As the Internet of Things (IoT) market expands, vendors will find the biggest revenue in the vertical opportunities presented.

Denise Culver, Online Research Director

August 21, 2015

2 Min Read
IoT Growth Depends on Vertical Focus

When the 11 IoT-related vendors that feature in this month's Heavy Reading Insider were asked to rank, from a list of 13, the verticals in which they had the most interest, manufacturing came top.

Manufacturing is a natural fit for the Internet of Things (IoT) because it makes equipment smarter, better connected and provides better operational excellence and business insight. Specifically, it is believed that discrete manufacturing and industrial verticals will experience a transformation as the result of IoT.

These kinds of insights are just some of the findings in this month's Heavy Reading Insider, Heavy Reading Service Provider IT Insider, "Vendors Find Strongest IoT Growth With Vertical Focus." This report examines the vertical markets for IoT, analyzing how vendors are defining the market, as well as how they expect verticals to shape up for IoT. Additionally, it examines the strongest drivers in the market, as well as the greatest challenges the market faces. The report includes a comparative analysis of IoT solutions available and details trends that are likely to occur in the industry over the next 18-24 months.

This report specifically focused on verticals because the value of IoT will initially be driven in most markets by horizontal markets, but then will shift to vertical markets for sustainable growth. Vendors will have to create solutions for specific use cases that address industry-specific business processes, thus addressing the most lucrative vertical markets.

Certain factions of IoT are growing quickly; however, growth will not be consistent, and it will not continue unless vertical markets are addressed. It's also important to note that verticals that already understand IoT -- transportation and logistics, energy and utilities -- will see the most immediate growth.

Also key will be the development of some type of governing body that creates standards for IoT. Some have suggested that such standards don't need to be created from scratch -- and this is a recommendation that is well worth considering. Considering standards from other industry segments and utilizing what's already open and effective would enable IoT to continue developing and growing, while also working to get standards up and running in a realistic time frame.

— Denise Culver, Research Analyst, Heavy Reading Service Provider IT Insider

Vendors Find Strongest IoT Growth With Vertical Focus, a 21-page report in PDF format, is available as part of an annual subscription (6 bimonthly issues) to Heavy Reading Service Provider IT Insider, priced at $1,499. Individual reports are available for $595.

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About the Author(s)

Denise Culver

Online Research Director

Denise manages Heavy Reading's Thought Leadership Council, which uses a focus group approach to glean insights from CSPs on topics ranging from automation, IoT, 5G, B/OSS transformation, SD-WAN and emerging technologies. Additionally, Denise covers the test and measurement industry as an analyst, focusing on how T&M vendors are addressing telco transformation, as well as the impact that technologies such as IoT are having on service provider networks. Denise also continues to oversee development of Light Reading's Pedia projects, including Virtuapedia and Testapedia. Previously, she was a Contributing Analyst with Heavy Reading for seven years, covering a wide range of areas, including mobile, IP transformation and T&M. Her career in technology journalism began in 1996, and she is a past winner of the American Business Media Association's Jesse Neal Award for editorial achievement. She is a graduate of Texas A&M University.

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