience in statistical consulting, BI design and business forecasting. She holds an MSc in Statistics from the London School of Economics (LSE) and a BSc in Economics & Statistics from the University of Bath. You can reach Christina at: [email protected] @ChristinaVoskog

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The Industrial IoT Landscape 2015 report is part of Developer Economics - the leading research program on software developers and the app economy, tracking developer experiences across platforms, revenues, apps, languages, tools, APIs, segments and regions.

We surveyed 4,000+ IoT developers from 120+ countries in our Q4 2014 Developer Economics survey. The data from this survey, the largest research to date on IoT developers, give us a unique perspective at how the Internet of Things developer ecosystem is evolving. This research report delves into data on the 430+ of those developers that are active in Industrial IoT.

The online survey was translated in 6 languages (Chinese, Portuguese, Japanese, Korean, Russian, Spanish) and promoted by more than 68 regional and media partners within the app development industry. We corrected for regional bias and segment distribution bias across our outreach channels. For more information about our methodology, please get in touch.

While Industrial IoT is one of the most mature IoT markets, it’s currently undergoing a fundamental transformation. Technologies, business models and people who ‘grew up’ in consumer markets are now being integrated in an industrial environment – a convergence of two very different engineering cultures. Industrial companies now face a deep skill shortage and a 10x higher speed of innovation than ever before. Ecosystems of developers can help to address those challenges.

In this report we tell the story of this metamorphosis. We deconstruct the landscape and evolution of Industrial IoT platforms. Finally, we profile the developers that will fuel the industrial innovation engine in the next decade.

In the following sections, you can get a flavor of what to expect with a few of the key insights from the Industrial IoT Landscape 2015 report.

INTRODUCTION

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Developers are flowing into the IoT ecosystem fast. Already over half of mobile developers are involved in the Internet of Things. We estimate that there are over 4 million IoT developers in 2015. Over one million of them are active in the Industrial IoT.

What picture forms in your head when thinking about an Industrial IoT engineer? Perhaps a veteran embedded C programmer in his forties, working in a lab or on a factory floor in a European or American plant from a large manufacturer? The reality is more diverse.

Industrial IoT developers are fairly experienced. Industrial IoT counts significantly more highly experienced developers (with 6+ years experience) than other areas of the Internet of Things, across all technologies.

This said, the bulk of Industrial IoT development is not performed by veterans who have been connecting machines for decades. Just like in the broader IoT space, we see a large influx of new blood, starting about 2 years ago. Almost 2 in 3 Industrial IoT developers (63%) has less than 2 years experience in the Internet of Things.

INDUSTRIAL IOT DEVELOPERS ARE EXPERIENCED, BUT NEW TO IOT

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The industrial scene needs new software platforms that help companies to tame the data firehose, provide interfaces (apps) to a host of stakeholders inside the company and out, and most importantly, to engage developers, gelling them into vibrant ecosystems. There is no reason to assume that incumbent enterprise IT companies are the best placed to rise to the challenge.

To win the market, Industrial IoT platforms must offer more than just a component in a technology stack. They must offer developers clear mechanisms to distribute, promote and monetize software. Platform component marketplaces make the platform itself significantly more valuable and may trigger developer-to-developer network effects. Even more powerful are solution marketplaces, offering developers a channel to customers. Component and solution marketplaces are the way by which future platform winners will distinguish themselves.

In parallel with the enterprise software vendors, internet giants like Google, Microsoft, Amazon and JD are leveraging their developer base, user base, technology and commercial infrastructure to help manufacturers of consumer goods to transform their products and business models. In our survey of 4,000+ IoT developers, Amazon and JD are the clear leaders among general purpose IoT platforms. 23% and 21% of Industrial IoT developers currently targets Amazon Kinesis and JD Smart Cloud, respectively, while other comparable platforms hover around 10%.

WHY AMAZON AND JD WILL BE POWERFUL INDUSTRIAL PLAYERS

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The top challenge cited by 46% Industrial IoT developers is the immaturity of platforms, tools and standards. It’s a significantly bigger challenge than for non-industrial IoT developers (+7 percentage points).

Few IoT platforms actually offer meaningful reach or monetisation opportunities so far. As a consequence, 21% of the Industrial IoT developers in our sample say that monetization is a challenge for them, yet only 5% will prioritize platforms with good monetization tools - there just aren’t any to prioritize. Similarly, access to market , market size and fragmentation and discovery are important challenges, but only 8% of Industrial IoT developers prioritize platforms with bigger reach potential.

Looking forward, we predict that reach, monetization and differentiation will grow in importance over time, to the point where they become the main reasons for platform selection. Platforms that offer more than just technology and that connect developers with customers are rare in industry and feel counterintuitive to the way that industrial business is structured. Yet when they appear, they often turn out to be the most powerful model.

MAKING MONEY AS AN INDUSTRIAL IOT DEVELOPER

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distilling market noise into market sense